The king of good times

Gagan JANGALE 584Linley REBELLO 602Amrinder SINGH 575

Presentation on

K.L.S INSTITUTE OF MANAGEMENT EDUCATION & RESEARCH. BELGAUM

“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.”

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

“Alcohol may be man's worst enemy, but the bible says love your enemy.”

Beverage Alcohol

Pharmaceuticals

Aviation

Fertilizers

International Trading

Media

Construction

Fashion Clothing

• UB Group

• The UB Group, is the market leader

• The Group has a huge turnover

• Swimsuit Calendar.

• Won more than 6 International Awards

About the company

Beer• 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.

Spirits• 54% market share in the domestic market. • 2nd largest player in the world.

About the company

As A Brand

Beer

Airlines

Fashion Collection

Sports

Swimsuit Calendar

Classifications•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.

Market Share & Growth

BEER MARKET SHARE In INDIA

UB 50%SAB Miller 36%

COBRA 9% Others 5%

KINGFISHER BRAND MARKET SHARE

(BEER)

SAB Miller 36%

COBRA 9%Others 5%Other UB

Brands 21%

UB Kingfisher Brand 29%

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1985 1990 1995 1997 1999 2000 2001 2003 2005 2006

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KINGFISHER BRAND GROWTH (BEER)

Making A Mark

strategies….

Mark of a brand name Kingfisher

• Tying up with large department stores like Food world for retailing its Beers.

• In association with number of Very Classy, Up market & Stylish bars & lounges.

• Aggressive Advertising at Outlets & Pubs.

• Better Retailing outlets to be opened under Kingfisher Brand.

• Venturing into other Business with same Brand name, hence increasing Brand Name & Publicity.

competitors

Fighting CompetitionsPresently distributing brands of Beer in India.1.SAB Miller : Haywards, Royal Challenge,

Knock Out, Foster2.Anheuser-Busch : Budweiser3.Carlsberg (South Asian Breweries)4.Heineken (Asia Pacific Breweries)5.Castle Lager6.Cobra

3 P’s 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.

Price

• In both mild and strong beer segments kingfisher uses competitive pricing strategy.

650ml

330ml

• Rs.65

• Rs.35

• It is available throughout India, and is dominant particularly in south and west India.

• UB has 16 company owned breweries apart from 9 contract breweries in 20 different location across the country.

• Kingfisher also has a presence in 60 countries.• It has some sixteen hundred shops apart from

pubs and bars. Better retailing outlets are also to be opened under the Kingfisher Brand.

Place

Analysis kingfisher

beer….

Porters 5 Force Model Applied to

Beer Industry

Porters 5 force model

Overall industry rating: highModera

telow

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

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.

Bargaining power of buyers

• Barraging 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 favor of lower-priced brands i.e switching cost is low.

“The worse you are at thinking, the better you are at drinking”.

Threat of substitutes

• Threat of substitutes is low.

• Customer loyalty through brand awareness.

• The 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.”

Bargaining power of suppliers

• Supplier Power is low

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

• Moderate.

• 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 the one of the largest supplier of beer, & the third largest producer of distilled spirits,

Intensity of rivalry among competitors

“Drinking is a way of ending the day”

STP for Kingfishers

Beer

Segmentation

• Geographic segmentation: It is available through out India and is dominant in particularly in south and west India.

• Demographic Segmentation- Age basis

Youth: 16 to 25yrs. (kingfisher mild)

Adults: 25yrs & above (kingfisher strong)• Segmentation based on Situation:

Birthdays, Anniversary, New year parties etc.

“Alcohol is the cause and the solution to many of life's problems.”

Targeting

• Kingfisher has 2 different products for different market segments.

“Friends don't let friends drink Light Beer”

Positioning

• Kingfisher positioned itself as a brand for successful & professional individuals who are always ready to take a break, party or just chill out.

• It has positioned itself as “The King of good times”.

Repositioning

Kingfishers SWOT

Analysis

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

Source of information

• Internet

www.kingfisherworld.com

www.theubgroup.com

Statutory warning: Consuming alcoholic drinks is injurious to health.