Copy Of Beer Market In India

BEER INDUSTRY PRESENTED BY:SWAPNIL SHWETA VINOD MISHI AMIT VAISHALI ATUL

MBA 4551/08 MBA 4522/08 MBA 4563/08 MBA 4571 /08 MBA 4564/08 MBA 4506/08 MBA 4515/08

BEVERAGE TYPES OF BEVERAGE WATER ALCOHOLIC NON ALCOHOLIC SOFT DRINKS HOT 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

McDowell & Co. 17

Bagpiper

Shaw Wallace

9

UDV

3

Bacardi

0.1

McDowell no.1, Diplomat Directors Special Green Label, Smirn Off 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 5.40% 2.30% 47.5%

Fosters

30.6%

3.6% UBL Group

SAB +

Mt. Shiv

10.6%

Others

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

KINGFISHER – The King of Good Times Largest selling brand in India, the market leader in Indian beer

U.B. - 48%

SAB - 38%

Others – 14%

14% 48% 38%

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.

KINGFISHER • Largest selling brand in India. • 30% share • Recorded a 28% growth in the year 08-09.

THE LIQUOR KING • Dr. Vijay Mallya, • Flamboyant Czar • Youth icon of a million hearts • His sole presence outweighs all other competitors taken together.

SEGMENTATION Rest of India

Occasional Age

West

Regular Sex

>35 South 25-35

15-25

Consumption

Geographical

Female

Male

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 CHALLENGER FOSTER

CHALLENGERS BUSINESS . PORTFOLIO….

FOSTER • SABMILLER Company. • Global multi-beverage company • Consumer led • Customer driven

Foster Beer Brands Foster’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.

SEGMENTATION FOSTERS AGE SEX

OCCUPATION

BEHAVORIAL

SEX WISE

MALE

FEMALE

OCCUPATION WORKING BUSSINESS CLASS COLLEGE GOING

BEHAVORIAL OCCATIONAL USERS

REGULAR USERS

TARGETING • AGE 20-30

• SEX

MALE FEMALE

• OCCUPATIONAL

WORKING CLASS

• BEHAVORIAL

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 Beer COMPANY

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 pintsized 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 People Indian Economy Population (millions) Household consumption (US$ billion)

Source: Yura Beverages

2

2

2

2

2

2

0 0 5 1,09 5. 24 0 2 8

0 0 6 1,11 0. 24 2 1 0

0 0 7 1,12 5. 24 4 1 9

0 0 8 1,14 0. 22 6 5 1

0 0 9 1,15 5. 20 9 1 0

0 1 0 1,16 9. 37 1 7 6

Growth: 9.7

9% 9.1

9.4

9.5

□ 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

CONVERSION BARRIERS • Not for me • Beer= Celebrations only • I don’t understand beer / can’t pronounce names / read the labels

CONCLUSION • 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

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

?

?

McDowell’s No.1 brandy?