About the company

• UB Group

• The UB Group, is the market leader

• The Group has a huge turnover

• Swimsuit Calendar.

• Won more than 6 International Awards

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.

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.

BEER MARKET SHARE IN INDIA

Kingfisher Brand Market Share (Beer)

COBRA 9%
Fighting Competitions

Presently distributing brands of Beer in India.

1. SAB Miller : Haywards, Royal Challenge, Knock Out, Foster

2. Anheuser-Busch : Budweiser

3. Carlsberg (South Asian Breweries)

4. Heineken (Asia Pacific Breweries)

5. Castle Lager

6. Cobra

4 P’s Of Marketing

Product:

1. No.1 selling product in its segment.

2. Good quality raw material is used to maintain the quality standards.

3. Consistency of product quality is high.

4. 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.

650 ml: Rs. 65/-

330 ml: Rs. 35/-

Place:

• 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
locations 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.

Porters 5 Force Model Applied :

Overall industry rating: high Moderate low

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

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

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.

Bargaining power of suppliers

• Supplier Power is low

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

Intensity of rivalry among competitors

• 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.

STP for Kingfisher Beer

Segmentation

• Geographic segmentation: It is available throughout 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.

Targeting

• Kingfisher has 2 different products for different market segments.

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
Kingfisher Beer SWOT Analysis

Strengths :

• Strongest Worldwide Distribution System

• Huge Finances backing from UB Group

• Oldest & Largest Player In India

• Worldwide known Brand

Weaknesses :

• Different Brands under Same Company

• High Concentration on Strong Beer Market

Opportunities :

• Beer consumption is increasing

• Reduction in Taxes

• Brand Extension Benefits

Threats :

• High Taxes & Regulations

• Prohibition on Advertising

• Indian Culture is a Major Hindrance

• Many International Players Entering in India

 References :

• www.kingfisherworld.com

• www.theubgroup.com

Statutory warning: Consuming alcoholic drinks is injurious to health.