A Project Report On

“Study of Consumer Buying Behaviour for kingfisher beer in the hotels and preference level of consumers towards the Brand”

AT UNITED BREWERIES LTD

Submitted in partial fulfillment of the requirement for award of degree of Master of Management Studies (MMS) under University of Mumbai.

Submitted ByMs Poonam N Deshmukh

Roll No: 3002Batch: 2010-2012

Under the guidance ofDr. N. Mahesh

A.C. Patil College of Engineering, Management Studies and Research,Sector 4, Plot 17, Kharghar,

Navi Mumbai – 410210Contact No: 022-2774 5722 / 2786 3644

Fax: 91-22-2774 5732E-mail: principal@acpce.org

Web Site: http://www.acpce.org

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GUIDE CERTIFICATE

This is to certify that Ms Poonam N Deshmukh (Roll No.3002) student of Master of Management Studies has undergone her summer internship under my guidance and prepared a project report titled “Study of Consumer Buying Behaviour for kingfisher beer in the hotels and preference level of consumers towards the Brand”for the partial fulfillment of the requirements for award of degree of Masters Of Management Studies from the Mumbai University, academic year 2010-2012.

Dr. N. Mahesh

Professor & headPlaceDate

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COLLEGE CERTIFICATE

This is to certify that Ms Poonam N Deshmukh (Roll No.3002) student of Master of Management Studies has undergone her summer internship under my guidance and prepared the project report titled “Study of Consumer Buying Behaviour for kingfisher beer in the hotels and preference level of consumers towards the Brand” for the partial fulfillment of requirements for award of degree of Masters of Management Studies from the Mumbai University, academic year 2010-2012.

Dr. N.Mahesh Dr.D.G.BorseProfessor & head Director

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DECLARATION

I hereby declare that this project report entitled “Study of Consumer Buying Behaviour for kingfisher beer in the hotels and preference level of consumers towards the Brand”is a record of worth carried on by me under the guidance of Dr. N. Mahesh as a partial fulfillment of requirements for award of degree of Masters Of Management Studies.I also hereby declare that this project report is a result of my own efforts and not been submitted at any time to any other university or institute for the award of my degree or diploma.

Place Ms Poonam N DeshmukhDate

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ACKNOWLEDGEMENT

Some Says “Managers are born and some says managers are made”. I was also in some dilemma before commencing my summer internship. But after the successful completion of my summer internship I came to know that managers are made if they are guided properly and are motivated to work willingly towards fulfillment of specific goal.

It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well - wishers who have in some way or other contributed in their own special ways to the success and completion of this project.

First of all, I would like to thank Mr.Ashok Kamale (Sr manager personnel & admin) of united breweries ltd taloja,& Mr Mahendra Gharat (Secretary) , from the bottom of my heart, without thier help it would have been a dream only to carry out the project work..Project Head & Supervisor Mr. Umesh Verma (production Manager) and Mr. Rajeev Sharma (Area Sales Manager). For their support & guidance for this project

My profound sense of obligation goes to Dr D .G Borse , Director ,A.C.P.C.E.M.S.& R for permitting and giving an opportunity to work on this project. & I am also grateful to Dr Mahesh N (professor & head ). For his valuable and timely guidance during the development of this project and for supporting me, in every possible way, whenever I needed during my work .He also gives proper guidance to all management students and staff.

I convey my sincere thanks to Food & beverage managers of hotels, Navi Mumbai for their helping hand that I always found extended to me whenever I needed.

Last but not the least, I thank my parents, sister, all my friends and well-wishers for sharing joy

and sorrow and helping me out in whichever way possible.

Poonam Deshmukh

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Executive summary

Possibly the most challenging concept in the marketing is to deal with understanding the

consumer behaviour. This project report explains the changes occurred in consumer

buying behaviour of India, beer industry, and impact of price on consumers. The purpose of

this project is to find out the factors that are affecting the consumer buying behaviour and

what strategies can be formed to adopt those changes and achieve the long term growth

and success. It is based on the observation of buying behaviour of consumers using

questionnaires.

The attitude of Indian consumers has undergone a major transformation over the last few

years. The Indian consumer today wants to lead a life full of luxury and comfort. He wants

to live in present and does not believe in savings for the future.Consumer buying behaviour

is affected by a lot of variables, ranging from personal motivations, needs, attitudes and

values, personality characteristics, socio-economic and cultural background, age, sex,

professional status to social influences of various kinds exerted by family, friends,

colleagues and society as a whole.

The tastes and preferences of the current generation are changing rapidly. The current

generation does not mind paying extra for better facilities and ambience. One thing is for

sure that the pace of change in the needs, desires and wants of the Indian consumers will

be even steeper and will further change drastically in the near future. So to achieve

sustainable long term success and growth, the marketer will have to understand that how

consumers will respond to different product features, price and advertising appeal has a

great advantage over its competitors.

OBJECTIVES OF THE STUDY

To study consumers brand preference of beer in hotels of Navi Mumbai &

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nearby areas.

To study consumption pattern of beer.

To study the factors affecting buying behaviour of beer.

To study alternative ways of product promotion.

To study preference level of consumer towards brand

RESEARCH METHODOLOGY

The primary data was collected by using questionnaire method, projective techniques like

sentence completion and observation method by visiting hotels such as park ,four points,yogi

executive tunga, potpuri, rainforest, golden chariot, vaishali, indulge (lounge) The data were

collected by talking with the food & beverage manager of different hotels, resto & bar like

mahesh ,ashwith,golden punjab etc. Customer’s buying preferences was also observed and taken

into consideration.

The Secondary source of data was collected from :-

the company’s official website, magazines, journals, published reports, books, newspapers, brochures etc.

SUGGESTIONS

1. Awareness of the product is more among people. Indian market is price sensitive, Kingfisher Ultra, kingfisher premium would benefit from reducing the price2. The company can adopt new strategies and policies to overcome the Competition

Conclusion

From the above findings and analysis it can be conclude that Even though there is stiff competition from the foreign brands like Carlsberg and tuborg , Budweiser and corona. there would not be any major threat to the kingfisher brand. The brand is still the favorite among the Indian consumer and it will grow from strength to strength.What I feel is that even though price is a barrier at present, but things will get better in the future. it will still take some time for the Indian mindset to change where more number of people will be willing to spend on quality without thinking much about the cost.

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Sr.No.s Table of Content Pg. No.

I Company Certificate iII Guide Certificate iiIII College Certificate iiiIV Declaration ivV Acknowledgement vVI Executive Summary vi

CHAPTERS1 Introduction of Beer 1

1.1 Statement of the problem 1

1.2 Objectives of the study 2

1.3 Needs of the study 2

1.4 Scope of the study 3

1.5 Limitations 3

1.6 An overview of the report 32 Literature review 4-8

3 Company profile 9

3.1 History& logo 10

3.2 Types of kingfisher beer 12-15

3.3 Micheal porters Five Forces Model 16

3.4 Swot analysis of kingfisher beer 17

3.5 Market share of kingfisherbeer 18

3.6 Marketing mix of kingfisher beer 18-21

3.7 Brand repositioning 22-24

3.8 promotions 25

3.9 Surrogate marketing of kingfisher 26-27

4 Research methodology 28

4.1 Formulation of hypothesis 29

4.2 Sources of data 29-30

4.3 Tools for data collection 31

5 Data analysis & findings 33-45

6 PESTLE analysis of indian beer market 46-50

7 Corporate social responsibility by ub group 50-52

8 Findings & suggestion 53-55

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9 conclusion 56

1 INTRODUCTION OF BEER

“Beer is an alcoholic beverage produce by the fermentation of malted barely. Although the

preparation of fermented beverages has been practiced in India since early times, the art of

brewing of Europeans”.

There were 26 beer breweries in across India when the government called the game over in the

early 70’s by freezing the industries production capacity. Nobody was permitted to either expand

existing units or build new ones. In swift reaction, the cash rich Banglore based u. b group began

buying up all the breweries if it possible could bring its tally up to 10. Many of these were small,

sick units going cheap. Given the government new anti-alcohol pasture. U.B was amongst the

few willing act on the future of the beer business. Rather than cost U.B.’s actual consideration

was that they were located in the north and east markets it wanted to gain access to (beer being

perishable product and transportation being a costly proposition, sales are usually combined to a

radius to few hundred KM around the brewery). Although the south and west accounted for an

over whelning majority of sale. U.B. was confident other part would grow, some U.B.’s brewing

capacity was on par with that of its arch rival, muhan meakin.

1.1STATEMENT OF PROBLEM

1. Prices of beer are going to increase in the recent days.

2. Lack of marketing information.

3. Increasing the government taxes on the beer and other drinks.

4. Sales force to the firm with minimum sales man working in the firms

5. Lack of credit facility.

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6. Lack of advertisement as effective.

7. Problem of safe transportation to warehouse to store.

8. Lack of sales promotional activities.

9. There is no proper channel of distribution

1.2OBJECTIVES OF THE STUDY

To throw light on the history and origin of beer.

1. To know the manufacturing process of beer.

2. To evaluate the development of beverage industry in India.

3. To study the establishment, growth and progress of kingfisher industry, their production

and sales and the market share of kingfisher.

4. To evaluate the marketing performance of Beer in Hotels of Navi mumbai and to analyses

their sales.

5. To gather information from consumers about their opinion regarding various brands of beer

and kingfisher in particular.

6. To provide some information regarding the improvement of the beer.

1.3NEEDS OF THE STUDY

1. To study the current market trend to beer.

2. To study the customer preference towards beer

3. To study the current market potential of beer industry.

1.4 SCOPE OF THE STUDY

The scope of the study is not only to know about customer preference towards Kingfisher beer,

but also to know about certain other aspects.

1. To know what is the total market

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2. This study stand as complete information point not only about Kingfisher movement, but

also as a data bank in order to cover up other related industry.

3. To analyse company’s present positioning the market.

4. While conducting the survey for Kingfisher the company came to know what is its present

position in the market.

5. It helps.

a. To forecast the future development and target.

b. To analyse its drawbacks and failures.

Combing these two, a definite line can be drawn in order to develop the company and

extend its services.

1.5LIMITATIONS

One main limitation was the time factor. Since the survey was conducted along with the

academic studies.

When the consumer and dealers were contacted and requested for their opinion through personal

interview and requested and questionnaire about the study cent percent answers were not

obtained because some consumer showed their reactance to respond due to many different

reasons. But as far as possible it has been tried the best level to get the correct, exact and precise

information towards the study.

With all these limitations, this project report has been based on actual figures and the approach to

the report is based on the present market.

1.6AN OVER VIEW OF THE REPORT

A systematic and detailed study of the customer. Preference towards kingfisher beer . The

total study is divided into five main chapters in the report.

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2. Literature Review

HISTORY OF BEER

Beer is an old as the science of agronomy. As soon as man learned to fit them in to his diet,

bread and beer were two of the earliest utilization. Both baking and brewing followed similar

processes up to a certain point during early civilization. Processes show that in Mesopotamia

6000 years ago, beer was made with barley malt and allowed to ferment. Beer also was used in

ancient Egypt, Greece and Rome. Translation of uniform writings on a clay tablet found in

ancient ninevch describe Noah’s alleged preparations for the food and indicate that beer was

among the provisions that were loaded on the ark.

Respite its antiquity and general use, beer attained little commercial standing until about the 10 th

c. until then brewing was largely followed as a domestic function like many as baking and

cooking. In the middle ages brewing like many other arts was concentrated in the hands of

churchmen. Almost every monastery had its beerhouse and some of the monks were as famous

for their beer as are traipses for their cheese and Benedictines for their liquors. Beer, in that

period also was closely identified with many religious and social festivals. Such as church asses

for raising church funds.

During the era exploration of American continent beer was deemed an essential in the

provisioning of ships. Water stagnated quickly on a longtime. While beer remained

comparatively whole some and palatable. Moreover its diet properties although unidentified in

those days helped ward off many of the diet deficiency ills to which passengers and crews on

long voyages were subject. The dwindling supply of beer on the may. Flower was a factor in the

pilgrim’s decision to seek harbor ahead of schedule.

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2.1ECONOMICS ASPECTS

Country 1965 1975 1985

U.S.A 89783 108024 157863

W. Germany 26197 57471 79628

Great Britain 33960 41282 55056

USSR 15740 27006 51131

Japan 3453 7093 33482

France 10665 16869 19017

Australia 8588 10650 16481

Canada 5605 11546 18117

Mexico 5615 8732 16509

Spain 1434 8389 14162

Poland 4406 6592 10952

Brazil 6077 5629 14775

Czechoslovaki

a

8939 16022 19066

The output has been divided among approximately 100 breweries. The amount paid each year in

federal state and local taxes has been $9 per barrel. State taxes vary widely. The brewing

industry also has expenditures totaling well oversee and packing goods and for transportation ,

advertising and promotion.

Although more beer is produced in U.S.A, than in any other country. The U.S.A. ranks well

below west Germany, Luxembourg and other leading consumer nation in per capital

consumption. In 1975 per capital consumption in the U.S.A. were about 31 gallons(1117 liter’s)

annually. Patterns of consumption vary greatly within the U.S.A. and tend to be prohibition

remain in effect through local option laws.

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2.2MANUFACTURING PROCESS OF BEER

Beer is manufactured usually form barley, hops, yeast and sugar. The barley corn consist largely

of starch, which will not ferment and so it must first be converted into sugar, which ferments

readily. This brought about by malting the barely. During the malting process the barely is

soaked and then kept in a warm atmosphere so that it begins to germinate. As the barley

germinate, it produces an enzyme called “diastase” which will convert the starch into malt

sugar. Which in turn are then converted to alcohol by the yeast enzymes during the brewing.

After malting the barely is milled and then washed together with hot water and sugar. The

resulting liquidate , known as wrote is pumped into large copper vessels where it is boiled with

hops and sugar. The hops act as a flavoring and as preservative. Next, the spent hops are

separated from the boiled wort, which is cooled and put into the fermenting vessels. The yeast

is now added, and fermentation begins.

British beer begins fermentation at a temperature of about 15.6 degree c (60) degree and

fermentation takes form five to seven days. These beers are top fermented, that is the type of

used floats on the top of the liquid. The beer after fermentation, is drawknife into setting tanks

where any residual yeast is removed and then stored for a time ( from a few days to a few weeks,

depending on the type of beer) at around o degree c (32 degree) to allow it mature before it ils

rocked (filled) into bottles or cans.

Lager beers are bottom fermented, the yeast used setting at the bottom of the vessels during

fermentation, which begins at a temperature of from 6 degree c to 10 degree c and takes about 8

days. Lager bears are matured for up to 3 months at 0 degree c before rocking ( the same lager

is the word for store). During the maturation period a second fermentation takes which clears

the beer and improves its flavor and strength.

The term ‘ale’ originally applied to UN-hoped beers, but it is now widely used as a general name

for top fermented beer. The amount of hops used depends upon the type of beer being produced.

A strong to p-times the amount of hops used in malting a light lager.

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Another factor which varies according to the type of beer being produced in the malting process.

For example, the barely for a top fermented beer may be germinated for 11 days and then dried

at 107 degree c for 3 or 4 days, but barley for lager may only be for 7 or 8 days and then dried at

a temperatures of bout 55 degree c. When dark beer such as brown ales and stouts are to be

made, The barley is also high roasted. The root lets sprout form the barely during germination

shrivel and drop off when it is dried, and they are usually collected and sold for use in animal

foods.

1. Trends

Since the realization of beer in U.S. in 1933 there has been a complete switch form dark to light

beers form drought to bottled and canned beer. Drought beer accounted for more than 2/3 of all

beer sold in draught beer most of the increase in packaged beers has been in canned beer.

2. Types of beer:

In the U.S. the name “Beer” is generally given to a bright, pale Golden, light boiled , crispy fresh

beverage that is drunks, chilled some where between 44 degree f and 48 degree f (6.6 degree c

and 9 degree c ).

Bock beer

It is a special, full bodied brew, some what darker and sweeter than regular beer. It is brewed in

winter for use in the spring. Bock beer day, the day on which it is first sold is planned to herald

the arrival of spring. The bock beer season lasts about six weeks.

Malt liquor

It is a special kind of beer that varies considerably among brands. Some malk liquors are quite

pale, others are rather dark. Some are quite happy , others are only mildly so, their essential

characteristics is a higher alcoholic content than in other beers.

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Lager

It is generally understood to be a light bright and sparking beer, but today all malt beverages in

the U.S. are laggard.

Pilsner

It is a term after seen on beer labels around the world. The original and the pilner beer is the

pilsner urquell which has been brewed at platen in bohemia. Czechoslovakia, for some 800

years and has never been equaled.

Ale:

It is an aromatic, golden, fuller-bodied and bitter malt beverage with a slightly higher alcoholic

contents than beer , all ales top fermentation brews.

Stout

It is darker, fuller bodied ale yielding a rich, ceremony foam, strongly rousted most is used to

give a richer body. It is sweeter and less happy than regular ale.

Sake

A Japanese brew made form rice, is given a high alcoholic content by refermentation.

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3 Company profile

United Breweries Group

United Breweries Group or UB Group, based in Bangalore, is a conglomerate of different

companies with a major focus on the brewery (beer) and alcoholic beverages industry.

The company markets beer under the Kingfisher brand and has also launched Kingfisher

Airlines, an airline service in India, with international flights operating recently. United

Breweries is India's largest producer of beer with a market share of around 48% by volume.

It is owned by Vijay Mallya who had been a member of the Indian Parliament.

United Breweries now has greater than a 40% share of the Indian brewing market with 79

distilleries and bottling units across the world. Recently UB financed a takeover of the spirits

business of the rival Shaw-Wallace company giving it a majority share of India's spirits business.

The group owns the Mendocino Brewing Company in the United States.

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3.1History:-

The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took its

initial lessons in manufacturing beer from South Indian based British breweries. At the age of 29,

Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he replaced

R G N Price as the chairman of the company. United Breweries made its initial impact by

manufacturing bulk beer for the British troops, which was transported in huge barrels or

"Hogsheads". Kingfisher, the Group's most visible and profitable brand, made a modest entry in

the sixties. During the 1950's and 60's, the company expanded greatly by acquiring other

breweries. First was the addition of McDowell as one of the Group subsidiaries, a move which

helped United Breweries to extend its portfolio to wines and spirits business. Strategically, the

Group moved into agro-based industries and medicines when Mallya acquired Kissan Products

and formed a long-term relationship with Hoechst AG of Germany to create the Indian

pharmaceutical company now known as Aventis Pharma, the Indian subsidiary of the global

Pharma major Sanofi-Aventis.

The Logo:-

The Pegasus, which is the symbol of the United Breweries, first found its place as the Group

logo in 1940. Then, the Helladic horse – associated with beer and nectar in Greek mythology

carried a beer cask between the wings, ostensibly because beer formed the core operations of the

Group. Later, the beer cask was removed to represent the Group’s multifaceted operations. Now,

it is just the Pegasus.

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Present History:-

Sales of the United Spirits Ltd. are expected to exceed 60 million cases during the fiscal year

2005-06 making the Group the third largest manufacturer of Spirits products in the world. In

addition, USL is one of only three in the world to own seven millionaire brands and at least five

brands rated by Drinks International, UK, to be amongst the ten fastest growing brands in the

world in their respective categories. The market share of the Spirits Division in India is currently

60% and exports to the Middle East, Africa and Asian countries are growing rapidly. The UB

Group’s Brewing Entity - called United Breweries Limited (UBL) - has also assumed undisputed

market leadership with a national market share in excess of 50%. Through a process of

aggressive acquisition and market penetration, The UB Group today controls 60% of the total

manufacturing capacity for Beer in India. The flagship brand, Kingfisher is now sold in over 52

countries worldwide having received many accolades for its quality. With plans to becoming a

global player United Spirits Ltd. (USL), the flagship of the UB group, purchased the Scottish

distiller Whyte and Mackay in May 2007 for £595 million (Rs. 4,800 crore).This would bring the

brands of W&M like The Dalmore, Isle of Jura, Glayva, Fetter cairn, Vladivar Vodka, and

Whyte & Mackay Scotch under its portfolio. The UB group is also into manufacture of

Fertilizers. The group company Mangalore Chemicals and Fertilizers Limited (MCF) has factory

at Panambur in Dakshina Kannada district of Karnataka.

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.

Heineken Group, holds 37.5% equity shares in United Breweries Ltd.

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Slogan

Kingfisher Beer is sometimes promoted as The King of Good Times.

3.2 Types of kingfisher beer

Kingfisher comes in the following varieties

Kingfisher Premium

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

in the country. Today, Kingfisher Strong is India’s largest selling beer brand. It is available in 4

SKUs- 650ml & 330ml bottles and 500ml & 330 ml cans.

Kingfisher Strong Fresh: Kingfisher Strong Fresh is the first ever strong draught beer available

in the Indian market. It is packaged in a 500 ml cans.

Kingfisher Draught: It is packaged in a 500 ml cans.

Kingfisher Ultra: It was launched in Mumbai on 18th 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 brand’s core target group is the young male population. Kingfisher Blue

tries to occupy an imagery of adventure sports. It contains fewer than 6% alcohol. Kingfisher

Blue is packaged in metallized blue colour 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, Kolkatta and will soon be a

national brand.

Kingfisher Red: It is marketed as India’s 1st ‘ALL SEASON’ beer.

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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 rosé.

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

and Kolkatta.

The World's No.1 Selling Indian Beer!

Kingfisher is enjoyed in over 55 countries world wide. From the USA

in the West, to Japan in the East. And from Norway in the North to New Zealand way

down under!

Kingfisher Premium Lager is brewed using only the finest malted barley and hops.

And this makes it the thrilling international taste sensation that is loved by millions the

world over.

Kingfisher Light Lager shares the honours with Kingfisher Premium, while being low

in carbs and low in calories it still is a unique drinking experience that does credit to this

rich heritage.

This international award winning lager has a regal heritage that dates back almost 150

years. From the days of the British Raj in India when skilled European Brew masters

catered to the needs of the Raj and their troops, making quality beer in compact

breweries. To now being brewed in State of-the-Art breweries and catering to an

eclectic, multi-ethnic group of people.

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The Brand

A Heritage of Excellence!

The inspiration for the choice of the brand name was certainly influenced by the great

numbers of these beautiful and strikingly colored birds which abound in India where over 70

different varieties/species of kingfisher can be found - more than in any other country or

continent in the world. Kingfishers are particularly prevalent in Bangalore, the garden city of

India, which is also headquarters to The United Breweries Group, brand owners of Kingfisher

Premium Lager.

Kingfisher, the bird is known for its keen instinct, and perfect aim. It zeros on its target with

unfaltering focus. It is a very vibrantly coloured bird. All of its colours represent energy,

youthfulness, enthusiasm, freedom with a touch of formality and discipline. No wonder, that this

bird with an eye for right focus and an aim for succeeding in its attempt became the mascot for

The Kingfisher brand of Beer from the stables of the UB group.

Kingfisher's award winning flavour and consistent excellence of quality has made Kingfisher one

of the largest selling beer brands in the world today.

The new look designed by the UK based packaging specialists, Claessens, is representative of the

brand in full flight, in a supportive environment. It reflects the energy, youthfullness and

freedom that are characteristic of the brand's target consumer and reiterates its contemporary

positioning.

Kingfisher stands for excitement, youth and camaraderie! "It's flying" and the mood is upbeat –

both within the Company and among consumers !

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Heritage

Celebrating over 150 Years of Brewing Excellence!

Kingfisher's heritage started with five small breweries in South India, the oldest of which,

Castle Breweries dated back to 1857. Then in 1915, Thomas Leishman, a Scotsman, combined

these breweries to form United Breweries Ltd.

The popularity of their beers soon spread and within a short time, bullock carts carrying huge

'hogsheads' of Kingfisher became a familiar sight in Madras, the Nilgiris and Bangalore, the

headquarters of United Breweries Ltd. Almost immediately, the brew from UB became a

favourite, especially with the British troops.

So began the history of Beer in India...

Kingfisher, the flagship brand of United Breweries and the best-selling Indian Lager worldwide,

is now available in over 55 countries and is exported from the UK to 19 Continental European

Markets and Canada and from India to major markets in the Middle East, South East Asia, the

Far East and Australasia, and it is also served on board 10 international airlines.

Kingfisher was first imported to the UK and USA markets in the years 1982 and 1983

respectively in the traditional large 650ml bottles. It rapidly gained a foothold in the fast

expanding Indian Restaurant markets. In the UK within three years, demand for the brand was so

great that production had to be switched to England. Shepherd Neame, Britain's oldest brewer,

was selected to brew Kingfisher under licence and to the Indian specification at their brewery in

Faversham, Kent. Similarly, demand to launch Kingfisher in the mainstream markets in the USA

was so compelling that production had to be switched under license to the state-of-the-art

breweries of Mendocino Brewing Company, internationally renowned as a brewer of full-bodied

traditional beers and as a pioneer in the American Craft Brewing Renaissance.

Brewing to perfection and a commitment to quality is our obsession and a rich heritage!

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3.4 SWOT ANALYSIS:

Strengths

Market Leader

Strong Brand Image

Global Presence

Aggressive Advertising

Quality & Innovation

Weakness

Long Developmental Cycle

Relative Static Market

Expensive Brand

Opportunity

Demographic Changes

Changes Societal

Attitudes

Consumer Brand

Preference

Demand for High Quality

Threats

New Competitors

Cloning of Successful Brands

Increasing Buyer Power

Growth in Substitutes

Economic Downturn

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3.5Market share-

Analysis: IT has around 48% market share in the country.

3.6 Marketing Mix Analysis:

Kingfisher History:

Parent company of Kingfisher, United breweries was established in 1857 with the name Castle

breweries. It was renamed to United Breweries in 1915 and started manufacturing beer from the

year 1944 under the label Exports Beer. UB group started exporting beer to Middle-East from

1974 and in the year 1978 it launched Kingfisher brand.

Market Position:

It is the largest selling brand in India and commands more than 30% share in the beer market. In

2005-2006 it recorded 28% growth.

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Target markets:

Kingfisher has two different products for different market segments.

Kingfisher Mild (Alcohol<4%) Kingfisher Mild (Alcohol<4%)

•Youth who drink for fun

•First-time drinkers who drink for experience

•Urban women who prefer to drink light

•Those who want to light beer to something stronger

•Regular drinkers who prefer stronger flavour

3.7Product

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.

Hangover due to heavy consumption is very mild.

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.

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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 home

delivered. 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 ‘Food world’ 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. i.e.

650ml at Rs 85/- and 330ml Rs 45/-

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.

29

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.

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.

3.7Brand repositioning of Indian brand in presence of international brand:

30

The term “positioning” is widely used within the marketing and advertising communities today.

Positioning is often used nowadays as a broad synonym for marketing strategy. Positioning

should be thought of as an element of strategy, a component of strategy, not as the strategy itself.

The term “positioning” is, and should be, intimately connected to the concept of “target market.”

That is, a brand’s positioning defines the target audience. The correct positioning of a brand is

basic and fundamental to its success; an incorrect or suboptimal positioning can doom a brand to

underperformance or failure. Kingfisher, since its origin proved to be the 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 2003-04 Kingfisher again repositioned itself by changing the logo.

PREVIOUS LOGO CURRENT LOGO

Instead of the sitting kingfisher bird, the picture of a flying kingfisher was used during 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 stronger 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

31

Fosters, Kingfisher repositioned itself into a lifestyle brand adopting jingles like ‘Oola la le lo’ and tagline ‘King of good times’. Kingfisher tried to position itself as a brand for the successful and professional individuals who are always ready to take a break, have a party or just chill out. This positioning was promoted using Indian cricketers such as Ajay Jadeja and Sourav Ganguly, West Indies cricket team (At that time Kingfisher was the official sponsor of WI cricket team) and various other means. The notable thing during this repositioning process is that during this process Kingfisher kept the original message of the brand intact while adopting strategies (including advertising, logo designing, etc.) to communicate better with the consumers and to create a stronger emotional bond with them. The strategies of Kingfisher paid off well and as a result Kingfisher maintained the leadership position and added more dimensions into the brand making it stronger than before.

Brand Extension:

Kingfisher is one of the most recognized brand in India and SAB Miller’s foster’s has also

positioned itself as a unique brand so extension of both brands is possible without much hassle.

Kingfisher:

Kingfisher is widely known among large number of consumers and its brand presence increased

after diversification into airlines business. Kingfisher brand can be extended in following ways-

Line Extension:

Ultra Premium Beer: Though Kingfisher has a huge presence in both light and strong beer

segment but from the beginning it followed strategic pricing policy and that made the brand

very popular. But with the increasing income level of the Indian youth and the entry of

international spirit majors like Carlsberg, Budweiser, etc. Kingfisher should introduce a high-

priced premium beer that would compete against these brands effectively. In this way the

company could extend its customer base and their strategy would also help the company to tap

the high income aspiration group and since company could apply ‘skimming the cream’ policy

for this segment, it could be assumed that revenue generation would be high enough to

maintain profitability. This move may also help the company if it wants to transform itself into a

legendary brand not only in India but also across the globe.

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Category extension:

Energy drinks: Kingfisher always maintained itself as a lifestyle brand and associated the brand

image with the youth. With the increasing per-capita income and westernisation of the Indian

society, people are getting ready to spend more and more. On the other hand they are more

conscious about health issues. Energy drinks are very popular in Western countries and some of

them also entered into the Indian market but they failed to make an impact. If a company like

Kingfisher with huge brand popularity and strong self and distribution network introduce

energy drinks it could be a success. It will also go hand in hand with the current image of the

brand.

Film production and distribution: Every year Indian film industry release a lot of movies and it

is the largest film industry in the world considering the number of release per year. Still in India

same production and distribution has not reached professional level. Only a few companies at

present do things in a methodical way. But international production majors are entering in the

Indian cinema space and Indian multinationals are also taking interest in this field. Kingfisher as

a lifestyle brand always maintained a close relationship with the film fraternity and also has a

presence in the television space in a joint venture with NDTV. So it would be a natural extension

for the brand to start a movie and television production house. With this move Kingfisher

would bring in its corporate expertise and financial muscle. This will also help the brand to

increase the brand visibility. And just like Adlabs Kingfisher will have the opportunity to create

its own multiplex chain and it will also help the current lifestyle apparels and accessories

business a lot.

Apparels and accessories retailing: Even though Kingfisher is already present in the apparel and

accessories space but its presence is very limited. According to industry estimates organised

retailing is the next big thing. In this scenario Kingfisher could easily use its huge brand

presence and popularity by investing more into the apparel and accessories retailing. In this way

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Kingfisher could transform itself into a complete lifestyle brand and that would open new

horizons for the brand.

3.8Kingfisher’s overseas promotion drives -

1. Abu-Dhabi to Goa : A promotion at all the six stores of Spinney’s, Abu Dhabi took place

where customers were entitled to a raffle coupon to win an all expense paid holiday to Goa on

purchase of any case of Kingfisher or Kingfisher Strong. Two lucky winners were to fly to Goa,

for an exclusive Taj resort, sightseeing and excursion including visit to the production unit and

lots of complimentary Kingfisher to ensure that happy times stay with our valued customers

forever.

2. Tie up with Sony: Kingfisher had an exclusive deal with Sony consumer electronics raffle

and instant scratch and win promotion wherein the customers on purchase of any case of

Kingfisher Lager or Kingfisher Strong stood a chance to win by way of instant scratch and win

rewards free Kingfisher Lager / Kingfisher Strong goodies like T-shirts, Caps, Desktop

Calendars, free bottles.

3. Alliance with Bollywood: Keeping in mind the popularity of Hindi movies outside India

Kingfisher was a part of the souvenir programme for the Shah Rukh Khan show in Hong Kong

on 1 December 2004 as a part of Diwali celebrations in Hong Kong. With other high profile stars

like Preity Zinta, Saif Ali Khan, Zaid Khan, etc for the event.

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4. Test market in South Africa : It received very positive test market results for Kingfisher

Premium Lager Beer and Kingfisher Strong Premium Beer in 330 ml cans for the African

markets.

5. Launching new products in the market: A trial for 2 cases of Taj Mahal 330 ml bottles in

June 2004 for Australia generated a lot of interest and enthusiasm for the country of the origin

brand, which spoke of eternal love and passion. With successive orders for the past 3 months,

Taj Mahal Premium Lager Beer is now available in 6 packs: the most preferred pack size down

under. 6. New merchandizing schemes started: Keeping in tune with the times and constantly

updating our merchandise portfolio, Kingfisher offered its customers practical and useful

merchandise, which are of very high quality and designed to meet the high expectations, which

include premium travel bags, sling bags, waist pouches and foldable shopping bags,

windcheaters and luggage tags, premium embroidered aprons and Polo T-Shirts.

3.9Surrogate Marketing in India

Surrogate Marketing is a requirement of all alcohol/cigarette brands in countries where it is

prohibited by law to directly advertise addictive products such as alcoholic beverages and

cigarettes in mass media. It is a strategy which refers to the indirect way in which companies

advertise their products, and use minor loopholes in the law to still achieve the basic marketing

objectives of building brands, creating customer associations and promoting brands. They do this

by associating the same brand names to other ‘acceptable’ products, ranging from sodas to music

CDs !!

India too falls under the category of countries who have prohibited advertising of alcoholic

beverages, but still companies and brands make their own efforts to do the same

UB Group

United Breweries is the group which has really exploded the restrictions, expanding surrogate

methods of branding in all directions imaginable. Let’s list down where all they are present:

a) Kingfisher

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Kingfisher has the most diverse set of surrogates floating around: a) Kingfisher Airlines (even

though it is a full fledged business with a monetary interest); b) Kingfisher Calender; c)

Kingfisher bird as a part of the logo of NDTV Good Times (co-branding) d) shows on ‘making

of the calendar‘ on NDTV Good Times etc. Vijay Mallya himself is a popular brand

ambassador now for the company.

b) Bagpiper

A host of ads on Bagpiper soda, featuring Akshay Kumar and a few others, with the now-famous

tagline: ‘khoob jamega rang jab mil baithenge 3 yaar – aap, main aur bagpiper‘ – again,

promoting Bagpiper soda.

c) Royal Challenge:

A major property in the form of Royal Challengers Bangalore playing in IPL.

d) Whyte and Mackay: nothing notable apart from being present on the RCB IPL jerseys

e) White Mischief: an indirect promotion through the White Mischief holidays, and also through

the RCB cheerleaders

So the above was a snapshot on what all the liquor companies are doing in India, trying to spread

awareness about their brands through indirect means and mechanisms. Of these, some are full

fledged business interests, such as Kingfisher airlines, RCB in IPL, White Mischief Holidays etc

(this seems to be Mallya’s promotion strategy)

Surrogate marketing is definitely here to stay, because the prohibition is unlikely to be removed

any time soon, and alcohol companies would likely never cease to exist. And as long as both

business interests and restrictions remain, surrogate marketing will thrive.

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4 RESEARCH METHODOLOGY

Marketing Research is a systematic analysis of the marketing problems. Model building and fact

finding for the purpose of improved decision making and control in the marketing of goods and

services.

Research methodology may be understood as a “Science of studying how research is done

scientifically’.

Here, we study the various steps that are generally adopted by a researcher in studying his

research problems along with the logic them.

To plan a research project, it is necessary to anticipate all the steps, which must be undertaken it

the project is to be completed successfully. These steps are referred collectively as “Research

Procedure”. It consists of a number of inter-related frequency overlapping activities.

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4.1 FORMULATION OF THE HYPOTHESIS

1. Null Hypothesis

“Proportions of satisfied customers of kingfisher beer and other beer are same”.

2. Alternative Hypothesis

“Proportions of satisfied customers of kingfisher beer are more than that the other beers”.

4.2 SOURCES OF DATA

The task of data collection begins after to research problems has been defined. Normally, the

sources of data are classified in to Primary data & Secondary data.

1. Primary Data

Primary data are collected directly from the field. They are the first hand data.

Since primary data are collected specially for a particular survey. Extra care is taken to collect all

the required data with the required degree of accuracy. Primary data are reliable, complete and

fresh.

Primary data are costly. Their collection consumer’s more time and labor than the collection of

secondary data.

Techniques of collecting primary data

a. Direct personal interview.

b. Indirect personal interview.

c. Information through correspondence.

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d. Method of questionnaire.

e. Method of schedule.

f. Telephone interview method.

2. Secondary data

Secondary data are the data, which the investigator borrows from others who have collected the

data for some other purpose. Since the data is collected for some other purpose, it may not

contain all the required information. They are not as dependable as primary data. The collection

of secondary data, which consumers less fund, time and labor than the collection of primary data.

Sources of secondary data

1. Published sources

a. Reports and publications of international bodies.

b. Reports and publications of government departments.

c. Publication of banks, research institutions, Administrative officers,etc.

d. Magazines and Newspapers.

2.Unpublished sources

a. Records maintained at Government offices and municipal offices.

b. Records maintained at research institutions and research scholars.

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4.3 TOOLS FOR DATA COLLECTION

For this project report, Questionnaire method was adapted to analyze the consumer’s preference/

behaviors and personal interview were conducted together information from the consumers/

clients and company organization.

The primary data was collected by questionnaire format method and personal interview method.

It helps to display in the form of tables, graphical charts etc.

The secondary data were collected from books magazines

4.4 DATA PROCESSING AND ANALYSIS PLANS

The data was processed and analyzed on the basis of the responses given by the customers of the

kingfisher beer in the mail questionnaire.

The responses were first classified on the basis of similarity of views and then tabulated in two

different groups. Further, analysis was done on the basis of the tabulated data. Suitable pie charts

and bar charts were shown to represent the data graphically.

The information received through MAIL QUESTIONNAIRE was in an unbiased form, so office

editing was carried out, many of the respondents did not stick to the questionnaire pattern and

gave irrelevant, inconsistent, illegal or incomplete answers, which had to be edited.

COADING was used through which numbers were assigned to the answer so as to prepare them

for tabulation. Percentages were used in comparing two or more series of data and also to

describe the relationship.

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5 - Data analysis & Findings

5.1Brand Preference

Selective demand for a company's brand rather than a product and the degree to which

consumers prefer one brand over another is called brand preference. In an attempt to build brand

preference advertising, the advertising must persuade a target audience to consider the

advantages of a brand, often by building its reputation as a long-established and trusted name in

the industry. If the advertising is successful, the target customer will choose the brand over other

brands in any category.

Preference of having a beer in

46

26

20

8

Preference

BottlecanDesigner GlassAny other Suggestion

Analysis: The study found that 46%of respondent have shown interest in consuming beer in

bottle while 26% in can, 20% in designer glass.

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5.2 Brand Recognition

Brand Recognition is the extent to which a brand is recognized for stated brand attributes or

communications.

In some cases brand recognition is defined as aided recall - and as a subset of brand recall. In the

case, brand recognition is the extent to which a brand name is recognized when prompted with

the actual name.

50

30

20

Association of kingfisher

Pic 1 pic 2 pic 3

Pic 1- kingfisher

Pic 2 –fosters

Pic 3-budweiser

Analysis: pic 1 denotes kingfisher as highly recognized brands from other brands

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5.3 Report Analysis

4.3.1 How often do you consume beer?

40

24

20

124

Consumption

DailyOnce a weekTwice a weekonce in monthonce in six month

Analysis: The study found that 40% respondents likes to consume beer everyday

24% once aweek, 20% twice aweek,12% once in month, 4% once in six month,

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5.3.2 Preferred brand in Beer

30

2010

16

14

5

Preferred Brand

KinghfisherFostersCarlsbergBudweiserHaywards Others

Analysis: The study found that 30% respondents prefers Kingfisher Brand, 20% Foster,16%

Budweiser, 14% Haywards, 10% Carlsberg,

44

.5.3.3 What aspects do you look at while selecting beer?

30

1624

20

10

Aspect while selecting a beer

Brand name Quantitytaste & FlavourValue For moneyAny Other

Analysis: The study found that 30% respondents go by brand name while selecting a beer.24%

respondents go by taste & flavor,16% by quantity,20% value for money.

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5.3.4 Money spend on a one time purchase

32

2016

12

20

Money spend on a one time purchase

200 to 250150 to 200100 to 15050 to 100below 50

Analysis: The study found that 32% respondents likes to spend around 200-250 on one time

purchase. 20% respondents likes to spend around 100-150

46

5.3.5Another brand if the price of Kingfisher beer increases

10

20

40

30

If Increase in price of Kingfisher Beer

Definitly yesProbably yesDefinitly noProbablyNo

Analysis: The study found that 10% respondents will switch to other brand if price of kingfisher

increases.

47

5.3.6 Location of Purchase

50

14

20

16

Location of Beer purchase

Wine StoreClubbarpub

Analysis: The study found that 50% respondents purchase beer from winestore,20% from

bar,16% from pub ,14% from club.

48

5.3.7 Consumption of Beer in an occasion

24

16

40

20

In a partySocial occasionWith Friends Formal party

Analysis: The study found that 24% respondents likes to enjoy beer in a party,40% with

friends.24% in a party.20% formal party , 16% in social occasion

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5.3.8 Preference of having a beer in

46

26

20

8

Preference

BottlecanDesigner GlassAny other Suggestion

Analysis: The study found that 23% respondents prefer drinking beer by bottles ,26% in

can,29% in designer glass.

50

5.3.9 Comparison on the basis of colour, taste and Preference

36

24

14

12

14

Comparison

Kingfisher FostersCarlsbergBudweiser

Analysis: The study found that 36% respondents prefer kingfisher as per of colour, taste &

preference.24%foster, 14% Carlsberg.14% Budweiser,

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5.3.10 Kingfisher as a brand, how would you rate it? Excellent Good Satisfactory Not Satisfactory

24

40

20

16

Rating For brand

ExcellentGood SatisfactoryNot Satisfactory

Analysis: The study found that 40% respondents rate kingfisher brand as good,24% as

excellent, 20% satisfactory.

.

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5.3.11 Would you recommend Kingfisher beer for a tea-totler? Yes No

70

30

Recommendation

YesNo

Analysis: The study found that 70% respondents will recommend to a tea -totler

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6 Pestle analysis of Indian beer industry

PEST analysis from the view point of industry following some preliminary research and

discussions with key stakeholders in order to:

Provide a framework for understanding the macro environment in which the drinks

industry operates

Provide a means of identifying key external trends to feed into decision making

Identify key areas of relevance to policy making

Provide a distillation of key themes and considerations

POLITICAL

India is the biggest democracy in the World. The government type is federal republic.

Concern about binge drinking and anti-social behavior

Government use increased demand for alcohol as a way of boosting indirect tax

revenues.

No harmonisation across the EU which means cross border shopping is common

Duty Free trading abolished in the EU in 1999 with little affect on the drinks industry

International consolidation had led the EU to pay attention to cross-border mergers as

they influence domestic markets

Tight social policies on alcohol consumption

54

ECONOMIC

The economic factors in India are improving continuously. The GDP (Purchasing Power Parity)

is estimated at 2.965 trillion. There is a continuous growth in per capita income; India’s per

capita income is expected to reach 1000 dollars by the end of 20010-11 This will lead to higher

buying power in the Hands of the Indian consumers.

Rising consumption has been linked to an increase in the relative affordability of alcohol, and in

particular increases in consumer's disposable incomes

Price fluctuation can be dictated by global commodity markets which gives multi-

nationals an advantage

Increasing price differential between on and off trade

Asian financial crisis

SOCIO-CULTURAL

There has also been a continuous increase in the consumption of beer in India. With an increase

in the purchasing power the Indian consumer which preferred local hard liquor which is far

cheaper is now able to get a taste of the relatively expensive beer market. The social trend toward

beer consumption is changing and India has seen an increase of 90% beer consumption from the

year 2002- 2007. This increase is far greater than the increase in the BRIC nations of Brazil (20

per cent), Russia (50 per cent) and China (almost 60 per cent). Thus this shows a positive trend

for beer industries in India.

Drinking is built into the social fabric

Recent upsurge in café culture

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Increase in eating out and in holidaying overseas - impact on consumption of wine and

bottled water

Increases in under age drinking

Health of consumers

Lifestyle changes:emerging wine culture in key markets

Growing health conscious:diet/light beers & mixeries

Trend toward premium & speciality products

TECHNOLOGICAL

The Indian beer Industry is heating up with a lot of foreign players entering the Indian market.

The technological knowhow and expertise will also enter the Indian market with an increase in

competition. For example beer brewing technology major Ziemann has entered India and has set

up manufacturing plant in India. Ziemann Group, based in Ludwigsburg near Stuttgart in

Germany, has founded Ziemann India. It will start production in 2008. This will help bring in

technological knowhow and increase the production of beer. SABMiller has just placed an order

for the design and construction of two turnkey plants in India to Ziemann. The new plants are

planned for Sonipat in Haryana and for another location near Bangalore. Both breweries will

have an annual capacity of 1 milllion hectoliters each in the beginning and might be extended

later. Thus with European technology entering the Indian beer market increased production and

lowering cost of production could play a major role in the Indian beer market

packaging

bottling

influence of the Internet and eCommerce

introduction of global medias

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LEGAL

Licensing Act 2003

Private Security Industries Act 2003

Beer Orders and other changes to Competition Law in the 1990s

ENVIRONMENTAL

Increasingly focus on the sustainability agenda - and corporate social responsibility

6.1The OLI Model:

Ownership: The Indian market provides good ownership opportunities for Inbev India

International private limited. The Government policies on FDI are relaxing and companies like

Carlsberg has also invested in breweries in India. Also cost of manufacturing and brewing beer

in India is much cheaper. The cost of raw material and labor in India is cheap thus giving Inbev

India a good chance of reducing cost of production. The fact that European companies are setting

up plants in India to manufacture brewing technology means that in the future Inbev could have

ownership of these technologies at a much cheaper rate as compared to when bought in other

markets.

Location: There are a lot of location specific advantages for Inbev India International Private

Limited. The Indian beer Industry is all set to heat up with the Indian market’s compound annual

growth rate (CAGR) of 6.7% from 2002 to 2006. The beer market volume is set to rise to 1155

million liters by 2011 an increase of 37.4% from 2006. North India is enjoying beer like never

57

before. During the first quarter of 2006, nearly 5 million cases of beer were sold in Punjab and

Haryana as against 600,000 cases in Q1 of 2005-06. This was the case because the government

has revised its policy in these states and there is an improvement in the distribution channels in

these areas. India is also expected to become the second largest beer market in Asia by 2020 just

after China. Thus all these factors along with India having neighboring countries like Nepal and

Sri Lanka, where beer could be exported through India gives Inbev India a good Location

advantage.

Internalization: Inbev India International Private Limited would want to have internalization

because over a period of time it would lose out on a competitive edge in the region if it just sticks

to exporting and not FDI investment. As other firms would come in and develop their

infrastructure and distribution channel, thus able to produce at with low costs. India also is a

huge potential market as mentioned earlier and Inbev would not want to lose out on the

opportunity it can provide. Also since there is a lot of red tapism and contractual problems while

exporting etc. It would be better to be in India rather than export.

7.CORPORATE SOCIAL RESPONSIBILITY

The UB Group is known as a large USD 2.2 billion corporate conglomerate with business

interests ranging from spirits, beer, engineering, fertilizers and civil aviation to pharmaceuticals.

Few, however, are aware that UB is a silent crusader in the field of community services in its

own committed way. The Group has over the years emerged as a socially responsible corporate

citizen.

Its keen pursuit of activities in the field of Life Sciences has led to the setting up of a super

specialty hospital - Mallya Hospital at Bangalore. In June 1991, the Mallya Hospital was

inaugurated in the central business district of Bangalore in a multi-storied complex with

excellent medical equipment and best medical consultants. It was initially a 150-bed hospital,

58

which has grown into a 450-bed hospital of which approximately 50 beds are for critical care.

The hospital boasts of multi-specialty disciplines and is the first such hospital in India to be

awarded the ISO 9002 certification. Subsidized health care is given to the under privileged class

of society by providing a general ward which is reserved for them.

The 24 hour Casualty and Trauma Care services are geared to handle all kinds of emergencies,

ably supported by state-of-the-art, imported high-tech ambulances. These ambulances are fully

equipped with Paramedical staff and are literally CCU's on wheel.

The Vittal Mallya Scientific Research Foundation was set up in December 1987, in memory of

the Group’s Founder, late Mr. Vittal Mallya. It has been actively involved with a mission called

“Science for Humanity” and is a non-profit organization participating with the Government in a

Public Private Partnership on various projects.

In the field of education, the Group has assisted in the setting up of the Mallya AditiInternational

School where the best possible education is imparted. Mallya Aditi International Schoolislocated

on a sprawling five-acre campus in the northern outskirts of Bangalore. It boasts of buildings of

award-winning architectural standard, which allows students to interact with the sky, the earth

and plant life as they move from room to room.

The beautification and entire maintenance of Vittal Mallya road has been the responsibility of the

Group for over 15 years. Plans are afoot to further beautify the road

The Group’s commitment to the society is not restricted only to the city of Bangalore, but

outside of Karnataka as well. It has also provided an extensive drinking water scheme in

Srinivasapura village and has been actively involved in installation of Rain Water Harvesting

structures at their Palakkad brewery thereby providing drinking water to Ganeshpuram village,

Palakkad. A similar project was carried out at the Brewery in Ponda, Goa, which not only

benefited the Brewery but also the village, whose well-water levels rose to help tide over their

water problems during the dry months.

59

Besides, there is an ongoing commitment to society by way of sponsorships of various events

which are organized by charitable bodies. The Group has also been responsible for providing bus

shelters in the city and water tankers to villages around Bangalore facing severe water shortages

duringsummer.

The UB Group has rebuilt and renovated the Cubbon Park Police Station, exactly a century after

it was originally built as a guard room for the statue of Queen Victoria. Great care has been taken

to maintain the colonial style of this quaint architectural heritage building. This is another unique

Public Private Partnership which the Group is proud to be associated with. The Group will

continue its commitment to society for the betterment of the community.

Vittal Mallya Scientific Research Foundation (VMSRF)

RESEARCHING WELLNESS OF LIFE

Established (1987), in memory of the Group's illustrious founder Mr. Vittal Mallya, its prime

objective has been laid to gain both newer and novel technologies that will have substantial

application in industry and health care.

Ably supported by The UB Group, it has established collaborative links with some reputed

research and academic institutions within the country and abroad. The Foundation is led by a

modest group of dedicated scientists trained in reputed institutions in India and abroad.

Today, it is recognized by the Departments of Scientific & Industrial Research (DSIR), Dept. of

Biotechnology (DBT), Council for Scientific and Industrial Research (CSIR) and the Ministry of

Finance, Govt. of India, and has an incredible list of credits to its name.

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8FINDINGS & SUGGESTION

No 1 selling brand in all the hotels of navimumbai

87% of the respondents know about Kingfisher Beer.It shows high awareness about

Kingfisher Brand.

29% heard it through promotions in hotels which shows that the promotions that Kingfisher

Ultra have used, seems to be working.

Kingfisher Ultra is becoming popular by positive word of mouth, the fact that 44% of the

respondents have heard about it through friends just proves the point.

63% of people surveyed have actually consumed Kingfisher Ultra. This figure is reasonably

high for a beer which is relatively new to the market.

There is still significant amount of people who have not tried Kingfisher . There is an

opportunity for the company to increase market share.

85% of the people have rated it good and above only 15% are not satisfied with the product.

This reinforces the fact that majority of the people are highly satisfied with Kingfisher beer.

Most people likethe way Kingfisher Ultra, kingfisher premium tastes. People also feel that

Kingfisher Ultra is not value for money, and it is priced high. The Beer is also popular

because it is different from its competitors

Consumption of Kingfisher beers is high in restaurants compared to other outlets.

.

Price is a limiting factor for the customers. If Kingfisher beer sells at a cheaper price,

consumers will be willing to buy in larger quantity. Even promotional offers will help in

boosting the sales.

Kingfisher Strong and Kingfisher Premium is the most preferred brand of beer which is

preferred by 57% of the respondents. Brands like Carlsberg and Tuborg, which is the main

competitor for Kingfisher Ultra does not have too many takers.

Consumption of Beer in general is quite high. 40% of the respondents consume beer more

than three times a month. Hence high sales of Beer

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Almost half of the respondents feel Kingfisher Ultra is expensive, so they are not keen on

buying. This shows that many consumers are price sensitive and are not ready to pay a

premium for a Super Premium Beer. Availability of the beer is also an issue, as it is not

easily available.

It can be seen that taste and price seems to be the major attributes that the consumer looks at

when he purchases Beer. Brand name also influences his decision to buy to a certain extent.

People who generally drink either Carlsberg or Tuborg prefer international brand and also

they don’t like to change the brand of beer they are drinking currently.

Most of the retailers are not satisfied with the availability of kingfisher& it is not delivered

on time.

Retailers are looking for a scheme 2+1 (happy hrs) and some discount, additional gifts from

kingfisher

Promotion activity in banquets, restaurants, lounges and beer festival are adequately seen.

SUGGESTIONS

Tying up with more number of large restautants , hypermarkets for retailing Kingfisher beer.

As of now Kingfisher Ultra, blue is not available widely. It should be made available in more

number of outlets

More promotional activities, inorder to increase the awareness.

Since Kingfisher Ultra is a mild beer it can be targeted at the women consumer.

Indian market is price sensitive, Kingfisher Ultra, kingfisher premium would benefit from

reducing the price.

UBL should not introduce any new brand of beer. They should concentrate on the existing

brand and should also work on building its image.

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Company can improve sales by selling it in more number of restaurants, it is a strategy which

is used by the soft drinks manufacturers. People will probably buy beer with food.

They should start selling Kingfisher in 330ml or 500ml cans.

The consumption of Super Premium beer is higher in night club, so it should be made

available in more number of night club.

They can come up with a low calorie beer and can call it Kingfisher Ultra Lite.

Being a competitor to Carlsberg and Tuborg, budweiser , corona the company has to be more

aggressive in their marketing strategies, they can come up with sales promotion.

They should maintain punctuality by delivering kingfisher beer in hotels, restaurants /

lounges on time

They can come up with a extreme mild beer segment (less hangover) for targeting corporate

executives

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CONCLUSIONS

India as a nation is making economic progress. There are lots of people who are indulging in

luxurious life, they prefer to buy branded products and do not mind paying a premium for

quality. But for the majority price is a constraint, especially for the middle class population. They

would only purchase items that they feel is value for money. So if they feel that they don’t get

enough benefit from the product then they avoid buying it.

As far as buying behavior of people with respect to beer is also the same. The highest selling

beer in India is kingfisher strong and premium which is priced at Rs70 for 650ml bottle. The

sales of Super Premium beer like kingfisher Ultra is relatively low, which is priced at Rs100 for

650ml bottle. Even though the Super premium beer is of high quality and has been appreciated

by the consumer, it has not resulted in as high sales as compared to the premium category beer.

This just shows that it will still take some time for the Indian mindset to change where more

number of people will be willing to spend on quality without thinking much about the cost. But

we can already see a reasonable change in the consumer mindset, from say 10 years back.

What I feel is that even though price is a barrier at present, but things will get better in the future

and super premium beer would take over the market from the current 5% to about 25% in the

near future. Even though there is stiff competition from the foreign brands like Carlsberg and

tuborg , Budweiser , corona. there would not be any major threat to the kingfisher brand. The

brand is still the favorite among the Indian consumer and it will grow from strength to strength.

.

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Research Objective is to identify the preference of Kingfisher Beer over other

beers

Survey done on bases of following parameters:

• Sample size- 50

• Age: 25-35 years

Sex: male

Area: restaurants &bar/ lounges in navi mumbai

• Region: Urban population

• Occupation: White-collar service/professional

• Social class: Middle and upwards

• Family life cycle: Youth

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ANNEXURE

1. Name_____________ 2. Age__________ 3. Occupation________________

4. sex – male / female __________ 5. Occupation- services/ buisness/students /others

6. Annual income- upto 3,00000 / 3k-8k / 8k-15k / above 15k

7. Do you consume beer

Yes

No

8.How often do you consume beer?

Daily

Once in a week

Twice in a week

Once in month

Once in six months

9.Which is the preferred brand in BEER?

Kingfisher

Fosters

Carlsberg

Budweiser

Hayward

Others

10.What do you look at while selecting beer?

Brand name

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Quantity

Taste and flavor

Satisfaction

Value for money

Praise from friends

Any other

11.How much do you spend on a one time purchase? 1.200/- to 250/ 2.150/- to 200/- 3.100/- to 150/- 4.50/- to 100/- 5.Below 50/-

12.Would you switch to another brand if the price of Kingfisher increases?

Definitely Yes Probably Yes Definitely No Probably No

13.Where do you purchase the drink from?

Wine Stores

Club

Bar

Pub7.

14.When do you usually consume drinks and how often?

In a party

Social Occasions

When in mood at home

With friends

Formal party

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15.What would you prefer having beer in? And why?

Bottle

Can

A designer glass

Any other suggestion

16.If you are consuming kingfisher, what is the reason for consuming it?

a. Quality. ( ) b. Price. ( ) c.Flavour ( )

d. Taste. ( ) e. Packing. ( ) f. Other ( )

17.You associate kingfisher with which of the following?

18.Kingfisher as a brand, how would you rate it?

Excellent Good Satisfactory Not Satisfactory

19.Would you recommend Kingfisher beer for a tea-totler?

Yes No

20 Please give some suggestions to improve the marketing of Kingfisher.

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BIBLIOGRAPHY

Books

Business standard (beer industry),

Business world(Urban consumption pattern)

Company magazine, Pegasus( market share of company)

Marketing Management by Philip Kotler( marketing strategy)

Consumer Behaviour by Leon G Schiffman( consumer buying behavior)

Websites

www.kingfisherworld.com/corporate/corporateindex.htm

Company website,www.theubgroup.com/

www.researchandmarkets.com

www.wikipedia.com

www.kingfisherworld.com

http://www.scribd.com/doc/2421670/Kingfisher-Beer

http://www.financialexpress.com/news/united-breweries-acquires-gmr-brewery

http://raktimb.sulekha.com/blog/post/2009/01/ub-group-merger-a-casestudy.htm

http://www.mysensex.com/international-business/10290-pest-analysis-india.html

http://interactive.cabinetoffice.gov.uk/strategy/survivalguide/skills/s_pestle.htm

http://en.wikipedia.org/wiki/United_Breweries_Group

http://www.theubgroup.com/corporate_social.aspx

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