Presentation on

The king of
good times

Gagan JANGALE 584

Linley REBELLO 602
Amrinder SINGH 575
K.L.S INSTITUTE OF MANAGEMENT EDUCATION & RESEARCH. BELGAUM
“Drinking beer will not reduce your sorrow neither
drinking milk
so lets ‘cheers’ to beer”
 Introduction

1857 - Mr. Thomas Leishman formed United Breweries

Ltd.
1947 - Mr. Vittal Mallya became the first Chairman of
Indian Origin.
1974 - International beer exports began to Aden and
Middle East.
1983 - Dr. Vijay Mallya became the Chairman of the
UB group.
“Beer is proof that God loves us and wants us to be
happy.”
 To be the recognized leader in our
target markets.

To be the preferred employer

wherever we operate.

To recognize the value of our human

assets.

To beworst
cohol may be man's the enemy,
partnerbut
of the
choice
bible for
says love you
customers, suppliers, and other
 Beverage Alcohol

Pharmaceuticals

Aviation

Fertilizers

International Trading

Media

Construction

Fashion Clothing
 About the company
• UB Group

• The UB Group, is the market leader

• The Group has a huge turnover

• Swimsuit Calendar.

• Won more than 6 International Awards

 About the company
Beer
• 50% market share nationally.
• Sold in over 52 countries and also on international flights.
• Every third beer sold in India is Kingfisher.
• India’s 1st global consumer brand – Kingfisher.

Spirits
• 54% market share in the domestic market.
• 2nd largest player in the world.
As A Brand
 Beer

Airlines

Fashion
Collection

Sports

Swimsuit
Calendar
 Classifications
•Lager: It is stored for a specified period before being
bottled or canned.
• Pilsner: A type of lager beer, it is light with 3.0 - 3.8%
alcohol and has a medium hp flavor.
• Ale: Top fermented, this kind of beer has distinct hop
aroma. The alcohol content is around 4 - 5%.
•Stout: Dark with burnt flavor and strong malt aroma; it is
heavily hopped and contains 5 - 6.5% alcohol.
• Porter: This is less dark than stout, even less hopped and is
somewhat sweet. Alcohol content is around 5%.
• Creamy Ale: A highly carbonated beer that is produced by
a combination of Ale and lager.
• Malt: A strong flavored, high alcohol content beer that
ranges in flavor and colors.
Market Share & Growt
 BEER MARKET SHARE In
INDIA

COBRA 9% Others 5%

UB 50%
SAB Miller 36%
 KINGFISHER BRAND MARKET SHARE
(BEER)

Other UB
COBRA 9% Others 5% Brands 21%

SAB Miller 36% UB Kingfisher

Brand 29%
KINGFISHER BRAND GROWTH (BEER)
3
HECTOLITRES (IN MILLIONS)

2.5

1.5

0.5

0
1985 1990 1995 1997 1999 2000 2001 2003 2005 2006
Making A
Mark
strategies….
Mark of a brand name Kingfisher
• Tying up with large department stores like Food world for retailing
its Beers.

• In association with number of Very Classy, Up market & Stylish

bars & lounges.

• Aggressive Advertising at Outlets & Pubs.

• Better Retailing outlets to be opened under Kingfisher Brand.

• Venturing into other Business with same Brand name, hence

increasing Brand Name & Publicity.
competitors
 Fighting Competitions
Presently distributing brands of Beer in India.
1.SAB Miller : Haywards, Royal Challenge,
Knock Out, Foster
2.Anheuser-Busch : Budweiser
3.Carlsberg (South Asian Breweries)
4.Heineken (Asia Pacific Breweries)
5.Castle Lager
6.Cobra
 3 P’s Of
Marketing
 Product
• No.1 selling product in its segment.
• Good quality raw material is used to maintain the
quality standards.
• Consistency of product quality is high.
• Always tastes fresh due to good quality and well
developed distribution network.
 Price
• In both mild and strong beer segments kingfisher uses
competitive pricing strategy.
650ml
• Rs.65
330ml
• Rs.35
 Place
• 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 location
across the country.
• Kingfisher also has a presence in 60 countries.
• It has some sixteen hundred shops apart from
pubs and bars. Better retailing outlets are also to
be opened under the Kingfisher Brand.
Analysis
kingfisher
beer….
 Porters 5
Force Model
Applied to
Beer
 Porters 5 force model
Overall industry rating: high Moderate low

Threat of new entrants. X

Bargaining power of buyers. X

Threat of substitutes. X

Bargaining power of suppliers. X

Intensity of rivalry among X

competitors.
 Threat of New Entrants
• Threat of new entrants is towards lower side.
• Economies of scale in manufacturing, distributing, and
marketing create high barriers to the national and global
markets.
• The capital needed to build beer manufacturing facilities and
the costs associated with operating business on a national scale
are extensive.
• The costs associated with this highly controversial industry
seek high levels of sales, thus making the industry more and
more prohibitive for newcomers.
• Government regulations are largest factor in this force.
 Bargaining power of buyers
• Barraging power of buyers is high.

• The quantity of alcoholic beverages that a nation consumes

tends to be unaffected through recession and prosperity while
the quality of the products purchased is directly related to the
disposable income.

• A decline in disposable income shifts consumer preferences

away from premium-priced brand-name products in favor of
lower-priced brands i.e switching cost is low.

“The worse you are at thinking, the better you are

at drinking”.
 Threat of substitutes
• Threat of substitutes is low.
• Customer loyalty through brand awareness.
• The advertising restrictions placed on alcoholic beverage
industry in recent years make it harder to achieve brand
loyalty.

“It takes only one drink to get me drunk. The trouble is, I
can't remember if it's the thirteenth or the fourteenth.”
 Bargaining power of suppliers

• Supplier Power is low

• Products used to brew beer are inexpensive and suppliers are
numerous.
 Intensity of rivalry among competitors

• Moderate.
• Rise in legal and regulatory burdens, leads many
manufacturers to merge in order to lower competition. Acting
as oligopolies, they ensure high profit margins, cash flows,
and investment returns.
• Though the competition is tough, The Kingfisher brand is the
one of the largest supplier of beer, & the third largest
producer of distilled spirits,

“Drinking is a way of ending the day”

 STP for
Kingfishers
Beer
 Segmentation
• Geographic segmentation: It is available through out
India and is dominant in particularly in south and
west India.
• Demographic Segmentation- Age basis
Youth: 16 to 25yrs. (kingfisher mild)
Adults: 25yrs & above (kingfisher strong)
• Segmentation based on Situation:
Birthdays, Anniversary, New year parties etc.

Alcohol is the cause and the solution to many of life's problem

 Targeting
• Kingfisher has 2 different products for different
market segments.

“Friends don't let friends drink Light Beer”

 Positioning
• Kingfisher positioned itself as a brand for successful
& professional individuals who are always ready to
take a break, party or just chill out.
• It has positioned itself as “The King of good times”.

Repositioning
Kingfishers
SWOT
Analysis
Strongest Worldwide Distribution System.
Huge Finances backing from UB Group
Oldest & Largest Player In India
Worldwide known Brand

Different Brands under Same

Company
High Concentration on Strong
Beer Market
Beer consumption is increasing
Reduction in Taxes
Brand Extension Benefits

High Taxes & Regulations

Prohibition on Advertising
Indian Culture is a Major
Hindrance
 Source of information
• Internet
www.kingfisherworld.com
www.theubgroup.com
Statutory warning: Consuming alcoholic drinks is