Naveen Beer Synopisis

7/31/2019 Naveen Beer Synopisis

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Consumer Behavior Towards Beer Brands

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SUMMARY

The project work has an objective to make management student familiar with real life business

situations and give an opportunity to the student to understand the theoretical concept of

marketing in practical way.

As the beer, market in India is growing at the rate of 30% approximate. The competition is

getting tougher day by day. This situation of tough competition and entry of global beer

companies in India promoted me to do the project work on this restricted trade of Beer.

The project work was a great challenge for me. It gave me an opportunity together to analyze

the entire situation.

In the project work, I have drawn zonal break up. It includes the preface given by the

consumers regarding their behavior towards global beer brands. I also analyzed the selling,

packaging and consumption of Beer and their perception towards Global Beer.

Project report on consumer behavior towards global beer brand is a detailed and

comprehensive study of the distinct consumer and their role and attitude towards the product.

In this report, I have tried to discuss the various topics regarding the consumer perception on

the basis of survey in a clear and understandable manner.

The respondents acted positively to me and all of them helped me to fill the questionnaire with

their best efforts.


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I have taken a sample of 100 consumers of Mumbai city, who drink beer. Although this sample

is very small to represent the whole, market but there is no choice because of time constraints.

Yet I have tried to take consumers from every age group, every income group, and every

occupation group. I have also taken responses from approximately all the areas of Mumbai in

order to minimize any bias.


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Chapter No.1 Introduction to Beverage Industry

1.1 Over-view of beverage industry

The beverage industry is extremely competitive, with private labels greatly influencing the

environment. A few global beverage giants produce many brands, but those brands fall into

selfcontained categories as well. Thus, the beverage market is not really one mark et; it is a

collection of markets with many different types of products, processes and requirements. The

beverage market includes several different products that can be grouped into two main

categories: alcoholic (beer, wine, spirits) and nonalcoholic (carbonated soft drinks, juice, water,

sports drinks, etc.). Each category, and often each type, of beverage have its unique issues and

needs.

1.2: Over View of Alcoholic Beverages

The alcohol industry is very important for the government. It generates an estimated Rs. 16,000

crore per annum in spite of the fact that the per capita consumption of liquor in India is the

lowest in the world. The total liquor industry is worth Rs. 2,000 crore. IMFL accounts for only a

third of the total liquor consumption in India. Most IMFLs are cheap and are priced below Rs.

200 per bottle. Alcohol sales proceeds account for 45% of the total revenue collection in the

country. Whiskey accounts for 60% of the liquor sales while rum; brandy and vodka account for

17%, 18% and 6% respectively. MNCs share is only 10% and they have been successful only in

the premium and super premium ranges. Post WTO the government may have opened India to


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foreign distilleries, but the duty has been increased from 222% to 464-706%. This is due to the

fact that there is a 100% customs duty, 150% contravening duty, local taxes, distributors

margin, and retailers margin and publicity charges. The cost is finally borne by the consumer.

However, the government claims that this is being done to protect the domestic liquor industry,

the domestic industry accounts for 99% of the market share. This protectionist policy could

prove to be counterproductive and lead to smuggling. As of now, only 45% of the sales are

through legal channels and only 25% of this is duty paid for.

Within India itself, the policy of alcohol retail differs from state to state. While some states like

Maharashtra. Uttar Pradesh, and Tamil-Nadu have a liberal policy, states like Haryana and

Andhra Pradesh have had very bitter experience in trying to make these states dry and have

eventually had to withdraw the policy.

1.2.1: Different Types of Alcoholic Drinks

WHISKYWhisky is amongst the most popular distilled liquor known all over the world. It is made

of malt and molasses spirit, which is obtained by distillation of mash or cereal grains like maize,

rice, barley and malt. Better, the malt better the whisky. Large quantities of IMFL are

manufactured in India and is the maximum sold alcohol. The alcoholic content in whisky is

42.8%.


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RUMRum is a distillated from the fermented juice of sugarcane of molasses. RUM is

characterized with its taste and aroma. Best rums are known to come from Jamaica, West

Indies etc. The alcohol content of Rum is 42.8%.

BRANDYBrandy is generally obtained from fruits, though the most commonly used fruit is

grapes. The best quality of brandy is cognac, which is made in France.

VODKAVodka is a sprit resulting out of distillation at very high proof. This result in virtual NPN

existence of flavor in the resulting spirit, which is neutral, even after dilution required for

palpability. The traditional source of making vodka has been potatoes.

BEERBeer is not a distillate like the drinks mentioned above but it is a beverage made by

fermentation of malt obtained from carbohydrate in rich material barley. Hops are used to add

taste while yeast is used to ferment the beer.


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Beer is of two types:

1. Lager2. Draught

Lager Beeris the most common bottled Beer found in almost all the retail shops in the country.

This Beer is served chilled and is of two types.

Mild Beer alcohol content is 6.75%.

Strong Beer alcohol content is 8.75%.

Draught Beer is served chilled in mugs and is generally available in Pubs only. It can be stored

for 72 hours only and does not have any brand name.

GINIt is sweetened or unsweetened grain spirit flavored with essential oil, juniper berries

and some other product including angelica roots, orange peel, cardamom, bitter almonds give it

a kick and taste.


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Chapter 2

Introduction to the Beer

What is beer?

Beer has been brewing for more than 8,000 years worldwide, and in olden days was considered

a food staple. Beer is an alcoholic beverage made from malted grains, hops, yeast, and water.

The word beer comes from the Middle English ber (e), and from the Latin bibere meaning "to

drink." Ancient Babylonian records indicate beer as being used in sacrificial rituals. All of the

ancient cultures have been making beer throughout the ages and have looked at it as a form of

medicine. Physicians and holistic practitioners of old used beer liberally in their cures as it was

considered safer than water. Thus, beer was often used to mix medicines and was used as the

liquid in recipes instead of water.

How is Beer Made?

Beer is one of the most popular drinks around the world. Beer is so popular is that is easy to

make and require few ingredients. In fact, there are only four ingredients in beer: water, barley,

yeast, and hops. All beers are made with the same ingredients; the only variation between

them is in the amount used of each ingredient, plus variations in brewing. For example, ale

must be fermented for 21 days, while lagers require 35.

The first step, where the wort is prepared by mixing the starch source (normally malted barley)

with hot water, is known as "mashing". Hot water (known as "liquor" in brewing terms) is mixed

with crushed malt or malts (known as "grist") in a mash tun. The mashing process takes around

1 to 2 hours during which the starches are converted to sugars, and then the sweet wort is

drained off the grains. The grains are now washed in a process known as "sparging". This


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washing allows the brewer to gather as much of the fermentable liquid from the grains as

possible. The process of filtering the spent grain from the wort and sparge water is called wort

separation. The traditional process for wort separation is lautering, in which the grain bed itself

serves as the filter medium. Some modern breweries prefer the use of filter frames, which

allow a more finely ground grist Most modern breweries use a continuous sparge, collecting the

original wort and the sparge water together. However, it is possible to collect a second or even

third wash with the not quite spent grains as separate batches. Each run would produce weaker

wort and thus a weaker beer. This process is known as second (and third) runnings. Brewing

with several runnings is called parti gyle brewing.

The sweet wort collected from sparging is put into a kettle, or "copper", (so called because

these vessels were traditionally made from copper) and boiled, usually for about one hour.

During boiling, water in the wort evaporates, but the sugars and other components of the wort

remain; this allows more efficient use of the starch sources in the beer. Boiling also destroys

any remaining enzymes left over from the mashing stage. Hops are added during boiling as a

source of bitterness, flavor and aroma. Hops may be added at more than one point during the

boil. The longer the hops are boiled, the more bitterness they contribute, but the less hop

flavor and aroma remains in the beer.

After boiling, the hopped wort is now cooled, ready for the yeast. In some breweries, the

hopped wort may pass through a hop back, which is a small vat filled with hops, to add

aromatic hop flavoring and to act as a filter; but usually the hopped wort is simply cooled for

the fermenter, where the yeast is added. During fermentation, the wort becomes beer in a


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process which requires a week to months depending on the type of yeast and strength of the

beer. In addition to producing alcohol, fine particulate matter suspended in the wort settles

during fermentation. Once fermentation is complete, the yeast also settles, leaving the beer

clear.

Fermentation is sometimes carried out in two stages, primary and secondary. Once most of the

alcohol has been produced during primary fermentation, the beer is transferred to a new vessel

and allowed a period of secondary fermentation. Secondary fermentation is used when the

beer requires long storage before packaging or greater clarity. When the beer has fermented, it

is packaged either into casks for cask ale or kegs, aluminum cans, or bottles for other sorts of

beer

2.1: Different Types of Beer

StrongStrong beer is a term referring to a type of beer with high alcohol content. In legal statutes, the term

often includes any alcoholic beverage not lower than 5% alcohol by volume made with malted barley. In

common parlance, however, it is used for high-alcohol beers (67% and more) or beer-derived mixes

made with ingredients and processes resembling those in American-style lager.

StoutStout and porter are dark beers made using roasted malts or roast barley, and typically

brewed with slow fermenting yeast. There are a number of variations including Baltic porter,

dry stout, and Imperial stout. The name Porter was first used in 1721 to describe a dark brown


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beer popular with the street and river porters of London. This same beer later also became

known as stout, though the word stout had been used as early as 1677. The history and

development of stout and porter are intertwined.

MildMild beer has a predominantly malty palate. It is usually dark coloured with an avg of 3%

to 3.6%, although there are lighter hued mild as well as stronger examples reaching 6% avg and

higher.

WheatWheat beer is brewed with a large proportion of wheat although it often also contains a

significant proportion of malted barley. Wheat beers are usually top-fermented (in Germany

they have to be by law). The flavor of wheat beers varies considerably, depending upon the

specific style.
http://en.wikipedia.org/wiki/Porter_(carrier)http://en.wikipedia.org/wiki/Malted_barleyhttp://en.wikipedia.org/wiki/Top-fermentedhttp://en.wikipedia.org/wiki/Top-fermentedhttp://en.wikipedia.org/wiki/Malted_barleyhttp://en.wikipedia.org/wiki/Porter_(carrier)


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Chapter 3

Indian beer market

The beer industry is the biggest sector of the Alcoholic Beverage industry, with global annual

sales exceeding $325 billion USD. However, market saturation has been reached in much of the

developed world, which is limiting the industrys growth potential and forcing many companies

to focus on emerging markets. With so few options for growth, companies that operate in the

industry face considerable competitive pressures. Consequently, they must streamline their

processes in order to drive real, profitable growth all while ensuring that they effectively

meet the demands of both customers and consumers.

India is one of the worlds fastest growing consumer markets. A rapidly growing population, an

emerging middle class with rising percapita incomes and blossoming urban centers make India

a powerful emerging market. India has an established local beer industry and, although

percapita consumption is low, as the country becomes more westernized younger generations

have the potential to be highvolume consumers. However, regionalism, political unrest and the

potential for growing pains temper this markets attraction.


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3.1: Market Overview

In India, beer sales grew at nearly 90 per cent, compared to a less than 60 per cent growth for

other alcoholic drinks. Industry sources estimate that the Indian beer market is expected to

nearly double to 23.3 million hectoliters by 2012 from 12.5 million hectoliters at present.

In the last 9 years, beer consumption has been growing rapidly at a CAGR of 7%. Looking from

the industry perspective, the Indian beer industry has been witnessing steady growth of 10%

per year over the last ten years. 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.

3.1.1: Drivers & Challenges

Drivers

Young population

Nearly 28% of Indian population lives in urban areas, which comes close to the

population of USA. Urbanization is happening at a very fast pace and about 40% of the total

population is expected to live in urban areas by 2020. Also people in India are relatively

younger when compared with global average. About 50% of the Indian population would be

under 30 years even in 2015.

Low per capita consumption

Indian per capita beer consumption is very low compared to global average. In the total

alcohol market in India, beer contributes only 4% of revenue. The low penetration in beer

consumption provides a substantial and sustainable growth in demand for beer in future.


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Rising income levels

India is one of the most attractive consumer markets the world with about one-sixth of

the global population. The rising income level has a direct positive impact on beer sales in India.

Also, urban consumers who are more exposed to the western culture socialize with beer. The

growing income level particularly in the urban earning class is a potential market for beer

manufacturers in India.

Dynamism in Beer market

Many foreign beer manufacturers have entered or plan to enter the Indian beer

market with their product line. The market is set to flourish with 15 new breweries and 10

international brands in the next 3 years. With the global markets experiencing low or stagnating

growth and focus shifting to India, the Indian industry is expected to witness fast growth in the

coming years.

Challengers

Bottling shortage

What often happens is people have more bottles at home than they drink on a weekly

basis because they tend to buy regularly and bring them back irregularly. SABMiller, which

manages Shaw Wallace Breweries Ltd, has warned that the country could face a beer shortage

in the approaching summer, the peak consumption season.


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Consumer choice and preferences

India is predominantly a hard spirits market and beer is a minority preference for those

who consume Alcohol Beverage. Beer makes only 4% by revenue of the total alcoholic market.

It would be pertinent to mention that while per capita consumption of spirits in India is 65% of

global average, in the case of beer it is a mere 3% of global average.

World over it has been identified that policy focus should not as much be on controlling

consumption but more importantly on reducing harm. Therefore, beer and wine dominate the

alcohol market in most countries. It is considered common mans drink and in many countries is

even priced in parity with soft drinks. However, in India things are different. The per capita

consumption of beer in India is just 1 liter per person per year as compared to the world

average of 22 liters. This is one of the lowest in the world.

3.1.2.1: Government Regulations on State Beer

India has 28 states and 3 union territories. A tangled web of tax and regulations across Indian

states remains a major barrier to beer market growth in the country. Differing regulations on

pricing and distribution, as well as fluctuating excise charges, foster inefficiency in the beer

sector and make it harder for brewers to attract consumers. One could easily produce the

amount of beer drunk in India with two to four breweries. The reason there are so many is the

legislation. Transporting beer is expensive, so you need breweries in the different states. Duty

Tax on beer in India is an average US $13 per unit of alcohol. Each state levies taxation on

alcohol at its own determined rates and excise duties, and controls distribution channels in its


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own way. It is a statebystate market and not a national market. Taxes a re levied, often at

higher rates in relation to world prices, on all alcoholic products crossing the state borders. This

makes it essential to have production centers in different states. The distribution system is

same for Beer as for Spirits and Wine. Operators of outlets like wholesalers, retailers, bars and

restaurants, and bonded warehouse operators must be licensed and should pay the varying

state license fees. Based on the current trend of consumption it is expected that Beer may

shortly be permitted to sell in more outlets in near future. South India is the largest consumer

of Beer. Beer is declining in the west due to high taxes, and the consumption in North is

increasing in Country Liquor and Beer in particular.

Restriction of Movement of Beer

For the movement of beer from one state to another, an export license and an import license

is required. Export fee is imposed in the state where beer is manufactured and import fees on

the State where it is sold. In some states, only beer manufactured in that state can be sold. Few

states like Tamilnadu have strict rules of selling only beer manufactured within the state.


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3.1.3: Characteristics and Trends

Growing demand for barley and evolving contract farming

Barley accounts for one-sixth of the cost of making beer. Increase in domestic consumption

and export demand has pushed the barley prices up by 20% from Jan 08 - June 08. Moreover,

Increase in barley prices has let to 10% increase in cost of beer. The protein content in barley

crop in India is 13-15% compared to 7-10% in developed nations and this high protein content

in Indian barley is not suitable for making beer. Rajasthan is an ideal place where barley can be

grown under suitable climatic conditions for having lower protein content required by the beer

industry. SAB Miller India is encouraging farmers in Rajasthan to cultivate a type of malt barley

required by the industry. The company launched a programme called Saanji Unnati for

educating farmers to sow the right type of certified seeds and practices.

Rise of premium beer sector

Premium beer segment is outpacing the mainstream beer market touching a growth rate of

between 40-50%. The Indian beer industry is moving towards premium category of beer.

Lifestyle changes and increasing western culture in India are some of the factors driving the

premium segment. Many domestic and foreign premium brands are finding the interests of

young urban working class. Premium beers are priced about 30% higher than regular brands.


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Inorganic Growth in the Industry

Players are growing inorganically through joint ventures and acquisitions. The entry of foreign

players will expedite the consolidation of beer market in India. Setting up a Greenfield brewery

takes about 18-24 months, thus companies are looking at joint ventures or acquisitions. In

2007, Anheuser-Busch International, USA acquired 50% stake Crown Beers Ltd, Carlsberg

acquired 52% stake in Parag Breweries. In 2008, Cobra Beer acquired 76% stake in Iceberg

Industries Ltd. In 2009, Yuksom Breweries acquired 100% stake of Rhino Breweries. The big

players have grown inorganically mainly due to huge entry barriers.


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3.2: Top Indian Beer Brands

Picture 3.1- kingfisher bottle picture 3.2 Haywards bottle

Picture 3.3- Royal challenge bottle Picture 3.4- knockout beer bottle


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3.2.1: Kingfisher Beer

Company Profile

Kingfisher beer is an Indian beer brewed by United Breweries Group. With a market share of

over 36%, it is India's largest selling beer, with 1 out of every 3 bottles of beer sold in India

being a Kingfisher brand. It is currently available in 52 countries outside India.

History

It 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, Bengaluru and the Niliris.

Soon, the brew from United Breweries became a favorite, especially among the British troops,

for it was as good if not better than any beer they had ever tasted. 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, it became the first to launch canned beer and draught beer.

The company was bought over by late Mr. Vital 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'


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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. Also, besides controlling the production process, the

CSL analyses the Company's beer present in shelves all over the country, the competition's

beers and beers from across the world. 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.

Today, United Breweries has a portfolio of several brands spread across all segments of the

market. Moreover, 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. In addition, continues to grow steadily.

Different Beer Brands of kingfisher

Kingfisher Strong: The brand was launched in 1999 to cater to the growing strong beer

segment in the country. Today, Kingfisher Strong is Indias largest selling beer brand. It is

available in four SKUs- 650ml & 330ml bottles and 500ml & 330 ml cans.

Kingfisher Strong Fresh: Kingfisher Strong Fresh is the first ever-strong draught beeravailable in the Indian market. It is packaged in a 500 ml cans.


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Kingfisher Draught: It is packaged in a 500 ml cans. Kingfisher Ultra: It was launched in Mumbai on 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 available in Thane, 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.

Kingfisher Blue:The brands core target group is the young male population. KingfisherBlue 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 and 500ml & 330 ml cans. The brand has been launched in

key markets like Karnataka, Pondicherry, Maharashtra, Delhi, Rajasthan, Haryana, and

Kolkata and will soon be a national brand.

Kingfisher Red:It is marketed as Indias first ALL SEASON beer.


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3.2.2: Haywards

Company profileHaywards 5000 is one of the largest selling strong beer brands in India, which perfectly

combines strength with quality credentials that meet the high expectations of todays

demanding consumers.

History

Launched in the year 1983, Haywards 5000 is synonymous with strong beer in India.

Haywards 5000 is brewed with the choicest of malts and hops lending itself to a unique flavor

profile to suit the Indian taste and preference. Haywards 5000 is the hallmark of original and

authentic strong beer, which other beer brands aspire for. With such credentials, it is not

surprising to see men get together over Haywards 5000. It is the language of friendship

amongst men who are proud of their masculinity and look forward to a great time with their

friends and peers.


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Different Beers under Haywards Brand

Haywards 2000 H2K is India's only beer with an ABV of 5.5%, whilst the rest of the beers are

either less than 5% or greater than 7.5% - 8%.

Brewed especially to suit the modern palate, Haywards 2000 H2K uses a fine selection and

careful blending of malts to ensure a rich, golden look and clean crisp flavor. The cold-filtered

brewing process lends it a well-appreciated flavor, body and aroma.

Haywards BlackIndias first genuine stout beer , is handcrafted from a rich blend of the world

famous Caledon valley dark roasted barley malt along with a blend of imported and locally

produced pale malts. New Zealands super alpha hops give Haywards Black a unique and

pleasantly bitter taste with a hop like aroma. The Dark Roasted malt provides a rich dark

coloring along with a unique smoky taste and aroma. The Slow brewing process, which

incorporates specially managed yeast, creates the creamy head and the rich smooth taste that

stout is so much loved for.

Haywards Black is brewed under the special care of renowned brew masters with many years

of brewing expertise and rich experience from the SABMiller stable , One of the largest brewing

companies in the world with a brewing heritage of over a hundred years.


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3.2.3:Royal challenge

Company profile

The brand has moved from strength to strength since it is relaunched by SABMiller and has set

itself on a growth momentum that is well ahead of the mild beer industry

History

Launched in the year 1993, Royal Challenge Premium Lager is the second largest selling mild

beer in India. Royal Challenge is brewed with the choicest 6-malt barley. Its long brew duration

provides it with a distinct, smooth taste and rich flavor. It has all the hallmarks of a great

beer Color that is golden honey, taste that is smooth and crisp, lace that sticks to the wall of the

glass. Royal Challenge Premium Lager is the beer for the discerning who has the confidence to

make their choices based on their superior taste and knowledge rather than follow the crowd.

Royal Challenge Premium Lager is now the largest selling mild beer brand in many large beer

markets, including Andhra Pradesh, Uttar Pradesh and Orissa. Besides being available across

most states in India, Royal Challenge Premium Lager is also exported to USA, Europe, Middle

East, Australia and Hong Kong.


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Brewed from select malts and imported hops, on a specially developed recipe by the brew

masters from SABMiller, one of worlds largest brewers with over a hundred years of heritage,

Royal Challenge symbolizes a perfect harmony between the high art of brewing and the

assurance of modern technology.

Royal Challenge Premium Lager offers a difference with an edge. Besides its international class

packaging, premium image and path breaking advertising, what sets the brand apart is the long

brew cycle which lends it a distinctly smooth and easy flowing taste.


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3.2.4:Knock Out

History

Ever since its launch in 1984, Knock Out has evolved its brand

positioning from strength to cold refreshment to establish

itself as one of the largest selling strong beers brands in the

Country.

Today, there are millions of consumers in the States of

Karnataka, Maharashtra, Andhra Pradesh for whom the brand

Has come to acquire an iconic status.

Company profile

Knock Out today comes with an innovative thermo chromic

label (A label that changes color when it becomes cold) in the

States of Maharashtra and Karnataka.

The popularity of the brand can be gauged by the fact, that

despite being available only in limited markets, around 7 lakh

bottles of Knock Out are consumed every day.

Knock Out is brewed in modern, state of the art breweries to

ensure consistent conformance to the highest international

standards. Automated and modern techniques help to ensure

that the beer is produced under hygienic conditions, free from

any external impurities.


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Chapter 4

Global Beer Market

Beer is the most popular alcoholic beverage in the United States, manufactured by more than

1,500 breweries, which range in size from industry giants to brew pubs that sell their beer only

on premises. Home Brewing is very popular in the US. The United States produces about 230

million hectoliters (about 6 billion gallons) of beer annually and leads the world in beer

production with regards to volume. The number of breweries in the United States ranks first in

the world.

Brewing has historically been a local industry with only a few companies having a substantial

international presence. However, the last couple of decades have seen increasing consolidation

within the industry, a development which initially took off in Western Europe and North

America. More recently, the consolidation began to include brewing companies in the growth

markets of Eastern Europe, Asia and Latin America.

The global consolidation process has accelerated in the past ten years. The top ten brewers

accounted for 34% of the global beer market in 2000. In 2010, this figure had grown up to 59%.


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4.1: Global Beer Trends

During the past five years, on a pure alcohol-equivalent basis, beer has increased its share of

total alcohol consumption by more than 200 basis points (bps) to 41.1%. In 2008 the trend

slowed somewhat and beers year-on-year share of total alcohol consumption remained flat. In

emerging markets, beer has generally shown higher growth than other alcohol categories as

consumers gradually switch from local, generally high-alcohol, subsistence products towards

attractively packaged, higher quality, commercially produced beer. In South and Central

America, beers share of total alcohol consumption is now 51.5% with increases in Colombia

partly offset by recent declines in Mexico and Brazil. In Eastern Europe, beer has been gaining

share from spirits for some time and now accounts for 48.0% of alcohol consumption. The past

five years have also seen consistent gains in Africa and Asia where beers share of commercially

produced alcohol now stands at 49.0% and 32.8% respectively thanks, partly, to a greater

emphasis on quality and accessibility. In more mature markets, a wider variety of alcohol

products compete in a sophisticated marketing and retail environment. In North America, beer

has been losing share as spirits have benefited from more extensive marketing and greater

availability in certain states. That said, beers share stabilized at 56.3% during 2008 as the

economy slowed and brewers introduced innovative products, new packs and marketing

initiatives. In Western Europe, where beer now claims 36.8%, the wine category has increased

its share as lower-cost offerings have become more widely available.


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Beer growth trends

Over the past five years, the beer category has maintained a compound annual growth rate

(CAGR) of 4.8% globally. During this period, Eastern Europe saw

a high single-digit CAGR as personal disposable incomes increased. In Western Europe, the

prevalence of competitive categories and a shift in beer consumption

Away from on-premise outlets meant that, CAGR was negative. More recently, consumer

spending in Eastern Europe has also slowed an indication, along with

Already high per capita consumption that the beer category is maturing. Central and South

America grew at a CAGR of 6.3% over the period while North America

Had modest growth at a 0.5% CAGR. Africa shows strong levels of growth with a five-year CAGR

of 6.4%. Asias growth in beer over the past five years remains the highest of any region,

averaging 8.4%. China in particular has seen growth in beer averaging 10.7% per year, fuelled

by the growing economy and the increasing availability of beer. Looking forward, there is a

significant opportunity for the beer category to grow at the expense of non-commercial forms

of alcohol, particularly in Latin America, Africa and Asia. In Africa, per capita levels are still

relatively low but accelerating, and local players are expanding their portfolios in all segments.

Asia, in general, is seeing rising incomes and higher levels of beer consumption. In parts of Latin

America, efforts by brewers to transform the beer category should boost per capita

consumption.


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Beer segment trends

Over the past five years, the beer industry has seen a trend towards consumers trading up to

more expensive beers. As a result, premium beer has gained more than 40 bps and now

constitutes 17.9% of total beer sales. For mainstream beer consumers, particularly in emerging

markets, the most common trade-up proposition is to attractive, local, premium brands. In

markets such as North America and Western Europe, premium beers share of total sales is

already well above the global average. On the other hand, premiums share of 10.1% in Central

and South America and 3.0% in Africa shows the significant opportunity that still exists for

premium beer sales in these regions. There is sizeable potential in Colombia and Brazil where

premium beers respectively claim 3.7% and 5.6% of total sales. The trend towards premium

beer consumption has slowed somewhat in the recent economic downturn. However, down

trading is limited and there are notable instances of consumers continuing to trade up, both

into beer and, within the category, into premium products.


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4.1.1: Consumption Patterns

Brewing has historically bee

There are clear differences across markets in the types of beer consumed depending upon,

among other things, the historical brewing traditions within a given country and the markets

maturity level. In most markets, there are one or more mainstream lager brands as well as

discount brands at the lower end of the market. At the higher end of the market, there are

premium brands, super-premium brands and imported brands. Because beer is often consumed

in a social setting, brand image is very important. Marketing plays a major role in creating and

reinforcing a brands image and typically becomes increasingly important in highly

differentiated markets. Domestic and regional brands can establish a strong base while the

premium brand category becomes popular as consumers look for a better image or new tastes.


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Figure 4.1- Consumption of beer

4.2: Global Beer Brands

.

Picture 4.1 -Anheuser Busch Picture 4.2 SAB Miller

Picture 4.3 -Heineken bottle Picture 4.4 Fosters bottle Picture 4.5 Carlsberg


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4.2.1: Anheuser Busch

Company Profile

Anheuser-Busch operates 12 breweries in the United States. Anheuser-Busch's operations and

resources are focused on adding to life's enjoyment through the responsible consumption of

beer by adults. Based in St. Louis, Anheuser-Busch is the leading American brewer, holding a

48.9 percent share of U.S. beer sales to retailers. The company brews the worlds largest-selling

beers, Budweiser and Bud Light. Anheuser-Busch is a major manufacturer of aluminum cans

and has been a leading aluminum recycler for more than 30 years.

The company is a wholly owned subsidiary of Anheuser-Busch InBev, the leading global brewer,

and continues to operate under the Anheuser-Busch name and logo. Anheuser-Busch InBev

ranked No. 2 among beverage companies and No. 1 among beer companies in FORTUNE

Magazine's Worlds Most Admired Companies list in 2010.

History

Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium,

with an American Depository Receipt secondary listing on the New York Stock Exchange (NYSE:

BUD). It is the leading global brewer and one of the world's top-five consumer products

companies. A true consumer-centric, sales driven organization, Anheuser-Busch InBev manages

a portfolio of well over 200 beer brands that includes global flagship brands Budweiser, Stella

Artois and Becks, fast growing multi-country brands like Leffe and Hoegaarden, and strong

local champions such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin,


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Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler, among others. In addition, the company

owns a 50 percent equity interest in the operating subsidiary of Grupo Modelo, Mexico's

leading brewer and owner of the global Corona brand. Anheuser-Busch InBevs dedication to

heritage and quality is rooted in brewing traditions that originate from the Den Hoorn brewery

in Leuven, Belgium, dating back to 1366 and the pioneering spirit of the Anheuser-Busch

brewery, which traces its origins back to 1852 in St. Louis, USA. Geographically diversified with

a balanced exposure to developed and developing markets, Anheuser-Busch InBev leverages

the collective strengths of its approximately 116,000 employees based in operations in 23

countries across the world. The company strives to be the Best Beer Company in a Better

World. In 2009, the company realized revenue of 36.8 billion USD.

One of the most famous beers from this company is Budweiser.


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4.2.1.1: Budweiser

The Great American Lager

Introduced:

1876

Beer Category/Style:

Premium Regular American-style lager

Taste Profile:

Fresh and subtle fruit notes, a delicate malt sweetness and balanced bitterness for a clean,

snappy finish. Budweiser is a medium-bodied, flavorful, crisp and pure beer with blended layers

of premium American and European hop aromas, brewed for the perfect balance of flavor and

refreshment.

Ingredients/Brewing:

Brewed using a blend of imported and classic American aroma hops and a blend of barley

malts and rice. Budweiser is brewed with time-honored methods including kraeusening for

natural carbonation and Beech wood aging, which results in unparalleled balance and

character.


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Advertising Highlights:

Budweiser was advertised with spectacular, electric billboards in New York Citys Times

Square as early as 1902, and was the first brand to sponsor a network TV show (The Ken

Murray Variety Show on CBS in 1951). More recently, the brand has created advertising icons

such as Frank and Louie, the Budweiserlizards, and the Whassup! guys, a campaign that won

the Grand Prix award in 2001 at the 48th Annual International Advertising Festival in Cannes,

France. The brand also highlights the world-famous Budweiser Clydesdales in its advertising.

Sponsorship Highlights:

Budweiser has been an Olympic supporter since 1984 was the Official International Beer

sponsor of the Beijing 2008 Olympic Games and was the Official Beer of the 2010 FIFA World

Cup in South Africa. Other sports sponsorships include Major League Baseball (including 26

domestic teams), 28 National Football League teams, Major League Soccer, the Ryder Cup, the

National Hot Rod Association (NHRA), the U.S. and Mexican National Soccer Teams and major

boxing events. The brand also sponsors driver Kasey Kahne on the NASCAR Sprint Cup Series

and Brandon Bernstein on the NHRA PowerAde Top Fuel Series.


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Community Highlights:

Budweiser family promotions have raised millions of dollars for community and charitable

causes. Habitat for Humanity, the Muscular Dystrophy Association, Big Brothers Big Sisters,

Susan G. Komen Foundation, Paralyzed Veterans of America, America Supports You and the

Hispanic Scholarship Foundation are just a few of the causes that have benefited. Additionally,

the Help Budweiser Help the Outdoors program has raised more than $8 million over the past

seven years for wildlife and habitat conservation efforts.

Interesting Facts:

Budweiser was introduced in 1876 when company founder Adolph us Busch set out to create

the United States first truly national beer brand - brewed to be universally popular and

transcend regional tastes.

Each batch of Budweiser follows the same family recipe used by five generations of Busch

family brew masters.

Samples of Budweiser are flown into St. Louis every day from each of A-Bs 12 regional

breweries. There, in a special tasting room, the beer is sampled and judged by the brew

masters to ensure its quality and consistency.


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Brands under Budweiser

Budweiser Bud light Budweiser select Bud light lime Bud light golden wheat Budweiser American ale Select 55 Bud dry Bud ice Bud ice light Budweiser calmato chelada Bud light calmato chelada


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4.2.2: SABMiller

Company Profile

SABMiller is a global brewing and bottling company headquartered in London, United Kingdom.

It is the world's second-largest brewing company measured by revenues (after AnheuserBusch

InBev) and is a major bottler of Coca-Cola. Its brands include Grolsch, Miller Genuine Draft,

Peroni Nastro Azzurro and Pilsner Urquell It has operations in 75 countries across Africa, Asia,

Australasia, Europe, North America and South America and sells 213 million hectolitres of larger

per year.

Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index.

It has a secondary listing on the Johannesburg Stock Exchange.

History

The Company was founded in South Africa in 1895 as South African Breweries (SAB): the

business operations were mainly limited to southern Africa, where it had established a

dominant position in the market, until 1990 when it began investing in Europe.

After listing on the London Stock Exchange in 1999 to raise capital for acquisitions, the group

purchased the Miller Brewing Company in North America from the Altria Group in 2002, and

changed its name to SABMiller.


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Following this, the groups next major acquisition was of a major interest in Bavaria S.A., South

Americas second largest brewer and owner of the Aguila and Club Colombia brands in 2005

Brands under SABMiller

Haywards 5000 Fosters Fosters strong Royal challenge Knock out Miller highlife Peroni

4.2.3: Fosters


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Company Profile

Foster's Lager is an internationally distributed Australian brand of 5.0% avg pale lager, (4% in

the UK.) It is a product of Foster's Group brewed under license in several countries, including

the U.S. and Russia. The European rights to the beer are owned by Heineken International, who

brew and distribute Foster's in most European countries, including the United Kingdom,

Greece, France, Belgium, Portugal, Poland, Finland, Germany, Spain, Sweden, Ukraine and

Ireland. In the United States and India, SABMiller owns rights to the brand. In Canada, Foster's

is brewed by Molson Canada under license from Forster's Brewing International

The Foster's brand is also used on several other beers, including Foster's Premium Ale, and

Fosters ESB (Extra Special Bitter) which has been discontinued.

Foster's United Kingdom web site claims "Brits drink over 30 pints of the Amber Nectar every

second". While international marketing of the beer often focuses on its Australian connections,

Foster's does not enjoy widespread popularity in Australia.

History

Foster's Lager has been imported into the UK from Australia in its distinctive blue, white and

gold cans since the early 1970s.

Awareness of the brand was spread in Britain by the satirical political magazine "Private Eye"

which ran a cartoon series "The Adventures of Barry McKenzie", featuring a bumbling Foster's

swilling Australian "ex-pat", from about 1964 onwards.


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In Britain, the Courage brewing group was acquired in 1986 by Australian businessman John

Elliott. Perceiving the increasing popularity of imported Foster's Lager, it was decided to

commence local brewing of the product by Courage.

Variants

Scottish & Newcastle has also launched Foster's Twist, a beer with a hint of citrus that is

marketed as a refreshing alternative to other heavier beers and Premium Packaged Spirits such

as Smirnoff Ice. Foster's Twist is 4.5% avg.

There is also Foster's Super Chilled, which is served at a colder temperature and is available in

pubs and bars.

In 2008, Foster's was introduced with a widget called a "scuba" placed into the can to ensure

good mixing. This variant is only currently available in the UK.

In the UK, customers are also able to purchase a keg of Foster's for private parties, collecting

and returning the keg at a participating store or public house.

4.2.4: Heineken

Company profile


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Heineken International is a Dutch brewing company, founded in 1864 by Gerard Adriana

Heineken in Amsterdam. As of 2007, Heineken owns over 125 breweries in more than 70

countries and employs approximately 54,000 people. It brews and sells more than 170

international premium, regional, local and specialty beers, including Cruzcampo, Tiger Beer,

ywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphys, Star and of course Heineken

Pilsner. Heineken claims that the original Heineken recipe has not changed since the beer was

first produced nearly 150 years ago. With an annual beer production of 139.2 million

hectoliters, Heineken ranks as the third largest brewer in the world after Anheuser-Busch InBev

and SABMiller, based on revenue. Heineken's Dutch breweries are located in Zoeterwoude's

Hertogenbosch and Wijlre. The original brewery in Amsterdam, closed in 1988, is preserved as a

museum called Heineken Experience.

History

The Heineken Company was founded in 1864 when the 22-year-old Gerard Adrian Heineken

bought a brewery known as De Hooiberg (the haystack) in Amsterdam. In 1869, Heineken


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switched to the use of bottom-fermenting yeast. In 1873, the brewery's name changed to

Heineken's Bierbrouwerij Maatschappij (HBM), and opened a second brewery in Rotterdam in

1874. In 1886 Dr. H. Elion, a pupil of the French chemist Louis Pasteur, developed the

"Heineken A-yeast" in the Heineken laboratory. This yeast is still the key ingredient of Heineken

beer.

The founder's son, Henry Pierre Heineken, managed the company from 1917 to 1940, and

continued involvement with the company until 1951. During his tenure, Heineken developed

techniques to maintain consistent beer quality during large-scale production. Henry Pierre's

son, Alfred Henry "Freddy" Heineken, started working at the company in 1940, and 1971 was

appointed Chairman of the Executive Board. He was a powerful force behind Heineken's

continued global expansion, and while he retired from the Executive Board in 1989, he

maintained involvement with the company until his death in 2002.

After World War I, the company focused more and more on export. Three days after

Prohibition ended in the United States, the first Heineken shipment landed as the first legal

shipment of beer. From that day on, Heineken has remained one of the most successful

imported beer brands in the United States.

4.2.5: Carlsberg

Company profile


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The Carlsberg Group is a Danish brewing company founded in 1847 by J. C. Jacobsen after the

name of his son Carl. The headquarters are in Copenhagen, Denmark. The company's main

brand is Carlsberg Beer, but it also brews Tuborg as well as local beers. After merging with the

brewery assets of Norwegian conglomerate Orkla ASA in January 2001, Carlsberg became the

5th largest brewery group in the world. In 2009 Carlsberg is the 4th largest brewery group in

the world employing around 45,000 people.

History

J. C. Jacobsen founded Carlsberg; the first brew was finished on 10 November 1847. Exportation

of Carlsberg Beer began in 1868; foreign brewing began in 1968 with the opening of a Carlsberg

brewery in Blantyre, Malawi. Some of the company's original logos include an elephant (after

which some of its lagers are named) and the swastika. Use of the latter was discontinued in the

1930s because of its association with political parties in neighboring Germany. Carlsberg

founder J. C. Jacobsen was a philanthropist and avid art collector. With his fortune, he amassed

an impressive art collection, which is now housed in the NY Carlsberg Glyptotek in central

Copenhagen.

Jacobsen set up the Carlsberg Laboratory in 1875 which worked on scientific problems related

to brewing. It featured a Department of Chemistry and a Department of Physiology. The species

of yeast used to make pale lager, Saccharomyces carlsbergensis, was isolated at the Laboratory

and was named after it. The concept of pH was developed there as well as advances in protein

chemistry. The laboratory was part of the Carlsberg Foundation until 1972 when it was

renamed the Carlsberg Research Center and transferred to the brewery.


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The old brewery in Copenhagen is open for tours and famous visitors have included Winston

Churchill and Queen Elizabeth II.

Carlsberg acquired Tuborg breweries in 1970 and merged with Tetley in 1992.

Carlsberg has two breweries in China Huizhou and Shanghai. Carlsberg's Shanghai brewery

started production in 1998. Carlsberg formerly had a brewery in Taipo, Hong Kong, but shut it

down in 1999 due to high costs.

Brands

Brands held by the Carlsberg brewery group:

Carlsberg a 5% avg pale lager with a global distribution; marketed as Carlsberg Exportinthe UK to avoid confusion with the UK Carlsberg lager which is brewed at 3.8% avg

Aldaris (Latvia) Mythos (Greece) Elephant Special brew Tuborg (Regional) Astra (Germany) Bosman (Poland)
http://en.wikipedia.org/wiki/Mythos_Breweryhttp://en.wikipedia.org/wiki/Greecehttp://en.wikipedia.org/wiki/Tuborghttp://en.wikipedia.org/wiki/Bosmanhttp://en.wikipedia.org/wiki/Bosmanhttp://en.wikipedia.org/wiki/Tuborghttp://en.wikipedia.org/wiki/Greecehttp://en.wikipedia.org/wiki/Mythos_Brewery


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4.3: European Beer Market

Beer is one of Europes favorite drinks, best enjoyed and savored in a convivial atmosphere.

Behind your average glass of beer though which many of us take for granted are figures

providing a deeper insight into this fascinating sector. These numbers are part of the essence of

what keep Europes almost 4,000 brewers in business. They allow brewers and third parties to

visualize the overall state of the sector, monitor trends in production and consumption, keep

abreast of the levels of imports versus exports, and illustrate the socio-economic importance of

brewing also in terms of employment.

2010 edition of THE BREWERS OF EUROPE covers the years since our last edition in 2003,

outlining data for the most frequently asked categories.

The figures and associated graphs illustrate trends for most of last decade in terms of

consumption and production in

The European Union.


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Chapter 5

Consumer Buying Behavior

Consumer Buying Behavior is the behavior that a consumer display while buying the product or

a service. Each consumer has his/her own buying behavior that he displays it during purchase of

different products. This behavior displayed by the consumer is the result of a number of

influences, which he/she receives from the environment. These influences can be categorized

into four factors viz. Cultural factors, Social factors, Personal factors and Psychological factors.

Cultural Factors

Culture, subculture and social classes are particularly important in buying behavior. Culture is

the fundamental determinant of a persons wants and behavior. Each culture consists of

smaller subcultures that provide more specific identification and socialization of its members.

Subculture includes nationalities, religions, racial groups and geographic regions.

Social Factors

In addition to cultural factors, a consumers behavior is influenced by such social factors as

reference groups, family and social roles and statuses. A persons reference group consists of

all the groups that have a direct (face to face) or indirect influence on the persons attitudes or

behavior. Groups that have direct influence on a person is called as membership groups. Some

membership groups are also called as primary groups, such as family, friends, neighbors and

coworkers with whom the person interacts continuously and informally. People also belong to


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secondary groups such as religious, professional and trade union groups, which tend to be more

formal and require less continuous interaction. Aspirational groups are those a person hopes to

join; dissociative groups are those whose values and behavior an individual rejects. The family is

the most important consumer buying organization in society, and family members constitute

the most influential primary reference group. A person participates in many groups-families,

clubs, organizations. The persons position in each group can be defined in terms of role and

status. A role consists of the activities a person is expected to perform. Each role carries a

status.

Personal Factors

A buyers decisions are also influenced by personal characteristics. These include the buyers

age in the life cycle, occupation, economic circumstances, lifestyle and personality and self-

concept. People buy different goods and services over a lifetime. They eat baby food in the

early years, most foods in the growing matured years and special diet in the later years.

Occupation also influences consumption patterns. A blue-collar worker may buy work clothes,

work shoes and lunch boxes. A company president may buy expensive suits, air travel and

country club membership. People from same subculture, social classes and occupation may

lead quite different lifestyles. A lifestyle is a persons pattern of living in the world expressed in

activities, interest and opinions.

Psychological Factors


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A persons buying choices are influenced by four major factors viz. motivation, perception,

learning, believes and attitudes.

5.1: Importance of Consumer Buying Behavior

The study of consumer behavior focuses on how individuals make their decisions to spend their

available resources (time, money, effort) on consumption related items or consumption related

aspects (What they buy? When they buy? How they buy?). It is also the study of individuals, or

organizations and the processes consumers use to search, select, use and dispose of products,

services, experience, or ideas to satisfy needs and its impact on the consumer and society.

The consumer buying decision goes through the following stages:

Problem recognition

Information search

Evaluation of alternatives

Purchase decision

Purchase

Post purchase evaluationBuyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make

things more interesting. Since every person in the world is different, it is impossible to have

simple rules that explain how buying decisions are made. However, those who have spent many


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years analyzing customer activity have presented us with useful guidelines in how someone

decides whether to make a purchase. The evaluation of marketing concept from mere selling

concept to consumer oriented marketing has resulted in buyer behavior becoming an

independent discipline.

The growth of consumerism and consumer legislation emphasizes the importance that is given

to the consumer. Some consumers are characterized as being more involved in products and

shopping than others. A consumer who is highly involved with a product would be interested in

knowing a lot about it before purchasing. Hence, he reads brochures thoroughly, compares

brands and models available at different outlets, asks questions, and looks for

recommendations. Thus consumer buying behavior can be defined, as heightened state of

awareness that motivates consumers to seek out, attend to, and think about product

information prior to purchase. Consumer behavior is important to successfully market to

different market segments to survive in the market.


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5.2: Consumer Perception

It is selection, organization, and interpretation of marketing and environmental stimuli into a

cohesive picture. Perception is a mental process, whereby an individual selects data or

information from the environment, organizes it and draws significance or meaning from it.

Perception is basically a cognitive or thinking process and an individuals activities, emotions,

feelings etc. are based on his perception of his perception of his surroundings or environment.

Perception being an intellectual and cognitive process will be subjective in nature. This means

that different people may perceive the same environment differently.

Characteristics affecting perception:

Characteristic effecting perception can be divided into sensory elements and structural

elements. The sensory elements are as follows.

Colour:Colour has important sensory connotations. Evidence suggests that red is regarded as

warm, sensual and not intimidating. Blue is seen as conforming and is regarded to be colour

that attempts to convey friendlier image. Pepsi attempt to cash on the blue colour of the Indian

cricket team during the recent World Cup cricket matches has received a similar response.

Many retailers in Mumbai call it Ghaslet Pepsi. This is because Indians are more used to

identify blue with kerosene and their long-term association with blue colour of kerosene led to

call blue Pepsi as Ghaslet.

Taste: Taste is another sensory factor that will condition consumers brand perceptions. The

importance of taste is illustrated by P&G blunder when it first introduced Pringles potato chips.


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The chips were packed in an easy-to-stack cylindrical can to avoid breakage of chips. The

consumers responded by saying that the packaging resembles a tennis ball can. Further

consumers felt that the chips tasted like tennis ball.

Smell: Smell is important for food products and cosmetics products. In one study, two

fragrances were added to the same facial tissue. Consumers perceived one facial issue as

elegant and expensive and the other as a product to use in the kitchen.

Sound: Sound is another important sensory stimulus. Advertisers have traditionally used

accent to convey status and authority. Even in case of serials, voice is being used to create an

impact on the masses.

Feel: The feel of certain products will also influence consumers perceptions. Softness is

considered a desirable attribute in many paper products. Feel is also a means of determining

quality. Consumer often use of a textile fabric, clothing, carpeting, or furniture to evaluate

quality. For example, a smooth, velvety feel in textile fabrics is considered an indication of

quality.

The structural elements are as follows:

Intensity and Size:The brighter and advertisement and larger the size, more it is able to attract

the attention of potential consumers. Such large advertisements can be in the form of full-page

advertisements in newspapers or in the form of large hoardings on the road.


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Position: Attraction towards and advertisement depends largely on the place where it is

positioned. Positioning includes the page of a newspaper. Similarly, the placement of product

for display on shelves at the retail outlet plays an important role in attracting the attention of

the consumers.

Contrast:A black and white advertisement with a small spot used by Jet Airways is likely to

attract attention. A quite commercial after a loud program can attract attention like the

advertisement of De Beers diamond after listening to a frantic rock show.

Novelty: It is observed that anything, which is different from what is normally expected, tends

to attract attention like an unusual bottle shape or different packaging material.

Repetition: Advertisements are repeated often to enable consumers to brand recall as well as

stimulate them and create a strong desire for interest in the purchase of the product.

Repetition is particularly important in case of low involvement convenience goods like soaps

and toothpastes.


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5.3: Consumer Attitude

Consumers attitude is a hypothetical construct that represents an individual's degree of like or

dislike for an item. Attitudes are generally positive or negative views of a person, place, thing,

or event- this is often referred to as the attitude object. People can also be conflicted or

ambivalent toward an object, meaning that they simultaneously possess both positive and

negative attitudes toward the item in question. Attitudes are judgments. They develop on

the ABC model (affect, behavior, and cognition). The affective response is

an emotional response that expresses an individual's degree of preference for an entity.

The behavioral intention is a verbal indication or typical behavioral tendency of an individual.

The cognitive response is a cognitive evaluation of the entity that constitutes an individual's

beliefs about the object. Most attitudes are the result of either direct experience

or observational learning from the environment

Attitudes can be changed through persuasion and we should understand attitude change as a

response to communication. Experimental researches into the factors that can affect the

persuasiveness of a message include:


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Target Characteristics: These characteristics refer to the person who receives and processes a

message. One such trait is intelligence - it seems that people that are more intelligent are less

easily persuaded by one-sided messages. Another variable that has been studied in this

category is self-esteem. Although it is sometimes thought that those higher in self-esteem are

less easily persuaded, there is some evidence that the relationship between self-esteem and

persuasibility is actually curvilinear, with people of moderate self-esteem being more easily

persuaded than both those of high and low self-esteem levels (Rhodes & Woods, 1992). The

mind frame and mood of the target also plays a role in this process.

Source Characteristics: The major source characteristics are expertise, trustworthiness

and interpersonal attraction or attractiveness. The credibility of a perceived message has been

found to be a key variable here; if one reads a report about health and believes it came from a

professional medical journal, one may be more easily persuaded than if one believes it is from a

popular newspaper. Some psychologists have debated whether this is a long-lasting effect and

Holland and Weiss (1951) found the effect of telling people that a message came from a

credible source disappeared after several weeks (the so-called "sleeper effect"). Whether there

is a sleeper effect is controversial. Perceived wisdom is that if people are informed of the

source of a message before hearing it, there is less likelihood of a sleeper effect than if they are

told a message and then told its source.

Message Characteristics: The nature of the message plays a role in persuasion. Sometimes

presenting both sides of a story is useful to help change attitudes.


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Chapter 6

Research Methodology

6.1: Research Plan

1) Title:Consumer Behavior towardsBeer Brands

2) Type of Research: Descriptive Research

3)Sources of Data Collection:

Primary Data collected through survey, using a structured Questionnaire Secondary Data through past data, cases related on this topic on Internet, articles

journals.

4)Objectives:- To study consumers behavior towards global beer brands in IndiaTo study the factors affecting buying behavior of beer

To find out consumer awareness towards global beer brands

To study consumption pattern of beer

To study Indian beer market

To study alternative ways of product promotion


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5)Need & Significance:The present study was conducted with a view to understand beer market in India, emphasis in

Mumbai. Undoubtedly, the markets are undergoing rapid and wrenching transformation.

Various studies conducted in the past have strengthened the above mentioned view.

The change in the scenario beer market is governed by two forces:-one is globalisation, the

extensive growth of global trade and international competition. In the present economic

scenario of country, howsoever developed it may be it can ever think of isolating itself from

world economy. If any country closes its market, its citizen will pay for inferior quality of goods.

But if it opens its market, it will have to confront severe competition and many of its internal

business will suffer. The other force is changing life style of consumers in ever- growing market

like Delhi, this force has a definite say. The paradox is that the globalization and changing life

style of consumers open up new opportunities even as the threaten the status quo.

Globalization is made it possible for Fosters, Carlsberg, Budweiser, Tuborg, Heineken etc. to sell

their beers all across the world. Changing lifestyle provoked the Shaw Wallace and Company

and united Breweries to come out with a number of brands (kingfisher, Royal Challenge,

Hayward 5000, Kalyani Black Label etc.) to cater to the needs of consumers having different life

style.

Todays market is changing at an incredible pace. In addition to globalization and changing life

style, we are witnessing new retail forms (e.g. bars, bistros, pubs etc.) and disconcerting erosion

of brand loyalty. These changes have created confusion in the mind of companies regarding use

of strategies.


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6) Research Design: Sampling unit - Bangalore Size of sample - The sample would consist of 40 respondents Target group - Beer Drinkers Age group - 21 and above Type of sampling - Convenience/ Random sampling

7) SampleStudied:

Sample Technique - A survey conducted with the help of structured questionnaire consisting of

close and open ended question. The question will be related to usage, perception, preferences,

attitude and experience of the consumer towards the products/ brand.

8)Limitation of the Research

- The research is restricted to certain parts of Mumbai and does not necessarily show apattern applicable to all of country.

- It is assumed that whatever information given by the consumer in the questionnaireholds true and correct.


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Chapter 7

Recommendations

1. Increase the consumption amongst women drinkers.2. Increase the number of times beer is consumed in a week by positioning beer as a

refreshing drink.

3. As the industry has the constraint of surrogate advertising, increasing BTL activities inbars, pubs, sports bars etc.

4. Providing tours to the distillery and making it into an event or an outing destination.5. Trying to build loyalty by creating communities online, sport bars, drinking friends etc.6. Creating a distinct and standardized taste as according to the research Taste plays a

pivotal role more so than Price.

7. Tuborg has created a niche for itself because of its Taste as well as the packing andKingfisher has created a niche by its distinct taste and brand image ,Other brands can

create a niche for themselves like Budweiser can promote itself as the most favorite

American past time.

8. Going ahead branding will play an important role, with so many Indian as well as foreignbrands coming in.


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Chapter 8

Conclusion

The alcoholic industry is at its nascent stages even though it has been here since a very long

time. Only two players UB group owned by Mr. Mallya and Shaw Wallace first dominated the

industry. India has always been the difficult market in terms of consumer behavior as well as

the difficulties in setting up a brewery due to the license raj. In the last couple of decades, the

industry has seen many positive changes with the growing middle class the opportunities for

the industries have only increased. India predominantly is a hard growing market, the beer

industry has made a lot of enrolls in the last few years with Kingfisher leading the charge.

With the population of one billion out of which 70% of the population, being under the age

group of 30 India is viewed as a potential hot spot for every product, beer being no different.

The global beer brands view India has the next growth market and a bringing their global

brands to India. The likes of Budweiser, Carlsberg, and Fosters want to get a good foothold in

the Indian market. SAB Miller has taken the charge by acquiring Shaw Wallace and getting other

small distilleries in the south. No global brand wants to lag behind in the race to create a space

for themselves in the huge Indian market


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Brands like kingfisher are the clear market leaders but there is a lot of scope for other brands to

come in and eat into the market share. Today with rise in the globalization, it has become

easier for the global brands to create a space for themselves.

Even though India is price sensitive market, the research suggest that taste is the most

important factor. This can work in the favor of the global brands as today an average Indian

would not mind paying a little extra if he gets a better quality.

All these factors tells us that global brands are here to stay but it will be a difficult task for them

to break into the Indian market and challenge the leaderships of Indian brands like Kingfisher

and this competitive situation will only work in favor of the consumer.


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QUESTIONNAIRE

1. Do you drink beer?a) Yesb) No2. How often, on the average, do you usually have a beer?a) every dayb) at least once a week but not every dayc) at least once a month but less than once a weekd) more than once a year but less than once a monthe) once a year or less3. When buying beer, you choose it on the basis of _____________? Fill in the blanka) Taste/Flavorb) Pricec) Alcohol percentaged) Brande) Other4. Where would you typically buy beer for consumption at home?a) Wine Shopb) Premium Liquor Storec) Bar&Resturantd) Super Markete) Other5. What kind of beer do you drink?a) Mildb) Strongc) Premiumd) Economy6. Which brands of the beer do you like the most?a) Millerb) Fostersc) K.Od) Budweisere) Heinekenf) Coronag) K.Fh) Others


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Consumer Behavior Towards Beer Brands7. Does cost of the product influence your purchase?a) YESb) NO

8. Are you willing to change the brand if you are given any offers?a) YESb) NO

9. Do you make up your mind before coming to the outlet?a) YESb) NO

10.Does visibility affects your purchase?a) YESb) NO

11.What influences your decision at the last moment?a) Visibilityb) Pricec) Offersd) Brands

12.What influences your decision at the last moment?a) Visibilityb) Pricec) Offersd) Brands

13.What makes you to try a new brand?a) Priceb) Offersc) Adsd) Influence by your friends

Naveen Beer Synopisis

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