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It is a PPT on Business Strategy of Conglomerates. Presented by Students of FMG-18A, FORE School Of Management, New Delhi

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  • (Low calorie low alcohol content beer targeted at women)
  • UB

    1. 1. UB Group<br />Group Members<br />Gaurav Sharma (91018)<br />Mayank Sharma (91031)<br />Pragati Saraf (91040)<br />Saurabh Anand (91049)<br />Soumya Saxena (91055)<br />Sudhir Makkar (91057)<br />A Presentation By Utopians<br />
    2. 2. Business of the UB Group<br />Sports<br />Beverage Alcohol<br />Media<br />Fertilizer<br />Research & Development<br />Aviation<br />
    3. 3. BCG Matrix<br />Source: www.moneycontrol.com<br />
    4. 4.
    5. 5. Forecasts for Beer Sales (in million ltrs)<br />
    6. 6. Perceptual Map of Beer Market(both products & attributes)<br />Heavy<br />Kalyani<br />Haywards<br />Zingaro<br />Heineken<br />Thunderbolt<br />Budweiser<br />Premium<br />Budget<br />Bud Lite<br />Sandpiper<br />Golden Peacock<br />Fosters<br />Kingfisher<br />OldMilwaukee Light<br />Light<br />Source: www.moneycontrol.com<br />
    7. 7. Recommendation<br />…… Kingfisher Beer<br />
    8. 8. Strategy Suggested:<br />Introduction of New Products(Beer)<br />In the Low Price Low Concentration Segment<br />Introduction of Fat Free Beer(Kingfisher Green)<br /> Tying up with more retail outlets for selling of Beer<br /> Entry into Low cal and varied Flavor Market<br /> Introducing new innovative packaging such as pet bottles etc.<br /> Double branding UB brands.<br /> AsM&A difficult since Shaw Wallace :- Increase private equity interests.<br /> Royalty Club for Classy & Up-market Bars & Lounge Owners.<br />
    9. 9. Perceptual Map of Beer Market(both products & attributes)<br />Heavy<br />Kalyani<br />Haywards<br />Zingaro<br />Heineken<br />Thunderbolt<br />Kingfisher Black<br />Budweiser<br />Premium<br />Budget<br />Bud Lite<br />Kingfisher Gold<br />Golden Peacock<br />Kingfisher<br />Fosters<br />OldMilwaukee Light<br />Kingfisher Green<br />Light<br />Source: www.moneycontrol.com<br />
    10. 10.
    11. 11.
    12. 12. Analysis<br />The industry has witnessed steady growth coming from a combination of <br />New entrants reaching legal drinking age, <br />Those who choose to upgrade from country liquor, (which has inherent health risks) to branded products offered by the IMFL industry.<br />Additionally, aspiration and increased disposable income has also accelerated growth. <br />Highlights<br /><ul><li>USL : The Market leader
    13. 13. High End Indian consumer
    14. 14. USL’s acquisition of Whyte & Mackay Ltd(the fourth largest Scotch distiller in the world)
    15. 15. Increasing Worldwide demand
    16. 16. India 2012.
    17. 17. The Whyte & Mackay acquisition provides the Company with long term advantages
    18. 18. This new demand has led to a global shortage of liquid and a hardening of scotch whisky prices.
    19. 19. Global recession Hits Premium Liquor Segments.</li></li></ul><li>Strategy Suggested:<br />Introduction of New Products(Alcohol)<br />In the Low Segment<br />In the White Spirits Segment.(Eg :- Pinky Vodka)<br />Not Focus entirely on Branding but to make it a Style Statement<br />Sales Promotions Through selling of Smaller Bottles(100 ml etc)<br />Introduce Region wise Products(Segmentation)<br />Encourage Nationalistic Feeling towards products.<br />AsM&A difficult since Shaw Wallace :- Increase private equity interests.<br />Introduction of white spirits to target Younger audience<br />
    20. 20. “This is a world class experience, all at an affordable price. We are not a low-cost carrier and we do not intend to be one,” – Vijay Mallya<br />
    21. 21.
    22. 22.
    23. 23. SWOT ANALYSIS<br />STRENGHTS<br /><ul><li>Unmatched in flight service
    24. 24. Exclusive Terminal Share Deal
    25. 25. Route rationalization
    26. 26. Superior product. Jet business class equal to with Kingfisher's economy.
    27. 27. The Deccan deal - which gives it market share, a new market segment</li></ul>WEAKNESS<br /><ul><li>Service delivery to metros and other big cities only.
    28. 28. High ticket pricing
    29. 29. High attrition in top brass
    30. 30. Not as professionally run as Jet; yet to build a professionally competent team.</li></ul>OPPORTUNITIES<br /><ul><li>Under penetrated domestic market
    31. 31. International market
    32. 32. Untapped air cargo market
    33. 33. Expanding tourism industry
    34. 34. Fleet size expansion</li></ul>THREATS<br /><ul><li>Existing Operators
    35. 35. Infrastructure issue
    36. 36. Fuel price hike</li></li></ul><li>Analysis<br />Kingfisher Airlines is not a run-of-the mill Indian airline but else a value-added, designer some-frill flight.<br />Kingfisher has captured the Indian airline market with the twin engines of ‘special flying experience’ and ‘value for money<br />The Kingfisher brand of exuberant, youthful and fast-paced image is leveraged (the brand recall). <br />Acquiring Air Deccan has helped Kingfisher to eye the deeper end of the market too.<br />Kingfisher entered into a breakthrough agreement with Indian Airlines, making it the first ‘public-private’ partnership in the sector. <br />This partnership under which Indian Airlines will provide all ground handling services at its exclusive terminals in Mumbai and Delhi will allow Kingfisher Airlines to efficiently manage investments and overhead costs]<br />Kingfisher has adopted an extremely simple pricing structure so that irrespective of the fare that a customer buys at, the rules, regulation and cancellation policy remain the same.<br />
    37. 37. EFFECTS OF SLOWDOWN ON KINGFISHER AIRLINES<br /><ul><li>Due to decline in the passenger traffic and intense competition in the industry, the aviation industry considering allowing foreign airlines to buy up to 25% stake in the domestic airline
    38. 38. Vijay Mallaya’s Kingfisher airlines has decide to sell its 25% equity for around Rs. 2000 crores</li></ul> -The decision comes as a part of the carrier operational and financial restructureing plans<br /><ul><li>Kingfisher airlines posted a loss of Rs 626 crore in the third quarter ended December 31, 2009
    39. 39. Kingfisher will not take delivery of any wide – body aircraft before 2012
    40. 40. Returning surplus aircraft and deferring the deliveries of the new ones</li></li></ul><li>RECOMMENDATIONS<br /><ul><li>Focus on Kingfisher Red
    41. 41. Try to bring down the cost-per-flight if an airport services more number of flights
    42. 42. Focus on International Flights as important,
    43. 43. Try to focus on smaller aircrafts (50-70 seaters) and fuel efficient planes for short distances</li></ul>Airline Strategy<br /><ul><li>Target More Corporate Customers
    44. 44. Attack untapped Air Cargo market
    45. 45. Co-Branding Strategies with like Minded Brands(provides with Cash)
    46. 46. Target low cost customers through Kingfisher Red .(Both ends of the spectrum)
    47. 47. Acquire Hangars</li></ul>Overview Strategy<br />
    48. 48. A look at the future<br />What more can they do?<br />India would become the world’s fifth largest consumer market in 2012 from 12th now<br />fending off rivals eager to cash in on the nation’s consumer lust.<br />Reinforce trust of shareholders<br />By removing Blurred lines between private and corporate ownership which may be troubling to shareholders<br />Kingfisher Airlines can Expand more by increasing number of International routes<br />Tie up with News/Sports Channel for counter promotion through sports teams such as Force India, Royal Challengers Bangalore etc.<br />New avenues that can be explored<br />Luxury retail<br />Bottled Water Segment<br />
    49. 49. Thank you<br />