kingfisher angad

8/3/2019 Kingfisher Angad

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IntroductionIt all started with 5 breweries in South India, the oldest of which, Castle Breweries, dated

back to 1857. In 1915, these 5 small breweries decided to join forces to become United

Breweries. And, soon afterwards, the people of South India were astonished by the sight of

bullock carts carrying huge barrels or hogsheads containing beer. These carts trundled their

way to customers, including British troops, living in and around Chennai, Bangaluru and the

Nilgiris. Soon, the brew from United Breweries became a favourite, especially among the

British troops, for it was as good if not better than any beer they had ever tasted.

United Breweries in India

So began the history of United Breweries in India. In 1944, United Breweries were the first

to launch beer in bottles under the brand name UB Export. Then, in the 80s, we became thefirst to launch canned beer and draught beer. The company was bought over 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.

Quality and hygiene have always been 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. By these standards, United Breweries'

beers don't just equal, but even surpass, several Dutch and American beers. Today, UnitedBreweries has a portfolio of several brands spread across all segments of the market. And

beers from United Breweries command an incredible 51% of the Indian beer market.

Kingfisher Strong is the largest selling beer in India and one of every three bottles of

beer sold in India is a Kingfisher. As a result of the tremendous efforts in enhancing

consumer experience, United Breweries growth has outpaced that of the beer industry in

India. It is currently available in 60 countries outside India.

Kingfisher beer comes in the following varieties

1. Kingfisher Premium: Ever since its inception, this premium brew has enjoyed

numero-uno status amongst Indian beers and has also been able to evolve into one of

the most contemporary and aspirational youth icons of today. It is available in

4 SKUs-

650 ml bottle

330 ml pint

500 ml can &

330 ml can

1. Kingfisher Strong: Launched in the year 1999 to cater to the increasing demand forstrong beer across the country, Kingfisher Strongs unmatched full bodied strength


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has millions of fans who have made it the single largest beer in India.Consumers

have been quick to understand that if some Extra Dum gets added to the smooth,

fresh, crisp taste of Kingfisher, the result is an unbeatable, unique brew that delights

beer lovers all across. . It is available in 4 SKUs-

650ml & 330ml pint

500ml&330mlcans.

1. Kingfisher Strong Fresh: Kingfisher Strong Fresh is the first ever strong draught

beer available in the Indian market. It gives you the crisp taste of freshly brewed beer

conveniently packed in a 500ml can. Yet another innovation from The King of Good

Times!

2. Kingfisher Draught: The crisp taste of the freshest beer around is enjoyed by

millions of Draught beer lovers across the country. Be it off the tap or in the cool &

trendy 500 ml can, one cannot miss the whiff of freshness that each sip of this drink

provides. One of the most popular drinks at pubs where pitchers/ mugs are available

off the tap, Kingfisher Draught has defined the concept of fresh beer in India.

3. Kingfisher Ultra: It was launched in Mumbaion 18 September 2009. It is an entry in

the premium beer segment in the country to compete with international players

like Carlsberg, Heineken and Budweiser. Kingfisher ULTRA is availableinThane, Pune and Bangalore and will be extended to other cities of the country soon.

Currently, Kingfisher ULTRA is available in two SKUs: 650ml and 330ml bottles. Be

it the uniquely premium touch & feel of the bottle or the activities or the brew itself,

Kingfisher Ultra is regarded by many to be a touch above the rest when it comes to

Indian beers. Launched in September 2009, the Emperor of Good Times, as it is

known, has gone from strength to strength to have a niche yet heavy following

amongst the discerning mild beer drinkers who will settle for nothing less than the

most premium taste available.

4. Kingfisher Blue: The brands core target group is the young male population.

Kingfisher Blue tries to occupy an imagery of adventure sports. It contains under 6%

alcohol. Kingfisher Blue is packaged in metalized blue color labels and cans. It is

available in 4 SKUs-

650ml & 330ml bottles

500ml & 330 ml cans.
http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Carlsberg_Grouphttp://en.wikipedia.org/wiki/Heineken_Internationalhttp://en.wikipedia.org/wiki/Budweiser_(Anheuser-Busch)http://en.wikipedia.org/wiki/Thanehttp://en.wikipedia.org/wiki/Thanehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Carlsberg_Grouphttp://en.wikipedia.org/wiki/Heineken_Internationalhttp://en.wikipedia.org/wiki/Budweiser_(Anheuser-Busch)http://en.wikipedia.org/wiki/Thanehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Mumbai


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1. Kingfisher Red: It is marketed as Indias 1st ALL SEASON beer. Its zingy, its

young & its got a kick that appeals to those seeking thrill! It appeals to those who

are young at heart & seek thrill for whatever they do in life. The packaging, the

activities and the look and feel of the brand resonate this feel. Activities such as Blue

Challenge, Gaming, Adventure sports, etc. go on to establish connect with those who

seek nirvana through an adrenaline high!

2. Kingfisher Bohemia: Unlike the above, Kingfisher Bohemia is a brand of wine. It is

the result of a partnership between Kingfisher and The Company of Wine People

(COWP), a key player in the South African wine industry, both locally and abroad.

The wine is produced in Cape Floral Kingdom, South Africa. Kingfisher Bohemia is

available in three varieties red, white and ros. It is packaged in 750ml bottles and a

case of wine contains 12 bottles. Kingfisher Bohemia is available in

Mumbai, Pune, Delhi, Bangalore, Goa,Chennai, Hyderabad, Pondicherry, Kerala andKolkata.

Kingfisher Bohemia can be enjoyed in three varieties: Pinotage Red, Chenin Blanc-

Chardonnay White and, Pinotage Ros.

Kingfisher: STP

SEGMENTATION

Segmentation is the process of grouping people or organizations within a market according to

similar needs, characteristics or behaviours.

Kingfisher segmented the market on these basis:

Geographical Segmentation- It is available throughout India and is dominant in particularly in

South and West India.

Demographic Segmentation-On age basis

YOUTH: 16 to 25 years (kingfisher mild)

ADULTS: 25years and above (kingfisher strong).Region -India urban population,Occupation - White collar / service professional,Religion Insignificant, Social class Middle and upwards,
http://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_India


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Fa mi ly li fe cy cl e -Young / single marriedSegmentation based on Situation-Birthdays, Anniversary, New year parties etc.

Psychographic Segmentation -

Lifestyle : Easy going, chilled out people who are always willing to take a break and partywith his pals as long as the sun is shining and the beer is flowing.

TARGETING

After a marketer has segmented a market it selects/targets the segment which offers it amaximum potential

Kingfisher has 2 different products for different market segments:


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POSITIONING & REPOSITIONING

Kingfisher since its origin proved to be a marketing savvy brand. Even

though it was the largest selling beer brand, but when Fosters entered the

Indian market, Kingfisher sniffed possible competition and invested

heavily in brand visibility and positioning. During 2003-2004 Kingfisher

again repositioned itself by changing the logo.

Instead of the sitting kingfisher bird, the picture of a flying kingfisher was

used during the creation of new logo because the company wanted to

promote itself as an aspirational brand which always wants to go high.

This change was made mainly to maintain the distinctive positioning and

to create a strong emotional bond with the aspiring Indian youth.

This repositioning was so successful that even today Kingfisher uses this

logo. After the entry of international brand Fosters, Kingfisher repositioned

itself into a lifestyle brand adopting jingles like Oola la le lo and tagline

King of Good times. Kingfisher positioned itself as a brand for successful&

professional individuals who are always ready to take a break, party or just chill out. This

positioning was promoted using Indian cricketers Ajay Jadeja and Sourav Ganguly, West

Indies cricket team and various other means. The notable thing of this repositioning process

is that during this process Kingfisher kept the original message of the brand entact while

adopting strategies( including advertising, logo designing, etc). The strategies paid off well

and as a result Kingfisher maintained a leadership position and added more dimensions intothe brand making it stronger than before.

4 Ps 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.


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Hangover due to heavy consumption is very mild.

Kingfisher has two different products for different market segments.

Place:

It is available throughout India, and is dominant particularly in South and West India.

UB has 16 company-owned breweries apart from nine contract breweries in 20

different locations across the country.

Kingfisher also has a presence in 60 countries.

Kingfisher also has an online marketing system. Any consumer can go to

www.Kingfishernetshop.com and get their beer- a mini mum of six bottles homedelivered. This move has been a big draw with info tech professionals and district

women drinkers.

It also has some sixteen hundred shops apart from pubs and bars. Better retailing

outlets are also to be opened under the Kingfisher Brand.

Kingfisher also has tie-ups with large department stores like Foodworld for retailing

its Beers.

Kingfisher also has association with number of Very Classy, Up-market & Stylish

bars & lounges which goes hand in hand with its brand image .

Price: In both mild and strong beer segment Kingfisher uses competitive pricing strategy.
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29KINGFISHER EXT. ST.

PREM. BEER650 KESPB KESPB-650 70 513346

12/1/2011 3:06:01

PM

30KINGFISHER ULTRA L

BEER330 KFUB KFUB-330 60 17131

11/30/2011

4:04:23 PM

31KINGFISHER ULTRA L

BEER650 KFUB KFUB-650 115 9271

11/30/2011

4:45:42 PM

32KINGFISHER PRMR.

LAGER BEER330 KPLB KPLB-330 35 181553

11/30/2011

6:17:48 PM

33KINGFISHER PRMR.

LAGER BEER650 KPLB KPLB-650 65 94800

12/1/2011 3:04:18

PM

34K.FISHER PRR. LAGER

BEER CAN500BC KPLBC

KPLBC-

500BC60 113177

11/30/2011

4:45:42 PM

35K.FISHER PRR. LAGER

BEER CAN330BC KPLBC

KPLBC-

330BC40 5014

11/30/2011

4:45:42 PM

Promotion:

Kingfisher tagline King of good times is one of the most popular and most

successful tagline in India.Since advertising of liquor is banned in India, Kingfisher uses surrogate advertising

methods like using mineral water and sodas.

Aggressive advertising at Outlets & Pubs.

Recently it also started merchandizing sports goods and trendy clothing and

accessories under Kingfisher brand name.

Each year Kingfisher brings out new calendars featuring top models in swimwear.

Kingfisher also promotes itself by sponsoring events like fashion shows,

sportspersons like Narain Karthikeyan, East Bengal soccer team. UB promoter also

acquired a Formula- One team (Force India).

Kingfisher also deals in sports merchandising starting with an ad featuring Sourav

Ganguly and Ajay Jadeja in 1997.
http://yoginvora.wordpress.com/2009/05/22/marketing-mix-analysis-brand-extension-for-major-national-international-beer-brand-kingfisher-fosters/4es-2-2/


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With the launch of Kingfisher airlines combined promotion is possible which helps

the brand promotion a lot. Kingfisher also ventured into other businesses with same

brand name making the brand more visible and publicity easier.

Kingfisher recently tied up with NDTV for their new lifestyle channel NDTV Good

Times for five years

And finally the Sultan himself, Dr. Vijay Mallya, the Big Daddy of all brands, the

flamboyant Czar of the liquor industry who is the youth icon of a million hearts. His

sole presence outweighs all other competitors taken together

The brand has a 360 degree approach to promotions tapping all possible ways to

communicate with its target audience. The brand sponsors lifestyle events and the Kingfisher

Calendar has attained a cult status within few years of its launch. During 2003-04 the brand

logo got a makeover and the Kingfisher started flying rather than sitting. The new logo

signals the brand's vision to get to new heights. The new logo designed by Claessens wasbacked with lot of noise in the media.


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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.

Another barrier that new entrants will face is of differentiation .For

example : certain brands cannot be copied.


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BARGAINING POWER OF BUYERS

Bargaining 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 favour of lower-priced brands i.e switching cost is low.

THREAT OF SUBSTITUTES

India is predominantly a spirits market and beer is a minority preference for those whoconsume beverage alcohol. So substitute is biggest threat as preference for beer among

beverage drinker is less but the low penetration in beer consumption in comparison to

international levels offers the expectation of substantial and sustainable growth in demand forbeer in years to come, particularly given the youthful age of Indias population.

BARGAINING POWER OF SUPPLIERS

Supplier power is low

Products used to brew beer are inexpensive and suppliers are numerous.

INTENSITY OF RIVALRY AMONG COMPETITORS

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 one of the largest supplier

of beer and the third largest producer of distilled spirits.

SWOT ANALYSIS


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Beer Market Competition in India

Thriving on competition, Indias largest beer company, United Breweries (UBL), has not

only withstood the challenge of several iconic international beers entering the country in the

past five years, it has also upped its market share and widened the gap between its nearest

rival, SABMiller India. Whats more, the Bangalore-based brewer now has gained the extra

edge by entering the super-premium beer category with Heineken this July.

According to company claims, UBL currently has over 50% share of India's beer market,

estimated at over 200 million cases, while SABMiller India has around 30%. Estimates by

Euromonitor International, the London-based market research company, peg UBL' market

share lower. It say the market share by volume of UBL, whose brands include Kingfisher, UB

Export and Kalyani Black Label, grew to 45.4% in 2010 from 43% in 2006, while

SABMiller's share, marketing Haywards, Fosters, Royal Challenge and Knock Out, declined

to 31.8% from 36.5% in the same period. UBL's top brand Kingfisher alone had around 40%

market share in 2010.

Their (UBLs) market share is expanding every quarter and one reason is that the maincompetition, SABMiller, is having issues, adding that the market is a one-horse race now.

Heineken launch is set to complete the companys beer portfolio in all price segments.

Also, Heineken is expected to give global giants Anheuser-Busch InBev and Carlsberg

operating in a relatively premium market now, but one that is expected to grow rapidly

because of rising incomes and brand consciousness a run for their money.

The edge for Heineken would be UBLs country-wide manufacturing and distribution

network in what has traditionally been a difficult market for newcomers, as beer is taxed on a

par with spirits, which makes it expensive, besides varying regulations from state to state anda restriction on advertising.

The point is we understand this market, says Shekhar Ramamurthy, UBL deputy president,

adding, We see Heineken as being even more premium than Carlsberg and Kingfisher Ultra

in terms of prices for the consumer. We are confident it will create a very positive impact.

This consolidation of strength seems like a good strategy, especially if one considers that the

London-headquartered SABMiller has been challenging UBLs Kingfisher brand over the

past decade in the over 5% alcohol content segment by acquiring strong local brands such as

Haywards and Knockout, besides the mild beer Royal Challenge from Shaw Wallace. For the

record, Indias beer consumption is still minuscule by global standards per capita


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consumption is about 1 litre compared to the global average of over 24 litres. More than

three-fourths of Indias beer sales are of the strong variety with over 5% alcohol content, with

only upmarket towns and cities preferring light beers.

SABMiller, meanwhile, is re-aligning its strategy to soften the blow in Andhra Pradesh,

where it is challenging the government-run beverages corporations new procurement policy,by focusing on more profitable segments and markets where pricing is not government

controlled. SABMiller dominated the Andhra market, but the states beverage corporation

now places orders based on national market share against share in the state previously. At

the end of the day, we are there to make profit, not volumes, says Sundeep Kumar, director

(corporate affairs and communications), SABMiller, adding that the company has been

adopting that strategy since it entered India in 2000. We discontinued eight brands for the

same reasons because they were not profitable. Our volumes came down, but our profitability

went up, he says, adding that the companys share is growing in more profitable states such

as Maharashtra and Karnataka.

However, newer entrants such as the iconic Budweiser beer, which sold about 1.7 million

cases in 2010, are also upbeat about making inroads into smaller towns in India. Currently I

think everybody who has a global footprint knows India is the market of the future, no doubt

about that,says an official of InBev India International, not wishing to be named. The

company, a JV between Anheuser-Busch InBev and the RK Jaipuria Group, handles the

marketing of Budweiser, which is currently being brewed at a Hyderabad plant. But for now,

UBL is going strong.

Present Competitors Of Kingfisher Beer

Presently distributing brands of beer in India:

1. SAB MILLER: Foster, Haywards, Knock Out

2. AnheuserBusch: Budweiser

3. South Asian Breweries - Carlsberg

Closest Competitor: FOSTER BEER

History: Fosters was established by two brothers WM and RR Foster in the year 1986.

SAB Miller is the parent company which runs Fosters group , a premium gobal multi

beverage company delivering a total portfolio of beer , wine , spirits and cider non-alcoholic

beverages. In the 70s Fosters started exporting to USA and UK and entered the Indian

market in 1988. Fosters is considred a consumer driven brand.

Market Position:


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Fosters belong to the SAB Miller stable which is the second largest beer company in India,

in terms of market share. Till now it is the only international beer brand which successfully

captured a significant share in the Indian market.

Target markets:

The main target markets of Fosters in India is youth. But targeting strategy of Fosters

can be presented as

Fosters is promoted as a light beer for the sophisticated consumers who drink beer just forexperience and not for getting drunk. For regular user and other consumers SAB Miller

promotes Haywards 5000, a strong beer.

Product:

Premium Lager beer

Fresh taste

Among the two sizes ( 330 ml an 650 ml) pint size (330 ml) is more aggressively

promoted


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The product is a light beer highly carbonated with low bitterness and no

aftertaste. It has fewer calories and lower alcohol content.

Price:

Fosters unlike Kingfisher follows a premium pricing strategy for its products. The prices of

widely available Fosters products are

BEER PINTS (330 ml)

Rs 35

BEER BOTTLES ( 650 ml)

Rs 65

BEER CAN (500 ml)

Rs 65

Place:

SAB Miller has 10 breweries in nine states and contract manufacturers in two other states

Fosters has 24 distributors serving over 5,000 outlets , including over 2,300 outlets in

Mumbai

Promotion:

Australianness is the essence of Fosters brand image is promoted in every market in the

world. All Fosters lager theme advertising is consistent with an Australian positioning.

The overseas advertising of the product often focuses upon the Australian connotations of the

beer , e.g. with reference to stereotypical Australian imagery such as kangaroos, exaggerated

accents, and hats with corks on strings.

Since direct promotion is banned in India , Fosters use surrogate advertising methods using

mineral water of the same brand name.

Fosters promoted its brand by sponsoring various sports like cricket to enter the Indian

market. Afterwards it withdrew from cricket and started promoting sports like football,

rugby, motorsport etc.


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Brand Extension

Kingfisher is one of the most recognised brand in India so it will not have much problem in

extending the brand. Its brand presence has increased after diversification into airlines

business

Line extension

Ultra premium beer

With the increasing income level on the Indians and penetration of international brands like

Carlsberg, Budweiser, etc, Kingfisher should introduce a high-priced premium beer that

would compete with these brands effectively. In this way the company would be able to

expand its customer base.

Category Extension

Energy Drinks People are becoming health conscious off lately and Kingfisher being a well

established brand with a strong distribution network can try getting into energy drinks.

Film production and distribution Kingfisher being a lifestyle brand has always maintained a

strong relationship with the film fraternity (Adlabs Kingfisher) . So it will be natural for the

brand to start a movie and television production house. Also it will enhance the brand

visibility.

Apparels and accessories retailing As of now, the presence of Kingfisher in apparels and

accessories space is limited. Further indulgence in this line would strengthen the brand.

BRAND IMAGING


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Vijay Mallya, who owns United Breweries - the Kingfisher brand - is one of the most

flamboyant CEOs in Asia. He believes in leading his brand from the front by leveraging his

personality.

A great part of the personality of the Kingfisher brand is based on Mallya's personality. He is

credited with having single handedly changed the image of his beer brand from a commodityto a lifestyle brand. The Kingfisher brand commands a 29% share of the beer market in India

and is sold in over 52 countries.

User Reviews

Goes very well with hot, spicy and filling foods, light, relatively low alcoholic content

Light and can he had at any time of the day

Good value on special deals

A crisp, refreshing pale lager.

SurveyAnalysis

1. Preference of the brand


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2. Quality of the Product

There is no doubt in the consumers mind about the quality of the product. As wecan see around 90% of the people believe that the quality of Kingfisher Beer is

upto mark.

3. Packaging

The analyses shows that almost

50% of the people surveyed

prefer Kingfisher beer over other

brands


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4. Advertising Campaign

Conclusion

India is a growing economy and its market is opening up. The per capita income of the peopleof the country is rising daily and so is the beer consumption rate. The stigma associated withthe consumption of alcohol drinks has also gone down; as a result the beer companies aretrying to get more associated with everyones life. As far as Kingfisher is concerned, it hasfrom its initiation displayed itself as a marketing savvy company and it should continue to layfocus on its marketing with innovative ideas and catchy taglines to further penetrate themarket. Apart from this, Kingfisher should also consider line and brand extension which wealready mentioned in our project.


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kingfisher angad

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