Bira

Imagined in India

Marketing
Case Study
Term-1 2018

Submitted By: Group 5

Kunal (0414/55)
Lavesh Paladia (0415/55)
Krishan Mittal (0413/55)
Divya S (0402/55)
Maninder Kaur (0416/55)



List of Contents

Objective
Environment Scanning and PEST
Introduction to Bira
Porter’s 5 forces Analysis
STP Analysis
Marketing Strategy
4P’s Analysis
SWOT Analysis
What Next?
References
Appendix A
Appendix B

Objective

We have read on multiple websites that beer is good for your health and it can be a
meal replacement for anyone looking to live the fantasy. We are not here to contest
that but there is no denying that beer fever has caught up in India with the demand
at it’s peak and pegged to grow at double digits.

Through this study we want to analyse the factors involved while setting up a new
brand of beer in India and understand the strategies which work for the Indian
consumers. We have chosen Bira as the brand of focus as it is the poster child of beer
revolution in our nation and has created some serious headway in the more
beeronomically developed nations like USA.

Environment Scanning and PEST

Beer Industry from 2015
India is among the top 5 beer markets in Asia-pacific in terms of volume, and 86% of
the market is dominated by four global players United Breweries (Kingfisher, Kalyani
Black Label), SABMiller India (Hayward), SABMiller India (Royal Challenge), Carlsberg
India (Tuborg) with 8 out of 10 maximum selling brands. From 2013 – 2018, the
overall Indian beer market was forecasted to grow at a CAGR of 8%. Although the
four big giants have production and manufacturing units in India, global imports of
beer have grown by 21% y-o-y in 2016. Changes in the beer taste are attributed to
the increasing number of Indians traveling abroad and experiencing quality foreign
beer.
Craft Beers Culture & Emergence
Craft beer is the traditional and independent breweries with various tastes like oak,
chocolate, hazelnut, coffee, caramel, pumpkin, and any number of other ingredients.
Craft beer is made using handpicked ingredients with certain flavoured
characteristics and brewed to get a quality beer. Craft beer, still being in its nascent
stage, is witnessing a growth of 20% y-o-y as estimated by All India Brewers
Association (AIBA). Especially beer imports from Belgium increased from 14% of total
imports in 2012 to 34% of total imports in 2016. Currently, there are 60 craft
breweries in India, with Bangalore hosting about 40 breweries and others spread
across Pune, Mumbai, and NCR with the community of 100 home brewers. In a
nutshell, the Indian market offers lucrative growth prospects for craft beers. But the

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market entry barriers are rigid and it is time-consuming to start a business in India.
Key challenges are high regulatory environment, high customs duty and taxation,
state tax barriers, inadequate logistics and warehousing facilities.
Pest Analysis of Beer market
Physical/Economic
Poorly developed retail network affects the availability of beer to the consumers.
Selling of beers in liquor shops alone gives out an incorrect image to consumers at
large scale. Consumers fail to perceive beer as low-alcohol drink, which in turn affects
the growth of beer industry. Indian beer market thrives because of its youthful
demography, young professionals, increase in experimental middle class families and
high income group of urban population. Growth in the economy explains the growth
of beer industry that include rising levels of income, dramatic change in the lifestyles
of the people and higher acceptance of alcoholic beverages, huge market potential,
entry of international brands, and growth in organized retail, etc.
Political/legal
The Political environment for alcohol has always been unstable. Different states have
different rules for liquor in India. Factors that are a hindrance to the industry are:
• High regulatory environment and no categorisation of alcoholic beverages
based on their strength for taxation
• License from the state government is statutory to enter the beer market
• Local politicians in most Indian states control the beer sales by controlling the
tax on alcohol
• Transport of beer (more than one unit) across state borders is illegal and
requires an export and an import license
• Legal age for liquor consumption is 18 for 7 states, 21 for 18 states and 25 for
5 states
• Dry days are observed around voting day and major festivals
• The liquor ban in states of Kerala, Bihar, Tamil Nadu, Gujarat, Bihar,
Lakshadweep, Manipur, and Nagaland, which had a share of more than 20%
• Change in policy in the states of West Bengal, Chhattisgarh and Jharkhand.
• Approval of Highway ban (the sale of alcohol in eatery/ bar/ restaurant within
500 meters of national highway is banned) in 2017
• Advertisement of liquor is banned in India
Socio/culture
Consumption of beer is constantly increasing in India with the increase in purchase
power. Preference of Indian consumers has changed from local hard liquor to
relatively expensive beer market. socio/cultural factors that impact the growth of
beer industry are

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• Corporate culture - drinking is built into the social fabric
• The advent of cafe and pub culture
• An Upsurge in holidaying overseas - impact on consumption of wine
• Increased consumption of alcohol by school and college students
• Lifestyle changes: Emerging wine culture in key markets
• Health conscious – increased demand for diet/light beers
• Trending premium & specialty products
• Majority of Indians do not consume any alcoholic drinks due to religious or
cultural reasons. Only 30% Indians consume alcohol, out of which only a small
percentage drinks beer.
Demographic
According to the 2011 census data, 1.2 billion to 194 million people are urban
residents aged between 21 and 65 years old excluding those living in non-dry states.
Using these criteria, average consumption is just over 12 litres per person. The
population of youth is high in India. Working people are gradually becoming
accustomed to flavoured beers and are willing to pay a higher price for the
experience.

Source: Mckinsey Global Institute (2007)

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Technological
Beer Industry in India is witnessing the arrival of foreign players with expertise and
technological knowhow to enhance the beer manufacturing process resulting in the
lowering cost of production. The technological factors are:
• Packaging and bottling
• Influence of the Internet and e-commerce
• Introduction of global media
Craft beer industry is a different story altogether, with less than 2% market share
among beer market in India, the production is mostly outsourced and only recently
attempts have been made to start the production in India. Breweries are investing a
lot of money to upgrade ($800k per plant) the equipment to maintain consistent
quality and sourcing raw materials from Europe and USA. Indian breweries are at the
opportune point to utilise this trend and start producing the raw material within
country to decrease the cost of production and generate more employment.

Introduction to Bira

Source: Numbers taken from economic
times article

2018-19 figures are projected

The name Bira has no literal

meaning however informally how
a North Indian would pronounce
Beer and 91 is India’s Country
Code. The reverse B in the logo
represents a spirit of rebellion
against the conventional. The
monkey mascot was designed
considering the urban millennial
as the key consumer of Bira 91 and with the idea of presenting the brand with a
humour-laced identity.
The company’s first brewery unit was located in Flanders region of Belgium where a
craft distillery was used to contract manufacture the beer with ingredients from
France, Belgium, Himalayas and Bavarian Farms and exported to India. After initial
success, the company thereafter began manufacturing the beer in India with the
same ingredients.

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Made from Wheat, Barley and Hops, the beer is available in draft, 330ml bottles and
500ml cans. Bira 91 was made available in two flavours, Bira White Ale and Bira
Blonde Lager. The Bira White Ale is a variant of wheat beer, with mild bitterness and
a soft finish. It has a taste that is sweeter and citrusy than normal beer. The Bira
Blonde Lager, on the other hand, is a more conventional type of beer. It is found to
be extra malty with a delicate aroma and little bitterness. They started with 4.8% v/v
strength variants and only recently have introduced the 7% v/v strength variant (their
strongest yet).

It is the first alcoholic beverage brand which has been able to neutralise the taboo
associated with alcohol to some extent and has captured the imagination of youth
and elders alike.

Porter’s 5 forces Analysis

Industry Rivalry
Though nascent, the craft beer industry has attracted a lot of attention from
manufacturers and the Indian market is seeing increased competition amongst them.
The most notable among them are Witlinger, Simba and Doolally. By offering an
almost similar product to Bira’s offerings they have the potential to seriously hurt the
sales of Bira in India.

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Threat of New Entrants
For tapping brewed beer market at cost-effective rates, a variety of innovative start-
ups have plenty of ideas for diverse flavours, events and apps that could facilitate
customers to indulge. Apart from the new players, already established players in the
beer market are planning to launch new variants in the craft beer market which will
directly compete with the Bira’s offerings.
Threat of Substitutes
Products that have similar product performance uses and occasions for uses may
affect the demand for craft beers like standard beers, imported beers, and other
alcoholic beverages like wine, alternatives (flavoured malt drinks), and spirits. Wine
sales has especially picked up due to the introduction of Sula’s offerings in the
industry which is able to provide quality and cheap wine and champagne to the Indian
consumer. The threat comes from the lack of established celebratory occasion to
drink beer with which people can relate to as they do with wine or champagne.
Bargaining Power of Buyers
Consumers today are far better informed and discerning as compared to five years
ago. They are holding businesses to a higher standard when it comes to products and
services they are buying. Also the same lot is far more experimental when it comes
to the choices they make while eating out and drinking. That means as a business you
are afforded far greater latitude in terms of what you can experiment with.
Bargaining Power of Suppliers
Late last year consumers were left yearning for a pint of the Belgian brews due to
temporary snag in the supply chain which was a result of inaccurate projections
leading to constant out-of-stock situation. As a result a deal with a brewery in
Haryana to locally brew Bira fell through, leaving them dependent on imports for
longer than expected. But they resolved this issue within a month by making Bira
available to more tipplers from a local brewery in Indore in Madhya Pradesh. This
highlights that suppliers have very little bargaining power as there are readily
available substitute in the market.

STP Analysis

SEGMENTATION:
Bira has segmented the Indian Market in following ways:
Geographical
Bira is catering to only urban cities right now. The vision is to gain leadership in the
premium beer market in India, where they have already demonstrated it in the on
premise market, i.e. on the restaurant side. Now they will expand in retail stores of
existing markets as well as new markets such as Jaipur, Nagpur, and Hyderabad.
Demographic
Consumers pursue more aspirational lifestyles, locally produced spirits are cheaper
and more widely accessible and so don't hold the same aspirational image. Bira’s
target audience, the youth of the nation and rising urban middle class was their sole
inspiration while coming up with the design.
Psychographic
Attitudes towards alcohol are evolving, particularly among young urban-dwellers
who are gaining an appetite for beer, as a drinking culture becomes more popular in
major cities like Mumbai, Delhi and Bangalore. Apart from this, women in tier 1 cities
are becoming more open to the
TARGETING:
Bira 91 was selling beers that were never seen before in the market; neither in colour
nor in taste. Their aim was to fill the gap in the market for an unorthodox,
unconventional and fun brand of beer. To successfully get to the audience, their
strategies were pretty direct and simple, to focus only on distribution. They refrained
from using any kind of marketing campaign or surrogate tricks. Instead, what they
did was made their brand available in a few pubs and the rest is history. They gained
a 30% share in the premium segment without incurring any expenses on traditional
marketing strategies.

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POSITIONING:
Bira was launched in early 2015
to “fill the gap in the market for
a trendy, unorthodox, fun and
smart brand of beer that could
be positioned between Indian
brands and the expensive
imported beers. The company is
backed by Sequoia and
investors such as Snapdeal co-
founders Kunal Bahl and Rohit
Bansal and Zomato’s Deepinder
Goyal.
With its white ale and blonde
craft large versions, Bira
became an instant hit among the country’s hip, young pub- goers-tired of old large
beers-who are turning to international brews.

Marketing Strategy

Bira91 gained a 30% share in the premium segment without employing any
traditional marketing campaign or surrogate tricks. Instead, they decided to focus on
distribution. It was made available in a few pubs such as Monkey Bar, Beer Cafe and
relied on word of mouth publicity. As a result, Bira instantly became viral and decided
to continue with their model. It focused on social networking sites for promotion.
This strategy was also aided by the development of fest culture in India which helped
them in engaging with their customers more effectively.
Spending around 30-35% of its revenues in marketing, Bira follows a digital - first
approach. They are investing heavily into creating quality content and disseminating
it through the right partners. Some of the marketing campaigns undertaken by Bira
includes: (refer to appendix B)
• Free Flow Fest: A large scale on-ground campaign which provided consumers
with an opportunity to try out 3 different beers (with varying styles and
bitterness) from Bira’s portfolio, including recently launched brew The Indian
Pale Ale.
• Collaboration with Zomato: Customers can search for the nearest outlet
serving Bira 91. This was complemented with curated collections on Zomato.
• Association with Magnetic Fields Music Festival: Known for its loyal
community and strong focus on consumer experience, Magnetic Fields
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presented a perdect opportunity for Bira to further strengthen its connection
with the millennial identity.
• Bita91 Hot Stuff: Bira worked with with popular TV hosts Rocky and Mayu, to
hunt for the perfect pair of spicy food from India’s alleyways.
• Saavn: Bira91 recently teamed up with music streaming app Saavn to create a
platform for local artists who are into hip-hop music.
• Tribeca Film Festival: Bira signed up to become the official beer partner for
14th edition of Tribeca Film Festival. 70 after-parties had Bira as the
centrepiece and soon ended up being available across 300 pubs, bars and
restaurants in a small catchment area in New York City.
While investors decide the marketing and global expansion budgets, they have
minimal inference in company’s operations as long as some key matrices are being
met. Chief among them is the 45% gross operating margin which ensures that every
Bira bottle makes money.
International Expansion:
Bira’s next aim was to have a truly global footprint and to be the preferred beer brand
across top global cities by 2020. Encouraged by good response in New York, Bira
decided to enter five new markets in July 2017 - UK, Singapore, Hong Kong, Thailand
and UAE by the end of 2018 through distributive partnership with millennials’ being
the target population. It plans on being the leader in each of these markets in five
years.

4P’s Analysis

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Product:
Ankur Jain, Founder and CEO of Bira91 believes that the biggest thing they have done
is to give the millenials a beer they can call their own. Bira sold beers that were never
seen before in the market in colour or in taste. Bira’s products (listed below) contains
flavors to satisfy every palate:
• Bira 91 White Ale: Wheat beer with low bitterness, hint of spicy citrus and a
soft finish
• Bira 91 Blonde Lager: Rich in color and made with finest two-row barley, this
is extra malty and high-hopped with a deliate aroma
• Bira 91 Light: Positioned as a “lunchtime lager”, this is one of the first low-
calorie beers to be introduced in the Indian market.
• Bira 91 Strong: A “High-Intensity Wheat Beer”, it’s a top fermented ale with a
unique and rich taste low on bitterness, high on honey and caramel notes.
• Bira 91 “The Indian Pale Ale”: High in alcohol (7%) and mixed with two-row
pilsner malts, pale malts and wheat malts, this is a beer with a punch.

Promotion:
Sandeep Singh, current Marketing Head for Bira91 was impressed by Kingfisher’s
effective use of social media for communication and decided to adapt the same to
Bira91. Promotion strategy is to drive the consumers to have a good time with the
product, enhance the consumer experience and be gender neutral. This is executed
through leveraging the idea of a good tasting beer and promoting fun and responsible
drinking. Bira91 picked Isobar for the brand’s digital duties banking on their strong
overseas credentials.
Price:
While Bira was initially launched at the same price point as its competitors at INR 225
per pint, it decided to lower its price to INR 110 in December 2015 to scale up rapidly.
This was funded by $7.5 million in Series A funding led by Sequoia (as per B9’s filings
with registrar of companies). However, a huge demand for Bira owing to reduction in
prices outshot supply and Bira went out of stock at most retail outlets. This prompted
Bira to go for raising more funds to strengthen its back end and logistics systems.
Place:
Bira holds exclusive import and marketing rights in the subcontinent for seven
breweries and has an established presence in Indian subcontinent. In India, it has
access to all major urban centres in India through sales, marketing and distribution
rights. It currently sells across 12 cities with a retail presence across 6,000 outlets. Its
presence in the US is limited to the small catchment area in New York.
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SWOT Analysis

STRENGTHS

WEAKNESS

● Pricing
● Distrubutor Supplier Network
● Uniqueness
● Geographical Concentration
● Strong Brand Equity
● Brand Loyalty
● Gender Neutral

OPPORTUNITIES THREATS

● Huge Market Potential ● Highly Regulatory Market
● Flavors ● Taxation Policy
● Draught Market ● Conservative Population
● Rising Income Level ● International Brands and Microbrewries

What Next?

B9 breweries are planning to go public in the coming 3-5 years and do not want to be
a part of the established houses like Ab InBev or United Breweries. This makes them
susceptible to the planned launches of craft beer variants from these large brewers
which are scheduled to go on sale by the end of 2018.
To mitigate the risk of losing the current market share and compete with the new
launches and microbreweries we decided to carry out a consumer perception
survey. People representing the fast growing aspirational class of the society were
chosen as the target audience for this survey. Our aim was to understand the
perception of the brand Bira and to come up with actionable roadmap for the brand
to position itself for future growth.
(Please refer to Appendix A for the questions asked in the survey and the results)
Our survey was carried out in Tier 1 cities of India in which 80-20 distribution of men
and women participated. Roughly 80% of the participating population belonged to
the age group 20-25 and 16% in 25-35. The results have been compiled below:

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1. Introduction of Draught Bira: People are demanding more and more of
draught beer and the results are evident in the survey with draught being the
2nd preferred medium (more than 28%) after bottle and above cans(less than
20%). To capture the market more efficiently Bira needs to focus more on
Draught beer and bring it to the market as soon as possible.
2. Flavours: Bira has started focussing on introducing more flavours in the Indian
market but to catch up with the growing demand of new and refreshing
products they will need to keep up with this pace and introduce more curated
flavours to gain more market share.
3. Market reach: In our survey which was conducted primarily in Tier 1 cities we
found that less than 82% people have tried offerings from Bira which leaves us
with an unreached market of more than 18%. Efforts should be made to tap
this market by improving the retailer network.
4. Bira exclusive lounges: The preference for Draught beer is also pointing
towards a trend that more and more people want to experience the beer
outside of their home premises. To establish themselves as the market leader
of premium craft beer producer they need to engage in exclusive deals with
popular lounges and pubs in cities to get exclusive rights.
5. Brand Identity: Beer in India is not associated with any special occasion and
Bira’s slogan, “Imagined in India” does not give the consumer anything to
relate with. As there are many other Indian brands which also lead the market
they need to send out a strong and homogeneous message to establish
themselves as the brand of beer for millennials.
6. Stronger Variants: People equally prefer the strong and mild variants of beer
and to tap the whole market Bira should focus on increasing their portfolio by
introducing more flavours in the >7% v/v alcohol strength market.

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References

[1]Retrieved August 28, 2018, from

https://www.niras.com/media/1488/scandinavian-brewers-review_india.pdf
[2]Retrieved August 28, 2018, from
https://www.flandersinvestmentandtrade.com/export/sites/trade/files/mark
et_studies/724140307183847/724140307183847_1.pdf
[3]Analysis of beer market in India. “Journal.Beer 3-2015ʺ | Journal.Beer – Daily
News & Analysis. (2015, October 1). Retrieved August 28, 2018, from
http://journal.beer/2015/10/01/analysis-of-beer-market-in-india-journal-
beer-3-2015/
[4]Analysis of beer market in India. “Journal.Beer 3-2015ʺ | Journal.Beer – Daily
News & Analysis. (2015, October 1). Retrieved August 28, 2018, from
http://journal.beer/2015/10/01/analysis-of-beer-market-in-india-journal-
beer-3-2015/
[5]Beer in India | Category Analysis. (2015, April 2). Retrieved August 28, 2018, from
http://www.slideshare.net/kapoorsahil/beer-in-india-category-analysis
[6]Craft Beer vs Regular Beer- the Difference - Hungry in Dublin. (2017, May 19).
Retrieved August 28, 2018, from http://hungryindublin.com/drink/craft-beer-
vs-regular-beer-the-difference/
[7]India's craft beer Bira 91 is frothing over | Forbes India. (2016, September 23).
Retrieved August 28, 2018, from http://www.forbesindia.com/article/work-
in-progress/indias-craft-beer-bira-91-is-frothing-over/44327/1
[8]Manu Balachandran, Devjyot Ghoshal. (2015, March 13). Move over Kingfisher.
Indians are now thirsting after craft beer. Retrieved August 29, 2018, from
http://qz.com/india/361239/move-over-kingfisher-indians-are-now-thirsting-
after-craft-beer/
[9]Studying the Global & India's Beer Market 2017-2020 - Research and Markets.
(2017, April 19). Retrieved August 28, 2018, from
http://www.businesswire.com/news/home/20170419006082/en/Studying-
Global-Indias-Beer-Market-2017-2020--

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Appendix B

Total responses : 83
Questions asked in survey:
Age
1. <20
2. 20-25
3. 25-35
4. >35

Gender
1. Male
2. Female
3. Too cool to reveal

Have you tried any of the offerings from Bira?
1. Yes
2. No

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Preferred brand of beer
1. Bira
2. Hoegaarden/Corona/Stella
3. Kingfisher/Budweiser
4. Heineken
5. Foster/Tuborg/Haywards
6. More of a water person

How often do you drink Bira in comparison to other alcoholic beverages?
1. Never
2. Sometimes
3. Always

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What do you prefer?
1. More flavours
2. You have already figured out your true love

Do you prefer stronger beer?
1. Yes
2. No

How much are you willing to pay for a pint of beer?

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1. Money is not a concern
2. Anything under 500
3. Upto 200
4. Money is a concern
5. 0

You prefer
1. Bottle
2. Can
3. Draught

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Appendix B

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