Académique Documents
Professionnel Documents
Culture Documents
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1.1 GENERAL INTRODUCTION ABOUT THE SECTOR
FOOD PROCESSING BEVERAGE SECTOR
The food processing sector is highly fragmented industry, it widely comprises of the
Following sub-segments: fruits and vegetables, milk and milk products, beer and
Entrepreneurs in this industry are small in terms of their production and operations,
And are largely concentrated in the unorganized segment. This segment accounts
For more than 70% of the output in terms of volume and 50% in terms of value.
Faster pace.
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INDUSTRY SUB-SEGMENTS
FRUITS & VEGETABLES
The installed capacity of fruits and vegetables processing industry has doubled
from 1.1 mn tonnes in January 1993 to 2.1 mn tonnes in 2006. Presently, the
processing of fruits and vegetables is estimated to be around 2.2% of the total
production in the country. The major processed items in this segment are fruit
pulps and juices, fruit based ready-to-serve beverages, canned fruits and
vegetables, jams, squashes, pickles, chutneys and dehydrated vegetables. The
new arrivals in this segment are vegetable curries in reportable pouches, canned
mushroom and mushroom products, dried fruits and vegetables and fruit juice
concentrates.
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and milch buffaloes. India’s dairy industry is considered as one of the most
successful development industry in the post-Independence era.
In 2005-06 total milk productions in the country was over 90 million tonnes with a
per capita availability of 229 Gms per day. During 1993-2005, the dairy industry
recorded an annual growth of 4%, which is almost 3 times the average growth rate
of the dairy industry in the world. The total milk processing in India is around 35%,
of which the organized dairy industry accounts for 13% while remaining is either
consumed at farm level, or sold as fresh, non-pasteurized milk through
unorganized channels.
In an organized dairy industry, dairy cooperatives account for the major share of
processed liquid milk marketed in India. Milk is processed and marketed by 170
Milk Producers’ Cooperative Unions, which federate into 15 State Cooperative Milk
Marketing Federations. Over the years, several brands have been created by
cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).
Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).
The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan,
Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The
manufacturing of milk products is very much concentrated in these states due to
the availability of milk in huge quantity.
According to the Ministry of Food Processing Industries, exports of dairy products
have been growing at the rate of 25% per annum in terms of quantity and 28% in
terms of value since 2001. Significant investment opportunities exist for the
manufacturing of value-added milk products like milk powder, packaged milk,
butter, ghee, cheese and ready-to-drink milk products.
Poultry industry is also among the faster growing sectors rising at a rate of 8%
Per year. It is observed that the vertical integration of poultry production and
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Marketing has lowered costs of production, consumer prices of poultry meat
And marketing margins. There are eight integrated poultry processing units in
The country, which of course hold a significant share in the industry.
Meat export is largely driven by poultry, buffalo, sheep and goat meat, which is
growing at close to 30% per annum in terms of quantity. It is considered that the
growing number of fast food outlets in the country has and will have a notable
impact on the meat processing industry.
Marine Products
India is the largest fish producing country in the world it is the third largest fish
producer in the world while ranks second in inland fish production. Categorically
India’s potential for fishes, from both inland and marine resources, is supplemented
by the 8,000 km coastline, 3 mn hectares of reservoirs, 50,600 sq km of continental
shelf area, 1.4 mn hectares of brackish water and 2.2 mn sq km of exclusive
economic zone.
Processing of marine produce into canned and frozen forms is carried out fully for
the export market. With regards to infrastructure facilities for processing of marine
products there are 372 freezing units with a daily processing capacity of 10,320
tonnes and 504 frozen storage facilities for safe storage with a capacity of
138,229.10 tonnes, besides there are 11 surimi units, 473 pre-processing centres
and 236 other storages.
Processed fish products for export include conventional block frozen products,
individual quick frozen products (IQF), minced fish products like fish sausage,
cakes, cutlets, pastes, surimi, texturised products and dry fish etc.
Exports of marine products have been inconsistent and on a declining trend which
Can be owed to the adverse market conditions prevailing in the European and
American markets. The anti-dumping procedure initiated by the US Government
Has affected India’s shrimp exports to the US.
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Grain Processing
Processing of grain includes milling of wheat, rice and pulses. In 1999-00, there
Were more than 91,000 rice hullers and 2,60,000 small flourmills which were
Engaged in primary milling. There are 43,000 modernized rice mills and huller-
Cum-Sheller. Around 820 large flourmills in the country convert about 10.5 mn
tonnes Of wheat into wheat products. Also there are 10,000 pulse mills milling
Primary milling of grains is the considered to be the important activity in the grain-
Processing segment of the industry. However, primary milling adds little to shelf
Life, wastage control and value addition. Around 65% of rice production is milled in
Modern rice mills. However, the seller-cum-huller mills operating give low recovery.
Wheat is processed for flour, refined wheat flour, semolina and grits. Apart from the
820 large flourmills, there are over 3 lakh small units operating in this segment in
The unorganized sector. Dal milling is the third largest in the grain processing
Industry, and have about 11,000 mechanized mills in the organized segment.
The cottage industry. According to estimates, there are approximately 2.5 lakh
Ghanis and kolus, which are animal, operated oil expellers, 50,000 mechanical oil
Expellers, 15,500 oil mills, 725 solvent extraction plants, 300 oil refineries and over
Indian Basmati rice has gained international recognition, and is a premium export
Product. Branded grains as well as grain processing is now gaining popularity due
To hygienic packaging.
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Beer & Alcoholic Beverages
Market for alcoholic beverages in the world. The domestic beer and alcoholic
United Breweries, SAB Miller and Radico largely dominate beverage market
Khaitan. The demand for beer and spirits is estimated to be around 373 million
Cases per year. There are 12 joint venture companies having a licensed capacity
Of 33,919 kilolitres per annum for production of grain based alcoholic beverages.
Around 56 units are manufacturing beer under license from the Government of
India.
Country liquor and Indian Made Foreign Liquor are the two segments in liquor;
Both cater to different sections of society. The former is very much consumed in
Rural areas and by low-income groups, while the middle and high-income groups
Liquor license outlets in India figures approximately 23,000 with another 10,000
Outlets in the form of bars and restaurants. Regulations in this sector differ state-
Wise in terms of excise and custom duty. In Tamil Nadu, Kerala and Andhra
Pradesh, the state government controls the distribution, and any change XVIII in
The wine industry in India has come into prominence lately and has been receiving
Support from the Government as well, to promote the industry .The market for this
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Consumer Foods
This segment comprises of packaged foods, aerated soft drinks, packaged drinking
Products, salted snacks, chips, pasta products, cocoa based products, bakery
There are around 60,000 bakeries, several pasta food units and 20,000 traditional
Food units and in India. The bakery industry is among the few processed food
Segments whose production has been increasing consistently in the country in the
Last few years. Products of bakery include bread, biscuits, pastries, cakes, buns,
Rusk etc. This activity is mostly concentrated in the unorganized sector. Bread and
Production of around 4.00 million tonnes. Bread manufacturing is reserved for the
Small-scale sector. Out of the total production of bread, 40% is produced in the
Organized sector and remaining 60% in the unorganized sector, in the production
Cocoa Products
Cocoa based malted milk foods are highly in demand these days, 20 production
Units are engaged in their manufacture with an annual production of about 34,000
Tonnes.
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Soft drinks
After packed tea and packed biscuits the soft drink segment is considered to be the
3rd largest in the packaged foods industry. Over 100 plants are engaged in
Aerated soft drinks industry and provide huge employment. It has obviously
Attracted one of the highest FDI in the country. Strong forward and backward
Linkages with glass, plastic, refrigeration, sugar and the transportation industry
Further strengthen the position of the industry. Soft drink segment has a huge
Potential in the Indian market, as a vast portion of the market is still to cover.
Changing lifestyles, food habits, organized food retail and urbanization are the key
factors for processed foods in India, these are post-liberalization trends and they
There has been a notable change in consumption pattern in India. Unlike earlier,
now the share and growth rates for fruits, vegetables, meats and dairy have gone
higher compared to cereals and pulses. Such a shift implies a need to diversify the
Also in developed countries it has been observed that there has been a shift from
Carbohydrate staple to animal sources and sugar. Going by this pattern, in future,
There will be demand for prepared meals, snack foods and convenience foods and
Further on the demand would shift towards functional, organic and diet foods.
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Some of the key constraints identified by the food processing industry
Include:
High taxation
Beer may have been known in Neolithic Europe as far back as 3000 BC, though
was mainly brewed on a domestic scale.
Beer produced before the Industrial Revolution continued to be made and sold on
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a domestic scale, although by the 7th century AD beer was also being produced
and sold by European monasteries. During the Industrial Revolution, the
production of beer moved from artisanal manufacture to industrial manufacture,
and domestic manufacture ceased to be significant by the end of the 19th century.
The development of hydrometers and thermometers changed brewing by allowing
the brewer more control of the process, and greater knowledge of the results.
Historical documentation shows that around 5,000 years ago, ancient Chinese
civilizations were brewing a beer-like substance known as “Kui”. In fact, a clay
tablet found in what was ancient Mesopotamia, indicated that brewing was a fairly
well respected occupation during the time, and that the majority of brewers were
women.
Early traces of beer and the brewing process have been found in ancient
Babylonia as well. At the time, brewers were women as well, but also Priestesses.
Some types of beers were used especially in religious ceremonies. In 2,100 BC,
the Babylonian king Hammurabi included regulations governing tavern keepers in
his law code for the kingdom.
Beer drinking accessories, such as mugs, have also been found in Israel, and date
back to nearly 2,000 BC.
Beer was part of the daily diet of Egyptian Pharaohs over 5,000 years ago. Then, it
was made from baked barley bread, and was also used as a sacrament in religious
practices.
The role of beer in Egyptian society was far greater than just a drink. Often, beer
was prescribed to treat various illnesses. Beer was considered to be the most
proper gift to give to Egyptian Pharaohs, and it was also offered as a sacrifice to
the gods.
Based on historical evidence, it appears that the Egyptians taught the Greeks the
beer brewing process. The Greek writer Sophocles (450 BC) discussed the
concept of moderation when it came to consuming beer in Greek culture, and
believed that the best diet for Greeks consisted of bread, meats, various types of
vegetables, and beer or zythos as they called it.
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The Greeks later taught the Roman civilization the process of brewing, who in turn
later taught the early British/Anglo-Saxons tribes.
The process of brewing beer grew tremendously during the rise of Christianity. This
was primarily because of the roles that monks had in the production of beer.
Monasteries were some of the first organizations to brew beer as a trade. Monks
built breweries as part of their efforts to provide food, shelter and drink to various
travelers and pilgrims.
The Indian beer industry has been witnessing steady growth of 10 - 17% per year
Over the last ten years. The rate of growth has increased in recent years, with
Volumes passing 170m cases during the 2008-2009 financial year. With the
Average age of the population on the decrease and income levels on the increase,
The Indian beer industry has witnessed a big change during the last five years.
The industry was previously dominated by competition between the Vijay Mallya-
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Walles the scenario changed, however, with the entry of [SABMiller in India
The international beer giant started by acquiring small breweries in the south but
Then completely changed the landscape with the acquisition of Shaw Wallace’s
Beer portfolio for a reported US$264m in 2003. This gave SABMiller ownership of
Strong brands like Hayward’s 5000, along with its existing brands. After the
Opening new breweries in states where Shaw Wallace did not have a presence.
The rate of growth has remained steady in recent years, with volumes passing 155
Million cases during the 2008 from mare 70 million cases in 2002. The Indian
Beer market is dominated by strong beers (>5% alcohol by volume), which account
For 70% of the total beer industry. The premium beer market is a mere 5% of the
Total but this segment is rapidly expanding, touching a growth rate of between 35-
40%. With the global market experiencing low/stagnating growth in recent years,
The focus is now on the Asia-Pacific region specially. For instance, the Chinese
Beer market has grown at an astounding pace in recent years, spurred on by the
Massive levels of foreign investment in the market, along with the rise in the
Average levels of consumer spending and thanks to the economic reform policies
2000 and 2006 to reach a total market volume of 30.47 billion litters. With the per
Capital consumption of 22 litters, China has now overtaken the US to become the
The brewing industry in China has been one of those quickest to modernize and
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
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Total alcoholic market. It would be pertinent to mention that while per capita
Moreover, the Indian beer industry is plagued with myriad taxes & levies that vary
From state to state. In fact no two states or UP have a same or even a similar
Policy.
The social aspects of managing this trade. The policies are generally short term in
World over it has been identified that policy focus should not as much be on
Beer and wine dominate the alcohol market in most countries. It is considered to
Be common man’s drink and in many countries is even priced in parity with soft
The per capita consumption of beer in India is just 1 liter per person per year as
Compared to the world average of 22 liters. This is one of the lowest in the world.
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(C) Future of the beer industry
This is the first time just-drinks have taken a look at the beer market in a specific
Country.
Just-drinks estimate that beer sales in India are forecast to grow at a compound
Annual growth rate of 17.2% to 2011. So, with the Indian beer industry seeing
Steady growth during the last decade, due to strong economic growth resulting in
High disposable incomes, an increase in beer sales in the next two or three years
Is expected.
The near future, with existing players like United Breweries and SABMiller
Expanding their ranges, and new players like Anheuser-Busch, Carlsberg and
InBev setting up production facilities. This is the first time just-drinks have taken a
The Indian beer market has been growing rapidly over the last 10 years, due to the
Positive impact of demographic trends and expected changes, like:
•Rising Income Levels
•Changing Age Profile
•Changing Lifestyle
•Reduction in Beer Prices
•India has predominantly a warm/hot climate
•The beer-drinkers in the country are much younger than the average beer-drinker
Elsewhere in the world. This makes them more likely to carry the brand with them
For a lifetime.
Increasing exposure to beer and wine drinking, mainly due to media and
Consumer mobility.
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CHAPTER 2
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2.1 Origin of the origination
Anheuser-Busch InBev (AB InBev) is a publicly traded company, based in
Leuven, Belgium. It is the largest global brewer with nearly 25% global market
Share and one of the worlds top five consumer products companies by EBITA.
Anheuser-Busch InBev grew from the Den Hoorn brewery in Leuven, dating back
to 1366, the Anheuser & Co brewery, established in 1860 in St. Louis, Missouri,
USA and AmBev, created in 1999 with the merger of the two biggest Brazilian
brewers, Antarctica (founded in 1882) and Brahma (founded in 1888). In 1987 the
two largest breweries in Belgium merged: Artois, located in Leuven, and
Piedboeuf, located in Jupille, forming Interbrew. In 2004 Interbrew and AmBev
merged, creating the world's largest brewer.
In 2006, InBev acquired the Fujian Sedrin brewery in China, making InBev the No.
3 brewers in China - the world's largest beer market. In 2007, Labatt acquired
Lakeport in Canada, and InBev increased its shareholding in Quinsa,
strengthening the company’s foothold in Argentina, Bolivia, Chile, Paraguay and
Uruguay.
On 18 November 2008, the combination of InBev and Anheuser-Busch closed,
Creating Anheuser-Busch InBev, the leading global brewer and one of the top five
Consumer products companies in the world. Under the terms of the merger
Agreement, all shares of Anheuser-Busch will be acquired for 70 USD per share in
Cash, for an aggregate of 52 billion USD.
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2.2 Growth and development of organization.
Anheuser-Busch is the largest brewing company in the United States in volume
with a 49.2% share of beer sales. It was the world's largest brewing company
based on revenue, but third in brewing volume, before the proposed merger with
InBev announced 13 July 2008. The division operates 12 breweries in the United
States and 17 others overseas.
InBev was the second largest brewery company in the world. While its core
business is beer, the company also had a strong presence in the soft drink market
in Latin America. It employed about 86,000 people and was headquartered in
Leuven, Belgium, where Anheuser-Busch InBev will now be based.
Before the merger with AmBev, Interbrew was the third largest brewing company in
the world by volume, Anheuser-Busch was the largest, followed by SABMiller in
second place. Heineken International was in fourth place and AmBev was the
world's fifth largest brewer.
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2.3 Present status of the organization
In 2008 we grew EBITDA* 4.6% in what was a tough year for us and for the
Industry as a whole, with overall volumes failing to meet forecasts in many markets
And rising commodity costs and inflation for much of the year.
Our EBITDA margin decreased 15 bps, closing the year at 33.1%. Consolidated
Volumes were flat with our own beer volumes decreasing 0.3% and soft drinks
Our top line grew 5.2% compared to the previous year driven to a great extent by
Price and revenue management initiatives combined with high quality marketing
Our decision to focus on and invest in a smaller number of higher value, or focus
Brands has produced encouraging results this year with these brands delivering
EBITDA of approximately 8.2 billion euro in 2008. The combined business has four
Of the top ten selling beers in the world, and a number one or number two
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Anheuser-Busch InBev is a publicly traded company based in Leuven, Belgium. It
Are the leading global brewer and one of the world’s top five consumer products
InBev manages a portfolio of nearly 300 brands that includes global flagship
Brands Budweiser, Stella Artois and Beck’s, fast growing multi-country brands like
Leffe and Hoegaarden, and strong ‘local jewels’ such as Bud Light, Skol, Brahma,
Percent share in Grupo Modelo, Mexico’s leading brewer and owner of the global
Rooted in brewing traditions that originates from the Den Hoorn brewery in Leuven,
Belgium, dating back to 1366 and the pioneering spirit of the Anheuser & Co
Anheuser-Busch InBev leverages the collective strengths of its 120 000 employees
The Company strives to be the Best Beer Company in a Better World. On a pro-
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A number of acquisitions, divestitures and joint ventures influenced Anheuser-
Busch InBev’s profit and financial profile over the past two years.
Leader in beer and one of the worlds top five consumer products companies.
Company trades under the new ticker symbol ABI on the Euro next
St. Louis, MO. St. Louis also became the North American headquarters for the
Combined company.
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2.4 Functional Departments of the Organization
STORE DEPARTMENT:
Functions:
3. Maintenance of Stores.
Suppliers.
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FINANCE DEPARTMENT
Functions:
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MARKETING
DEPARTMENT
Functions:
management.
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PRODUCTION DEPARTMENT
Functions:
Purchasing
Stores
Works
Production cycle:
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MARKETING AND DISTRIBUTION:
on one hand and exploiting it to the hilt on the other. A concerted emphasis
on quality.
The company markets its products through qualified and trained field force. The
field force consists of sales representatives who are supervised by Sales Deputy
who guide the field force to promote, meet business targets and follow up for
collection.
HR Practices:
planned using psychometric tests, gap analysis and the same is used for
leadership change and succession planning. The company also follows a KPI
objectives and the individual objectives. There is also a monthly feedback system
that helps in job enrichment. The company also follows Standard safety and
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Following functional modules has been adapted in the organization:
a. Accounting.
c. Materials Management.
e. Production Planning.
f. Quality Control.
g. Plant Maintenance.
h. Marketing Department
i. Finance Department
j. Production Department
k. Engineering Department
l. R & D Department
m. Brew House
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2.5 ORGANIZATION CHART OF ABINBEV
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2.6 Products and service profile of the organizations
competitors
Brand Strategy
At Anheuser-Busch InBev, our brands are the foundation of the company, the
Cornerstone of our relationships with consumers, and the key to our long-term
Success.
Focus Brands
We know focus works. This is why we have rigorously reinforced our focus brands
Strategy. Focus brands are those, in which we invest most of our marketing
Money, and to which we dedicate the greatest proportion of our share of mind. Out
Of nearly 300 brands, we are prioritizing a small group with greater growth
Potential Within each relevant consumer segments. These focus brands, include
Our three Global brands, key multi-country brands, and ‘local jewels’.
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STELLA ARTOIS
STELLA ARTOIS was first brewed as a Christmas beer in Leuven. It was named
“Stella”, Latin for “star”, from the star of Christmas, and artois.
It is brewed to perfection using the original Stella Artois yeast and only the best
Ingredients including the celebrated Saaz hop. It's the optimum premium
Stella Artois is still brewed using natural ingredients in the same processes of
Mixing and fermentation used in the old days. This guarantees that the beer is
When they drink Stella Artois. A brand of supreme worth and quality, it is the
Worldwide.
The beautiful chalice is the perfect glass, particularly when combined with the
Stella Artois pouring ritual that allows the beer to flow, breathe and develop a
Pristine head. Not only does the beer taste great, it also looks wonderful.
Assembles the best bartenders from around the world to rate their tapping,
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BECKS
Beck’s is renowned for its uncompromising quality.
True to its original recipe, it has been brewed in the same way using four keys
Natural ingredients for more than 125 years.
The hops used to brew Beck's today, still come from the Hallertau region in
Committed heritage, Beck's has had only 6 brew masters throughout a 125-
Year history.
Just as the brand has remained true to its heritage, The Beck's spirit inspires
BUDWEISER
The “Great American lager “. Each batch of Budweiser follows the same family
Recipe used by five generations of Busch family brew masters.
Budweiser was introduced in 1876 when Adolphus Busch set out to create the
United States’ first truly national beer brand - brewed to be universally popular
And transcend regional tastes. Each batch of Budweiser stays true to the
Original family recipe used by five generations of Busch family brew masters.
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Pure beer with blended layers of premium American and European hop
TENNENTS
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LEFFE
Leffe is a Belgian brand of Abbey beer. Leffe beers are marketed as premium ales.
They are now brewed in large quantities and are widely available.
The abbey Notre Dame de Leffe was founded in 1152 on the Meuse River in the
province of Namur in southern Belgium. Like many monasteries across Europe, the
Premonstratensian (Norbertine) canons of the abbey brewed ale. Using knowledge
passed from generation to generation and ingredients found in the wild near the
abbey, the canons developed unique ale, brewed only at the abbey.
COMPETITORS
Today’s world is the competition. In every filed there is competition and the
industry too the competition is there. The increasing awareness and exposure to
beer among consumers and the removal of quantitative restrictions gives big boost
to the beer industry. It saw the emergence of new companies like future wine and
spirit brand (P) Ltd (FWSB), set up recently by two Non-Resident Indians (NRI’s)
from USA. ‘BEER’ consumption in the country increased 7-9 % per year.
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1. SAB miller
• Haywards 5000
• Haywards 2000
• Haywards Black
• Royal Challenge
• Knock out
• Castle lager
• Foster
• Indus Pride
2. UB group
• Kingfisher
• Kingfisher (Premium)
• San Mighen
• London Lilsnex
• UB Export
• Kingfisher (Strong)
• Kingfisher Ultra
3. COBRA
• Kind cobra
• Cobra bite
• Cobra 5% premium
• Cobra light
• Cobra 0%
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4. CARLSBERG
• CARLSBERG PILSNER
• TUBORG CLASSIC
5. Mount Shivali
• Thunderbolt
• Strohs
• Bar Finder
1. SABMiller India
SABMiller India is a wholly owned subsidiary of SABMiller plc, the second largest
SABMiller India sojourn began in 2000 and in just a few years, its has cornered
nearly on third of the India beer market with brands such as Haywards 5000.
Haywards 2000, Haywards Black, Knock Out, Royal Challenge. Castle Lager and
Fosters.
Based on consumer insights, SABMiller India has taken innovative measures to fill
up the packaging, pricing, occasion and product gaps. Expertise on a global level
has come in use to create many firsts in India including the use of one-way bottles,
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With ten world-class breweries strategically located across India. SABMiller is well
positioned to easily access and efficiently service the beer markets. The
Company’s to India and ethos of quality is reflected in the fact that it invested over
Rs. 125 crore in the last two years to upgrade breweries in line with global
standards.
refreshes itself in pursuit of its mission of owning and nurturing local and
international beer brands which are the first choice of the consumer.
The company invests in bottles, which are returnable in nature are accounted for
as fixed assets in its books. The company pays to its customers/agents for
returning the empty bottles at the prevailing market prices. The company urges its
customer/agents to return the empty bottles to the company for which the company
The UB group commenced its brewing operations as early as the 19th century
(1857) with fire small breweries in South India. In 1951, a Scotsman named
Thomas Leishman combined the five breweries to form United Breweries . The
company was taken over by Vijay Malaya in 1947. In 1952 the company shifted its
registered office Madras to Bangalore. In 1958 the name of the company was
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Diversification the company stated manufacturer of bulk drug, the pharmaceuticals
on a priority basis.
In 1992, 11 different breweries were and amalgamated with the parent company.
In 1994 the company launched its ‘Kalyani Premier Strong’ and started exporting
‘Kalyani Export Special’ to U.K The Company presently has 21 breweries under its
restructuring excise unless which it has dedicated to split its business into two-the
core beer business and the group investment business. The company has
The United Breweries Ltd. And its subsidiary Millennium Alcoveb Ltd. Have entered
into a contract agreement with Mohan Meakins to brew beer at the latter’s facilities
UB Ltd. Has carried out a reorganization of its business by hiring off fours
subsidiaries and making seven companies its fully owned aims apart from
Relawant of San Michel and London Lilsnex, the new beer brands in it portfolio
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UB group has signed reseller and license agreement to market steel first faster
steaming media solutions Asia. UB Ltd. The largest beer manufacturer and
3 CARLSBERG
At the end of 2006, Carlsberg entered into a joint venture - called Carlsberg India
Private Limited - to build a green field brewery in the state of Rajasthan, India.
There is significant potential for growth in the Indian beer market. The annual beer
Consumption per person is among the lowest in Asia, at only 0.7 liters per year,
And the annual GDP growth rate is more than 9%. The total beer market in India is
Currently 8 million hl, however it is among the top three Asian markets in terms of
Expected growth rates.
4 Mount Shivalik
1972-1978 mount shivalik breweries ltd.(MSBL)was formally incorporated, headed
By Mr. B.D. Bali as the managing director.
1987-1993 In the year 1987, pub culture in north India invoked, by opening of pubs
In Chandigarh by the company. Group’s flagship brand “THUNDERBOLT Super
Strong” won the prestigious “monde selection gold medal” at Barcelona (1991) for
Its international quality.
achieving sales of 1.5 million doz. The brand become benchmark for other super
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strong beer in the country by setting higher standards of quality and excellent
1996-1998 Two new brands were launched mild and strong segments by the name
Consumer products companies. For 2008, the combined company would have
Generated revenues of 39 billion USD. With a dream to become The Best Beer
Company in a Better World, the company has a strong, balanced portfolio. With
Four of the top ten selling beers in the world, Anheuser-Busch InBev holds the
Number one or number two positions in over 20 key markets. It has a key presence
With operations and license agreements around the globe, Anheuser-Busch InBev
is a truly global brewer.
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CHAPTER 3
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DISCUSSIONS ON TRAINING
Role:
Responsibility:
and to have a live experience of how the employees in the organization perform
the jobs so in the absence of the employee I should be able to perform that
particular task.
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7. Visit the different location and know the status of brand in the market.
I had a good experience in the company, the culture and communication in the
Organization was very fair. The manager in the company had a nice interaction
With the employees and they give a feedback, which can leads employees to
I was involved with various departments. I know about the functions of each
Department. I get a good exposure there. There were no restrictions to enter in the
Department. I learn many activities there that I cannot learn anywhere. Our
General Manager Sir is very good. He has friendly nature; he gave me a full
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I have a good interactions and relationships with our managers. I know about beer
Making and packing of beer. Some times I was involved with marketing team so I
Overall my experience in the company was very good. I get a good exposure
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CHAPTER 4
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4. Statement of research problem
BRAND AWARNESS
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A brand can convey up to six levels of meaning:
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Features of a Deep Brand:
A deep brand is that brand which conveys all six
meanings, i.e. attributes, benefits, values, culture,
personality and user. The most enduring meanings of a
Feature
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The most enduring meanings of brand are its values,
Essence.
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Brand Awareness helps buyers / consumers in following
Ways:
Positioning
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De-positioning involves attempting to change the
identity of competing products, relative to the identity of your
own product, in the collective minds of the target market.
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Product Positioning Process
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Them or show nice product pictures. So you need to ask first
your customers and then yourself, what value do clients get
from my services? How are they better off from doing
business with me? Also ask: is there a characteristic that
makes my services different?
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Designing the marketing mix – product, price, place and
promotion – involves working out the tactical details of the
positioning strategy. Thus a firm that seizes upon a ‘high
quality position’ knows that it must produce high – quality
products, charge a high price, distribute through high –
quality dealers and advertise in high quality media. It must
hire and train roe service people, find retailers that have a
good reputation for service, and develop sales and
advertising messages that broadcast its supervisor service.
This is the only way to build a consistent and believable high
– quality, high service position.
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POSITIONING STRATEGY OPTIONS FOR COMPETITOR
ERRORS IN POSITIONING
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The Marketing MIX: Ingredients for Success
The marketing mix, earlier known as the 4 P’s,(but now has a few more),is a vital
part of any marketing strategy. This is a tool whereby the marketer takes decisions
on what and how a product should be, where it can be sold, how it should be
priced, how it will be promoted, how to equip the people who are responsible for
selling the product…and so on. Getting the marketing mix right is equally important
for the large corporation and the small business owner. One of the most critical
marketing management decisions is that decision of setting the marketing mix
values, and select in and employing strategy that periodically change that
marketing mixes in response to changing business environment.
Product
1. No.1 globally brand but not performing well in Indian market.
4. Always tastes fresh due to good quality and very poor distribution network.
Place-
1. It is available in some states Karnataka, AP, Maharashtra, Goa, and
New Delhi and in other states.
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500ml (Can) Rs 35
Budweiser
650ml Rs 80
330ml Rs 45
Becks
650ml Rs 110
330ml Rs 60
. Price of the product is reasonable but retailer charges the extra money to the
Customer.
Some retailer is charging extra 5 to 8 Rs per bottle.
Promotion
Promotion includes advertising and other forms of sales presentations,
designed to encourage fast consumer or trade up-take of a product or service. The
form of any promotion depends on the product, the marketing plan and its
objectives, and on the imagination of the product management team. It can vary
from a simple in-store demonstration, or sampling, or a tie-in with on premises. A
range of promotional tools, techniques and activities are mixed and matched to
meet the needs of individual marketing campaigns.
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SWOT Analysis of AB InBev
Strength
• Globally leader no.
Weakness
• Low Advertising & Promotion Spends
• Less Manpower
• Inefficient Distributors
• Opportunities
• Regional Expansions
• Production Volumes
• Higher Profits
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Threats
• International Players
• Government Laws
4.2. Objective
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4.3 Research design and methodology
Research Methodology
Research design:
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The General study was converged as a specific study for AB InBev. The study was
initiated to find out the consumer profile, brand perception and cross preference
between AB InBev and Competitor brands.
Our approach to the research design tasks went through the following tasks.
Information needed
Enquiry
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Type
2. Survey
Scaling Techniques
We asked the customers to rank the various attributes on a scale of very important,
Important and not very important. To find-out the brand perception of various
brands, paired comparison between them is used.
Questionnaire Design
Questionnaire design was the critical issue as the questionnaire reflects the
survey purpose .The questionnaire was meticulously prepared by identifying the
various variables. The same scale of yes/no and very important, important and not
so important was used through out so as to make the respondent comfortable.
Firstly a questionnaire was prepared and few people were surveyed. After this
survey we realized the flaws in the questionnaire and then a modified
questionnaire was prepared and people were surveyed on this modified
questionnaire.
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Sampling Techniques
In the survey conducted, the sample was random in nature comprising of people
from different age groups and income stratus.
Data Collection
Data collection is the important step after the sample is selected on which the
survey is being conducted. With data that is available in the hard form we
converted that to electronic form, to analyze the data using the MS Excel
software’s. In the data collection customers were approached during the working
hours at retailer point, at home, at college campus point. . Purpose of the survey
was explained and was asked whether they are interested to take part in the
survey Later Questionnaire was handed over to them, and necessary instructions
were given to complete the questionnaire .The questionnaires were returned back
after filing up on their convince, While receiving the filled in questionnaire care was
taken to check whether there are any unfilled items in the questionnaire.
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4.4 Analysis of data
The data of score of features and score of brand perception was fed into the excel
sheet. Separate Excel sheets were employed for analysis of each brand and also
to keep it concise and unambiguous. For data analysis I use many types of charts:
• Pie chart:
This is very useful diagram to represent data, which are divided into a number of
categories. This diagram consists of a circle of divided into a number of sectors,
which are proportional to the values they represent. The total value is represented
by the full create. The diagram bar chart can make comparison among the various
components or between a part and a whole of data.
• Bar chart:
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Figure-1
Interpretation:
In India climate condition is hot /warmly, so that time consumers drink daily. India
has a large number of youth generations so they are following western culture and
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Figure-2
1. Strong
2. Mild
3. Both
Interpretation:
In India most of the customer drinks beer in summer season, so they prefer strong
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Figure-3
1. Tastes
2. Brand
3. Price
4. Status
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Figure-4
1. Poor
2. Satisfactory
3. Good
4. Equalient
Interpretation:
Brand awareness of the company products is very low in market. Brand name of
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Figure-5
1. Brand loyal
2. Switcher
Interpretation:
Most of the customer is loyal towards brands. Our company has also brand loyal
customer. Product is not available in market then they switch to another products.
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Figure-6
1. Not available
2. Available
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Figure-7
1. Satisfy
2. Dissatisfy
Interpretation:
Company is very new in Indian market but they are trying to establish a strong
distribution networks. Due to some financial problem, now they don’t have strong
distribution networks.
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Figure-8
Interpretation:
A Budweiser product has more market share, because it is well known and
establishes products in all over world. Tennents is a regional product of Scott land
and now we are trying to make it globally brands. Other products of company are
imported in Indian market so price is high due to price factor other brands has low
market share.
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Figure-9
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LIMITATION
During the process of a research a person comes across certain restrictions certain
overlooked for the smooth conducting of the research. Some of these restrictions
are:
Liquor is such a product that the wholesaler, retailers and consumer fear to
Due to the wide area of the markets, it was impossible to cover each and
The such had to be completed in short of time, which is not enough time to
cover the market. So time was the major constraints in conducting the study.
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4.5 Summary of findings
• . According to the survey I find that tastes and quality of products is very
Good.
• Company has very poor distribution networks so products are not available
in the markets.
• Due to financial problem they are not paying the rent on the time to retailers.
• They are not able to compete the existing UB & SAB Miller brands.
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CHAPTER 5
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5. SUMMARY AND CONCLUSION
I have learned about the ABINBEV products, which are sales in India
Apart from this entire thing it gives me real picture about supply
chain. I visited each department & it is good learn experience to me
when employees share their experience for the organization to
achieve the goal.
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The following are some of the learning tasks that are experienced in the company
as a management trainee.
1. Good grip on the ms excel, due to making reports for stores and Purchase
Departments.
2. Known the job profiles of different departments in the organization.
3. Experienced how to interact with the executives and managers in the
Company.
4. Experienced the problems of balancing of work life and study life.
5. Learn to take responsibility.
6. Learn the functions of stores.
7. Help the finance manager in auditing.
8. Makes the purchase order for purchase departments.
9. Know the procedure of bottle washing.
10. Know the whole procedure of fill up the beer in bottle and can.
11. Get some knowledge about brew house. How we can make the beer.
12. Interact with some vendors.
13. Visit the on and off premises and collect the sales data of various beer.
14. Make the sales report of our brands.
15. Get some idea about brew house. And know about the make process of
Beer.
16. Know how to operate filler and boiler.
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5.2 Conclusions and Recommendations
1. ABINBEV should improve it’s after sale service because its hits badly
Abinbev s market share in Bangalore region.
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CUSTOMER SURVEY FINDINGS
1. Secondary supports play an important role in the customers mind and create
awareness among the customers. The secondary support includes
Demonstration, Exhibition & Even Sponsors.
3. Customers are also now very choosy in buying the product and it is
important for the company to make loyal customer of their brand..
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• Exhibitions do not help to generate so much sells but they should be
conducted regularly. This helps in generating awareness regarding the
product in customers, which ultimately helps in sales.
• Also it is helps in advertising for the new products. Company should always
focus on service.
• Company should concentrate more on its major drivers becks, black eagle ,
Budweiser . Branding and promotions should be done effectively as it
creates a long lasting image in the mind of customers.
• Company should also cater to the needs of sub dealers as some of the sub
dealers have potential of high sales.
During our research we found out that the brands of AB InBev India brewery
in the Beer Segment especially Budweiser and tennents (super strong) beer
is performing well. The demand of Budweiser and tennents (super strong)
beer in the market is good but not easily available every where. Company
has not got good image among the general public.
• Tennents beer is the undisputed leader in the strong beer segment but not
India. So they can reduce the costs. Company is planning to release huge
funds for India in Jan 2010. In Bangalore plants they are facing financial
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1. Aggressive marketing
Company should use the aggressive marketing which forces the retailers
3. Surrogate marketing
products that have similar name and help of these products advertise of
beer brands.
Company should create a website for Indian breweries and give a full
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6. Road show
Company should follow rule and regulation and not target to people those
in marketing departments.
snacks, free small bottle and price discount for the customers.
Sales of beer is depend on sales person. Pay the rent on time to retailer.
Company should increase the number of outlets and tie up with hotels,
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QUESTIONNAIRE
(APPENDIX)
• My name is Deepak Sharma. I am pursuing my MBA in Ramaiah
institute of management studies Bangalore, as a part of my curriculum I am doing
my project in AB InBev India International pvt. Ltd.These is some of the survey
questionnaires on SALES PROMOTION; please take a few minutes to complete
this study.
a) Yes b) No
a) Friends b) Advertising
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Ques. 6- How often do you drink beer?
a) Occasionally b) Regularly
Mild………………. Strong…………….
Ques. 10- What are the key factors that affect your purchasing decision?
a) Bottle b) Cane
a) Loyal b) Switcher
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Ques. 15- Any suggestions for AB InBev beer company?
………………………………………………………………………
………………………………………………………………………
Personal information
Name-…………………………….
Address-...…………………………………………………………..
………………………………………………………………………
………………………………………………………………………
Gender-………………………………
Age-…………………………………..
Occupation-…………………………………………………………
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QUESTIONNAIRE FOR RETAILER
Ques.3- In beer, what are the different brands available with you?
Ques.5- How much quantity of Tennents and Budweiser beer is sold daily?
a) Yes b) No
a) Yes b) No
Ques.8- Do you think that sale can be increased by providing scheme to retailer
and consumers?
a) Yes b) No
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Ques.9- Who is the biggest competitor of AB InBev in the market?
…………………………………………………………
Ques.10- Would you like to give some suggestions to company for improvement?
………………………………………………………………………
………………………………………………………………………
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BIBLIOGRAPHY
Reference Books:
Marketing Concept: Philip Kotler
Websites:
www.google.com
www.ab-inbev.com
www.wikipedia.com
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