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Analysis Marketing Strategies of UB for Indian Market
UNITED BREWERIES GROUP
Presented ByDipanway BhabukDM14D15
Objective of my Project
Marketing Strategies
of the company
Get a overview of
Finance
Marketing Practical
work
To Understand
the hierarchy of
the company
About India’s leading drinks Group
United Breweries
• UB Group is an Indian conglomerate company headquartered in UB City,
Bangalore in the state of Karnataka.
• The company has annual sales of over US$4 billion and a market capitalization of
approximately US$12 billion.
• United Breweries is India's largest producer of beer with a market share of around
48% by volume.
• The company chairman, Vijay Mallya, who had been a member of the Indian
Parliament.
• The UB Group today controls 60% of the total manufacturing capacity for beer in
India.
PRODUCTION PLANTS
HR -Hierarchy
Products overview of UB limited
1. Kingfisher Strong (strong beer)
2. Kingfisher Premium (mild beer)
3. Kingfisher Draught (draught beer)
4. Kingfisher Ultra
5. Kingfisher Blue
6. Kingfisher Red
7. Kingfisher Strong Fresh
8. Kingfisher Bohemia
9. Zingaro (strong beer)
10. London Pilsner
11. UB Export
12. UB Export Strong
13. Kalyani Black Label
14. Kalyani Black Label Strong
15. Bullet
16. Charger
17. Marco Polo
18. Kingfisher Ice Beer
19. Guru Strong
Products overview of US limited
1. Antiquity
2. Bagpiper
3. Director’s Special
4. DSP Black
5. McDowell's No.1 Reserve
6. McDowell's No.1 Platinum
7. McDowell's Single
8. Royal Challenge
9. Signature
10. Black Dog
11. The Dalmore
12. Jura
13 Whyte & Mackay
14. Pinky
15. Romanov
16. Vladivar
17. White Mischief
18. McDowell's VSOP
19. McDowell's VSOP
Net SalesFY 2014 (cr.) FY 2013 (cr.) FY 2012 (cr.)
Net Sales 4235.50 3903.14 3699.33
4235.5
3903.14
3699.33
3400
3500
3600
3700
3800
3900
4000
4100
4200
4300
Net Sales
United Breweries
FY 2014 FY 2013 FY 2012
Finance – Debt Equity Ratio
0
0.2
0.4
0.6
0.8
1
1.2
Debt equity
FY 14
FY 13
FY 12
Ratio Year 14 Year 13 Year 12
Debt equity 0.67 0.97 0.71
Marketing - Acquisition Strategies
• Shaw Wallace
• Bouvet Ladubay
• Heineken Beer
Takeover Strategy
• Whyte and Mackey
• Pinky Vodka
Conglomerate Diversification Strategy
Royal Challengers Bangalore (RCB)
Sahara Force India
Kingfisher East Bengal
MacDowell Mohun Bagan Athletic
Key Focus Areas
Brewery (Beer)
Spirits (Scotch, Whisky, Vodka, Rum etc)
Ground Reality
In India, promoting alcohol through television commercials, print ads and
hoardings is not allowed.
Alcohol – it has a great appeal despite the advent of Indirect Advertising
Inference
Discover new and innovative ways to engage consumers through right
communication when it comes to UB group’s Key Focus Areas
Analysis
Why UBL has taken Conglomerate Diversification Strategy?
Promotional Tool: Alcohol advertising is one of the most highly-regulated forms of
marketing. UB Group owning sporting teams provides a new platform to promote the
products associated with the team owners.
Target Audience: The Sports that UB Group endorses are long-term in nature with a strong
lifestyle component. It's focused around lifestyle sports in a country where affluence is on a
new high.
Economically Viable: The economic model of the Sport is such that it should provide good
Return on Investments. Sporting Teams can bring in money from sponsors and
merchandising. Can act as a business model where in the long run, cost become lower and
lower. Sponsors then buy space on the teams, and thus eventually Owners will get free
advertising.
Global Outreach: The sport has a viewership around the world, and will help the UB
Group reaching out to the Global Market. Indian Premier League and Formula are the best
promotional platforms to introduce their brands in the Global market.
Analysis
SAHARA FORCE INDIA F1 Team
Use their cars to promote the products associated with the UB Group
Expensive business (Lifestyle Sport)
Money from sponsors and merchandising
Formula One can be seen in almost every country and territory around the world
and attracts one of the largest global television audiences. Attracted a global
audience of 600 million people per race
Analysis
Kingfisher East Bengal and MacDowell’s No. 1 Mohun Bagan Athletic
• Having a 50% stake each, in the 2 most prestigious Football Clubs in India, Kingfisher
was bound to gain mileage on the growth of the sport.
Located in the Eastern region where the public is passionate about Football, the UB
Group would gain brand recognition.
These two brands products are sold in West Bengal in a higher ratio
UB Group has earned profit every year by these football clubs
Consolidation Strategy
After venturing into unrelated sectors, UB Group had planned to follow a new strategy in
effectively utilizing these diversified sporting assets. It wanted to combine its various
sports interests into a single entity and explore a possible listing on the bourses.
Reasons for Consolidation
Presently, these assets are spread across different divisions of The UB Group. With Force
India and Bangalore Royal Challengers proving to be good investment decisions, it’s
crucial for these assets to be channelized in the right direction for the benefit of The UB
Group.
The setting up of a Sporting Entity would also mean going for a possible listing or bring
in financial investors, which would help The UB Group recover finances.
New Product Initiative
Kingfisher Blue
It’s a young & sporty brand in the premium beer space, that’s sure to thrill the
adventurous young and those who seek something extra from life.
Kingfisher for decades has been the brand that has captured the consumers’ imagination
and has now added another premium beer to its portfolio.
Kingfisher UltraUnited Breweries launched Kingfisher ULTRA in a premium extension of its larger than
life brand Kingfisher.
Kingfisher ULTRA is a super premium beer launched in this newly emerging and
potentially promising segment.
Bullet
Bullet has been a favourite of people of Rajasthan ever since its launch
Bullet with its name and positioning has always had a rustic and son of the soil appeal,
making the brand endearing to its target audience.
Bullet comes with the stamp of a high quality product from a trusted company and at a
very attractive price.
UB Export Strong
UB Export Strong, a 'strong' avatar of Karnataka's much loved and iconic beer brand UB
Export was launched across Karnataka.
Owing to changes in the excise policy of Karnataka, the prices of beer went up, thus
making beer expensive for the masses and resulting in a decline in the beer industry
volumes. Being market leaders, United Breweries Ltd. took upon itself the task of
reviving the beer industry in Karnataka
Contd..
Kingfisher Draught
For the first time in India, and being one of its kind, Kingfisher launched ‘Draught in a
Can’ in a convenient 500 ml can.
This completely unique concept was specifically developed for people who think there is
nothing better than beer on tap.
It is no surprise that the crisp taste of the “freshest thing in a can” is loved by the
Kingfisher Draught fans.
The convenient 500 ml size makes it easier to guzzle on the go.
Contd..
Kingfisher Calendar
• The Kingfisher Swimsuit Calendar is a successful property the brand has
developed over the years.
• Conceptualised along the lines of the Pirelli calendar, the Kingfisher Swimsuit
Calendar is the perfect blend of fashion, fun and glamour.
• Over the years, its unveiling has become one of the most eagerly anticipated
events in the Indian fashion calendar.
• Introduced in 2003, the 'Kingfisher Swimsuit Special' became the pioneer of
sorts in India and led the path for many such concepts to follow.
Celebrity Branding
The Broadcasting promotions
Press Promotion
Presenting TV Commercial
Indirect Promotion
Kingfisher Water
The best in class Kingfisher’s premium packaged drinking water is prepared by
removing undesirable dissolved solids , suspended solids, biological contaminants
and gases from water.
My suggestion to the company
Introduce new product in spirit segment
Tying up to more retail outlets for selling of beer
Entry into flavoured market
Introducing new innovative packaging
Tie up with restaurants
More promotional activities should take in Goa
Use Press Media for Promotion
Jo hath lag jaye vo kya large,
Lekin large banta hai un hi choti chijo se,
Small milate jao, larg banate jao.
