UNITED BREWERIES

Kingfisher Beer
CLASS: PGDBM-A

PRESENTED BY:
Name Roll No.

Aafreen Ahmed Nawaz 01

Amit Parekh 15
Anand Chaturvedi 21
Anish Maknojia 25
Apeksha Kapadia 32
Chintan Sanghvi 49
 Fareena Rawther 67
ABOUT UB GROUP…
 Founded in 1857 by Thomas Leishman.
 Vittal Mallya became chairman in 1948.
 Introduced in the market in 1960s.
 Extended its portfolio in wine and spirits by
acquiring McDowell in 1960s.
 Diversified into Agro-based industry and
Medicines.
 UB GROUP PROFILE
 Alcoholic Beverage
 Spirits-United Spirits
Ltd.
 Beer-United Breweries
Ltd.
 International Trading

 UB Global
 Aviation

 Kingfisher Airlines
UB GROUP PROFILE
• Fertilizers
• Mangalore Chemicals And
Fertilizers Ltd.
• Research and
development
 Vittal Mallya Scientific
Research Foundation
(VMSRF)
• Infrastructure
Development
• United Breweries (Holdings)
Ltd. “UB CITY”
UNITED BREWERIES LTD
 UBL is the main brewing company of the UB Group.
 Commands a domestic market share of nearly 50%.

 Market capitalization exceeds $2bn.

 Strategic alliance with Scottish & Newcastle Plc. (S&N).

 Completed acquisition of KBDL, and now fully merged

into UBL.
 Leading brands are Kingfisher, UB Export, London
Pilsner, Premium Ice and Kalyani Black Label.
The Indian Beer
Industry
INDIAN BEER INDUSTRY
 The Indian beer industry has been witnessing
steady growth of 10-11% per year over the last
ten years.
 Volumes passing 200m cases during the 2007-
2008 financial year.
 With the average age of the population on the
decrease and income levels on the increase, the
popularity of beer in the country continues to
rise.
INDUSTRY GROWTH

40% -

35% -

30%

25%
20%

15%

10%

5%
5 Year
CAGR 2006 2007 2008
2005
ALCOHOL CONSUMPTION

<1% Wine 5%

Spirits/
73% 8%
Liquor
Beer is under
represented in
India

26% Beer 87%

India Emerging
Markets
CONSUMPTION PER CAPITA
2 liter per capita is a major milestone
achieved in India in the last 12 months,
BUT ……… 83 liters

24 litres
23 liters

12 liters

2 liters

India Indonesia China World Average USA

INDIAN BEER INDUSTRY (CONTD..)

 Policies
& regulations are driven by the state
government.

 Highly
regulated with restriction in movement
between states.

 Advertising strictly prohibited, advantage for

existing players, major barrier to entry.
KINGFISHER BEER
 The largest selling Beer in India .

 Commands a 35% market share in the country.

 6 bottles of Kingfisher are sold every second in India.

 Available in 52 countries across the globe.

 Has won many International awards

 Stockholm beer festival 94 & 95.

 Gold medal at World Beer championships.

KINGFISHER PERFORMANCE
10.1m

8.6m +28.5%
+7.9%

7.7m 7.2m

June 07 June 08 June 07 June 08

Industry Growth +7.8% Industry Growth +21.5%

Premium Strong
 SEGMENTATION
The market can be segmented as follows:

 Geography-
City- Class I, Class II, Metros.

 Demography-
Age- 21-30 & 31+
Gender- Male dominated.
Income- Upper middle, High .
Occupation- Supervisors, Officers, Executives,
Athletes
 SEGMENTATION…
 Behavioral-

Occasions- Regular & Special.

User Status- First time user, Potential user,
Regular user.

 Socio-Cultural Factors-
Class- High class

 Type-

Mild, Strong.
 TARGETING
 Kingfisher beer has a very broad target market.
 The target audience is anyone in the community
who drinks beer, wine, spirits, cider and pre-mixed
drinks.
 Young customers in the age group of 21 - 30 years.

 Upper middle class.

 Elite class people- P3P, rich entrepreneurs.

 POSITIONING
 Kingfisher Premium Mild:
 Refreshing Mild beer.
 Positioned as brand of Youth.

 Kingfisher Strong:
 Positioned as a bubbly beverage which recharges the
body & mind.

 UB Premium Ice:
 Clean, crisp and strong taste
 Positioned for the young and trendy customers
 SWOT ANALYSIS …

 Strengths
 Market share of Kingfisher – 35%.
 Footprint all over India.
 Available in 55000 beer outlets in India.
 StrictQuality control regulation through CSL (Central
Scientific Laboratory).
 Available in 52 countries.
 Wide range of beer products.
 Manufacturing locations all over India.
 SWOT ANALYSIS …
 Weaknesses
 Conservative Indian society

 Opportunities
 The emerging young populations hold more liberal view on
alcohol than earlier generations.
 Huge potential to increase per capita consumption.
 High percentage of youth (over 50% of the population is
below 25 years, demographics to remain same till 2020)
 Increasing personal disposable income.
 SWOT ANALYSIS …
 Opportunities (Cont…)

 Changing life style and spending patterns.

 Banning of beer alcohol advertising will restrict the
entry of new player into the market.

 Threats

 Regulatory Environment.
 High taxes.

 Prohibition on sale of liquor (e.g. Gujarat).

 Competition from the Global players.
4 P’S
 PRICE

Size Retail
(ml) Price
 Kingfisher beer 330 25
650 40
 Kingfisher Strong beer can 330 40
500 45
 Kingfisher Strong beer 650 50
 Kingfisher Draught Beer 500 40

Credit period for retailer: 15 days

Excise duty: 30-40%(varies from state to state)
 PRODUCT
 Branding is very important with
Kingfisher’s products.
Alcohol
Contents
 Kingfisher Premium: < 5%
 Kingfisher Strong < 8%
 Premium Ice Beer 6.0 – 8%

 Attractive packaging:

 International style long neck

bottles and appealing labeling on
bottles.
 PRODUCT…
 Kingfisher strong and
premium beer are
available in
 650 ml & 330 ml Bottles
 330 ml Cans and Pints

 500 ml Cans

 Ice premium beer is

available in
 330ml bottles
 PLACE
 Kingfisher beer is available in all bottle shops,
restaurants, pubs and discotheques.

 UB has set up 28 breweries in India enabling it to

provided fresh beers.

 Has a deep and wide network of retailers and

distributors.

 Kingfisher beer is available in 52 countries.

 PROMOTION
Kingfisher brand is aggressively
promoted.

 Promotions through sponsorship:

 Force India (F1)
 IPL
 Kingfisher India International
Salsa Congress.
 Fashion shows.
 Pub rock fest.
 East Bengal Football club.
 Bangalore derby.

 Signed an agreement with Star TV

for telecasting racing event.

 Calendars.
COMPETITORS
 MARKET SHARE

40%

34%

15%
6%
5%

UBL SABM MM Anheuser-Busch Others

 SABMILLER INDIA
 SABMiller India is a wholly owned subsidiary of
SABMiller Plc.

 Entered into the Indian market in the year 2000.

 Market share of around 34%.

 Brands : Hayward’s 2000, Hayward’s 5000,

Hayward’s 10000, Hayward’s Black, Knock out, Castle
Lager & Fosters.

 Ten breweries located throughout India.

 Total capacity:42 million cases per annum.

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