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Beer industry report

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  • 1. Social Media &Indian Beer Industry: A Research Report Picture Source: http://linxonesolutions.com/blog/?p=1199
  • 2. 5 Key Research Findings Kingfisher is the most popular brand among social media users – slide 15,17 and 19. Maharastra state is the targeted geographic region for all Beer Brands – slide 15. Twitter is the most used platform – slide 16. People associate beer and cricket – slide 22 and 23. Indian beer buyers are price sensitive – slide 22 and 23.Picture sourrce: http://theoandrosa.blogspot.in/, http://en.wikipedia.org/wiki/Maharashtra, http://www.ditii.com/2011/10/06/twitter-platform-issue-tracker-deprecates-google-code-tracker/, http://www.pinelandscc.co.za/2010/09/pcc-inv-xi-vs-cuylerville-cc/, http://www.legalfutures.co.uk/latest-news/index-to-measure-success-of-legal-reforms
  • 3. ContentsIndian Beer Industry Overview Market Overview Industry Analysis Why Social Media is Required ?? Insights through Social Media Conclusions of AnalysisRecommendations
  • 4. Beer Industry Overview Picture Source: http://www.novinite.com/view_news.php?id=103896
  • 5. Indian Beer IndustryHuge growth since the liberalization and opening up ofeconomy in 1991.Intolerance towards alcohol in India has decreased throughglobalization and cultural influence of western countries.Majority of Indian population falls in the age group of 18-35years, which is the targeted segment for beer sellers.So, India has become the ideal market for the industry.
  • 6. Market overviewIndian beer market grew by 17.1% in 2010 to reach avalue of $5,022.8 million.Volume grew by 13.8% in 2010 to reach 1,687.4 millionlitersStandard lager is the largest segment accounting for91.8% of the markets total value.United Breweries Limited is the leading player having42.4% share of the markets volume.Indian beer market is highly concentrated, with the topthree players holding 70.6% of the total market volume.In 2015, forecasted to have a value of $9,639 million, anincrease of 91.9% since 2010.
  • 7. Drivers and challenges Drivers Challenges• Beer sale in India is forecasted • Brewers must make to grow at a CAGR of 17.2%. innovative and readily• India has an emerging middle available products to remain class-India has a healthy competitive urban workforce. • Brewers must create a sense• 63% of the country population of brand loyalty is between the ages of 15-24. • Utilization of brewing capacity• Favorable regulatory – to keep manufacturing costs environment. low. • Clever advertising – to induce beer drinkers to buy a particular brand
  • 8. Market Value and Volume Market Value 250,000.00 30 200,000.00 25 In 2010, Indian beer market grew by 17.1% to reach a value % age growth 20RS. millions 150,000.00 15 of $5,022.8 million. CAGR for 100,000.00 10 Rs. million period 2006-2010 was 21.9%. 50,000.00 5 % Growth 0.00 0 Year Data source: Datamonitor Market Volume 1800 18 Volumes grew by 13.8% in 2010 1600 16 1400 14 to reach a volume of 1,687.4 1200 12 million liters. CAGR for period % Growth Volume 1000 10 Volume (million ltrs) 800 8 % Growth 2006-2010 was 14.4% 600 6 400 4 200 2 0 0 2006 2007 2008 2009 2010(e) Year Data source: Datamonitor
  • 9. Market Characteristics Market Segmentaion Market Share Standard lager 91.8% United Breweries Limited 42.4% Premium lager 8.2% SABMiller 22.8% Ales, stouts & bitters 0.0% Mohan Meakin Limited 5.3% Low/no alcohol 0.0% Others 29.4% Specialty beer 0.0% Data source: Datamonitor Data source: DatamonitorStandard lager is the largest United Breweries Limited is thesegment accounting for 91.8% of leading having a 42.4% share ofthe markets total value. The the markets volume. SABMillerpremium lager segment comes comes second and accounts forsecond and accounts for a 22.8% of the market.further 8.2% of the market.
  • 10. Environment Analysis • Market Liberalization • Stringent Legal Policies PoliticalPEST Analysis • Change in exchange rate (foreign players) • Slow down of the developed economies and evolution of emerging Economical economies • Change in consumption pattern (adaption of western culture) • Rise in the income levels, which has a direct positive effect on beer consumption Social • Rise in middle class and increase of urbanization • Innovation and Development of new products Technologi • State of the art of brewery technique cal
  • 11. Industry AnalysisPorter’s Five Forces Analysis Buyer Power 5 • Supermarket chains are able to 4 Buyer Power negotiate very strongly on price 3 • But producers can also differentiate Degree of Supplier Medium their products quite strongly 2 rivalry 1 Power 0Supplier Power • Non-vertically integrated businesses • Independent barley growers can find Medium alternative markets New Substitutes EntrantsNew Entrants • Barriers to entry are high. • But new entries can happen through Data source: Datamonitor Medium differentiated products. Indian beer market is Substitutes • Main substitutes are spirits and highly concentrated, with wine. • Switching costs are not high for the top three players Medium retailers. holding 70.6% of the total market volume. • Market is highly concentrated – high Rivalry competition. Overall attractiveness of Medium • Purchasers have low relatively low the market is medium switching costs.
  • 12. Social Media Research
  • 13. Brands ConsideredRefreshing beverage represents lifestyle choice for Indians.Tuborg is famous for easy to drink, low flavored pilsnerbeer with its transparent bottleA Danish company’s with Pilsner Beer, a pleasing mix ofbitter and sweet .Toasted malti-ness and mild fruitiness of this pale goldlager.This Aussie lager is full-bodied, malty and eminentlydrinkable.Haywards 5000 is brewed with the choicest of malts andhops lending itself to a unique flavor.Fresh, light taste with transparent bottleKnown for great taste and innovation.
  • 14. Why Social Media? The age group 21-30 years is the70% of the social media users in 37% of the heavy social media targeted segment for Beer India accessed a social users in India fall in the age market. They talk alot on social networking site daily-Neilsen group of 21-30 years media, which can be exploited survey (alootechie.com, Sept. 2010) and used as competitive edge • People talk a lot about their preferences and dislikes only. • People uses the about beer daily. • The keyword “BEER” tracked by us had about 250 daily conversations in India. Social Media Research has faster turn around time, has bigger sample size and is more accurate and reliable.
  • 15. InsightsthroughSocial MediaPicture source: http://emarketinguide.com/2010/11/few-web-updates-insights-part-2/
  • 16. Audience Gender and Age Distribution Audience Gender distribution Audience Age Distribution 45+ 0 36-45 4 23% 26-35 23 MALE FEMALE 18-25 58 77% 13-17 15 0 20 40 60 80 Percentage Beer brands have more male People in the age group of 18-25 patronage than female. years, which is target segment for beer, talk more about beer
  • 17. Brand Localization •Kingfisher is present in almost all states of India. • Miller Lite has noticeable presence only in Tamil Nadu. • Almost all brands are most famous in Maharastra.
  • 18. Channel Distribution Channel Distribution Miller Lite BLOGS Budweiser VIDEOSHaywards 5000 DISCUSSIONS Fosters NEWS Heineken OTHERS FACEBOOK Carlberg TWITTER Tuborg FLICKER Kingfisher 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Beer brands get highest coverage from Twitter and News.
  • 19. Share of Voice and Brand Opinion Brand Opinion Share of Voice 100.0% 90.0% Kingfisher 80.0% Tuborg 70.0% 60.0% Carlsberg 50.0% Heineken 40.0% Fosters 30.0% Haywards 5000 20.0% Budweiser 10.0% Miller Lite 0.0%Kingfisher has the maximum share ofvoice among all the brands, amounting Positive Negative Neutralto 88.3%. No doubt that it is themarket leader. Almost all the brands have equal amount of both positive and negative opinions with few negative once also.
  • 20. Social Buzz Benchmarking Social Buzz Benchmarking*100 90 80 • Kingfisher has the highest 70 Influence score, which make it the 60 most talked about brand among 50 competitors. 40 30 • Foster’s and Miller Lite have the 20 highest Opinion score, which 10 means that they have very less 0 negative opinions. Opinion Score Influence ScoreDefinition of Buzz Metrics used for Benchmarking (more the better for both Scores)Opinion Score: Opinion Score based on the sentiments of the posts towards the brand.Influence Score: Influence Score defined by overall buzz, uniformity of the buzz overtime, and diversity of buzz across channels. *Note : Global buzz ignored.
  • 21. Platform Affinity and Buzz Score Overall Audience Platform Buzz score* 80 Affinity 70 60 BLOGS 50 DISCUSSIONS 40 NEWS 30 TWITTER 20 10 OTHERS 0 People use twitter most to talk about Kingfisher has the maximum buzz beer than any other platform. score, which means it gets maximum attention among competitors. Buzz Score: It is degree to which a brand get attention in market*Note : Global buzz ignored.
  • 22. Why Kingfisher so Popular?? Opinion Positive Negative Neutral 40% 47% 13% Courtesy : www.wordle.net• Kingfisher is famous among various beer brands due to its association with Cricket(IPL), which isthe most talked about work along with beer (slide 24).• Kingfisher also have some negative sentiments in relation employee management issues(salaries, boycott etc) , covered extensively by news media.
  • 23. Opinion Score v/s Influence Score 100 90 80 70 60 50 40 Opinion Score 30 Influence Score 20 10 0 A regression test was run on carried on Opinion score and Influence score. The value of regression coefficient R2 =0.2030, which proves that there is no established relationship between Opinion score and Influence score. This also disproves the point that when people talk they talk only negative or only positive.
  • 24. What is talked about Beer? (1/2) Courtesy : www.wordle.net The most used words in association with beer: IPL, People, Kingfisher, Easter, Cricket, Price, Party , Food and Tax
  • 25. What is talked about Beer? (2/2) Keyword Analysis 2% 16% IPL (Cricket) 1% People 47% 10% Kingfisher Easter Price 4% 18% Party Food Tax 2% Common Topic of Discussion • People associate beer mostly with cricket. Maybe they want to drink beer while watching cricket. • Second most talked about keyword is “Kingfisher”. Common people relate beer with Courtesy : www.wordle.net Kingfisher in India. • People also associate beer and food. • Price is also talked about in association with beer. This represents cost sensitive customers.
  • 26. Conclusions of AnalysisBeer brands have more male patronage than female. They should also target femalepopulation.Tuborg and Carlsberg do not have good brand patronage across nation. Kingfisher has thebest national coverage.Price is also talked about in association with beer. It can serve as an input to company’spricing strategy. Courtesy : www.wordle.netCricket and beer go together. Beer companies can create brand campaigns associated withcricket to be more successful.
  • 27. RecommendationsPeople talking in social media falls in the same age group as targeted customers of Beercompanies. So it is suggested that brands make good use of Social Media.Brand Image can be created and managed through social media by engaging existing andpotential customers.Innovative products is the requirement to remain competitive in beer industry. What thecustomers actually want can be known by tracking their online conversations.By adding online strategy to their marketing mix, Beer companies can tie together everythingthey are doing both offline and online.Beer companies can use online crowd-sourcing for product development. People will tell youwhat they want. Courtesy : www.wordle.netBy creating online buzz, beer companies can reduce their marketing expense.
  • 28. Research Methodology1. General characteristics of Indian beer are analyzed using the report “Beer in India” December, 2011 by Datamonitor.2. Analysis using social media 1. 15 Brands of Indian Beer Industry were considered. 2. Data was collected from April 1, 2012 to April 17, 2012. 3. Chosen channels are – Twitter, Facebook, Blogs, News, Flickr, Forums and Youtube. 4. Buzz in the Social Media Space about the brands were tracked using Simplify360.3. Conclusions are drawn considering general Industry characteristics and insights from the social media.
  • 29. Social Media Management SaaS Infrastructure Thank YouReach us:http://simplify360.com/http://simplify360.com/blog/ http://www.facebook.com/simplify360 @simplify360