The king of good times Presented By Gagan JANGALE 584 Linley REBELLO 602 Amrinder SINGH 575 Presentation on K.L.S INSTITUTE OF MANAGEMENT EDUCATION & RESEARCH. BELGAUM
Lets Say Cheers to ... Beer ...
“ Drinking beer will not reduce your sorrow neither drinking milk so lets ‘cheers’ to beer”
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. Introduction “ Beer is proof that God loves us and wants us to be happy.”
M I S S I O N T o be the recognized leader in our target markets. T o be the preferred employer wherever we operate. T o recognize the value of our human assets. T o be the partner of choice for customers, suppliers, and other creators of innovative concepts “ Alcohol may be man's worst enemy, but the bible says love your enemy.”
P O R T F O L I O B everage A lcohol P harmaceuticals A viation F ertilizers I nternational T rading M edia C onstruction F ashion Clothing
U B Group
T he UB Group, is the market leader
T he Group has a huge turnover
S wimsuit Calendar.
W on more than 6 International Awards
A bout t he c ompany
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.
54% market share in the domestic market.
2 nd largest player in the world.
A bout t he c ompany
As A Brand
B eer A irlines F ashion C ollection S ports S wimsuit C alendar
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.
M arket S hare & G rowth
B EER M ARKET S HARE I n I NDIA
K INGFISHER B RAND M ARKET S HARE ( BEER )
K INGFISHER B RAND G ROWTH ( BEER ) HECTOLITRES (IN MILLIONS)
M aking A M ark strategies….
M ark o f a b rand n ame K ingfisher
T ying up with large department stores like Food world for retailing
I n association with number of Very Classy, Up market & Stylish
bars & lounges.
A ggressive Advertising at Outlets & Pubs.
B etter Retailing outlets to be opened under Kingfisher Brand.
V enturing into other Business with same Brand name, hence
increasing Brand Name & Publicity.
F ighting C ompetitions
P resently d istributing b rands of Beer in India .
S AB Miller : H aywards, R oyal Challenge, K nock Out, F oster
A nheuser-Busch : B udweiser
C arlsberg (South Asian Breweries)
H eineken (Asia Pacific Breweries)
C astle Lager
3 P’s O f M arketing
N o.1 selling product in its segment.
G ood quality raw material is used to maintain the quality standards.
C onsistency of product quality is high.
A lways tastes fresh due to good quality and well developed distribution network.
I n both mild and strong beer segments kingfisher uses competitive pricing strategy.
I t is available throughout India, and is dominant particularly in south and west India.
U B has 16 company owned breweries apart from 9 contract breweries in 20 different location across the country.
K ingfisher also has a presence in 60 countries.
I t has some sixteen hundred shops apart from pubs and bars. Better retailing outlets are also to be opened under the Kingfisher Brand.
A nalysis kingfisher beer….
P orters 5 F orce M odel A pplied t o B eer I ndustry
P orters 5 f orce m odel 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 competitors. X
T hreat o f N ew E ntrants
T hreat of new entrants is towards lower side.
E conomies of scale in manufacturing, distributing, and marketing create high barriers to the national and global markets.
T he capital needed to build beer manufacturing facilities and the costs associated with operating business on a national scale are extensive.
T he costs associated with this highly controversial industry seek high levels of sales, thus making the industry more and more prohibitive for newcomers.
G overnment regulations are largest factor in this force.
B argaining p ower o f b uyers
B arraging power of buyers is high.
T he 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”.
T hreat o f s ubstitutes
T hreat of substitutes is low.
C ustomer loyalty through brand awareness.
T he 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.”
B argaining p ower o f s uppliers
S upplier Power is low
P roducts used to brew beer are inexpensive and suppliers are numerous.
R ise 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.
T hough the competition is tough, The Kingfisher brand is the one of the largest supplier of beer, & the third largest producer of distilled spirits,
I ntensity o f r ivalry a mong c ompetitors “ Drinking is a way of ending the day”
STP f or K ingfishers B eer
G eographic segmentation: It is available through out India and is dominant in particularly in south and west India.
D emographic Segmentation- Age basis
Youth: 16 to 25yrs. (kingfisher mild)
Adults: 25yrs & above (kingfisher strong)
S egmentation based on Situation:
Birthdays, Anniversary, New year parties etc.
“ Alcohol is the cause and the solution to many of life's problems.”
K ingfisher has 2 different products for different market segments.
“ Friends don't let friends drink Light Beer”
K ingfisher positioned itself as a brand for successful & professional individuals who are always ready to take a break, party or just chill out.
I t has positioned itself as “The King of good times”.
K ingfishers SWOT A nalysis
Worldwide known Brand
Oldest & Largest Player In India
Huge Finances backing from UB Group
Strongest Worldwide Distribution System.
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
Many International Player Entering In India
S ource o f i nformation
! Thank You !
Statutory warning: Consuming alcoholic drinks is injurious to health.