Académique Documents
Professionnel Documents
Culture Documents
Submitted By:
Abhishek Gupta
Allen Thomas K
Pooja Ganatra
Shubham Dubey
Sweta Kumari
Contents
1.
EXECUTIVE SUMMARY................................................................................... 3
2.
TRENDS........................................................................................................ 4
3.
COMPETITIVE LANDSCAPE............................................................................4
4.
PROSPECTS.................................................................................................. 4
5.
SWOT ANALYSIS............................................................................................ 4
6.
PESTEL ANALYSIS.......................................................................................... 5
7.
8.
TYPES OF BEER............................................................................................. 7
9.
COST ANALYSIS............................................................................................ 8
1. EXECUTIVE SUMMARY
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. Bubbling with enthusiasm and high on
growth wave, Indian Beer Industry has been a magnet for many international players. High growth rates and
relaxation of rules on foreign direct investment in the last decade has attracted foreign investment in the beer
sector. The industry which once offered limited varieties today has left the beer lovers bewildered with varieties
and qualities on offer. Also, the Indian growth story holds up the expansion of the beer industry.
Trends in the Industry
Entry of foreign brands in India
Budding Beer Categories
Surrogate Advertising
Favourable demographics, rising disposable incomes, urbanization and rising acceptability of drinking have
brought the winds of change for the industry. Expectant & hopeful rationalization of the taxation rules will
further aid the growth. Indian beer scenario is estimated to remain buoyant and consumption is expected to
continue its growth arc. The report starts with a brief on the Indian scenario of the beer industry and then
proceeds to analyse the UB groups Kingfisher brand. The beer segment is categorized as strong beer and mild
beer. Strong beer has alcohol contents of >5% and mild beer contains <5% of alcohol. Indian beer market is
dominated by United Breweries capturing over 50% of the market followed by SABMiller with around 25%
and Carlsberg with under 10% of the market share. Similarly in brands, Kingfisher dominates the market
followed by Haywards 5000, Knock Out and Tuborg. The report analyses the beer market in profundity by
covering data points like industry growth drives, emerging trends coupled with SWOT analysis and Porters
five forces model of the market framework.
The report captures the popularity of kingfisher with the help of customer and retailer survey. Secondary data
collected shows that beer is the preferred alcohol of the 21St century Indian. Nowadays consumers are looking
for choices away from whisky and it is not just the male populace that is enamoured by beer but female
population equally enjoys the drink. The industry today boasts of an array of high quality varieties that were not
even thought about 7-8 years ago. And Kingfisher is leaving no stone unturned for wooing 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 extensions and surrogate advertising coupled with
alignment with sport. Kingfisher Premium has associated itself with five teams of the IPL as the Good Times
Partner, resulting in huge brand awareness among its target audience. This report provides market analysis
covering major growth driving factors for the industry, latest market trends and insights on the position of
Kingfisher in the beer industry. Our research broadly covers Indian markets, present analysis and outlook on the
basis of secondary data research and is cross-validated through interactions with the customers and retailers.
2. TRENDS
Consumers in urban India are slowly getting adventurous and trying new beers. With microbreweries and brew
pubs expanding their footprints in metro cities, people have also started to appreciate wheat beers, ales and
many imported beer brands. The trend of microbreweries started in 2008 with two microbreweries Doolally
and Howzatt. But now there are more than a dozen microbreweries all over India. Many imported beers like
Estrella Damm and St Erhard have also made their foray in India in 2012 and 2013 which will drive sales of
imported beers as well as beers from microbreweries as consumers will think beyond brands like Kingfisher or
Haywards.
3. COMPETITIVE LANDSCAPE
United Breweries Ltd was the leading player in beer in 2013 with a volume share of 51%. The strong
distribution channel of the company and the popularity of the brand Kingfisher, which is almost synonymous
with beer in India, have helped the company to maintain its leadership position. The company has a wide
portfolio of beers in the low, medium and premium price bands. The company also invested Rs2000 million in a
green field brewery near Patna.
4. PROSPECTS
Most Indians still do not drink beer or any form of alcohol mainly due to religious or cultural reasons, but with
rapid urbanisation, a young population and a fast-growing middle class, India has become an attractive place for
companies to operate. The growth in beer consumption is expected to be driven by changing social norms,
increasing disposable income, consumers greater affluence and the increasing social acceptance of beer.
5. SWOT ANALYSIS
Strength:
1. Strongest Worldwide Distribution System
Opportunity:
1. Brand Extension Benefits
2. Global market expansion
3. Beer consumption is increasing due to changing culture
Threats:
1.
2.
3.
4.
6. PESTEL ANALYSIS
Political
The scenario of India is very different from rest of the world. Any company venturing into the Indian market
will have to study the political environment here. Different states have different rules for liquor. Some states
like Gujarat are dry states where the sales of liquor are completely banned while some states have time limits
i.e., after 10 the sales of liquor are prohibited. Also the huge cost involved for retailers to get the valid license
for liquor. Even the age limit for drinking in India is under discussion but right now it is 25, so Kingfisher has
to be very specific when targeting its consumer. As the advertisement of liquor is banned in India, Kingfisher
has cashed its international image to boost its sales in the domestic market. They have targeted the public
houses and discotheques for their promotion which is very apt.
Economic
The economy of India is changing with rising per capita income and as a result the disposable income of people
specially living in urban cities is also increasing rapidly. The Kingfisher group has realized this potential and
thus has targeted the urban cities of India very well in their early stage to penetrate the market. Higher sales are
expected because of the sports branding as well as the huge population that enters the legal drinking age every
year. The population is culturally more comfortable with beer and distribution by the Government has improved
significantly.
Social
As India is said to be the land of diverse culture, we cant categorize India under one segment. The northern
part is completely different from the southern part. Per capita income is rising, but at the same time the gap
between the culturally right and wrong is also widening. Though we hope that this gap will be narrowing in the
near future, but the scenario is a bit bitter right now. There is a school of thought against the so called pub
culture, but as they say change is inevitable thats why the Kingfisher Group is relying on the change and has
targeted the new Indian who is open to change. In urban India, one can see the growing western culture which
is actually the target market for the liquor industry.
Technological
Importing beer attracted heavy taxes from the government resulting in higher prices for the same. Therefore
Kingfisher opted to setup its own plant in India to increase the base in the market. As per the general manager
marketing UB Ltd., Mr. Gurpreet Singh, the per capita consumption is less than 2 litres per person, while it is
around 25 litres to 30 litres in China. There is a lot of scope for growth. According to the company sources, it is
using an advanced technology to ensure that the beer that gets out is of better quality and great taste.
Environmental
Environmental factors include the weather and climate change. As the climate here is generally warm,
Kingfisher increases the promotions during summertime. As the company is operating since last 35 years, it has
seen sales variations in different seasons but there are some cities like Goa which is a premium tourist
destination in India for youths has seen higher sales throughout the year.
Legal
Again The UB Group is very careful about the steps it takes because of the political environment which could
land it in trouble. As the laws are different for different states, Kingfisher India has played smart in tying up
with different sports league in making a social network so that its purpose of marketing is also solved and it
didnt cross the line of the law as well.
8. TYPES OF BEER
Beer
Dark Beer
Ale
Sorghum
Weissbier/Wiezen/Wheat Beer
Lager
Flavoured/Mixed Lager
Standard Lager
Premium Lager
Mid-Priced Lager
Economy Lager
Domestic Lager
Imported Lager
Stout
9. COST ANALYSIS
In 2013-14, operating margins of the brewers improved by about 150 basis points, aided by stable barley (raw
material) prices and an increase of 4-5 per cent in net realisations. Packaging costs also increased moderately,
by the same extent. In terms of net margins too, there was a 100 bps increase. The industry is capital intensive
due to working capital requirements and this reflects in higher debt requirements too thus increasing interest
cost and eating up on net margins.
10.
Segmentation
Geographic Segmentation:
The product is available in markets of India, UK, France, Finland, Portugal and Canada.
In India it is available throughout the country but is dominant in south and west India.
Demographic Segmentation:
The kingfisher beer mainly segments the market as youth and adults.
Youth: Under the age group of 16-25yrs(kingfisher mild)
Adults: Under the age group of 25yrs & above(kingfisher strong)
Psychographic Segmentation:
Behavioural Segmentation:
Here behavioural segments are created on the basis of occasions like birthday, anniversary and New
Year parties.
Target Market:
Kingfisher target customers are as follows:
The above listed target segments prefer strong beer (Alcohol >4%)
The above listed target segments prefer ULTRA and PREMIUM beer.
Positioning
Kingfisher has positioned itself as a brand for successful and professional individuals who are always
11.
Ps OF MARKETING
Product
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. Kingfisher as a
product has acquired a wider brand image with various variants in the Indian consumer market.
Variants
Kingfishe
r
Premium
Kingfishe
r Strong
Kingfishe
r
Draught
Kingfishe
r Ultra
Kingfishe
r Blue
Kingfishe
r Red
Kingfisher
Strong
Fresh
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. 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 and it
has made the segment so much competitive for the Indian market.
Kingfisher Strong enjoys close to 40 per cent market share in the Indian sub-continent and has also been one of
the fastest growing beer brands in the strong beer category in India. United Breweries Limited today said its
beer brand Kingfisher Strong has been recognised as 'Asia's Best Strong Lager Beer' at the prestigious World
Beer wards- 2013 held in UK recently.
Kingfisher has penetrated the Indian beer market in its early days by launching various bottle sizes for all kinds
of consumers. This has helped Kingfisher to gain a remarkable market share as a product which is closer to the
consumers fulfilling their booze as per the occasions.
New product Kingfisher Ultra is the first step in the direction of trying to come up with good brands in the
premium space. In a matter of months, this brand has overtaken the likes of Carlsberg wherever it has been
launchedMumbai, Pune, Bangalore and Pondicherry. Kingfisher is also promising its consumers experiences
that no other brand can promise. This is apart from launching Tiger Beer and Heineken brands in the premium
segment. So, it has two challengesto continue to grow the mass, and to appeal to a greater deal to the
premium consumer.
Place
In the last 35 years since its inception in the Indian market Kingfisher has made its legacy in the beer industry.
It has adapted to changes with the passage of time and in the past decades, it has offered its consumers the
product they wanted. The reach and coverage of Kingfisher can be analysed by the following facts
It is available throughout India, and is dominant particularly in south and west India.
UB has 16 company owned breweries apart from 9 contract breweries in 20 different locations across
the country.
Kingfisher also has a presence in 60 countries.
It has some sixteen hundred shops apart from pubs and bars.
Kingfisher also has association with number of Very Classy, Up-market & Stylish bars & lounges which
goes hand in hand with its brand image.
Microbreweries are springing up in India as well in the modern era and it can be observed in the cities like New
Delhi, suburb of Gurgaon and Pune. The consumption of beer has increased significantly in the past decade
with the arrival of the technical industry in India. Kingfisher judged it well and tied up with various breweries
and pubs. 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. Apart from tier 1 cities, the strong presence of Kingfisher can also be observed in the growing techno
savvy cities adopting to modern culture.
12.
BCG MATRIX
13.
BRAND PRISM
14.
MARKETING STRATERGIES
Social Media:
There are multitude of rules and regulations surrounding the sales and promotion of alcohol which makes it
difficult for alcohol brands to promote itself. However, Kingfisher while adhering to these rules and
regulation is doing a commendable job in the digital space backed up by a strong Social Media Strategy.
Kingfisher treats social media as a part of digital marketing and as a lead medium in their marketing. The
company has invested in it financially as well as infrastructurally. The company believes in a mix of offline
and online integration. There are few online initiatives that are only done on digital platform but do not
happen in the offline world. The company wants to be the buzziest brand in the world.
Kingfisher has a mobile app on Android platform (google play) and IOs operating system and website
largely to promote engagements through intriguing content.
Budget of Social media: close to 3-4% and the number is doubling every year.
The Facebook Factor:
Finding creative ways to engage a person on Facebook so that they can come closer to the brand is one
of the reason 7,500,000 people follow Kingfisher on Facebook. The intent is to come up with content
and ideas that makes the followers share and enjoy the experience of being a part of Kingfisher brand.
Keeping regular contests on Facebook and uploading a lot of appealing pictures, tweeting, re-tweeting.
E.g.: they kept a contest for fans to create beer commandments and later printed t-shirts for the best
responses.
We show behind-the-scenes activities, exclusive updates, promotions mentioning who contributed it,
Using Facebook advertisements has helped in flourishing brand image.
Posting kingfisher calendar pictures on the kingfisher page of facebook attracts a lot of fashion
followers.
Youtube
Effect:
Kingfisher has an impressive YouTube channel which is a rarity among Indian brands.
Content on the social media is to a great extent driven by videos. In upcoming time 80% of all the
Rudolph and Brewdolph is a fictional reindeer who brings beer to the needy.
Positioning of Kingfisher blue: this particular brand is positioned on the outdoor adventure activation
platform.
The Blue mile: this is a road trip taken 5-6 people who tweet and blog, and they do they river rafting and
rappelling, and rock climbing, etcetera. And the Blue Mile is a property that were going to have at least
two, three times a year and that works very well on YouTube.
Spreading the fun using hashtags: Known for spreading the good times, the engagement using hashtags like
#BeerCommandments and #BeerMovies is the best way to get people engaged as they create virtual wordplay
and people share their fun thoughts.
Weve also got #KF6Pack which was for presenting your Valentine a six pack of Kingfisher Beer. That
hashtag trended and it was #1 in India for most of the day. It was #3 even till late at night. There are
1. The event took place at several popular pubs across the city where the brand challenged pub goers to spill
some beer and spell a whole new language. The font was created out of beer mugs and bottle and can
impressions by people who uploaded their photos on Instagram, Twitter and Facebook where the brand
eventually found the ideal letters to form the word beer.
2. Parallel to Germanys Oktoberfest, Kingfisher hosted an event that ended in late October 2013 called the
Great Indian Oktoberfest.The brand is expected to sell about 15% more beer compared to last year and
Kingfisher has reportedly increased its marketing spend by about 10% on upscaling The Great Indian
Octoberfest
Kingfishers heavy events strategy:
The brand has a strategy focusing on four platforms: sports, music, fashion and food, with the brands motto
being The King of Good Times. The brands target audience is the aspirational youth in India who lives life to
the fullest. Few strategic events include:
a. Indian premier League (IPL). According to the Business Standard report the UB group increased the
marketing spend by 10% for the sixth edition of the IPL.
b. The organisation has also set up a football club, called Kingfisher East Bengal Football Club.
c. The brand is an active advocate of sporting events such as the Bombay Marathon, the Delhi HalfMarathon, and the Bangalore and Hyderabad 10 and 15KM runs respectively.
d. Other events that Kingfisher is closely associated with includes tennis tournaments, hockey
tournaments, rugby tours, Formula One, horse racing derby and a host of other events.
15.
The big company brewers brew and bottle their beer on a company-owned site. They convert their raw
materials into a finished product, and bottle it into pre-made containers. Therefore, the inputs that breweries
need are the raw materials (such as water, barley, hops, corn and yeast) and packaging materials (such as kegs
and bottles), as well as equipment (such as grain mills, tanks, yeast propagators, and packaging systems).
Law prohibits restaurants, stores and individuals from buying directly from breweries. There is a required threetier process in place to prevent alcohol abuse, and to ensure minors are not purchasing or consuming alcohol.
Therefore, individuals and retail outlets must purchase from a licensed wholesaler or distributor.
16.
IMPORTANCE OF RESEARCH
Market research is an essential part of any business plan whether its a start up or a multi-national organisation.
Knowing that theres a target market for your product and comprehending well that what the stockholders
expect from you is quintessential for making a product or service successful.
Research also plays and equally important role in projects and technical paper presentations as it adds more
credibility into the idea.
Market research can be classified into:
a. Primary research
b. Secondary research
Primary research. The research can include question that you ask to your friends and family or a survey put
together alongside that addresses a wide variety of audience. You choose the questions and then using a
sampling technique obtain the detailed responses from the individual. One can decide the how, when and where
of the primary research which helps in gaining control of the project and decide the path to be followed, during
and after the research work (essentially the evaluation). Primary research is considered to be the most accurate
way to find out a market sector that is specific to your product. On the down side, this kind of research is quite
expensive (financially as well as the time involved) and requires producing quality questions that will help your
analyse the responses well.
You can ensure that the research is focussed by including few parameters:
1. Number of participants in the survey
Since we have different sets of questionnaires for consumers and retailers, our survey
participants will be close to 100, including both.
We will also look forward to having a response from someone in the Kingfisher group as to what
they think about their product and their market competition.
We have catered mostly to the college going students as there is a strong market in that segment
because of the pricing.
We also have included the working professionals, which will help us find more about the brand
that people follow where the money constraint is less prevalent.
The retailers (brick and mortar and online) will give us good insights regarding which product/
brand is preferred as compared to competition.
The survey for the consumers has 17 questions. The question covers aspects of product quality,
variety, pricing, likeability, preference of the customers and brand value.
For the retailers the questions comprise of the profit generated through Kingfisher sales as
compared to other brands, units sold per day, consumer preference in the eyes of the seller and
their stock availability.
Its crucial that the survey is available for a good but stipulated time. That helps in gathering
views of more people. Our survey will be floated for about 10-15 days.
The live survey we intend to undertake in the restaurants and pubs will be for a short duration.
Participants in the survey should incorporate a mix of different backgrounds. This will ensure that we get
holistic inputs. The following factors will be considered while sampling the participants for the consumer
survey:
Age group: We will have Youth: 16 to 25yrs and Adults: 25yrs & above.
Gender: Keeping a decent ratio of males to females is a necessity owing to the changing trends in the
consumer behaviour.
Income group: its quite important that we understand the preferences of the consumer group with
different incomes. Hence sampling them will be a crucial thing. We can segregate income groups as
high, medium and low.
Category: It is possible to classify beer drinkers into 3 categories based on the frequency of their
drinking beer.
a. Light drinkers: People who drink beer once in one or two months.
b. Moderate drinkers: People who drink beer 1-3 times a month.
c. Heavy drinkers: People who drink beer at least once every week.
Education: Since we wish to bring a variety in the sample, the more highly educated vs less educated
category will also play an important role. More highly qualified would include graduates and post
graduates as compared to less educated which will comprise of workers and labourers.
The percent of each category in the whole sample will vary slightly, since we need to understand more about
consumers preferences which we hope to get from category of heavy drinkers and moderate drinkers.
The second questionnaire participants include retailers of both brick and mortar shops and online channel. The
survey we intend to take for this would be based on the following factors.
Locality: Bangalore has a good mix of populated areas. Choosing retailers based on different locality is
crucial.
Shops in malls vs other liquor stores: Would tell us about the consumer behaviour as to how many
people purchase from big
17.
Statement of
hypothesis
Determining
sample
drawn
Preparation
of the report
Extensive
literature
survey
Execute the
project
Defining
Research
problem
Developing
the
Hypothesis
Analysis the
data
Generation
of
interpretatio
n
Analysis the
data
18.
For this project report, Questionnaire method was adapted to analyse the consumers preference/ behaviours
and personal interview were conducted together information from the consumers/ clients and company
organization.
19.
The data was processed and analysed on the basis of the responses given by the customers of the kingfisher
beer in the questionnaire. The responses were first classified on the basis of similarity of views and then
tabulated in two different groups. Further, analysis was done on the basis of the tabulated data. Suitable pie
charts and bar charts were shown to represent the data graphically.
20.
21.
FINDINGS
Competitor Analysis
Kingfisher
Critical
Success
Factor
Product
quality
Price
Taste
Packagi
ng
Brand
Total
Carlsberg
Knockout
Tuborg
Weigh
t
Rating
Score
Rating
Score
Rating
Score
Rating
Score
0.2
0.6
0.8
0.4
0.6
0.15
0.2
4
3
0.6
0.6
2
4
0.3
0.8
3
1
0.45
0.2
3
3
0.45
0.6
0.15
0.45
0.75
0.3
0.6
0.3
1.2
1.2
0.3
3.45
3.85
1.65
1.2
3.45
King
fisher consume
r
55
Others
Percentage of
Kingfisher
Others
15
79%
21%
BEER PREFERENCE
King fisherconsumer
21%
Others
79%
LOCATION OF PURCHASE
Wine shop
20
Club Bar
28
Restaurant
22
Inference: - From the above data we can conclude that most of the customers are consuming kingfisher
beer at the club/bar (40%) followed by restaurants & fine dining places (31%) and last in wine and beer shop
(20%). This segregation also depends on the profession of the participant.
BEER YOU WOULD LIKE TO PREFER IN KINGFISHER
Strong
61
Premium
20
Ultra
6
Blue
4
Draught
9
Inference: - From the above table we can conclude that 61% of the participants surveyed prefer Kingfisher
Strong as the most preferred beer in the Kingfisher portfolio followed by kingfisher premium (20%). Rest of the
portfolio accounts for the remaining 19% percent.
Table and graph showing the respondents incident of consuming beer
Incidents
consuming beer
Daily
Weekdays
Weekends
Monthly
Occasionally
of
No. of respondents
Percentage
10
15
30
10
5
14
21
43
14
7
Beer Consumption
Daily
14%
7% 14%
Weekdays
Weekends
Monthly
22%
Occasionally
43%
No. of Respondents
35
24
11
Percentage
50
35
15
A glance at the above table shows that 50% of the respondents are of the opinion that the quality of K.F beer
compared to other brand is good, 35% of the respondents are of the opinion that quality of the K.F beer is
satisfactory and 15% of them are of the opinion that it is unsatisfactory when compared to other brands. Some
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.
Reason for consuming kingfi sher
Opinion
Quality
Flavour
Strong
Packaging
Others
No. of Respondents
20
15
35
0
0
Percentage
29
21
50
0
0
Inference: Easily it can be deducted that people like Kingfisher strong amongst all the products of the
Kingfisher (50% percent of the respondents). Quality was the next best factor for people to consume beer
followed by flavour. Packaging was not that strong a factor for the people to buy a beer.
Demand for diff erent brands of beer (According to their sales)
The following table shows the demand for different brands of beer
Brand
Ranking
Kingfisher
KnockOut
Carlsberg
Tuborg
1
2
3
4
From the above table it is clear that the demand for Kingfisher beer is very high when compared to others and it
occupies first place. Consumers have said that they look for quality 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 Kingfisher.
Table graph show the consumer feelings about the price of Kingfi sher
Feeling about price
Low
Nominal
High
No. of Respondents
15
30
25
Percentage
21
43
36
Inference: A combined of 64% people feel that the kingfisher products are reasonably priced in the beer segment that gives them a
huge advantage in a market where people are quite price sensitive.
DEALERS SURVEY
A dealer survey was conducted in few Koramangala and HSR Layout retail outlets and responses were recorded. Questionnaire for
the dealers is put in the annexure.
Key inferences from the dealer survey are as follows:
All the 5 retailers surveyed agreed to the first part where they were asked if beer is sold more than other
hard drinks.
80% of the retailers said that kingfisher beer was the most sold beer in the day amongst all the beers in
their store.
The retailers provided the feedback that the sales of kingfisher are high because of best prices in the
beer.
All the retailers were divided when asked which packaging type (bottle/can/ pint) is sold the most.
The following table and graph shows the opinion of dealers about Kingfisher
Factors
Good
Better
Best
Bad
Total
22.
No. Of Respondents
14
21
34
0
70
Percentage
20
30
50
0
100
SECONDARY RESEARCH
The idea is to provide innovative, interesting alternatives to customers, aside from the handful of
local beer and international beer brands available. There is scope for wider experiments with
flavour, and the chance to chug freshly brewed beer.
Competitive Analysis:
The following figure tells us about the brand prominence of the various brands in the beer industry.
The figure given below shows that kingfisher is most liked and talked by the age group of 18-25yrs. Hence the
company should focus on this segment more and try increasing its visibility in other age groups too.
23.
1. Young population India has amongst the youngest population in the world. 60% of the population is under
the age of 30. Further, over 50% of the population is in the working age of 22- 54.
2. Rapidly growing consumption Beer is increasingly acceptable as a social drink and the urban youth in
particular favors it as the preferred alcoholic beverage. Per capita consumption of beer is 1.5 liter and has been
growing at over 15% in the last few years.
3. Home grown brands Even international giants like SAB Miller and Carlsberg have not been able to grow
their own brands significantly. SAB Miller leveraged its acquired Indian brands like Haywards, Knock Out and
Royal Challenge to become a leader in the industry.
4. Expanding product range-Indian beer market has been witnessing introduction of new flavours by leading
beer brands to woo Indian consumers. Beer drinkers now have a huge variety to choose from there are wheat
beers. Meads, ales, stouts, and cider with fancy names
5. Rising social acceptability-Two thirds of Indians dont drink alcohol at all, often for religious or cultural
reasons, but rapid urbanization, a young population and a fast growing middle class are changing alcohol
consumption habits making India an attractive market.
The rising social acceptability of alcohol has opened the market to new customers like women and youth who
earlier comprised only a small proportion of alcohol consumers in the country
6. Promotional activities-Too woo the consumers companies take up many promotional activities. Pubs for
instance organize ladies night where alcohol is served free to the women on given days of the week. Certain
organizations as a part of their social gatherings encourage the youth to participate in beer drinking contests
with offers of exciting prizes to the winners.
7. Easy availability-The Indian beer market has been experiencing the trend of microbreweries and exclusive
beer outlets which contributes to increased awareness and easy availability of beer in Indian markets. The
recent addition in the list is the beer cafes which aim at making beer as easily available as coffee.
8. Health benefits-Several studies emphasize that when drunk in moderation beer has more health benefits than
commonly known. Beer is known to decrease the incidence of heart attacks by 20-40%. It is loaded with
vitamin B and is also known to decrease kidney stones.
MARKET STRUCTURE
The main states for beer include Andhra Pradesh, Maharashtra, Karnataka, Tamil Nadu and Delhi. Beer is seen
as mostly an urban-youth drink and has increasing social acceptance. Hence, the beverage has a universal
acceptance across the country.
Challenges and Impediments
India is predominantly a hard spirits market and beer is a minority preference for those who consume Beverage
Alcohol. Beer makes only 4% by revenue of the total alcoholic market. It would be pertinent to mention that
while per capita consumption of spirits in India is 65% of global average, in the case of beer it is a mere 3% of
global average.
Moreover, the Indian beer industry is plagued with myriad taxes & levies that vary from state to state. In fact no
two states or UTs have a same or even a similar policy.
The inconsistency in the state policies leads to fostering an environment of mismanagement & lack of focused
strategy to manage state finances. States usually do not adopt policies based on scientific management or by
considering the social aspects of managing this trade. The policies are generally short term in their outlook,
with little or no thought to long-term interests of all stakeholders, including the general public.
Hence, despite the recent growth, there still exist numerous challenges for the beer industry.
Beer Highly Taxed - Beer, which is a softer form of alcohol consumption, is taxed higher by most states
compared to Spirits on absolute alcohol basis. This is primarily because taxes on beer in India tend to be
relatively higher than spirits whereas in most parts of the world, in fact, the reverse is true. Globally, on a per
alcohol basis beer is taxed at 50% of hard liquor whereas in India, beer is actually taxed 60% more than hard
liquor.
Most Regulated Industry- The beer industry is highly regulated.. 26 different alcohol specific taxes constitute
about 50% of the consumer price which is amongst the highest in the world.
Price Restrictions- Price restrictions in many large markets remain a biggest challenge for the industry. The
Government decides the End Consumer Price (ECP), leaving the manufactures with no say in determining the
price of the beer. In a free market economy this has no rationale.
Inadequate Market Infrastructure- The market infrastructure for beer in India is inadequate. For every 21000
persons there is one outlet hampering the availability of beer. In China, for instance the figure is 300. The
highly regulated market hampers beer sales, unlike most developed countries where beer and wine are not
regulated in grocery/ retail stores.
Restriction of Movement of Beer- For the movement of beer from one state to another, an export license and
an import license is required. Export fee is imposed in the state where beer is manufactured and import fees on
the State where it is sold.In some states only beer manufactured in that state can be sold.
24.
SUGGESTIONS
The following 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 without letting it to come down further.
Steady growth of the beer market helped by lower retail prices would not only make the industry more
profitable, a much larger consumer base would make see State revenues grow drastically. Beer Only Off
shops outlets should be allowed to open for which license fees should be considerably lower.
25.
CONCLUSION
26.
Britannica-
BIBLIOGRAPHY
Encyclopaedia
Colliers-
Encyclopaedia.
Wealth of India-
Magazine
Magazine
Sherlekar
Economic Times
Websites:
google.com
www.kingfisher.com
CONSUMER QUESTIONNAIRE
I am .... student of Narsee Monjee College, Bangalore. Conducting a study on
Consumer attitude towards Kingfisher beer, I would be grateful if you spend some
of your time in following up these questionnaires, because thisinformation
helps
my
project report.
Thanking you,
Yours Faithfully
Allen Thomas
1. Name
2. Address
3. Age
a) 18 to 20
b) 20 to 30
c) 30 to 40
d) 40 above
4. Sex
Male [ ]
[
[
[
[
]
]
]
]
Female [ ]
5. Occupation
a) Services
b) Business [ ]
c) Student
d) Others
[ ]
[ ]
[ ]
b) No
b) Home c) Others_______
Signature
Dealer questionnaire
1. How is the sale of beer as compare to other alcoholic products like vodka, whiskey
and rum?
a. Very high [ ]
b. High [ ]
c. Moderate [ ]
d. Low [ ]
2. How does Kingfisher fare in sales of the total beers sold throughout the day.
Highest sales
Moderate sales
Low sales
3. Which product of the kingfisher portfolio is sold the most.
Kingfisher strong
Premium
Ultra
Draught
4. Which kind of packaging is preferred in the beer segment?
Bottle (650ml)
Pint (350ml)
is the most preferred way to procure the stock in case when stock finishes.
Distributors
CNFA agents
Direct dealers