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Marketing Concepts Marketing Analysis for Business Decisions 1st semester GPBL (Part Time) Prof. Surendra December 11, 2011 2190 2000

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Table Of Content Content OBJECTIVE OF ASSIGNMENT BRIEF OF BREWERY INDUSTRY IN INDIA ABOUT COMPANIES BRANDS CHOOSEN MARKETING MIX & PRODUCT SEGMENTATIONS CONCLUSION BIBLIOGRAPHY

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Assignment Objective In this Assignment two companies that are selected are United Breweries Group & SAB Miller India an effort is made to analyze the Products & marketing mix of two Companies.

Brief on Brewery Industry in India: World's oldest beverage is beer, possibly dating back to the 6th millennium BC. It is most widely consumed alcoholic beverage and third most popular drink overall after water and tea. Produced by the brewing and fermentation of starches, mainly derived from cereals the most common of which being barley. One among the worlds fastest growing consumer markets is India growing population, emerging middle class with rising per capita incomes and blooming urban centres make India a powerful emerging market. Local beer industry is established in India and, although per capita consumption is low, as the country becomes more westernized younger generations have the potential to be high volume consumers. However, regionalism, political unrest and the potential for growing pains temper this markets attraction. Strengths Population: 1.189 billion (CIA World Factbook) Rising Middle Class: Healthy growing workforce in urban area with 7.2% unemployment. Rising middle class is young relatively, 64.9% of the countrys population is between the ages of 15 & 64 (CIA World Factbook) and a flurry of foreign investment. Steady growth of beer market: Domestic brewing by local firms and increase in foreign investment. Although per capita beer consumption is relatively low, beer sales in India are forecast to grow at a compound annual growth rate of 17.2% until 2011. Weaknesses Market Saturation Logistical & regional and challenges: Market is highly regional containing significant inconsistency such as dictatorial issues, cost and user tastes. This adds to logistical challenges for a volume manufacturer attempting to accomplish economies of scale and establish a country wide brand. Furthermore, combined with incompatible infrastructure and urban / rural socio economic disparities, has the potential to make establishing an extensive supply and distribution chain a capital intensive undertaking. Opportunities Continued Growth Potential. Agricultural climate & network: Climate favours primary natural ingredients of beer that is hops and barley. Threats Political instability: Continuous terror attacks have served as a reminder that political unrest is a very real threat. High taxes imposed by state governments and a low number of retail outlets that carry the beverage.

ABOUT COMPANIES United Breweries Group

UBL had association with brewing dating back over nine decades, starting with 5 breweries in South India in 1915. From bullock cart-loaded barrels or 'hogheads' of frothing ale, the beer business has gone on to become the undisputed 'king' in the Indian beer market. UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the country. 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. 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 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. Today, Beers from United Breweries command an incredible 51% of the Indian beer market. 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 and continues to grow steadily. UB / Kingfisher Brands

SAB Miller India

SABMiller plc is one of the largest bottlers of Coca-Cola products in the world. SABMiller plc is listed on the London and Johannesburg stock exchanges. Since arriving in India in 2000, SABMiller has invested over USD 500 Million. With 10 high quality breweries located strategically across 9 states in India. SABMiller India has a market capacity of 5.7 Million HL. The companys brewery in Andhra Pradesh is Indias first brewery to have a capacity of 1.5 Million HL, which is twice the size of the second largest brewery in India. In a span of just 10 years SABMiller has been able to corner one-third share of the Indian beer market. It has performed remarkably well in strong beer segment with Haywards 5000 and Knock Out. Together they constitute 31% market share of the strong beer market in India. Royal Challenge and Fosters are also very popular in the mainstream mild segment and together constitute a market share of 28%. Used its global expertise to create many firsts in India including the use of one-way bottles, flash pasteurized draught standards, and Haywards Black a genuine stout beer. SAB Miller Brands

Brands Company Kingfisher Premium Details Indias favourite beer is one of the oldest, most widely recognized and respected brands in India. 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 aspiration youth icons of today. Flavour Sweet & fruity with a distinct bitterness Texture Light, crisp Shelf Life Pale 6 months Golden Packs Yellow Color

Fosters

Fosters Lager is a uniquely Australian beer, brewed with the finest sun-dried malted barley, the purest water and Fosters own specially bred 'Pride of Ringwood' hops imported directly from Australia to give the beer an authentic flavor. It has always been at the forefront of brewing technology and the beer brewed today is the result of over a century of attention of the brewing art. Foseters crisp, clean flavour won it immediate international acclaim when it was first brewed in Melbourne in 1888.

Full body lager, Malty character on the mid palate blends well with a delicate creaminess and crisp, clean hop aroma, creating perfect balance to the beer.

Packed in Amber bottle and Cans

7.5 EBC

6 months Packs

Classification of Beers: Lager: Made from malted barley that is brewed and stored at low temperatures. It is stored for a specified period before being bottled or canned. It is light with 3.0 3.8% alcohol and has a medium hop flavour. Ale: It is a type of beer brewed from malted barley using a warm fermentation between 15 and 24 degree C. The yeast will ferment the beer quickly, giving it a sweet, full bodied and fruity taste. Most ale contains hops, which help preserve the beer and impact a bitter herbal flavour that balances the sweetness of the malt. Stout: It is a dark beer made using roasted malt or barley, hops, water & yeast. Stouts were traditionally the generic terms for the strongest or stoutest porters, typically 7% or 8% produced by a brewery. Malt: It is a beverage made from barley malt syrup, sugar, water, yeast and hops. It has negligible alcohol content. Marketing Mix Analysis & Marketing Segmentation: Since the 1960's marketing mix are often referred to "Four 'P's" Product, Price, Promotion & place. In 1993 Robert F. Lauterborn proposed a Four Cs classification that is consumer, cost, communications & convenience. KINGFISHER PREIMIUM Product: The Beer brands manufactured and marketed by United Breweries Ltd. Quality and hygiene have always been the key elements of the United Breweries' manufacturing philosophy which is recognized for their international quality. 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. These beers are tested as per the standards laid down by the European Brewery Convention on 40 different parameters. By these standards, United Breweries' beers don't just equal, but even surpass, several Dutch and American beers. Have two different products for different market segments. Mild (Alcohol <4%) Fun drinking & Youth of age 18 to 25yrs. First time, drinkers for experience women / men. Women (Urban) & executives who prefers light. Strong (Alcohol >4%) Routine drinkers who wish strong flavour. Users who wish to consume strong flavour vs. lighter flavour. Price: A very price competitive strategy; 650ml Bottle: Rs 65/330ml Pint: Rs 35/500ml Can: Rs 60/330ml Can: Rs 40/8

Promotion Consistent in its brand promise of being the 'King of Good Times'. Marketing initiatives have always been through sponsorships and associations with sports, fashion and fun events, transforming it into a true lifestyle brand. Association with sports started with the Sailing Rally from Bombay to Goa, sponsored West Indies Cricket team in 1996, sponsored Benetton Formula team in 1996 that reflected the brand spirit of 'Good Times', got associated with Indian cricketing icons like Saurav Ganguly and Ajay Jadeja in the late 90s, the year 2006 best players of the game, Andrew Flintoff and Michael Vaughan, endorsing the brand through a highly visible We are true Kingfisher fans' campaign, Good times partner for 5 Indian Premier League teams, sponsors the East Bengal Football Club (Asian Champions 2003) and promotes Baichung Bhutia, hosts 'Corporate 5s', an annual five a side football event for corporate at the national level, sponsored the fastest Indian on the circuit - Narain Karthikeyan, to signing on Karun Chandhok, involved in promoting the current rage among youngsters in India, Go-Karting, the leading sponsors of team Force India & has gone on to sign Adrian Sutil as one of its ambassadors for F1. Responsible for constituting the "Kingfisher Fashion Awards" & promoted leading Indian designers & has been a Good Times Partner to the FDCI sponsored Fashion Week. 'Kingfisher Swimsuit Special' introduced in 2003 became the pioneer of sorts in India and led the path for many such concepts to follow. Involved in various ground level activities which are more experiential in nature thematic promos at pubs, MTV awards, Sunday Night Bazaars, Casino Nite, Voice of Goa, Kerala Rocks & Bangalore Rocks, Salsa Congress'. In the past few years Kingfisher has extended the spirit of the German Oktoberfest to the region, calls it Kingfisher the Great Indian October fest (Kingfisher TGIOF) each targeted to a different pop culture segment in the arts and entertainment arena. Associated with an iconic event named 'The Sunburn festival' this features the likes of Armin Van Burren. Most significant event in the life of the brand has been the launch of the award winning Kingfisher Airlines. Place: The largest selling Beer in India & commands a market share of over 36% in the country with 1 out of every 3 bottles of beer sold in India being a Kingfisher brand. It is predominantly in South & West India with presence across India & 52 countries cross the globe. UB has 21 production units across India with 15 owned units & 7 contract breweries. FOSTER Product: Foster's Lager is an internationally distributed Australian brand of 5.0% above pale lager dedicated to delivering premium branded products to consumers in more than 156 countries across the globe. It is a product of Foster's Group brewed under licence in several countries and in India rights to the brand are owned by SABMiller.

Fosters is a light beer category; it is by definition extremely light in colour & body & mild in flavour. It is developed using innovative process of ultra high gravity brewing. Late hopping with Fosters own unique Pride of Ringwood hops gives Fosters its crisp bitterness; in tandem with a subtle fruit ester aroma from our unique yeast imparts a complete sensual enjoyment. TARGET AUDIENCE First time drinkers Younger crowd College / Office going youths Maharastra is the highest consumer of beer In world wide spirits to beer ratio is 1:7. In India it is7:1 Price: Fosters are also priced very competitively. 650ml Bottle: Rs 65/330ml Pint: Rs 35/500ml Can: Rs 65/Promotion: Connects iconic brands with local and national organisations through commercial partnerships. Currently have partnerships within a number of core areas including AFL, NRL, Australian Cricket, horse racing and music festivals. The brand best complements the contemporary Indian identity it mixes the best of a global outlook with the flavours of traditional India, The beer in its complete package is unmistakably rich Indian and is inspired by how Indians live their passions. Strongly associated with exciting sporting encounters and has also been the associate beverage sponsor with two of the cricketing worlds most remarkable teams, India and Australia test series 2008. This association has taken cricketing excitement to a new high, he said. Its sponsors to formula I grant pix from 1986. Online facilities for promoting and facilitating the sales of the product. Place United Breweries Group and even foreign companies are state policies that severely restrict transportation of beer across state borders. As a result, Indians who want to purchase beer must travel many miles just to find a retailer that carries it. Fosters Brewing Group became the first major international brewer to invest in India. The company has state of the art Greenfield facility in Aurangabad, Maharashtra. Conclusion: Kingfisher has better placed in the market with there differential brand promotions. Foster has to invest in promotional activities & has to get registered in the local consumer eyes.

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Bibliography Web Link: https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#top http://www.foodregulatorysummit.org/pdf/aiba.pdf http://www.foolonahill.com/adlightice.html http://www.indianexpress.com/news/ubl-undisputed-leader-in-beer-market/769357/0 http://news24online.com/ViewDetails.aspx?NewsId=35544 http://en.wikipedia.org/wiki/Foster's_Lager http://excise.delhigovt.nic.in/brands.asp?bd_type=E&type=Beer http://www.indusbusinessjournal.com/ME2/Audiences/dirmod.asp?sid=&nm=&type=Publishin g&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4& id=828259ADB5DD410CAE74F23F36186681&AudID=F1B696626A8943B7B50052A323677 014 http://www.fostersbeer.com/#/the-beer http://www.sabmiller.in/Fosters_being_awarded.html http://www.kingfisherworld.com/corporate/press_release.aspx http://www.kingfisherworld.com/ Class room Lectures: Prof. SURENDRA, MABD class notes, TASMAC Book Reference: Kotler, Philip, and Kevin Kevin Lane Keller. Marketing Management. 12th Edition.

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