55869004 kingfisher
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A Project on Marketing Strategy adopted by UBL for Kingfisher Beer
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A Project on Marketing Strategy adopted by UBL for Kingfisher Beer
CONTENTS
1. Executive Summary
2. History, Contents, Classification and Types of Beer and
its Making
3. Board of Directors
4. Company Profile History, Mission, Timelines, Organisation
Structure, Achievements
5. Code of Conduct
6. Investors
7. Beer Trivia and Hangovers
8. Marketing Mix of Kingfisher Product, Price, Promotion
and Place
9. Findings and Conclusions
10. Problems and Suggestions
11. Bibliography
12. Annexures
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DECLARATION
I, the undersigned, Mr. Ashwinkumar Raveendran, student of
S.Y.B.B.A. from Bytco College, declare that this project entitled The
Marketing Strategy adopted by United Breweries Ltd. For Kingfisher
Beer was carried out by me in the partial fulfillment of the course
B.B.A. under University of Pune during 2007-08. This project was
undertaken as a part of academic curriculum according to the
University rule, norms and by no commercial interests and motives.
PLACE : Nashik
SIGN : ________________
NAME : ASHWINKUMAR RAVEENDRAN.
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ACKNOWLEDGEMENT
I would like to express my boundless gratitude to Mr. Manoj Vaswani, Manager,
Vaswani Brandy House, Nasik Road for extending his kind co-operation and providing
information regarding the Marketing Mix adopted by Kingfisher Beer. I would also like
to thank Prof. Vikrant Aher, who provided his sound guidance and extended his support
to prepare this project report.
I would like to express my thanks to all other innumerable people, including my friends
and seniors whom I might have forgotten to mention but nevertheless have played an
important role and were an integral part of my research to make it a memorable one.
Last but not the least, my thanks to J.D.C. Bytco College, Nasik and Pune University
who gave me an opportunity to reap the experience of working in the esteemed
organization.
Ashwinkumar Raveendran
S.Y.B.B.A.
J.D.C. Bytco College, Nasik
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EXECUTIVE SUMMARY
Kingfisher is the leading brand in the beer industry and it has maintained a
professional marketing attitude to overcome the stiff competition. Their
professional character is seen not only from the quality of their product, but also
from their innovative management techniques. It is this eminence of this brand
that has fascinated me to study the product and the marketing strategy adopted
by United Breweries Ltd.
The objective of preparing this report was :
1) To understand the process of manufacturing, classification and types
of beer.
2) To understand the various marketing techniques adopted by UBL.
3) To understand the various advertising & sales promotion techniques.
4) To find out the consumer response towards the brand.
I have enjoyed conducting research on this subject as it is an interesting but
unnoticed subject and it has helped me to learn the history, making and
marketing techniques in beer industry. It is truly the King of good times & I had
a good time studying it.
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History of BeerWhen you next cool down with a cold beer, take a
minute to think of the ancient tradition of beer
making and what goes into this special brew.
There is a 4000 year-history dating back to the
region now known as Iraq but it was the Monks of
Europe, who nurtured the art of brewing.
Most significantly, it was in 1842 that the golden-coloured LAGER, that'sbeen copied around the world, was first brewed by Bavarian, Josef Groll.
What goes into beer?
BARLEY grains are turned into MALT (i.e. from starch to fermentable
sugars) by being germinated, roasted & mashed
MALT is put into hot (slightly salty) WATER
HOPS is added to help the chemical process along and for the taste and
flavour (in India the HOPS flower is grown in Kashmir and Himachal Pradesh)YEAST is added to trigger the chemical process called fermentation.
After a week fermenting, the next process is conditioning or building up the
carbon dioxide to give the beer its white frothy head. Finally, after filtering,
the beer is heated to kill off any bacteria and to preserve it when it's in the
bottle.
Just as brewers skillfully blend scotches or wines, different BEERS arecreated the same way. The art is to blend different malts as well as use
various fermentation processes.
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Lager: A pale, light brew, it is stored for a specified
period before being bottled or canned. This German word
means "storehouse".
Pilsner: A type of lager beer, it is light with 3.0 - 3.8%
alcohol and has a medium hp flavour.
Ale: Top fermented, this kind of beer has distinct hop
aroma. The alcohol content is around 4 - 5%.
Stout: Dark with burnt flavour 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 flavoured, high alcohol content beer that ranges in flavour and
colour.
Types of Beer
Top Fermented. eg. Ales (typical English beer)
Wheat Beer
Bottom Fermented
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The healthful, zestful drink surprised with the
adjectives? The components that give Beer form are
well established for their nutritive value- Barley malt,
cane sugar, crystal clear water and aromatic flowers
(Hops).
Malt is the principal brewing material that provides carbohydrates.
Carbohydrates are the source of raw material for alcohol and nitrogen
compounds which contribute to Beer's flavour.
The processes of malting barley used for brewing purposes are Steeping,
Germination and Kilning.
Hops are significant as they contain the bitter compounds (Humulones),
which give Beer the characteristic bitter taste.
Certain preservatives help this natural process. Even the alcohol in Beer
evolves naturally from the starch and sugars in the raw ingredients! And the
stable that brings the best out of Beer - UB chooses ingredients and the skill
of master craftsmen that assures the quality.
And this is process that goes into making Kingfisher
Beer. The product called Wort is separated from the
used grain and poured into fermentation tanks where
yeast is added.
After fermentation is completed, Beer is filtered and
transferred in to separate tanks - called lager tanks, for
maturation. And that's when the Beer is ready to be
bottled and served. So what are you waiting for? Pick
up Kingfisher Beerand ENJOY!
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Dr. Vijay MallyaChairman
Ravi NedungadiDirector
Kalyan GangulyManaging Director
John Simon HuntDirector
John DunsmoreDirector
Veronica LesleyJackson
Director & CFO
Chugh Yoginder PalDirector
Sunil Kumar AlaghDirector
Chhagan Lal JainDirector
Govind IyengarCompany Secretary
It all began with 5 breweries in South India. The oldest
of which, Castle Breweries, dated back to 1857. United
Breweries, as these breweries were named in 1915 has
come a very long way.
Soon afterwards, the sight of bullock carts carrying
huge barrels or 'Hog's heads' containing beer became
a household sight. These carts wheeled their way to
the customers, including British troops, living in and
around Madras, Bangalore and the Nilgiris. Almost
immediately, the brew from UB became a favourite,especially with the British troops. So began the history
of Beer in India. And the history of Beer Division of
United Breweries!
The company was bought by late Mr. Vittal Mallya in
1947, and since then has never looked back. Today
each one of the 32,000 Beer outlets in India sells one
brand or the other from United Breweries.
The group Mission Statement embodies these objectives:
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 be the partner of choice for customers, suppliers, and other creators
of innovative concepts
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Timelines
March 15th, 1915 - Mr. Thomas Leishman purchased 5 breweries to form United
Breweries Ltd. with its registered office at 17 Armenian Street, Chennai -1.
1940's
1944 - First Bottled Beer under the label "Exports Beer".
1948 - Mr. Vittal Mallya became the first Chairman.1950's
Registered office moved to Bangalore.1960's
1960 - Kalyani Breweries was set up. 1965 - Kesarwal Beverage was set up in Goa.
1970's
1972 - High Range Breweries set up in Chertalla in Kerala.
1974 - UB Beer exported to Aden and Middle East.
1978 - Punjab Breweries was formed.1980's
1981 - Canned Beer was introduced.
1982 - UB's Kingfisher Lager hit parlours in England and USA.1990's
1996 - UB purchased 30% equity of National Sorghum Breweries in SouthAfrica.
1997- 98 - Invested in Brewing Business in USA by purchasing 6 MicroBreweries.
2000-2004
2000 - Associated Breweries & Distilleries Ltd. and Mangalore Breweries &Distilleries Ltd. were acquired.
2001 - MABL was formed
2001-02 - Acquired GMR Vasavi, MP Breweries and41% share of Inertia Industries Ltd.
65% share of Associated Breweries & Distilleries Ltd.97% share of Mangalore Breweries & Distilleries Ltd.
2002 - Aquired Empee Breweries
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The beginnings of what is today The UB Group are
rooted in the flagship company, United Breweries
Limited, (UBL) also referred to as the Beer Division
of the UB Group. Led by Mr. Kalyan Ganguly,
President & Managing Director, it has around 40%
market share in the country.
Millennium Alcobev Pvt Ltd., (MABL), is the Joint Venture Company in
which UB along with its subsidiary and Scottish & Newcastle of the UK
have equal stake of 50%.
United Breweries Limited, the flagship company of the UB Group, has an
association with the brewing dating back over five decades, starting with 5
breweries in South India in 1915. From bullock cart-loaded barrels or
'hogheads' of frothing ale, the Beer business as gone on to become the
undisputed 'king' in the Indian beer market.
Here, innovative, creative and aggressive marketing is complemented by a
strong distribution network. A management focused on building brand
equity on one hand and exploiting it to the hilt on the other. A concerted
emphasis on quality.
UBL today boasts an impressive spread of own and contract manufacturing
facilities throughout the Country.
Quality and hygiene are the key elements of the United Breweries'
manufacturing philosophy. To this end, the Central Scientific Laboratory
(CSL), headquartered at Bangalore sets standards for all its breweries.
Quality Management Systems laid out along the lines of ISO 9000 are
strictly adhered to, controlling quality at every stage of production, from
raw materials to the end product. Also, besides controlling the production
process, the CSL analyses the Company's beer taken off market shelves all
over the Country, the competition's beers and beers across the world.These beers are tested as per the standards laid down by the European
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Brewery Convention on 40 different parameters. By these standards,
United Breweries' beers don't just equal, but even surpass, several Dutch
and American beers.
Its flagship brand 'Kingfisher', has achieved international recognition
consistently, and has won many awards in International Beer Festivals.
Kingfisher Premium Lager beer is currently available in 52 countries
outside India and leads the way amongst Indian beers in the International
market. It has been ranked amongst the top 10 fastest growing brands in
the UK.
In addition, UBL has also entered into mutli-faceted strategic alliance with
Scottish & NewCastle Plc (S&N), an international brewery major, with $6
billion in revenue and a market capitalization of $5.4 billion. This alliance,
apart from having a joint venture in India, will allow S&N to market it
International brands like Kronenbourg in India, while UBL will utilize S&N's
global network to further globalize its Kingfisher.
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The largest selling Beer in India.
Commands a 29% market share in thecountry.
6 bottles of Kingfisher are sold every secondin India.
Available in 52 countries across the globe.
The first among Indian brands to launch itsown range of designerwear.
Won the World's best Lite Lager Award at the Stockholm Beer Festival in1994.
Won the World's best Lite Lager Award at the Stockholm Beer Festival in1995.
Won the Gold medal at the World Beer Championship held in Chicago in1997.
Won the first prize for the label work category at the Asian GrandPrix Cyrel2000 Label award.
First Prize in the International Beer Awards organised by the New ZealandHop Marketing Board.
Won the Bronze award at the 'Australian International Beer Awards' in the"International Packaged Beer Section for the year 2000."
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Introduction
The Board of Directors (the Board) of United Breweries Limited (theCompany) has adopted the following Code of Business Conduct and Ethics(the Code) for directors of the Company (Directors) and all employees ofthe rank of Vice-President and above (Covered Employees). The Board ofDirectors has the right to expand/amend the extent and coverage of employeesunder this Code.
The Company is committed to ethical and lawful business conduct andperceives it as critical to the Companys success. The Company will upholdethical and legal standards while pursuing its objectives. Consistent with theseprinciples, the Companys Board has adopted the Code for compliance both inletter and spirit by all Directors and Covered Employees. While it is not possibleto anticipate every situation or circumstance that may arise, the Code isintended to serve as a broad guide. The Board reserves the right to amend,alter or terminate the Code at any time and for any reason, subject toapplicable law.
Directors/Covered Employees who violate/deviate from the requirements of theCode will attract disciplinary action which may include termination of office/employment.
In performing their functions, Directors and Covered Employees will
1Act with integrity, probity, honesty, transparency and with utmost good
faith.
2
Actively assist in implementing the Companys Objectives and creating an
organization that is responsive, positive and driven by business and social
needs.
1 Compliance with Laws, Rules and Regulations
All Directors and Covered Employees must respect and obey all
the applicable laws of the countries in which the Company
operates. Violations of laws, rules and regulations may subject
Directors/Covered Employees to individual criminal or civil
liability, in addition to disciplinary action by the Company, apart
from subjecting the Company to liability and/or loss of business.
2 Conflicts of Interest
A conflict of interest exists when personal interest interferes in
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any way with the interests of the Company. As a general rule,
Directors/Covered Employees should avoid actual or apparent
conflicts of interest between their personal and professional
relationships. A situation of conflict of interest arises when a
Director/Covered Employee has interests that may make it
difficult to perform his or her company work objectively and
effectively. Another example of situation of conflict of interest is
when a Director/Covered Employee or members of his or her
family, receives personal benefits as a result of his or her
position in the Company.
It is deemed to be a conflict of interest or independence for a
Director/Covered Employee to work simultaneously for a
competitor, customer or supplier. Directors/Covered Employees
are not allowed to work for a competitor as a consultant or
board member unless approved by the Board. Conflicts of
interest are prohibited as a matter of Company policy, except in
exceptional circumstances and with the prior approval of the
Board and subject to limitations imposed by law. It is not
possible to describe all situations of conflicts of interest that
could arise. Conflicts of interest may not always be clear-cut, so
if a Director/Covered Employee is unclear, he/she should seek
guidance of his/her immediate superior and/or the Chairman of
the Audit Committee.
The purpose of business entertainment and gifts in a commercial
setting is to create goodwill and sound working relationships,
not to gain unfair advantage with customers or suppliers. No
costly/unusual gift or entertainment should be offered, given,
provided or accepted by any Director/Covered Employee or
his/her relatives.
Directors / Covered Employees may not use the Companysassets, labour or information for personal use except as outlined
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in Section 8, Protection and Proper Use of Company Assets and
Proprietary Information, or unless approved by the Chairman of
the Audit Committee or as part of a compensation or expense
reimbursement program available to all Directors/Covered
Employees.
A Directors disclosure of interest under Section 299 of the
Companies Act, 1956 shall be treated as sufficient compliance
under this clause regarding situations of potential conflicts of
interest.
3 Insider Trading
In order to assist with compliance with laws/regulations against
insider trading, the Company has adopted the Code of Conduct
for Prevention of Insider Trading governing trading in securities
of the Company and Group Companies that is applicable to
every Director/designated employee. Abiding by the Code of
Conduct for Prevention of Insider Trading is mandatory.
4 Competition and Fair Dealing
The Company strives to outperform its competition fairly and
honestly. Each Director/Covered Employee should deal fairly
with the Companys customers, suppliers, competitors and
employees and should not take unfair advantage of anyone
through any intentional unfair-dealing practice. Pilfering
proprietary information, possessing trade secret information that
was obtained without the owners consent, or inducing such
disclosures by past or present employees of other companies is
prohibited.
5 Discrimination and Harassment
The Company is firmly committed to providing equal opportunity in all
aspects of employment and any illegal discrimination or harassment of
any kind is prohibited.
6 Health and Safety
The Company strives to provide each employee with a safe and healthy
work environment. Every Director/Covered Employee has responsibility
for maintaining a safe and healthy workplace by following safety and
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health rules and practices and reporting accidents, injuries and unsafe
equipment, practices or conditions. Being under the influence of illegal
drugs and/or alcohol on the job is absolutely prohibited.
7 Confidentiality
Directors/Covered Employees shall maintain the confidentiality of
information entrusted to them by the Company and any other
confidential information about the Company that comes to them, from
whatever source, in their capacity as Directors/Covered Employees,
except when disclosure is duly authorized by the Chief Executive Officer
or Chief Financial Officer or the Audit Committee or the Board of
Directors or is required by laws or regulations. Confidentiality extends
to information that suppliers and customers have entrusted to the
Company. Use of confidential information for personal gain is strictly
prohibited.
8Protection and Proper Use of Company Assets and Proprietary
Information
All Director/Covered Employees must endeavour to protect the
Companys assets and ensure their efficient use. Any suspected incident
of fraud or theft should be immediately reported to the Head of Human
Resource Department and in appropriate cases, the Chairman of the
Audit Committee for investigation. Company assets should not be used
for personal use, though incidental personal use may be permitted
when properly authorized.
The obligation of Director/Covered Employees to protect the Companys
assets includes protecting its proprietary information. Proprietaryinformation includes intellectual property such as trade secrets,
patents, trademarks, designs and copyrights, as well as business,
marketing and service plans, engineering and manufacturing ideas,
designs, databases, records and unpublished financial data.
Unauthorized use or distribution of this information is not only a
violation of Company policy and the terms of employment with the
Company, but could also be illegal and result in civil and/or criminal
liabilities.
9 Reporting any Illegal or Unethical Behavior
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If any Director/Covered Employee believes that a violation of or
significant deviation from the Code has occurred or has become
unavoidable, he/she must contact the Head of the Human Resources
Department and in appropriate cases the Chairman of the Audit
Committee.
Use of the above reporting procedures in bad faith or in a false or
frivolous manner will be considered a violation of the Code.
10 Waiver of the Code
Any waiver of the Code or any provision of the Code for any
Director/Covered Employee must be made only by the Board of
Directors and disclosed as required by law or SEBI/Stock Exchange
regulations.
11 Compliance Procedures
Every Director and Covered Employee shall annually confirm on or
before April 15 compliance of the Code in the prescribed form given in
the Annexure.
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:: Investors ::
During the year 2005-2006, United Breweries Limited (UBL) has achieved a
volume growth of 18% over the volume last year. The industry has grown at
a rate of 14% during the period. For the year ended March 31, 2006 the
volume stood at 43.4 million cases as compared to 36.4 million cases as on
March 31, 2005. Against an industry volume growth of 14% for the year,
your Company has continued to outperform the market in both the strong
and mild beer segments. While the mild beer segment witnessed a growth of
13% (against a market growth of 9.4%), and spectacular growth in strong
beer of 36% (against a market growth of 16%) was witnessed. Kingfisher
Strong has now achieved the number one position in the strong beer
segment, followed by Kingfisher Premium which continues to remain a
leading brand in the mild beer segment. Net sales for the year under review
stood at Rs.6873.5 million as against Rs.5153.8 million in the previous year
representing an increase of 33.3%.
Kingfisher Strong has witnessed remarkable growth during the last 6 years
after its launch. Kingfisher Strong has crossed sales of 17 million cases
growing by 36% compared to an industry growth rate of 16% in the strong
beer segment. In this segment UBL is the market leader in 7 out of the 10
largest states of India and in the lager beer segment, UBL is the market
leader in all the 10 largest states of the Country. UBL commands a market
share of around 40% with 67% of the market share in the mild beer segment
and 27% in the strong beer segment. The sales of lager beer have been flat
or mildly de-growing, whereas over the last 5 years the share of strong beer
in the overall industry is over 65%.
UBL continues to lead the industry with overall market share of 40%,
Kingfisher Premium Lager achieved sales in excess of 20 million cases
representing a market share of 65% in the mild beer segment. Kingfisher
Strong has become the No.1 Strong Beer in India selling over 17 million
cases, and, commanding a market share of 19% in the strong beer segment.
Kingfisher Strong crossed 2 million cases (sales) in 5 major markets, which is
a record in itself.
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Innovative launches of Kingfisher Stubby in Goa, launch of Kingfisher 650 ml
in a innovative international carton pack in key markets, launch of London
Pilsner 330 ml can pack in Mumbai and London No.1 Strong 330 ml bottle in
Karnataka has provided further competitive advantage. Promotional events
like Kingfisher Premium "Voice of Goa" and the "Great India Oktoberfest"
coupled with various snack promotions have not only given a boost in
volumes but also expanded the consumer base. UB Export Lager continues to
deliver superior value to the consumer supported by its brand Ambassador
Upendra.
Capacities created in Australia and New Zealand through contract
agreements have further enhanced brand equity and retention.
UBL management's undiluted focus on the consumer with an emphasis on
delivering value has enhanced the perception of brands in the consumers
mind.
With a rapid growth in GDP at 8%, higher disposable income, change in
consumer behaviour, advent of, and exposure to, western infl uences,
liberalisation in retail/distribution, the beer market in India is growing rapidly
and is expected to grow at a rate of over 10% year on year. Growth in
income for the young educated population, particularly in the service
industry, gives
cause to expect acceleration in demand for beer in the coming years.
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Beer is less fattening than milk!
If you put salted peanuts in a glass of beer, the peanuts
will dance around!
After consuming a bucket or two of vibrant brew they
called ale, the Vikings would head fearlessly into battle
often without armor or even shirts. In fact, the term
"berserk" means "bare shirt" in Norse, and eventually took
on the meaning of their wild battles.
In medieval England beer was often served with breakfast.
Did you know that in order to get rid of the foam off the top of a beer mug all
you have to do is stick your fingers in it?
Czech's are well known as the biggest consumers of beer per male in the
world. A Czech man Jan Honza Zampa currently holds the record for downing
one litre of beer in 4.11 seconds!
If a hippo were to bite your leg, the hole would be big enough to pass a beer
bottle through!
In Bavaria, beer is not an alcoholic drink. It is legally defined as a staple food.
Beer is an essential source of B complex vitamins.
Brewery is the place where Beer is made.
Distillery is the place where Whisky is made.
Winery is the place where Wine is made.
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MARKETING MIX ADOPTED FOR KINGFISHER BEER :
MARKETING MIX
PRODUCT PRICE PROMOTION PLACE
Brand, Packaging and
Quality
Pricing Strategy &
Discounts
Personal Selling &
Advertising
Manufacturing, Physical
distribution and channels of
distribution
1. PRODUCT :-
A name synonymous with Beer in India - Kingfisher stands for
excitement, youth and camaraderie.
The Beer brands manufactured and marketed by United
Breweries Ltd. have always been recognized for their
international quality. That's Beer at its best for the discerning
consumer!
The largest selling Beer in India
Commanding a 29% market share in the country
One out of every 4 bottles of beer sold every second in India
Available in 52 countries across the globe
The first among Indian brands to launch its own range of
designer wear
Kingfisher, the bird is known for its keen instinct, and perfect
aim. It zeros on its target with unfaltering focus. It is a very
vibrantly coloured bird. All of its colours represent energy,
youthfulness, enthusiasm, freedom with a touch of formality
and discipline. No wonder, that this bird with an eye for right
focus and an aim for succeeding in its attempt became the
mascot for The Kingfisher brand of Beer from the stables of
UB group.
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2. PRICE :
The price of the beer is decided keeping in mind the cost incurred, the excise
duty, the profits desired by the Co. and the distributor and the market
competition. Excise duty and market competition plays an important role in
determining the price of the product. Currently, 300% excise duty is payable on
beer. Thus, if the beer is manufactured at Rs. 11/-, then the excise duty
payable is Rs. 33/- and thus the total costs incurred would be Rs. 44/-.
The price of the beer is as follows :
Rs. 70/- for 650 ml Kingfisher Premium bottle.
Rs. 38/- for 330 ml Kingfisher Premium bottle.
Rs. 60/- for 500 ml Kingfisher Premium can.
Rs. 40/- for 330 ml Kingfisher Premium can.
The prices vary according to place of purchase e.g. prices are higher in hotels
than in beer shops. Kingfisher is relatively high priced than its competitors. This
is because price and quality have a direct variation.
Discounts are not offered to customers. The Co. has discount schemes for the
vendors to encourage the sales. The discount scheme for vendor depends upon
the quantity demanded and the geographical area or the demand. In
Maharashtra, the general scheme is 16 cases of beer on purchase of 100 cases
and 7 cases of beer on purchase of 50 cases.
Since the launch, Kingfisher Beer has become one of the largest selling beer
brands in the world.
"It's flying" and the mood is upbeat - both within the Company and among
consumers.
The new look designed by the UK based packaging specialists, Claessens, is
representative of the brand in full flight, in a supportive environment. It
reflects the energy, youthfullness and freedom that are characteristic of the
brand's target consumer and reiterates its contemporary positioning.
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3. PROMOTION :
Personal Selling is an essential part in this business. The Co. appoints well-
qualified and highly experienced and trained personnel to assist the distributor
and act as a Co. representative.
The Govt. has banned advertising commercials on Television. Hence, companies
advertise their product by way of newspapers, radio, hoardings and posters.
However, kingfisher has not adopted any such major media of advertisement.
Kingfisher started manufacturing Kingfisher Pure Aqua Mineral Water and
made its Television advertisement to maintain the brand image in the minds of
the people. It organizes many international events such as music concerts and
yearly calendars. Moreover, it is observed that the activities of the Chairman,
Mr. Vijay Mallya, catches media attention and it also helps in the promotion of
the beer.
4. PLACE :
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A Project on Marketing Strategy adopted by UBL for Kingfisher Beer
:: Production - Plants around India ::
Quality and hygiene are the key elements of the united
breweries manufacturing philosophy. To this end, thecentral scientific laboratory (CSL) at their headquarters atBangalore is manned by highly qualified scientists andequipped with sophisticated instrumentation. The CSL setsstandards for all its breweries. A manual has beendeveloped laying down quality management systems onthe lines of ISO 9000. So quality is controlled at everystage of production, from raw materials to the end product.
Besides controlling the production process, the CSLanalyses the company's beer taken off market shelves all
over the country, the competition's beers and beers acrossthe world. These beers are tested as per the standards laiddown by the European Brewery Convention on 40 differentparameters with particular attention paid to apparentextract, bitterness, colour, diacetyl, ethanol, foam stabilityand haze. By these standards, United Breweries' beersdon't just equal, but surpass several Dutch and Americanbeers.
The distribution channel is as follows :
Factory Distributor Vendor Consumer
The Company appoints a distributing agency which is the sole distributor
of the beer in the respective area. The stock is delivered from the factory to the
distributor and then, it becomes the responsibility of the distributor to distribute
the product in the market. The distributor appoints several salesmen to sale the
product by doing field work. A distributor may have more than one brand of
liquor. The distributor acts as a wholesaler as he buys the product from the Co.
in bulk quantities, stores and distributes it. When the product reaches the
vendor, he sales it from his shop by method of counter sales. He acts as the
retailer. This is the chain of distribution followed by UBL for Kingfisher. In fact,
this method is generally adopted for distribution of all types of liquor.
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A Project on Marketing Strategy adopted by UBL for Kingfisher Beer
BIBLIOGRAPHY
www.kingfisherworld.com
www.google.com
Microsoft Encarta Encyclopedia
Books referred Marketing by Philip Kotler.
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Yes
No
Yes
No
Yes
No
0
2
4
6
8
10
12
18-30 30-45 45-60
Frequency of Drinking Beer
7%
20%
60%
13%
Daily
Weekly
Occasionally
Socially
HabitEnjoyment
HealthOther
S1
0
5
10
15
20
Reason to drink
A Project on Marketing Strategy adopted by UBL for Kingfisher Beer
SURVEY STATISTICS
1) Do you drink beer ?
AgeGroup
Yes No
18-30 10 2
30-45 11 1
45-60 9 3
Total 30 6
2) How often do you drink ?
3) Why do you drink ?
Reason toDrink
No. ofPersons
Habit 2
Enjoyment 20
Health 5
Other 3
Frequency toDrink
No. ofPersons
Daily 2
Weekly 6
Occasionally 18
Socially 4
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Brand Preference of Beer
46%
27%
10%
17%
Kingfisher
Knock Out
Khajuraho
Others
7%
27%
59%
7%
HomeHotel
Party
Outdoors
0-200200-500
500-800
800 & Above
S1
0
5
10
15
20
Monthly Expenditure on Beer
A Project on Marketing Strategy adopted by UBL for Kingfisher Beer
4) How much do you spend on beer in a month ?
Monthly Expenditure on Beer
Range of Amount No. of Persons
0-200 20
200-500 7
500-800 3
800 & Above 1
5) Which brand do youprefer ?
Brand Name No. of Persons
Kingfisher 14
Knock Out 8
Khajuraho 3
Others 5
6) Where do you like to drink ?
Location No. of Persons
Home 2
Hotel 8
Party 18
Outdoors 2
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TasteQuality
HardnessOthers
S1
0
2
4
6
8
10
12
14
16
A Project on Marketing Strategy adopted by UBL for Kingfisher Beer
7) What attracts you most about Kingfisher ?
Attracting Factor No. of Persons
Taste 6
Quality 16
Hardness 7
Others 1
CONCLUSION
1. Thus, the above statistics show that about 83% people drink beer,
most of them do so occasionally.
2. They drink beer, primarily, for the purpose of enjoyment and
generally spend upto Rs. 200/- in a month for drinking beer. Most of
them like to drink at party.
3. According to my survey, Kingfisher is the most preferred brand of
beer and people prefer it because of its quality, hardness and taste.
Thus, it can be observed that beer industry is an emerging industry in
India. However, some people still regard drinking beer as morally unethical.
Despite this, the overall sales volume has increased in recent years.
RECOMMENDATIONS
Kingfisher is a leading brand of beer and it has earned a market
reputation over its competitors. It enjoys a majority of market share and does
not have any at par competition at present. It does not have any major
promotion or marketing strategy. However, recently, there has been a launch of
new brands of beer which can give competition to Kingfisher and it should be
ready to face the same in order to retain its market share.
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