MITHIBAI COLLEGE OF ARTS, CHAUHAN INSTITUTE OF SCIENCE & AMRUTHBEN JIVANLAL COLLEGE OF COMMERCE & ECONOMICS.

VILE PARLE (WEST) MUMBAI - 400 056 A PROJECT ON : ALCOHOL INDUSTRY : KINGFISHER BEER IN THE SUBJECT ENTREPRENEURSHIP MANAGEMENT PROJECT BY MR. PANCHAL HIREN SURESH ROLL NO. 36 DIVISION : B

PROJECT GUIDE PROF. PALLAVI MHATRE

UNIVERSITY OF MUMBAI

M.COM. PART - II (THIRD SEMESTER)

ACADEMIC YEAR 2013 - 2014

MITHIBAI COLLEGE OF ARTS, CHAUHAN INSTITUTE OF SCIENCE & AMRUTHBEN JIVANLAL COLLEGE OF COMMERCE & ECONOMICS. VILE PARLE (WEST) MUMBAI - 400 056

DECLARATION I, MR. PANCHAL HIREN SURESH student of MITHIBAI COLLEGE, studying in M.COM (PART II) Roll No. 36, hereby declare that i have completed my project, titled ALCOHOL INDUSTRY : KINGFISHER BEER for the subject ENTREPRENEURSHIP MANAGEMENT in the academic year 2013 - 2014. The information submitted here is true and original as per my research and observation.

DATE OF SUBMISSION

SIGNATURE OF STUDENT (MR. PANCHAL HIREN SURESH)

2

MITHIBAI COLLEGE OF ARTS, CHAUHAN INSTITUTE OF SCIENCE & AMRUTHBEN JIVANLAL COLLEGE OF COMMERCE & ECONOMICS. VILE PARLE (WEST) MUMBAI - 400 056

CERTIFICATE This is to certify that the undersigned have assessed and evaluated the project on Topic - ALCOHOL INDUSTRY : KINGFISHER BEER submitted by HIREN PANCHAL, student of M.Com. Part - II (Semester III) for the academic year 2013-14. This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Name & Signature of Internal Examiner

Name & Signature of External Examiner

PRINCIPAL College Seal I/C DR. D.B. GADKARI

ACKNOWLEDGEMENT

At this juncture, I would extend my gratitude to a number of people without whom this informative project would have been impossible. Every work that is appreciated is supported by various hands. This project would just not be complete without the valuable contribution from various people whom i have interacted with in the course of its completion. I would like to sincerely acknowledge my guide PROF. PALLAVI MHATRE for providing me with an excellent and splendid opportunity to present this project on ALCOHOL INDUSTRY : KINGFISHER BEER which definitely has given a further professional approach. I am extremely grateful to the University of Mumbai for having prescribed this project work to me as a part of the academic requirement in the MCOM -II course lastly, I would like to appreciate the management and staff of MITHIBAI College, MCOM-II for providing the entire state of the art infrastructure and resources to enable the completion and enrichment of my project.

TABLE OF CONTENTS

Chapters 1 2

CONTENTS INTRODUCTION 528 KINGFISHERS ENTREPRENEUR GROWTH

Page No. 6 8

KINGFISHERS PRESENCE IN THE MARKET

11

KINGFISHERS MARKET ANALYSIS

19

CONCLUSION BIBLIOGRAPHY

27

Introduction
The world of today is changing fast. India is no exception. Especially after the opening up of the economy, the pace of change that India and its people are experiencing in their socio-cultural milieu is mind-boggling. India, with its wide diversity, offers a fascinating scope to study the host of 1 changes which developmental activities have brought about in its social and economic fabric . While it is possible to get any accurate measure of the subjective experiences that precede, accompany or follow such changes. However, the fact remains that the profile of the Indian market is vastly different from what it was five years ago. Although these changes are difficult to measure at the micro level, nevertheless, they have been of great significance to markets. Any market is keen to closely monitor the changes in terms of numbers and specially to keep regular track of the changing pattern of consumers aspirations and competitive actions. Fast Moving Consumer Goods usually refer to non-durable products. Examples include soft drinks, toiletries, grocery items, etc. A customer usually spends a minimum of effort to procure them. However, much of astute marketing activities have evolved from this class of products, where consumers show low involvement, put wider choice and allured by a host of inducements. Kingfisher stands for excitement, youth and camaraderie. The beer brands manufactured and marketed by United Breweries Ltd have always been recognized for their international quality. Kingfisher isThe largest selling beer in India commanding a 29% market share in the country. One out of every 4 bottles of beer sold every second in India Available in 52 countries across the globe. The first among Indian brands to launch its own range of designer wear ,Kingfisher, the bird is known for its keen instinct, and perfect aim. It zeros on its target with unfaltering focus. It is a very vibrantly colored bird. All of its colors represent energy, youthfulness, enthusiasm, freedom with a touch of formality and discipline. No wonder, that this bird with an eye for right focus and an aim for succeeding in its attempt became the mascot for The Kingfisher brand of Beer from the stables of UB group. United Breweries Sales of the United Spirits Ltd. are expected to exceed 60 million cases during the fiscal year 2005-06 making the Group the third largest manufacturer of Spirits [ products in the world , only after Diageo PLC and Pernod Ricard. In addition, UBL is one of only three in the world to own seven millionaire brands and at least five brands rated by Drinks International, UK, to be amongst the ten fastest growing brands in the world in their respective categories.
6

The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly. Its flagship brand 'Kingfisher', has achieved international recognition consistently, and has won many awards in International Beer Festivals. Kingfisher Premium Lager beer is currently available in 52 countries outside India and leads the way amongst Indian beers in the International market. It has been ranked amongst the top 10 fastest growing brands in the UK. United Breweries made its initial impact by manufacturing bulk beer for the British troops, which was transported in huge barrels or "Hogsheads". Kingfisher, the Group's most visible and profitable brand, made a modest entry in the sixties. During the 1950's and 60's, the company expanded greatly by acquiring other breweries. First was the addition of McDowell as one of the Group subsidiaries, a move which helped United Breweries to extend its portfolio to wines and spirits business. Strategically, the Group moved into agro-based industries and medicines when Malaya acquired Kissan Products and formed a long-term relationship with Hoechst AG of Germany to create the Indian pharmaceutical company now known as Aventis Pharma , the Indian subsidiary of the global pharma major Sanofi-Aventis. It all began with 5 breweries in South India. The oldest of which, Castle Breweries, dated back to 1857. United Breweries, as these breweries were named in 1915 has come a very long way. Since the launch, Kingfisher Beer has become one of the largest selling beer brands in the world. "It's flying" and the mood is upbeat - both within the Company and among consumers. The new look designed by the UK based packaging specialists, Claessens, is representative of the brand in full flight, in a supportive environment. It reflects the energy, youthfullness and freedom that are characteristic of the brand's target consumer and reiterates its contemporary positioning.

COMPANY PROFILE
United Breweries Group or UB Group, based in Bangalore is a conglomerate of different companies with a major focus on the brewery (beer) and alcoholic beverages industry. The company markets most of its beer under the Kingfisher brand and has also launched Kingfisher Airlines, an airline service in India, with international flights operating recently. United Breweries is India's largest producer of beer with a market share of around 48% by volume. The group is headed by Dr.Vijay Mallya who was also a member of the Indian Parliament. United Breweries now has greater than a 40% share of the Indian brewing market. Recently UB financed a takeover of the spirits business of the rival Shaw-Wallace company giving it a majority share of India's spirits business. The group owns the Mendocino Brewing Company in the United State History:The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took its initial lessons in manufacturing beer from South Indian based British breweries. At the age of 22, Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he replaced R G N Price as the chairman of the company. United Breweries made its initial impact by manufacturing bulk beer for the British troops, which was transported in huge barrels or "Hogsheads". Kingfisher, the Group's most visible and profitable brand, made a modest entry in the sixties. During the 1950's and 60's, the company expanded greatly by acquiring other breweries. First was the addition of McDowell as one of the Group subsidiaries, a move which helped United Breweries to extend its portfolio to wines and spirits business. Strategically, the Group moved into agro-based industries and medicines when Mallya acquired Kissan Products and formed a long-term relationship with Hoechst AG of Germany to create the Indian pharmaceutical company now known as Aventis Pharma , the Indian subsidiary of the global pharma major Sanofi-Aventis. It all began with 5 breweries in South India. The oldest of which, Castle Breweries, dated back to 1857. United Breweries, as these breweries were named in 1915 has come a very long way. The group entrance to the IT sector had also been marked by the formation of UBICS, Inc. The company provides IT consulting, services and professional IT products to business companies. In August 2007, the group made a first-of-its-kind media alliance for the promotion of NDTV Good
8

Times, a lifestyle television channel run by NDTV. United spirits limited has 144 brands under its umberalla. LOGO-: The Pegasus, which is the symbol of the United Breweries, first found its place as the Group logo in 1940. Then, the Helladic horse associated with beer and nectar in Greek mythology- carried a beer cask between the wings, ostensibly because beer formed the core operations of the Group. Later, the beer cask was removed to represent the Groups multifaceted operations . Now, it is just the Pegasus. ORGANISATION:Millennium Alcove Pvt Ltd., (MABL), is the Joint Venture Company in which UB along with its subsidiary and Scottish & Newcastle of the UK have equal stake of 50%. United Breweries Limited, the flagship company of the UB Group, has an association with the brewing dating back over five decades, starting with 5 breweries in South India in 1915. From bullock cart-loaded barrels or 'hogheads' of frothing ale, the Beer business has gone on to become the undisputed 'king' in the Indian beer market. Here, innovative, creative and aggressive marketing is complemented by a strong distribution network. A management focused on building brand equity on one hand and exploiting it to the hilt on the other. A concerted emphasis on quality.UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the Country Quality and hygiene are the key elements of the United Breweries' manufacturing philosophy. To this end, the Central Scientific Laboratory (CSL), headquartered at Bangalore sets standards for all its breweries. Quality Management Systems laid out along the lines of ISO 9000 are strictly adhered to, controlling quality at every stage of production, from raw materials to the end product. Also, besides controlling the production process, the CSL analyses the Company's beer taken off market shelves all over the Country, the competition's beers and beers across the world. These beers are tested as per the standards laid down by the European Brewery Convention on 40 different parameters. By these standards, United Breweries' beers don't just equal, but even surpass, several Dutch and American beers.

Its flagship brand 'Kingfisher', has achieved international recognition consistently, and has won many awards in International Beer Festivals. Kingfisher Premium Lager beer is currently available in 52 countries outside India and leads the way amongst Indian beers in the International market. It has been ranked amongst the top 10 fastest growing brands in the UK. In addition, UBL has also entered into mutli-faceted strategic alliance with Scottish & NewCastle Plc (S&N), an international brewery major, with $6 billion in revenue and a market capitalization of $5.4 billion. This alliance, apart from having a joint venture in India, will allow S&N to market it International brands like Kronenbourg in India, while UBL will utilize S&N's global network to further globalization Its Kingfisher. THE KINGFISHER BRAND-:A name synonymous with Beer in India Kingfisher stands for excitement, youth and camaraderie. The Beer brands manufactured and marketed by United Breweries Ltd have always been recognized for their international quality. Thats Beer at its best for the discerning consumer. Kingfisher is The largest selling Beer in India Commanding a 29% market share in the country One out of every 4 bottles of beer sold every second in India Available in 52 countries across the globe. Kingfisher, the bird is known for its keen instinct, and perfect aim. It zeros on its target with unfaltering focus. It is a very vibrantly colored bird. All of its colours represent energy, youthfulness, enthusiasm, freedom with a touch of formality and discipline. No wonder, that this bird with an eye for right focus and an aim for succeeding in its attempt became the mascot for The Kingfisher brand of Beer from the stables of UB group. Since the launch, Kingfisher Beer has become one of the largest selling beer brands in the world. "It's flying" and the mood is upbeat - both within the Company and among consumers. The new look designed by the UK based packaging specialists, Classes, is representative of the brand in full flight, in a supportive environment. It reflects the energy, youthfulness and freedom that are characteristic of the brand's target consumer and reiterates its contemporary positioning

10

Top 5 Beers in India

Before an independence in our country the British were introduced a first beer known as lion. Now a days beer has occupied an important position in the Indian hard drinks section. The Indian beer industry business has been growing at a steady rate over the last few decades. The Indian population is increasing day by day. So, the popularity of beer is also increasing at a rapid speed. The India is residence to some of the best breweries that are supposed worldwide for their quality beer brands.

1. Kingfisher The largest selling Beer in India, Kingfisher commands a market share of over 36% in the country with 1 out of every 3 bottles of beer sold in India being a Kingfisher brand. We are also available in 52 countries across the globe. The beer itself is a light tasting, easy drinking beer with prosperity of malt. It goes down really well -- if not a little too well at times! Kingfisher Strong, containing about 8% alcohol, is fast growing in popularity and has more flavor than the regular Kingfisher Premium, which has 4.8% alcohol. The tagline used for communicating the positioning platform is Same Taste. Extra Dum. Kingfisher Strong symbolizes the values of strength, style, youthfulness, power & machismo. Another difference is Kingfisher Blue, marketed at the young and trendy. This is also a strong beer with around 8% alcohol but it has a very light wet taste. Distinctive and full-bodied Kingfisher Ultra, made from imported ingredients, is the newest label to knock the market.

2. Haywards Haywards is India's largest selling strong beer brand, which perfectly combines strength with quality credentials that meet the high expectations of todays demanding consumers. The brand is most well known for its Haywards 5000 label -- a top selling strong beer that contains 7.5% alcohol and it is full bodied malty flavor taste. Haywards also produces Haywards 2000, a mild beer with 6% alcohol and it is rich, smooth and crisp taste. And another product from Haywards is Haywards

11

Black -- India's first genuine stout beer. It's a strong dark colored beer, with 8% alcohol, and it is rich foam with a thick texture, strong flavor and full satisfying taste with a hint of caramel.

3. Royal Challenge Royal Challenge Premium is a soft beer containing 5% alcohol. It is most popular in the states of Andhra Pradesh, Uttar Pradesh, and Orissa. The beer has a long brewing cycle, giving rise to its slogan of "Brewed Longer, Brewed Better". In comparison to many Indian beers, it's quite a full bodied and tasty beer. It has all the hall marks of a great beer - Color that is golden honey, taste that is smooth and crisp, lace that sticks to the wall of the glass.

4. Kalyani Black Label Kalyani Black Label Strong, an 'iconic' brand has a long history which begins with its origin in West Bengal. Kalyani Black Strong today is an established brand and has its foot prints across East and certain markets in the South. KBLS combines the unique taste and quality of Kalyani Black Label in a strong beer and is positioned on the similar platform as the mother brand. The creative uses images of friends having fun with the line 'KBL Khol, Dil Khol' thus becoming an integral part of friendship and tells you to live life fullest with friends. KBLS comes in both premium and strong varieties. The strong beer is described as "a smooth, mellowed brew with an extra bite". Its alcohol content, at 7.8%, packs quite a punch, along with its sweet aftertaste. If you like a beer with flavor, go for Kalyani. 5. Kings The beautiful beaches of Goa and Kings Beer go hand in hand. This beer, which unfortunately is only brewed and sold in the state of Goa, is a highlight of any trip there. The Kings Black Label premium pilsner is a very light tasting, pale colored, beer that's known for its smoky malt aroma. Its got an alcohol content of 4.85%, and is priced very attractively. A small 375 ml bottle will only set you back around 35 rupees (75 cents) at most beach shacks.

12

Kingfisher tops rivals in India's beer market

Indians sip only two litres of beer a year, just one-twentieth the amount consumed by Chinese and less than one-fortieth by Americans. SABMiller Plc, Anheuser- Busch InBev and Carlsberg see that as an opportunity. The global brewers are forming partnerships, introducing new products and marketing milder, pricier brews to young Indians. They have yet to overcome a maze of regulations and United Breweries Ltd, owner of top local brand Kingfisher, in a market expected by Euromonitor International to almost double to $9 billion by 2016. United Breweries so far has beaten back the challenges. It started selling Heineken in India over the past seven months to offer more options against foreign rivals. Changing state regulations have already eaten into London-based SABMillers market share and all of the brewers still face some Indian taboos on alcohol consumption. Everyone fantasises: Imagine if you had a billion Indian people drinking 50 litres of beer per capita, said Trevor Stirling, analyst at Sanford C Bernstein Ltd in London. Its going to be many decades, if ever, before Indian per capita consumption reaches 50 litres. Emerging markets such as India are important to global brewers as growth slows in the developed world and brands like Budweiser fight competition from craft beers in the US. At the same time, the experiences of foreign brewers show how regulations or entrenched competitors are holding back many of the worlds largest companies in the second most populous nation. Retailers such as Wal-Mart Stores Inc faced a setback in December when the government reversed a decision to allow their entry into a market dominated by local mom-and-pop stores. India also bans advertising of alcoholic drinks, which can make it harder for brewers to introduce consumers to new names. Supplying British troops United Breweries traces its roots to British soldiers love for beer. In 1915, a Scotsman named Thomas Leishman bought five breweries in southern India to form United Breweries. The company transported its beer in barrels on bullock carts, serving British troops. Vittal Mallya, father of present chairman Vijay Mallya, bought United Breweries in 1947, and snapped up distillers and brewers on the cheap when the Indian government briefly threatened prohibition in the 1970s.
13

The sale and distribution of alcohol in India is controlled by state governments, which impose taxes on imports and exports, forcing companies to open distilleries and breweries in each state where they want to sell their products cost-effectively. The biggest challenge is, in India, every state has their own system in terms of taxation, labor requirement, said Joergen Buhl Rasmussen, COE of Copenhagen- based Carlsberg, which entered the country in 2007. That does make India not very efficient to operate. United Breweries benefits from 28 breweries spread across the countrys 28 states. That tops the 13 that SABMiller uses and Carlsbergs five. New beers United Breweries, based in Bangalore, increased its beer market share to 57 per cent in 2011 from 43 per cent in 2006, according to London-based Euromonitor. In the same period, SABMillers share dropped to 24 per cent from 37 per cent. The success of the brewing business contrasts with United Breweries parent UB Groups moneylosing Kingfisher Airlines The airline, which has reported more than 10 straight quarterly losses, is seeking new funds after grounding planes and cutting flights because of a cash shortage. Kingfisher has held its own in the beer market helped by the introduction of new products, including milder, higher- priced varieties like Kingfisher Ultra. When we were going to launch Kingfisher Ultra two years ago, we used to wonder who would buy a Rs 100 ($2) beer, Samar Singh Sheikhawat, vice-president of marketing at United Breweries, said in an interview in August when the company introduced Heineken in India. But today, Kingfisher or the mainstream beers are close to Rs 90-95. What was considered a barrier for beer doesnt exist anymore. Regulatory disputes SABMiller also added brands, such as Miller High Life, to reach young, urban consumers. Its market share was still hurt by regulatory disputes in the states of Andhra Pradesh and Uttar Pradesh, and excise duty increases in other states, the company said in its 2010 annual report. The single greatest challenge that any brewer faces is regulation, Derek Hugh Jones, marketing director of SABMiller India, said in an email.

14

The movement of beer across state borders is inefficient, eliminating any scale efficiency. Still, consumers greater affluence and increasing social acceptance of beer will ensure sustained growth for the industry in India, he said. Religious taboos Per capita consumption of beer in India at 1.6 litres is a fraction of 35.5 in China, 75.6 in the US and 105.6 in Germany, based on Euromonitor estimates. You have a reasonably high proportion of a Muslim population who wont drink alcohol, said Stirling. Also, if youre a devout Hindu, you wont drink alcohol. Social norms are changing and beer consumption picking up as Indias young adults have more money to spend and travel around the world. The economy has grown at an average annual pace of more than eight per cent for the last four years. Euromonitor estimates Indias beer market will grow to Rs 4,47.9 billion ($9 billion) from Rs 257 billion in 2011. Carlsbergs Rasmussen said the potential to raise per capita purchases makes the country a very attractive market to be in over time. Carlsberg, which entered India in 2007, had a 4.4 per cent share in 2011. Anheuser-Busch InBev, the Leuven, Belgium-based company that sells its Budweiser beer, held 1.1 per cent. Stronger tastes One factor in the new brew battles: the strength of the beer. Indian drinkers are largely still partial to stronger beers like Kingfisher Strong, with an alcohol content that can go as high as eight per cent. As much as 80 per cent of the beer sold in Indias beer industry is strong, with alcohol content of six to eight per cent, by Sheikhawats estimate. United Breweries stable of brands includes Kingfisher Strong and Draught as well as milder variants such as Ultra. Carlsberg has introduced stronger brews, including Carlsberg Elephant and Tuborg Strong. Microbreweries are springing up in India as well. The New Delhi suburb of Gurgaon has several. One of the largest, called Rockmans Beer Island, has raised prices as many as four times since starting in 2009 and still has customers flying to its brewery, on the top floor of an upscale mall, from other cities.

15

MANUFACTURING PROCESS OF BEER

Beer is manufactured usually form barley, hops, yeast and sugar. The barley corn consist largely of starch, which will not ferment and so it must first be converted into sugar, which ferments readily. This brought about by malting the barely. During the malting process the barely is soaked and then kept in a warm atmosphere so that it begins to germinate. As the barley germinate, it produces an enzyme called diastase which will convert the starch into malt sugar. Which in turn are then converted to alcohol by the yeast enzymes during the brewing. After malting the barely is milled and then washed together with hot water and sugar. The resulting liquidate , known as wrote is pumped into large copper vessels where it is boiled with hops and sugar. The hops act as a flavoring and as preservative. Next, the spent hops are separated from the boiled wort, which is cooled and put into the fermenting vessels. The yeast is now added, and fermentation begins. British beer begins fermentation at a temperature of about 15.6 degree c (60) degree and fermentation takes form five to seven days. These beers are top fermented, that is the type of used floats on the top of the liquid. The beer after fermentation, is drawknife into setting tanks where any residual yeast is removed and then stored for a time ( from a few days to a few weeks, depending on the type of beer) at around o degree c (32 degree) to allow it mature before it ils rocked (filled) into bottles or cans. Lager beers are bottom fermented, the yeast used setting at the bottom of the vessels during fermentation, which begins at a temperature of from 6 degree c to 10 degree c and takes about 8 days. Lager bears are matured for up to 3 months at 0 degree c before rocking ( the same lager is the word for store). During the maturation period a second fermentation takes which clears the beer and improves its flavor and strength. The term ale originally applied to UN-hoped beers, but it is now widely used as a general name for top fermented beer. The amount of hops used depends upon the type of beer being produced. A strong to p-times the amount of hops used in malting a light lager. Another factor which varies according to the type of beer being produced in the malting process. For example, the barely for a top fermented beer may be germinated for 11 days and then dried at 107 degree c for 3 or 4 days, but barley for lager may only be for 7 or 8 days and then dried at a temperatures of bout 55 degree c. When dark beer such as brown ales and stouts are to be made,

16

The barley is also high roasted. The root lets sprout form the barely during germination shrivel and drop off when it is dried, and they are usually collected and sold for use in animal foods. 1. Trends Since the realization of beer in U.S. in 1933 there has been a complete switch form dark to light beers form drought to bottled and canned beer. Drought beer accounted for more than 2/3 of all beer sold in draught beer most of the increase in packaged beers has been in canned beer. 2. Types of beer: In the U.S. the name Beer is generally given to a bright, pale Golden, light boiled , crispy fresh beverage that is drunks, chilled some where between 44 degree f and 48 degree f (6.6 degree c and 9 degree c ). ! Bock beer It is a special, full bodied brew, some what darker and sweeter than regular beer. It is brewed in winter for use in the spring. Bock beer day, the day on which it is first sold is planned to herald the arrival of spring. The bock beer season lasts about six weeks. ! Malt liquor It is a special kind of beer that varies considerably among brands. Some malk liquors are quite pale, others are rather dark. Some are quite happy , others are only mildly so, their essential characteristics is a higher alcoholic content than in other beers. ! Lager It is generally understood to be a light bright and sparking beer, but today all malt beverages in the U.S. are laggard. ! Pilsner It is a term after seen on beer labels around the world. The original and the pilner beer is the pilsner urquell which has been brewed at platen in bohemia. Czechoslovakia, for some 800 years and has never been equaled.

17

 Ale: It is an aromatic, golden, fuller-bodied and bitter malt beverage with a slightly higher alcoholic contents than beer , all ales top fermentation brews. ! Stout It is darker, fuller bodied ale yielding a rich, ceremony foam, strongly rousted most is used to give a richer body. It is sweeter and less happy than regular ale. ! Sake A Japanese brew made form rice, is given a high alcoholic content by refermentation.

18

SWOT ANALYSIS

Strengths Market Leader Strong Brand Image Global Presence Aggressive Advertising Quality & Innovation

Weakness Long Developmental Cycle Relative Static Market Expensive Brand

Opportunity Demographic Changes Changes Societal Attitudes Consumer Brand Preference Demand for High Quality Threats New Competitors Cloning of Successful Brands Increasing Buyer Power Growth in Substitutes Economic Downturn

19

Market share

Analysis: IT has around 48% market share in the country. Marketing Mix Analysis: Kingfisher History: Parent company of Kingfisher, United breweries was established in 1857 with the name Castle breweries. It was renamed to United Breweries in 1915 and started manufacturing beer from the year 1944 under the label Exports Beer. UB group started exporting beer to Middle-East from 1974 and in the year 1978 it launched Kingfisher brand. Market Position: It is the largest selling brand in India and commands more than 30% share in the beer market. In 2005-2006 it recorded 28% growth.

Target markets: Kingfisher has two different products for different market segments.

20

Product Place It is available throughout India, and is dominant particularly in South and West India. UB has 16 company-owned breweries apart from nine contract breweries in 20 different locations across the country. Kingfisher also has a presence in 60 countries. Kingfisher also has an online marketing system. Any consumer can go to www.Kingfishernetshop.com and get their beer- a mini mum of six bottles home delivered. This move has been a big draw with info tech professionals and district women drinkers. It also has some sixteen hundred shops apart from pubs and bars. Better retailing outlets are also to be opened under the Kingfisher Brand. Kingfisher also has tie-ups with large department stores like Food world for retailing its Beers. Kingfisher also has association with number of Very Classy, Up-market & Stylish bars & lounges which goes hand in hand with its brand image. No. 1 selling product in its segment. Good quality raw material is used to maintain the quality standards. Consistency of product quality is high. Always tastes fresh due to good quality and well developed distribution network. Hangover due to heavy consumption is very mild.

21

Price In both mild and strong beer segment Kingfisher uses competitive pricing strategy. i.e. 650ml at Rs 85/- and 330ml Rs 45/Promotion Kingfisher tagline King of good times is one of the most popular and most successful tagline in India. Since advertising of liquor is banned in India, Kingfisher uses surrogate advertising methods like using mineral water and sodas. Recently it also started merchandizing sports goods and trendy clothing and accessories under Kingfisher brand name. Each year Kingfisher brings out new calendars featuring top models in swimwear. Kingfisher also promotes itself by sponsoring events like fashion shows, sportspersons like Narain Karthikeyan, East Bengal soccer team. UB promoter also acquired a Formula- One team (Force India). Kingfisher also deals in sports merchandising starting with an ad featuring Sourav Ganguly and Ajay Jadeja in 1997. With the launch of Kingfisher airlines combined promotion is possible which helps the brand promotion a lot. Kingfisher also ventured into other businesses with same brand name making the brand more visible and publicity easier. Kingfisher recently tied up with NDTV for their new lifestyle channel NDTV Good Times for five years And finally the Sultan himself, Dr. Vijay Mallya, the Big Daddy of all brands, the flamboyant Czar of the liquor industry who is the youth icon of a million hearts. His sole presence outweighs all other competitors taken together.

22

Kingfishers overseas promotion drives 1. Abu-Dhabi to Goa: A promotion at all the six stores of Spinneys, Abu Dhabi took place where customers were entitled to a raffle coupon to win an all expense paid holiday to Goa on purchase of any case of Kingfisher or Kingfisher Strong. Two lucky winners were to fly to Goa, for an exclusive Taj resort, sightseeing and excursion including visit to the production unit and lots of complimentary Kingfisher to ensure that happy times stay with our valued customers forever. 2. Tie up with Sony: Kingfisher had an exclusive deal with Sony consumer electronics raffle and instant scratch and win promotion wherein the customers on purchase of any case of Kingfisher Lager or Kingfisher Strong stood a chance to win by way of instant scratch and win rewards free Kingfisher Lager / Kingfisher Strong goodies like T-shirts, Caps, Desktop Calendars, free bottles. 3. Alliance with Bollywood: Keeping in mind the popularity of Hindi movies outside India Kingfisher was a part of the souvenir programme for the Shah Rukh Khan show in Hong Kong on 1 December 2004 as a part of Diwali celebrations in Hong Kong. With other high profile stars like Preity Zinta, Saif Ali Khan, Zaid Khan, etc for the event.

23

4. Test market in South Africa : It received very positive test market results for Kingfisher Premium Lager Beer and Kingfisher Strong Premium Beer in 330 ml cans for the African markets. 5. Launching new products in the market: A trial for 2 cases of Taj Mahal 330 ml bottles in June 2004 for Australia generated a lot of interest and enthusiasm for the country of the origin brand, which spoke of eternal love and passion. With successive orders for the past 3 months, Taj Mahal Premium Lager Beer is now available in 6 packs: the most preferred pack size down under. 6. New merchandizing schemes started: Keeping in tune with the times and constantly updating our merchandise portfolio, Kingfisher offered its customers practical and useful merchandise, which are of very high quality and designed to meet the high expectations, which include premium travel bags, sling bags, waist pouches and foldable shopping bags, windcheaters and luggage tags, premium embroidered aprons and Polo T-Shirts.

24

Surrogate Marketing in India Surrogate Marketing is a requirement of all alcohol/cigarette brands in countries where it is prohibited by law to directly advertise addictive products such as alcoholic beverages and cigarettes in mass media. It is a strategy which refers to the indirect way in which companies advertise their products, and use minor loopholes in the law to still achieve the basic marketing objectives of building brands, creating customer associations and promoting brands. They do this by associating the same brand names to other acceptable products, ranging from sodas to music CDs !! India too falls under the category of countries who have prohibited advertising of alcoholic beverages, but still companies and brands make their own efforts to do the same UB Group United Breweries is the group which has really exploded the restrictions, expanding surrogate methods of branding in all directions imaginable. Lets list down where all they are present: a) Kingfisher Kingfisher has the most diverse set of surrogates floating around: a) Kingfisher Airlines (even though it is a full fledged business with a monetary interest); b) Kingfisher Calender; c) Kingfisher bird as a part of the logo of NDTV Good Times (co-branding) d) shows on making of the calendar on NDTV Good Times etc. Vijay Mallya himself is a popular brand ambassador now for the company. b) Bagpiper A host of ads on Bagpiper soda, featuring Akshay Kumar and a few others, with the now-famous tagline: khoob jamega rang jab mil baithenge 3 yaar aap, main aur bagpiper again, promoting Bagpiper soda. c) Royal Challenge: A major property in the form of Royal Challengers Bangalore playing in IPL. d) Whyte and Mackay: nothing notable apart from being present on the RCB IPL jerseys

25

e) White Mischief: an indirect promotion through the White Mischief holidays, and also through the RCB cheerleaders So the above was a snapshot on what all the liquor companies are doing in India, trying to spread awareness about their brands through indirect means and mechanisms. Of these, some are full fledged business interests, such as Kingfisher airlines, RCB in IPL, White Mischief Holidays etc (this seems to be Mallyas promotion strategy) Surrogate marketing is definitely here to stay, because the prohibition is unlikely to be removed any time soon, and alcohol companies would likely never cease to exist. And as long as both business interests and restrictions remain, surrogate marketing will thrive.

26

CONCLUSIONS
India as a nation is making economic progress. There are lots of people who are indulging in luxurious life, they prefer to buy branded products and do not mind paying a premium for quality. But for the majority price is a constraint, especially for the middle class population. They would only purchase items that they feel is value for money. So if they feel that they dont get enough benefit from the product then they avoid buying it. As far as buying behavior of people with respect to beer is also the same. The highest selling beer in India is kingfisher strong and premium which is priced at Rs70 for 650ml bottle. The sales of Super Premium beer like kingfisher Ultra is relatively low, which is priced at Rs100 for 650ml bottle. Even though the Super premium beer is of high quality and has been appreciated by the consumer, it has not resulted in as high sales as compared to the premium category beer. This just shows that it will still take some time for the Indian mindset to change where more number of people will be willing to spend on quality without thinking much about the cost. But we can already see a reasonable change in the consumer mindset, from say 10 years back. What I feel is that even though price is a barrier at present, but things will get better in the future and super premium beer would take over the market from the current 5% to about 25% in the near future. Even though there is stiff competition from the foreign brands like Carlsberg and tuborg , Budweiser , corona. there would not be any major threat to the kingfisher brand. The brand is still the favorite among the Indian consumer and it will grow from strength to strength.

27

BIBLIOGRAPHY
WEBSITES

www.btobonline.com www.marketinganalysis.org www.entrepreneur.com www.marketresearch.com

28