BEER INDUSTRY

PRESENTED BY:-SWAPNIL MBA 4551/08 SHWETA MBA 4522/08VINOD MBA 4563/08 MISHI MBA 4571 /08 AMIT MBA 4564/08VAISHALI MBA 4506/08ATUL MBA 4515/08

BEVERAGE

TYPES OF BEVERAGEWATERALCOHOLICNON ALCOHOLICSOFT DRINKSHOT DRINKS

SOME FACTS ABOUT LIQUOR MARKET

Source of revenue of the State Exchequer Rs. 25,000 Crores.

The Industry Turn Over is Rs. 6,000 Crores Four States under prohibition IMFL – Whisky, Rum , Brandy, Gin & Vodka - 97 million cases p.a. Country Liquor – 160 million cases p.a. Beer 85 million cases p.a. Wine Domestic – 300,000 cases p.a.

KEY PLAYERS IN LIQUOR MARKET

Herbertsons 8 Bagpiper

McDowell & Co. 17 McDowell no.1, Diplomat

Shaw Wallace 9 Directors Special

UDV 3 Green Label, Smirn Off

Bacardi 0.1 Bacardi Rum

Seagram 0.8 Bacardi Rum

OTHER PLAYERS• Other brands in the Indian market

Carling Black Label Golden Eagle

Carlsberg Haake Beck

Dansberg,, Haywards 2000

Guru, Ice London Diet

Haywards 5000 Haywards skol,

Flying Horse Royal Lager Taj Mahal, Heinekin Hi-Five Royal Challenge

Kingfisher Diet Kingfisher Strong, KnockOut, Legend Sand Piper, Zingaro

MAJOR ASPECTS• The primary factors acting as constrain for

this industry in India.

• At the very outset we have four major issues : 1. Legal aspect,

2. Social aspect and

3. Promotional aspect.

Beer Market In India

• Beer market in India is estimated to

be around Rs. 3000 crores.• Around 94 million cases of beer are

sold annually.• United Breweries is the market

leader with a 47.5% market share.• SAB Miller comes second with a

38.3% market share.

SOME FACT ABOUT BEER MARKET

• Optimistic future because :

• Warm/hot climate

• Younger beer-drinkers

• Increasing exposure

• UB is the market leader in Indian beer market with a 47.5% market share.

• Kingfisher alone commands 25% market share

•

REGION WISE GROWTH RATE

Market Share

47.5%

30.6%

3.6%10.6%

2.30%

5.40%

UBL Group SAB + Mt. Shiv Others

Fosters

The Market Leader

U.B. Spirits Division• World’s top five liquor marketer.

Growth strategy• True organic growth • Sidelined domestic leaders

Welcome to world of Kingfisher - The King of Good Times

U.B. - 48% SAB - 38% Others – 14%

14%

38%

48%

KINGFISHER – The King of Good Times

Largest selling brand in India, the market leader in Indian beer

LEADER’S STRATEGIES • Roped in professional• Quality and hygiene• Launched brands like :-

Bagpiper whiskey, Romanov vodka ,McDowell’s whiskey McDowell’s No. 1 brandy• Delegation of responsibilities • Minimal intervention in operations.• Brand promotion

.

BUSINESS PORTFOLIO OF KINGFISHER

• Established in 1857 with the name Castle Breweries.• Renamed United Breweries in 1915.• First manufactured beer in 1944 under the label Exports

Beer.• Starts exporting beer to Mid-East in 1974.• Introduces Kingfisher in 1978.

• Largest selling brand in India.

• 30% share • Recorded a 28% growth

in the year 08-09.

KINGFISHER

THE LIQUOR KING

• Dr. Vijay Mallya, • Flamboyant Czar • Youth icon of a million

hearts• His sole presence

outweighs all other competitors taken together.

SEGMENTATION

Age

Sex

Consumption

Geographical

>35

25-35

15-25Male

Female

Regular

Occasional

South

West

Rest of India

TARGETING Kingfisher Mild Beer

• Primarily targeted for the young who drink for fun.

• First time drinkers like urban women who prefer to drink light.

• First time drinkers segment which drinks for experience.

TARGETING Kingfisher Strong

Beer

• Aimed at regular drinkers segment.

• Targets those who want to move from mild beer to strong beer.

HOW MUCH BEER ONE CAN DRINK?

• Men 40 grams per day

• Women not more than half of that quantity

• Real hard fact

700ml – acceptable for men ,half for women

POSITIONING• Stands for youth, excitement

and fun.

• Health drink

• Associates itself with Indian

cuisine

PRODUCT• No. 1 selling product in its

segment.

• High quality raw material

• High consistency

• Always tastes fresh.

• No hangover.

PLACE

• Available throughout India

• 60 countries.

PRICE

• Competitive pricing strategy.

• 650 ml – Rs. 65

• 330 ml – Rs. 35

PROMOTION

• Surrogate advertising methods

• Calendars

• Sponsoring events

ROYAL CHALLENGE PREMIUM LAGER

• Launched in the year 1993,• Second largest selling MILD BEER in

India.

About this brand • Beer type: Lager

• Alcohol content by volume: < 5% by vol

• Country of origin: India

• Taste: Rich smooth taste

• Malts: Indian malts, 6 row barley

• Serving temperature: 7 - 9 °C

• Colour :Golden straw

• Packaging: 650 ml, 500ml  and 330 ml, Indian Standard Green glass bottle and 330 ml cans

HAYWARDS 5000• Launched in 1983, Haywards 5000 is synonymous with

strong beer

• Brewed with the choicest of malts lending unique flavour profile to suit the Indian taste and preference.

• Hallmark of original and authentic STRONG BEER

ABOUT THIS BRAND• Country of origin: India

• Beer type: Lager

• Alcohol content by volume: < 7.5% by volume

• Taste : malty flavour

• Malts: Indian malts, 6 row barley

• Colour: Golden yellow

• Serving temperature: 7 - 9 °C

• Packaging: 650 ml, 330 ml

THE CHALLENGERFOSTER

CHALLENGERSBUSINESS .

PORTFOLIO….

FOSTER• SABMILLER Company.

• Global multi-beverage company

• Consumer led

• Customer driven

Foster BeerBrandsFoster’s Lager

Crown Lager

Carlton Cold

Carlton Sterling

Carlton Draught

Victoria Bitter

Cascade Premium Lager

BRAND HERITAGE• W.M. and R.R. Foster established a brewery in

Melbourne.

• In 1889, Foster started exporting beer to South Africa.

• In 70s, Foster started exporting to US and UK.

• In 1998, was launched in India.

SEGMENTATIONFOSTERS

AGE

SEX

OCCUPATION

BEHAVORIAL

SEX WISE

MALE

FEMALE

OCCUPATION

WORKING

BUSSINESS

CLASS

COLLEGE

GOING

BEHAVORIAL

OCCATIONAL

USERS

REGULAR USERS

TARGETING

• AGE

• SEX

• OCCUPATIONAL

• BEHAVORIAL

20-30

MALE

FEMALE

WORKING CLASS

REGULAR USERS

POSITIONING• Promotional programs, sponsorship and public

relations.

• Australian's is the essence of Foster's brand image

• All Foster's lager theme advertising is consistent with Australian positioning.

PRODUCT

• Style - Full strength lager

• Tastes fresh

Place Of Foster BeerCOMPANY

DISTRIBUTOR

RETAILER

CUSTOMER

24 distributors serving over 5,000 outlets, including over 2,300 outlets in Mumbai.

Price Of Foster Beer• Foster's Beer Cans 375ml 79.00

• Foster's Beer Pints 355 ml 75.00

• 70% of Foster’s sales today come from the pint-

sized market

• 31% of the market in Maharashtra

Promotion Of Foster Beer• Committed to promoting responsible consumption

• No medical advice, nor advise

• Consumers access the best available information

• Three major segments –

premium, full-strength and lower alcohol

Promotion

Advertising

• Distinctive "Oil Can" design

• Overseas advertising

Brand Repositioning of Indian Brand in

Presence of International Brand:

• Competition

• Invested heavily in brand visibility and positioning

• Creation of new logo

• Create a stronger emotional bond with the aspiring Indian youth

The PeopleIndian Economy

2005

2006

2007

2008

2009

2010

Population (millions)1,09

5.4

1,110.4

1,125.4

1,140.2

1,155.0

1,169.7

Household consumption (US$ billion)

2028

2210

2419

2651

2910

3176

□ The rising middle class within India is bringing with it a higher rate of consumption

□ Beer consumption is also increasing at a rate of 0.5ml per year/ per person

Growth: 9% 9.4 9.5 9.7 9.1

Source: Yura Beverages Inc

CONVERSION

BARRIERS

•Not for me

•Beer= Celebrations only

• I don’t understand beer / can’t pronounce names / read the labels

• India is a growing economy

• Market is opening up.

• Per capita income is rising

• Changing stigma

•Beer companies are trying to get associated with everyone’s life

CONCLUSION

???????????"Oil Can" design

?

?

McDowell’s No.1 brandy?

?