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Transcript of 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.
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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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