Going To The Market
United Breweries Limited( UB Group) Kingfsher Beer
Submitted By: Abhishek Gupta Allen Thomas K Pooja Ganatra Shubham Dubey Sweta Kumari
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!" #$# #$#UT% UT%&# &# SUMM' SUMM' Although Indian Alcohol Industry has been dominated by stronger spirits (IMFL), but over the years beer has made a mark in the industry and has been able to make its presence felt. ubbling !ith enthusiasm and high on
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!" #$# #$#UT% UT%&# &# SUMM' SUMM' Although Indian Alcohol Industry has been dominated by stronger spirits (IMFL), but over the years beer has made a mark in the industry and has been able to make its presence felt. ubbling !ith enthusiasm and high on
gro!th !ave, Indian eer Industry has been a magnet for many international players. "igh gro!th rates and rela#ation of rules on foreign direct investment in the last decade has attracted foreign investment in the beer sector. $he industry !hich once offered limited varieties today has left the beer lovers be!ildered !ith varieties and %ualities on offer. Also, Also, the Indian gro!th stor y holds up the e#pansion of the beer industry. $rends in the Industry &ntry of foreign brands in India • udding eer 'ategories • urrogate Advertising • Favourable demographics, rising disposable incomes, urbaniation and rising acceptability of drinking have brought the !inds of change for the industry. &#pectant * hopeful rationaliation of the ta#ation rules !ill further aid the gro!th. Indian beer scenario is estimated to remain buoyant and consumption is e#pected to continue its gro!th arc. $he report starts !ith a brief on the Indian scenario of the beer industry and then proceeds to analyse the + groups -ingfisher brand. $he beer segment is categoried as strong beer and mild beer. trong beer has alcohol contents of /0 and mild beer contains 1/0 of alcohol. Indian beer market is dominated by +nited re!eries capturing over /20 of the market follo!ed by AMiller !ith around 3/0 and 'arlsberg !ith under 420 of the market share. imilarly in brands, -ingfisher dominates the market follo!ed by "ay!ards /222, -nock 5ut and $uborg. $he report analyses the beer market in profundity by covering data points like industry gro!th drives, emerging trends coupled !ith 65$ analysis and 7orters five forces model of the market frame!ork. $he report captures the popularity of kingfisher !ith the help of customer and retailer survey. econdary data collected sho!s that beer is the preferred alcohol of the 34t century Indian. 8o!adays consumers are looking for choices a!ay from !hisky and it is not 9ust the male populace that is enamoured by beer but female population e%ually en9oys the drink. $he $he industry today boasts of an array of high %uality varieties that !ere not even thought about :;< years ago. And -ingfisher is leaving no stone unturned for !ooing the Indian consumer in all the beer segments. Indian market players have been forced to be more innovative in their approach to engage the consumers, branching out into concepts such as non;alcoholic brand e#tensions and surrogate advertising coupled !ith alignment !ith sport. -ingfisher 7remium has associated itself !ith five teams of the I7L as the =>ood $imes 7artner, resulting in huge brand a!areness among its target audience. $his report provides market analysis covering ma9or gro!th driving factors for the industry, latest market trends and insights on the position of -ingfisher in the beer industry. 5ur research broadly covers Indian markets, present analysis and outlook on the basis of secondary data research and is cross;validated through interactions !ith the customers and retailers.
*" T T#+ #+,S ,S 'onsumers in urban India are slo!ly getting adventurous and trying ne! beers. 6ith microbre!eries and bre! pubs e#panding their footprints in metro cities, people have also started to appreciate !heat beers, ales and many imported beer brands. $he trend of microbre!eries started in 322< !ith t!o microbre!eries ? @oolally and "o!att. ut no! there are more than a doen microbre!eries all over India. Many imported beers like &strella @amm and t &rhard have also made their foray in India in 3243 and 324 !hich !ill drive sales of
imported beers as !ell as beers from microbre!eries as consumers !ill think beyond brands like -ingfisher or "ay!ards.
-" .M/#T%T%&# L'+,S'/# +nited re!eries Ltd !as the leading player in beer in 324 !ith a volume share of /40. $he strong distribution channel of the company and the popularity of the brand -ingfisher, !hich is almost synonymous !ith beer in India, have helped the company to maintain its leadership position. $he company has a !ide portfolio of beers in the lo!, medium and premium price bands. $he company also invested Bs3222 million in a green field bre!ery near 7atna.
0" /.S/#TS Most Indians still do not drink beer or any form of alcohol mainly due to religious or cultural reasons, but !ith rapid urbanisation, a young population and a fast;gro!ing middle class, India has become an attractive place for companies to operate. $he gro!th in beer consumption is e#pected to be driven by changing social norms, increasing disposable income, consumers greater affluence and the increasing social acceptance of beer.
1" S2.T '+'LS%S Strength: 1. trongest 6orld!ide @istribution ystem 3. "uge Finances backing from + >roup . 5ldest 7layer in India C. 6orld!ide kno!n rand !ith D2 degree marketing including the famous -ingfisher model calendar D. &#cellent brand visibility and advertising makes it a top;of;the;mind beer brand :. Available in over /2 countries
2eakness: 1. @ifferent brands under same category.
.pportunity: 4. rand &#tension enefits 3. >lobal market e#pansion . eer consumption is increasing due to changing culture
Threats: 4. 3. . C.
"igh $a#es * Begulations 7rohibition on Advertising "igh 'oncentration on trong eer Market means market share gro!th is slo!. Many International 7layers &ntering In India
3" /#ST#L '+'LS%S /o4iti5a4
$he scenario of India is very different from rest of the !orld. Any company venturing into the Indian market !ill have to study the political environment here. @ifferent states have different rules for li%uor. ome states like >u9arat are dry states !here the sales of li%uor are completely banned !hile some states have time limits i.e., after 42 the sales of li%uor are prohibited. Also the huge cost involved for retailers to get the valid license for li%uor. &ven the age limit for drinking in India is under discussion but right no! it is 3/, so -ingfisher has to be very specific !hen targeting its consumer. As the advertisement of li%uor is banned in India, -ingfisher has cashed its international image to boost its sales in the domestic market. $hey have targeted the public houses and discothe%ues for their promotion !hich is very apt. #5onomi5 $he economy of India is changing !ith rising per capita income and as a result the disposable income of people
specially living in urban cities is also increasing rapidly. $he -ingfisher group has realied this potential and thus has targeted the urban cities of India very !ell in their early stage to penetrate the market. "igher sales are e#pected because of the sports branding as !ell as the huge population that enters the legal drinking age every year. $he population is culturally more comfortable !ith beer and distribution by the >overnment has improved significantly. So5ia4 As India is said to be the land of diverse culture, !e cant categorie India under one segment. $he northern
part is completely different from the southern part. 7er capita income is rising, but at the same time the gap bet!een the culturally right and !rong is also !idening. $hough !e hope that this gap !ill be narro!ing in the near future, but the scenario is a bit bitter right no!. $here is a school of thought against the so called pub culture, but as they say change is inevitable thats !hy the -ingfisher >roup is relying on the change and has targeted the ne! Indian !ho is open to change. In urban India, one can see the gro!ing !estern culture !hich is actually the target market for the li%uor industry. Te5hno4ogi5a4 Importing beer attracted heavy ta#es from the government resulting in higher prices for the same. $herefore
-ingfisher opted to setup its o!n plant in India to increase the base in the market. As per the general manager marketing + Ltd., Mr. >urpreet ingh, the per capita consumption is less than 3 litres per person, !hile it is around 3/ litres to 2 litres in 'hina. $here is a lot of scope for gro!th. According to the company sources, it is using an advanced technology to ensure that the beer that gets out is of better %uality and great taste. #n6ironmenta4 &nvironmental factors include the !eather and climate change. As the climate here is generally !arm,
-ingfisher increases the promotions during summertime. As the company is operating since last / years, it has seen sales variations in different seasons but there are some cities like >oa !hich is a premium tourist destination in India for youths has seen higher sales throughout the year. Lega4 Again $he + >roup is very careful about the steps it takes because of the political environment !hich could
land it in trouble. As the la!s are different for different states, -ingfisher India has played smart in tying up !ith different sports league in making a social net!ork so that its purpose of marketing is also solved and it didnt cross the line of the la! as !ell.
7" /.T#8S 1 9.#S M.,#L
Threat o new entrants is towards 4ower side"
&conomies of scale in manufacturing, distributing, and marketing create high barriers to the national and
global markets. $he capital needed to build beer manufacturing facilities and the costs associated !ith operating
business on a national scale are e#tensive. $he costs associated !ith this highly controversial industry seek high levels of sales, thus making the industry more and more prohibitive for ne!comers.
Barraging power o buyers is high"
$he %uantity of alcoholic beverages that a nation consumes tends to be unaffected through reces sion and
prosperity !hile the %uality of the products purchased is directly related to the disposable income. A decline in disposable income shifts consumer preferences a!ay from premium;priced brand;name products in favor of lo!er;priced brands i.e. s!itching cost is lo!.
Threat o substitutes is 4ow"
'ustomer loyalty through brand a!areness. $he advertising restrictions placed on alcoholic beverage industry in recent years make it harder to achieve brand loyalty.
Supp4ier /ower is 4ow"
7roducts used to bre! beer are ine#pensive and suppliers are numerous.
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3eer
@ark eer
Ale
orghum
6eissbierE6ieenE6heat eer
Lager
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FlavouredEMi#ed Lager
tandard Lager
7remium Lager
@omestic 7remium Lager
Imported 7remium Lager
Mid;7riced Lager
@omestic Mid;7riced Lager
Imported Mid;7riced Lager
&conomy Lager
@omestic &conomy Lager
Imported &conomy Lager
tandard Lager by 5rigin
@omestic Lager
@omestic 7remium Lager
@omestic Mid;7riced Lager
@omestic &conomy Lager
Imported Lager
Imported 7remium Lager
Imported Mid;7riced Lager
Imported &conomy Lager
8onELo! Alcohol eer tout
<" .ST '+'LS%S In 324;4C, operating margins of the bre!ers improved by about 4/2 basis points, aided by stable barley (ra! material) prices and an increase of C;/ per cent in net realisations. 7ackaging costs also increased moderately, by the same e#tent. In terms of net margins too, there !as a 422 bps increase. $he industry is capital intensive due to !orking capital re%uirements and this reflects in higher debt re%uirements too thus increasing interest cost and eating up on net margins.
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Segmentation >eographic egmentation • •
$he product is available in markets of India, +-, France, Finland, 7ortugal and 'anada. In India it is available throughout the country but is dominant in south and !est India.
@emographic egmentation •
$he kingfisher beer mainly segments the market as youth and adults. Gouth +nder the age group of 4D;3/yrs(kingfisher mild) Adults +nder the age group of 3/yrs * above(kingfisher strong)
7sychographic egmentation • •
For ne!ly emerging and potentially promising segment (-ingfisher +L$BA) It includes people !ho attend the night clubs, have parties and live a rich lifestyle.
ehavioural egmentation •
"ere behavioural segments are created on the basis of occasions like birthday, anniversary and 8e! Gear parties.
Target Market: -ingfisher target customers are as follo!s • • •
Gouth !ho drink for fun. First time drinkers !ho drink for e#perience. +rban !omen !ho prefers to drink light.
$he above listed target segments prefer mild beer (Alcohol1C0) • •
$hose !ho !ants something stronger. Begular drinkers !ho prefer strong beer.
$he above listed target segments prefer strong beer (Alcohol C0) • • •
&merging and promising target market that drink because it is a lifestyle. $hose attending pubs and night parties. $hose !ho prefer premium beer.
$he above listed target segments prefer +L$BA and 7B&MI+M beer.
/ositioning •
-ingfisher has positioned itself as a brand for successful and professional individuals !ho are al!ays
•
ready to take a break, party or 9ust chill out. $he brand has reflected the spirit of H>ood $imesH through associations !ith speed and thrill right from the days of enetton Formula 4. From sponsoring the fastest Indian on the circuit ; 8arain -arthikeyan, to signing on -arun 'handhok, -ingfisher has also been involved in promoting the current rage among
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youngsters in India, >o;-arting. -ingfisher $B58> combines the uni%ue taste and %uality of -ingfisher in a trong eer and is positioned on the similar platform as the mother brand ? -ingfisher. $he tagline used for communicating the positioning platform is “Same Taste. Extra Dum”. -ingfisher trong symbolies
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the values of strength, style, youthfulness, po!er * machoism. -ingfisher +L$BA has positioned itself for people e#periencing their ne#t high in life. It is a beer for the classy, modern, urban, confident, independent, self;assured consumer. It is for those !ho !ants the best and deserve the best.
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/rodu5t 5ne factor in the ne! bre! battles the strength of the beer. Indian drinkers are largely still partial to stronger beers like -ingfisher trong, !ith an alcohol content that can go as high as eight per cent. -ingfisher as a product has ac%uired a !ider brand image !ith various variants in the Indian consumer market. • • • •
8o. 4 selling product in its segment. >ood %uality ra! material is used to maintain the %uality standards. 'onsistency of product %uality is high. Al!ays tastes fresh due to good %uality and !ell developed distribution net!ork.
&ariants
Kin89she Kin89she Kin89she Kin89she Kin89she Kin89she Kin89sher r r Stron8 r r ltra r 3lue r $e: Stron8 Premium Drau8ht resh
As much as <2 per cent of the beer sold in Indias beer industry is strongJ !ith alcohol content of si# to eight per cent. +nited re!eries stable of brands includes -ingfisher trong and @raught as !ell as milder variants such as +ltra. 'arlsberg has introduced stronger bre!s, including 'arlsberg &lephant and $uborg trong and it has made the segment so much competitive for the Indian market.
-ingfisher trong en9oys close to C2 per cent market share in the Indian sub;continent and has also been one of the fastest gro!ing beer brands in the strong beer category in India. +nited re!eries Limited today said its beer brand -ingfisher trong has been recognised as HAsiaHs est trong Lager eerH at the prestigious 6orld eer !ards; 324 held in +- recently.
-ingfisher has penetrated the Indian beer market in its early days by launching various bottle sies for all kinds of consumers. $his has helped -ingfisher to gain a remarkable market share as a product !hich is closer to the consumers fulfilling their booe as per the occasions.
8e! product -ingfisher +ltra is the first step in the direction of trying to come up !ith good brands in the premium space. In a matter of months, this brand has overtaken the likes of 'arlsberg !herever it has been launchedKMumbai, 7une, angalore and 7ondicherry. -ingfisher is also promising its consumers e#periences that no other brand can promise. $his is apart from launching $iger eer and "eineken brands in the premium segment. o, it has t!o challengesKto continue to gro! the mass, and to appeal to a greater deal to the premium consumer.
/4a5e In the last / years since its inception in the Indian market -ingfisher has made its legacy in the beer industry. It has adapted to changes !ith the passage of time and in the past decades, it has offered its consumers the product they !anted. $he reach and coverage of -ingfisher can be analysed by the follo!ing facts ? • •
• • •
It is available throughout India, and is dominant particularly in south and !est India. + has 4D company o!ned bre!eries apart from contract bre!eries in 32 different locations across the country. -ingfisher also has a presence in D2 countries. It has some si#teen hundred shops apart from pubs and bars. -ingfisher also has association !ith number of ery 'lassy, +p;market * tylish bars * lounges !hich goes hand in hand !ith its brand image.
Microbre!eries are springing up in India as !ell in the modern era and it can be observed in the cities like 8e! @elhi, suburb of >urgaon and 7une. $he consumption of beer has increased significantly in the past decade !ith the arrival of the technical industry in India. -ingfisher 9udged it !ell and tied up !ith various bre!eries and pubs. 5ne of the largest, called Bockmans eer Island, has raised prices as many as four times since starting in 322 and still has customers flying to its bre!ery, on the top floor of an upscale mall, from other cities. Apart from tier 4 cities, the strong presence of -ingfisher can also be observed in the gro!ing techno savvy cities adopting to modern culture.
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So5ia4 Media:
$here are multitude of rules and regulations surrounding the sales and promotion of alcohol !hich makes it difficult for alcohol brands to promote itself. "o!ever, -ingfisher !hile adhering to these rules and regulation is doing a commendable 9ob in the digital space backed up by a strong ocial Media trategy. -ingfisher treats social media as a part of digital marketing and as a lead medium in their marketing. $he company has invested in it financially as !ell as infrastructurally. $he company believes in a mi# of offline and online integration. $here are fe! online initiatives that are only done on digital platform but do not happen in the offline !orld. $he company !ants to be the =buiest brand in the !orld. -ingfisher has a mobile app on Android platform (google play) and I5s operating system and !ebsite largely to promote engagements through intriguing content. udget of ocial media close to ;C0 and the number is doubling every year.
The 9a5ebook 9a5tor: •
Finding creative !ays to engage a person on Facebook so that they can come closer to the brand is one of the reason :,/22,222 people follo! -ingfisher on Facebook. $he intent is to come up !ith content
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and ideas that makes the follo!ers share and en9oy the e#perience of being a part of -ingfisher brand. -eeping regular contests on Facebook and uploading a lot of appealing pictures, t!eeting, re;t!eeting. &.g. they kept a contest for fans to create beer commandments and later printed t;shirts for the best
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responses. 6e sho! behind;the;scenes activities, e#clusive updates, promotions mentioning !ho contributed it, +sing Facebook advertisements has helped in flourishing brand image. 7osting kingfisher calendar pictures on the kingfisher page of facebook attracts a lot of fashion follo!ers.
outube
#?e5t:
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-ingfisher has an impressive Gou$ube channel !hich is a rarity among Indian brands. 'ontent on the social media is to a great e#tent driven by videos. In upcoming time <20 of all the
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content !ill be videos, Marketing 6e have something called re!dolph, !ho is the good times reindeer. Its a take on
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Budolph and re!dolph is a fictional reindeer !ho brings beer to the needy. 7ositioning of -ingfisher blue this particular brand is positioned on the outdoor adventure activation
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platform. $he lue mile this is a road trip taken /;D people !ho t!eet and blog, and they do they river rafting and rappelling, and rock climbing, etcetera. And the lue Mile is a property that !ere going to have at least t!o, three times a year and that !orks very !ell on Gou$ube.
Spreading the fun using hashtags -no!n for spreading the good times, the engagement using hashtags like
Neer'ommandments and NeerMovies is the best !ay to get people engaged as they create virtual !ordplay and people share their fun thoughts. •
6eve also got N-FD7ack !hich !as for presenting your alentine a si# pack of -ingfisher eer. $hat hashtag trended and it !as N4 in India for most of the day. It !as N even till late at night. $here are
• •
invaluable benefits in terms of doing these fun hashtags. N-Feer+p e#cites people to meet up !ith their fello! t!eets in the real !orld. $he company promotes beer and alcohol e#plicitly on t!itter s compared to facebook because of more mature audience and also keeping sensitivity in mind and facebooks o!n guidelines.
e5ruitment using so5ia4 media: $he company has used Facebook and LinkedIn to look at appropriate candidates because its a tool that is available and as a company also !e believe in moving !ith the times and some very interesting profiles have come through social media. And of course, largely in the area of general management, sales and marketing because typically specialied functions, you kno! like legal or, lets say, bre!ery manufacturing or %uality control is a bit difficult to get through social media. ut some of the more general functions, for sure, !eve used social media for these.
@oint 6enture with >eineken "eineken is the !orlds number one beer brand on Facebook. -ingfisher is !orlds number three. o bet!een "eineken and -ingfisher, !e have close to 2 percent of the entire digital traffic on beer in the !orld.
%n6estments on e6ents: -ingfisher 7remium has held a dominant position in Indias beer market. "o!ever, in recent times, its parent company +nited re!eries has been reeling from a market slump in the beer category. ut according to a recent report by business standard the brand losing part of its market share as the landscape becomes more competitive !ith international players like 'arlsberg and Anheuser;usch. As a result, the brand is ramping up its marketing activities, pushing out a series of innovative brand events
e5ent e6ents:
. $he 1
event took place at several popular pubs across the city !here the brand challenged pub goers to spill
some beerJ and spell a !hole ne! language.J $he font !as created out of beer mugs and bottle and can impressions by people !ho uploaded their photos on Instagram, $!itter and Facebook !here the brand eventually found the ideal letters to form the !ord beer.J 3. 7arallel to >ermanys 5ktoberfest, -ingfisher hosted an event that ended in late 5ctober 324 called the >reat Indian 5ktoberfest.$he brand is e#pected to sell about 4/0 more beer compared to last year and -ingfisher has reportedly increased its marketing spend by about 420 on upscaling $he >reat Indian 5ctoberfest
Kingfsher8s hea6y e6ents strategy: $he brand has a strategy focusing on four platforms sports, music, fashion and food, !ith the brands motto being $he -ing of >ood $imes.J $he brands target audience is the aspirational youth in India !ho lives life to the fullest. Fe! strategic events include a. Indian premier League (I7L). According to the usiness tandard report the + group increased the marketing spend by 420 for the si#th edition of the I7L. b. $he organisation has also set up a football club, called -ingfisher &ast engal Football 'lub. c. $he brand is an active advocate of sporting events such as the ombay Marathon, the @elhi "alf; Marathon, and the angalore and "yderabad 42 and 4/-M runs respectively. d. 5ther events that -ingfisher is closely associated !ith includes tennis tournaments, hockey tournaments, rugby tours, Formula 5ne, horse racing derby and a host of other events.
!1"
SU//L >'%+ '+, /.,UT%.+
$he big company bre!ers bre! and bottle their beer on a company;o!ned site. $hey convert their ra! materials into a finished product, and bottle it into pre;made containers. $herefore, the inputs that bre!eries need are the ra! materials (such as !ater, barley, hops, corn and yeast) and packaging materials (such as kegs and bottles), as !ell as e%uipment (such as grain mills, tanks, yeast propagators, and packaging systems). La! prohibits restaurants, stores and individuals from buying directly from bre!eries. $here is a re%uired three; tier process in place to prevent alcohol abuse, and to ensure minors are not purchasing or consuming alcohol. $herefore, individuals and retail outlets must purchase from a licensed !holesaler or distributor.
!3"
%M/.T'+# .9 #S#'>
Market research is an essential part of any business plan !hether its a start up or a multi;national organisation. -no!ing that theres a target market for your product and comprehending !ell that !hat the stockholders e#pect from you is %uintessential for making a product or service successful. Besearch also plays and e%ually important role in pro9ects and technical paper presentations as it adds more credibility into the idea. Market research can be classified into
a. 7rimary research b. econdary research Primary research . $he research can include %uestion that you ask to your friends and family or a survey put
together alongside that addresses a !ide variety of audience. Gou choose the %uestions and then using a sampling techni%ue obtain the detailed responses from the individual. 5ne can decide the ho!, !hen and !here of the primary research !hich helps in gaining control of the pro9ect and decide the path to be follo!ed, during and after the research !ork (essentially the evaluation). 7rimary research is considered to be the most accurate !ay to find out a market sector that is specific to your product. 5n the do!n side, this kind of research is %uite e#pensive (financially as !ell as the time involved) and re%uires producing %uality %uestions that !ill help your analyse the responses !ell.
Gou can ensure that the research is focussed by including fe! parameters 4. 8umber of participants in the survey •
ince !e have different sets of %uestionnaires for consumers and retailers, our survey participants !ill be close to 422, including both.
•
6e !ill also look for!ard to having a response from someone in the -ingfisher group as to !hat they think about their product and their market competition.
3. ackground of the participants (studentsE!orking professionals etc) •
6e have catered mostly to the college going students as there is a strong market in that segment because of the pricing.
•
6e also have included the !orking professionals, !hich !ill help us find more about the brand that people follo! !here the money constraint is less prevalent.
•
$he retailers (brick and mortar and online) !ill give us good insights regarding !hich productE brand is preferred as compared to competition.
. $he number and nature of the %uestions included. •
$he survey for the consumers has 4: %uestions. $he %uestion covers aspects of product %uality, variety, pricing, likeability, preference of the customers and brand value.
•
For the retailers the %uestions comprise of the profit generated through -ingfisher sales as compared to other brands, units sold per day, consumer preference in the eyes of the seller and their stock availability.
C. $he amount of time that your survey is available. •
Its crucial that the survey is available for a good but stipulated time. $hat helps in gathering vie!s of more people. 5ur survey !ill be floated for about 42;4/ days.
•
$he live survey !e intend to undertake in the restaurants and pubs !ill be for a short duration.
/arti5ipants in the survey should incorporate a mi# of different backgrounds. $his !ill ensure that !e get holistic inputs. $he follo!ing factors !ill be considered !hile sampling the participants for the consumer survey
•
Age group 6e !ill have Gouth 4D to 3/yrs and Adults 3/yrs * above.
•
>ender -eeping a decent ratio of males to females is a necessity o!ing to the changing trends in the consumer behaviour.
•
Income group its %uite important that !e understand the preferences of the consumer group !ith different incomes. "ence sampling them !ill be a crucial thing. 6e can segregate income groups as high, medium and lo!.
•
'ategory It is possible to classify beer drinkers into categories based on the fre%uency of their drinking beer. a. Light drinkers 7eople !ho drink beer once in one or t!o months. b. Moderate drinkers 7eople !ho drink beer 4; times a month. c. "eavy drinkers 7eople !ho drink beer at least once every !eek.
•
&ducation ince !e !ish to bring a variety in the sample, the more highly educated vs less educated category !ill also play an important role. More highly %ualified !ould include graduates and post graduates as compared to less educated !hich !ill comprise of !orkers and labourers.
$he percent of each category in the !hole sample !ill vary slightly, since !e need to understand more about consumers preferences !hich !e hope to get from category of heavy drinkers and moderate drinkers. $he second %uestionnaire participants include retailers of both brick and mortar shops and online channel. $he survey !e intend to take for this !ould be based on the follo!ing factors. •
Locality angalore has a good mi# of populated areas. 'hoosing retailers based on different locality is crucial.
•
hops in malls vs other li%uor stores 6ould tell us about the consumer behaviour as to ho! many people purchase from big
!7"
ST#/S %+&.L&#, %+ #S#'> /.#,U# Statement o; hypothesis
Determinin8 sample :rawn
Preparation o; the report
E
E
ute the proje>t
De9nin8 $esear>h problem
De=elopin8 the 6ypothesis
Analysis the :ata
Generation o; interpretatio n
Analysis the :ata
!;"
T..LS 9. ,'T' .LL#T%.+
For this pro9ect report, Ouestionnaire method !as adapted to analyse the consumers preferenceE behaviours and personal intervie! !ere conducted together information from the consumersE clients and company organiation.
!<"
,'T' /.#SS%+G '+, '+'LS%S /L'+S
$he data !as processed and analysed on the basis of the responses given by the customers of the kingfisher beer in the %uestionnaire. $he responses !ere first classified on the basis of similarity of vie!s and then tabulated in t!o different groups. Further, analysis !as done on the basis of the tabulated data. uitable pie charts and bar charts !ere sho!n to represent the data graphically.
*="
L%M%T'T%.+S .9 T># SU&#
4. $he survey !as limited for angalore region only 3. Bandom samplings of retailers !ere selected under the market survey . @ue to the restricted time frame the sample sie !as small. igger sample sie !ould have made fe! aspects more clear. C. $he information gathered !as based on customers response to %uestionnaire. &ven then a genuine attempt has been made to get correct data from them /. $ime constraint.
*!"
9%+,%+GS
ompetitor 'na4ysis Kin89sher Criti>al Su>>ess a>tor
-ei8h t
Pro:u>t 5.' ?uality Pri>e 5.1, Taste 5.' Pa>ka8i 5.1, n8 3ran: 5.& 1 Tota4 Analysing the data
Carlsber8
Kno>kout
Tubor8
$atin8
S>ore
$atin8
S>ore
$atin8
S>ore
$atin8
S>ore
&
5.
)
5.2
'
5.)
&
5.
) &
5. 5.
' )
5.& 5.2
& 1
5.), 5.'
& &
5.), 5.
&
5.),
,
5./,
'
5.&
)
5.
)
1.'
)
1.'
1
5.&
)
1.'
3.45
3.85
1.65
3.45
:2 people !ere surveyed for coming up !ith a proper competitor analysis. $he analysis consists of four ma9or players in the Indian market namely -ingfisher, 'arlsberg, knockout, $uborg. 6e took fe! factors into consideration and named them as critical factors and also assigned !eights to them basis the revie!s given by survey participants.
$he !eights and ranks hence obtained are as follo!s 4. rand (!eight 2.) 3. $aste * 7roduct %uality (!eight 2.3) . 7rice * packaging (!eight 2.3)
Inference 4 "ence, one thing can be interpreted about the Indian consumer here, that they love to go for a brand in the beer category. 7rice and packaging !ere tied as the last factors amongst the factors considered.
Batings 6e asked the participants to rate each of the critical success factors for each beer on the scale of 4 to / (!herein 4 being the least and / being the highest)
Inference 3 'arlsberg !as rated the highest in C of the / factors brand, taste, %uality, and packaging. 6hile -ingfisher !as rated the best in the price category.
5verall score the overall score is obtained by multiplying the !eights of individual factors !ith the ratings provided for each beer brand in that factor. $he final rank order is obtained by adding all the data in the respect brand.
Inference $he overall score tells us that 'arlsberg is the best product in the market !ith the highest score of C.4/ follo!ed by $uborg !ith a score of .C/ (the second best in the brand and taste category). -ingfisher stood third overall !ith the !eighted score of .4/.
B## /#9##+# Total no. o; respon:e nts /5
Kin8 9sher >onsume r ,,
*thers
Per>enta8e o; Kin89sher
*thers
1,
/4@
'1@
B## /#9##+# Kin8 9sher >onsumer
'1@
*thers
/4@
on54usion or abo6e Tab4e A Graph $he above table reveals that out of :2 respondents contacted, // of them buy - .F and 4/ respondents consume other. It !as also found that there !as no one !ho have never heard of - .F the same is depicted in the diagram. 5ne of the important reasons for this is the brand image -ingfisher has created. +sing social media in the appropriate !ay and leveraging on other activities like -ingfisher annual calendar and sponsoring sporting events has helped in increasing brand value. Also easy availability in the retail outlets leads to more consumers trying the kingfisher beer.
L.'T%.+ .9 /U>'S# -ine shop '5
Club 3ar '2
$estaurant ''
Inference: - From the ao!e data "e can conc#ude that most of the customers are consuming kingfisher
beer at the clubEbar (C20) follo!ed by restaurants * fine dining places (40) and last in !ine and beer shop (320). $his segregation also depends on the profession of the participant.
B## .U 2.UL, L%K# T. /#9# %+ K%+G9%S># Stron8 1
Premium '5
ltra
3lue )
Drau8ht 4
Inference ; From the above table !e can conclude that D40 of the participants surveyed prefer -ingfisher trong as the most preferred beer in the -ingfisher portfolio follo!ed by kingfisher premium (320). Best of the portfolio accounts for the remaining 40 percent.
Tab4e and graph showing the respondents in5ident o 5onsuming beer !n>i:ents >onsumin8 beer
Daily -eek:ays -eeken:s #onthly *>>asionally
o; (o. o; respon:ents
Per>enta8e 15 1, &5 15 ,
1) '1 )& 1) /
Beer onsumption Daily 1)@
/@ 1)@
-eek:ays -eeken:s #onthly
''@
*>>asionally )&@
ua4ity o Kingfsher when 5ompared to other brands $he study provided on opportunity to the respondents to give their comparative opinion regarding the %uality of -ing Fisher. $he results obtained are given in the follo!ing table
*pinion Goo: Satis9e: (ot Satis9e:
(o. o; $espon:ents &, ') 11
Per>enta8e ,5 &, 1,
A glance at the above table sho!s that /20 of the respondents are of the opinion that the %uality of -.F beer compared to other brand is good, /0 of the respondents are of the opinion that %uality of the -.F beer is satisfactory and 4/0 of them are of the opinion that it is unsatisfactory !hen compared to other brands. ome of the consumers have brand preference the consumer have satisfied themselves to particular brands and this is very important at this point. It should be noted that the people are made to stick on to their brands and are not let to migrate to other brands.
eason or 5onsuming kingfsher *pinion
(o. o; $espon:ents Per>enta8e '5 '4 Buality 1, '1 la=our Stron8 &, ,5 Pa>ka8in8 5 5 *thers 5 5 Inference &asily it can be deducted that people like -ingfisher strong amongst all the products of the -ingfisher (/20 percent of the respondents). Ouality !as the ne#t best factor for people to consume beer follo!ed by flavour. 7ackaging !as not that strong a f actor for the people to buy a beer.
,emand or di?erent brands o beer ('55ording to their sa4es) $he follo!ing table sho!s the demand for different brands of beer
Brand
anking
Kin89sher 1 Kno>k*ut ' Carlsber8 & Tubor8 ) From the above table it is clear that the demand for -ingfisher beer is very high !hen compared to others and it occupies first place. 'onsumers have said that they look for %uality and some others look for taste. Another
important reason for the high sales number is the easy availability of the brand in the retail stores due to a strong supply chain system of -ingfisher.
Tab4e graph show the 5onsumer ee4ings about the pri5e o Kingfsher eelin8 about pri>e +ow (ominal 6i8h
(o. o; $espon:ents 1, &5 ',
Per>enta8e '1 )& &
Inference A combined of DC0 people feel that the kingfisher products are reasonably priced in the beer segment that gives them a huge advantage in a market !here people are %uite price sensitive.
,#'L#S SU&# A dealer survey !as conducted in fe! -oramangala and "B Layout retail outlets and responses !ere recorded. Ouestionnaire for the dealers is put in the anne#ure. -ey inferences from the dealer survey are as follo!s •
All the / retailers surveyed agreed to the first part !here they !ere asked if beer is sold more than other
•
hard drinks. <20 of the retailers said that kingfisher beer !as the most sold beer in the day amongst all the beers in
•
their store. $he retailers provided the feedback that the sales of kingfisher are high because of best prices in the
•
market and strong supply chain net!ork. Amongst the various products kingfisher strong !as the most sold product follo!ed by the premium
•
beer. All the retailers !ere divided !hen asked !hich packaging type (bottleEcanE pint) is sold the most.
$he follo!ing table and graph sho!s the opinion of dealers about -ingfisher
a>tors Goo: 3etter 3est 3a: Total
**"
(o. *; $espon:ents 1) '1 &) 5 /5
Per>enta8e '5 &5 ,5 5 155
S#.+,' #S#'>
$rending ne!s about beer in ne!s and t!itter 4. $here is recent ne!s about the beer rates at all;time high in 7atiala. ources said that rates had been increased by li%uor contractors of the district after allegedly forming a cartel of sorts in several pockets, !hich had led to unanimity among them over uniform prices of popular brands, especially in 7atiala. 3. 8o! bre!ing Mumbaikars raise a toast to craft beers. 5ver the past t!o years, craft beersKthe product of smaller, independently o!ned bre!eriesK
have found a steadily gro!ing fan;club in Mumbai. A !ell;travelled consumer base looking to try Pthat fantastic beerP they may have sampled in "amburg or ierra 8evada, has led to a gro!ing demand. And the suppliers are several.
$he idea is to provide innovative, interesting alternatives to customers, aside from the handful of local beer and international beer brands available. $here is scope for !ider e#periments !ith flavour, and the chance to chug freshly bre!ed beer.
'ompetitive Analysis $he follo!ing figure tells us about the brand prominence of the various brands in the beer industry. $he figure given belo! sho!s that kingfisher is most liked and talked by the age group of 4<;3/yrs. "ence the company should focus on this segment more and try increasing its visibility in other age groups too.
*-"
M'K#T ,%&#SC >'LL#+G#SC '+, T#+,S ,%&#S
Key Growth ,ri6ers:
1. Goung population ? India has amongst the youngest population in the !orld. D20 of the population is under the age of 2. Further, over /20 of the population is in the !orking age of 33; /C. 3. Bapidly gro!ing consumption ? eer is increasingly acceptable as a social drink and the urban youth in particular favors it as the preferred alcoholic beverage. 7er capita consumption of beer is 4./ liter and has been gro!ing at over 4/0 in the last fe! years. . "ome gro!n brands ? &ven international giants like A Miller and 'arlsberg have not been able to gro! their o!n brands significantly. A Miller leveraged its ac%uired Indian brands like "ay!ards, -nock 5ut and Boyal 'hallenge to become a leader in the industry. C. &#panding product range;Indian beer market has been !itnessing introduction of ne! flavours by leading beer brands to !oo Indian consumers. eer drinkers no! have a huge variety to choose from there are !heat beers. Meads, ales, stouts, and cider !ith fancy names /. Bising social acceptability;$!o thirds of Indians dont drink alcohol at all, often for religious or cultural reasons, but rapid urbaniation, a young population and a fast gro!ing middle class are changing alcohol consumption habits making India an attractive market. $he rising social acceptability of alcohol has opened the market to ne! customers like !omen and youth !ho earlier comprised only a small proportion of alcohol consumers in the country D. 7romotional activities;$oo !oo the consumers companies take up many promotional activities. 7ubs for instance organie ladies night !here alcohol is served free to the !omen on given days of the !eek. 'ertain organiations as a part of their social gatherings encourage the youth to participate in beer drinking contests !ith offers of e#citing pries to the !inners. :. &asy availability;$he Indian beer market has been e#periencing the trend of microbre!eries and e#clusive beer outlets !hich contributes to increased a!areness and easy availability of beer in Indian markets. $he recent addition in the list is the beer cafes !hich aim at making beer as easily available as coffee. <. "ealth benefits;everal studies emphasie that !hen drunk in moderation beer has more health benefits than commonly kno!n. eer is kno!n to decrease the incidence of heart attacks by 32;C20. It is loaded !ith vitamin and is also kno!n to decrease kidney stones. M'K#T STUTU# $he main states for beer include Andhra 7radesh, Maharashtra, -arnataka, $amil 8adu and @elhi. eer is seen
as mostly an urban;youth drink and has increasing social acceptance. "ence, the beverage has a universal acceptance across the country.
ha44enges and %mpediments India is predominantly a hard spirits market and beer is a minority preference for those !ho consume everage Alcohol. eer makes only C0 by revenue of the total alcoholic market. It !ould be pertinent to mention that
!hile per capita consumption of spirits in India is D/0 of global average, in the case of beer it is a mere 0 of global average. Moreover, the Indian beer industry is plagued !ith myriad ta#es * levies that vary from state to state. In fact no t!o states or +$s have a same or even a similar policy. $he inconsistency in the state policies leads to fostering an environment of mismanagement * lack of focused strategy to manage state finances. tates usually do not adopt policies based on scientific management or by considering the social aspects of managing this trade. $he policies are generally short term in their outlook, !ith little or no thought to long;term interests of all stakeholders, including the general public. "ence, despite the recent gro!th, there still e#ist numerous challenges for the beer industry. Q eer "ighly $a#ed ; eer, !hich is a softer form of alcohol consumption, is ta#ed higher by most states compared to pirits on absolute alcohol basis. $his is primarily because ta#es on beer in India tend to be relatively higher than spirits !hereas in most parts of the !orld, in fact, the reverse is true. >lobally, on a per alcohol basis beer is ta#ed at /20 of hard li%uor !hereas in India, beer is actually ta#ed D20 more than hard li%uor. Q Most Begulated Industry; $he beer industry is highly regulated.. 3D different alcohol specific ta#es constitute about /20 of the consumer price !hich is amongst the highest in the !orld. Q 7rice Bestrictions; 7rice restrictions in many large markets remain a biggest challenge for the industry. $he >overnment decides the &nd 'onsumer 7rice (&'7), leaving the manufactures !ith no say in determining the price of the beer. In a free market economy this has no rationale. Q Inade%uate Market Infrastructure; $he market infrastructure for beer in India is inade%uate. For every 34222 persons there is one outlet hampering the availability of beer. In 'hina, for instance the figure is 22. $he highly regulated market hampers beer sales, unlike most developed countries !here beer and !ine are not regulated in groceryE retail stores. Q Bestriction of Movement of eer; For the movement of beer from one state to another, an e#port license and an import license is re%uired. &#port fee is imposed in the state !here beer is manufactured and import fees on the tate !here it is sold.In some states only beer manufactured in that state can be sold.
*0"
SUGG#ST%.+S
$he follo!ing are the some of the important suggestions that could be given to the firm, company and the government so that the sale beer can be increased !ithout letting it to come do!n further.
!" 's the pri5es o beer are going higher and >igher It is suggested to the firm to increase the capital, so that purchases can be made in accordance !ith the demand of the market. o as be able to meet their demands.
*" The frm must adopt good market inormation system o as to get necessary information to take decision about the market and the consumer behaviour, more information !ill help in kno!ing demands for brand of beer at that day and this !ill help to make orders according to the e#isting demand. $. The %o!ernment shou#d decrease the figure of tax
It is not only harmful to the company, also to the nation !hich !ill not have the income !ithout sales of beer and so this is even harmful it. &. 'onsumer is said to e the (ing in the mar(et
o levelly no! and then his shies should be fulfilled as for as possible. At times credit facility may recur to be e#tended in large numbers to face the 'ompton and also some gifts or incentives should be given to make them happy. It must be so as to make them patronie kingfisher.
1" 'onsumer preference It should be made to become stable so that he should stick on the same brand slo!s i.e. should not be let to divert his attention to!ards other products. ). *niform Po#icy and Taxation
+niform ta# regime for li%uorE beer !ould be a boon for the industry. If implemented, it !ould help the beer industry by rationaliing end consumer prices * making them uniform in all states, as it is in the case of other consumer goods. MoF7I in its draft e#cise policy outlined the need to base duties on alcoholic beverages on alcohol content. >lobally, the policy of uniform ta#ation has been a success because of inherent implications on revenue. Apart from economic contribution, a uniform ta# structure !ill also create increased agro linkages that are inherently beneficial to a country like India. +. Free Pricing
'onsumer prices be determined by manufacturers, based on market forces and not dictated by >overnment policy. ,. Preferentia# Treatment to eer
$he government has brought into a situation !here D0 of alcohol consumption is spirits !ith an average C0 alcohol volume. Inherently that is bad (in terms of) social effects. "ence, there is a need to provide greater preferential treatment to other milder forms of alcohol such as beer. It is important to realie that the beer sector can contribute immensely to the agricultural sector, as it is completely an agro;based product. Marginal barley farmers particularly stand to benefit from the gro!th of the beer sector. Moreover, the income and 9ob multiplier of the beer industry are also e#tremely high. &#perience in other countries has sho!n that for every person employed in a bre!ery 3<;2 9obs are created up;stream and do!n;stream. . o"er 'onsumer Prices
teady gro!th of the beer market helped by lo!er retail prices !ould not only make the industry more profitable, a much larger consumer base !ould make see tate revenues gro! drastically. eer 5nly 5ff shopsJ outlets should be allo!ed to open for !hich license fees should be considerably lo!er.
/0. 1ar(et dri!en 2etai# Sector
At the moment there are only about //,222 outlets nationally in a country of more than billion people. $he industry is highly straight 9acketed by regulatory barriers. A more open market !ould create a uniform pricing and reduce the effects of cross border smuggling of alcohol. //. 3etter 3eer se##ing practices
$here is a need for creating better retail environment and promotes sales force development. $he need is to entrench good beer selling practices and develop value;added structures such as better point of;sale promotions. /4. Formation of a 3eer 3oard
As done in the case !ith 6ine, it is pertinent to set up a beer board. eer should be given preferential treatment !hich !ould encourage diversification in agriculture, !hich !ould offer higher income to farmers and generate substantial employment opportunities, as !ell as counter large;scale imports by increasing domestic production. /$. Product De!e#opment
$he use of technology and continued innovation to make product personaliation easier and product upgrades more accessible to the consumer. A shift in consumer e#pectations, attitudes and preferences to things such as satellite $, smart phone, and Internet connections. 'onstant access to information has led a dramatic shift in consumer culture, ideas and lifestyles.Must meet the ne! consumer demand for 7eople more variety, more novelty, more sophistication in the products offered in the market. &#ample 8e! $rend
Lo! 'alorie eers
/&. 3rand Expansion
'apitalie on the success of a solid brand by breaking into different product categories under the same brand name. Allo!s firm to increase and leverage the brand e%uity, increase product portfolio, and grants a company a larger hold over the marketR thus generating greater revenue.
*1"
.+LUS%.+
Kin89sher beer maintains a hi8hest share7 to maintain an: to impro=e the stan:ar:s. They re?uire >orre>t >ustomer pre;eren>e analysis7 :e>rease in >ost an: in>rease in ?uality. There;ore the ur8ent nee: ;or kin89sher is to take up >on=in>in8 ;or >ustomer by proper publi>ity an: :e>reasin8 pri>e an: also by moti=atin8 >onsumers by :ierent metho:s. Kin89sher also re=iser proper moti=ation o; :ealers to make then more in=ol=e: in kin89sher.
*3" 3ritanni>a
B%BL%.G'/> En>y>lopae:ia
Colliers
En>y>lopae:ia.
-ealth o; !n:ia
#a8aine
A:=ertisin8 an: marketin8 #arketin8 mana8ement
#a8aine Sherlekar
E>onomi> Times
2ebsites: 8oo8le.>om www.kin89sher.>om
.+SUM# U#ST%.++'%# ! am FFFF..F.. stu:ent o; (arsee #onjee Colle8e7 3an8alore. Con:u>tin8 a stu:y on Consumer attitu:e towar:s Kin89sher beerH7 ! woul: be 8rate;ul i; you spen: some o; your time in ;ollowin8 up these ?uestionnaires7 be>ause thisin;ormation helps my proje>t report. Thankin8 you7
%ours aith;ully Allen Thomas 1. (ame '. A::ress &. A8e aI 12 to '5 bI '5 to &5 >I &5 to )5 :I )5 L abo=e ). Se< #ale J
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4. -hi>h bran:7 now are you usin8M aI 3eer J bI -hisky J >I 3ran:y J :I $um J eI Gin J ;I wine J 15. -hi>h beer are you presently >onsumin8M aI Kin89sher J bI Kno>k out J >I Carlsber8 J :I Tubor8 J eI othersNNNNNN 11. Are you aware o; the beer >alle: kin89sherM aI %es J bI (o J 1'. Are you >onsumin8 kin89shers or ha: trie: earlierM aI %es J bI (o J
1&. !; yes7 please in:i>ate how it is >omparable to other popular bran:s. a. Kno>koutO Goo: J Satis9e: J (ot satis9e: J b. Carlsber8O Goo: J Satis9e: J (ot satis9e: J >. Tubor8O Goo: J Satis9e: J (ot satis9e: J :. *thersO Goo: J Satis9e: J (ot satis9e: J 1). -hat :o you ;eel about the pri>e >har8e: by Kin89sherM aI +ow J bI. (ormal J >I 6i8h J 1,. -hat are the reasons ;or >onsumin8 parti>ular bran: o; beerM aI Buality J bI Pri>e J >I la=our J :I Stron8 eI Pa>kin8 J ;I *ther Spe>i;y J 1. !; you are >onsumin8 kin89sher7 what is the reason ;or >onsumin8 itM aI Buality J bI Pri>e J >I la=our J :I Stron8 J eI Pa>kin8 J ;I *ther J 1/. 3ase: on your ee7 how satis9e: are youM aI "ery Satis9e: J bI -hether satis9e: J >I Buite Satis9e: J :I $ather :issatis9e: J 12. 3ase: on your ee7 woul: you re>ommen: to your ;rien:s to >onsume the kin89sherM aI %es J bI (o J DateO Pla>eO
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