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INTRODUCTION OF BEER
Beer making dates back to ancient Egyptian times. There are five main types of beer: lager,
stout, ale, porter and bock. The process of making all five is primarily the same. The
difference in color comes from the amount of roasting that takes place. Beer is an alcoholic
beverage made by brewing a fermenting malted barley and sometimes other cereals with hops
added to flavor and stabilize it.
Barley is germinated and then is called malt. Malt is dried in a kin, the duration of which
determines the darkness and sweetness of the Beer. The longer the roasting the darker and
sweeter the beer. The roasting malt is mixed with other cereals and specific water then
cooked. After it is cooked, a liquid called 'wort' from the pre-alcoholic porridge is drained
off. The liquid is mixed with hops which adds the flavor. After a few more hours of cooking
the hops are strained off, the wort is cooled and yeast is added which causes fermentation.
Yeast converts wort to 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 70s 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
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Page 2
Country
U.S.A
W. Germany
1965
89783
26197
1975
1985
108024
157863
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
Czechoslovakia
8939
16022
19066
Page 3
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
liters) 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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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
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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.
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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.
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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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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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 Groups multifaceted
operations. Now, it is just the Pegasus.
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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.
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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 Indias 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.
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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 ros. It is packaged in 750ml bottles and a case of wine contains 12 bottles.
Kingfisher Bohemia is available in Mumbai, Pune, Delhi, Bangalore, Goa, Chennai,
Hyderabad, Pondicherry, Kerala and Kolkatta.
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.
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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
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.
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.
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Strengths
Weakness
Market Leader
Global Presence
Expensive Brand
Aggressive Advertising
Threats
Demographic Changes
New Competitors
Changes Societal
Attitudes
Consumer Brand
Growth in Substitutes
Preference
Economic Downturn
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stronger
Product
Always tastes fresh due to good quality and well developed distribution network.
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It is available throughout India, and is dominant particularly in South and West India.
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.
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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.
Recently it also started merchandizing sports goods and trendy clothing and
accessories under Kingfisher brand name.
Each year Kingfisher brings out new calendars featuring top models in swimwear.
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.
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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 brands 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
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Brand Extension:
Kingfisher is one of the most recognized brand in India and SAB Millers fosters 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 waysPage 20
1. Abu-Dhabi to Goa: A promotion at all the six stores of Spinneys, 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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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
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United Breweries is the group which has really exploded the restrictions, expanding surrogate
methods of branding in all directions imaginable. Lets list down where all they are present:
a) Kingfisher
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 nowfamous tagline: khoob jamega rang jab mil baithenge 3 yaar aap, main aur bagpiper
again, promoting Bagpiper soda.
c) Royal Challenge:
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.
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In this paper the respected authors study the evolution of beer consumption between countries
and over time.
An overview of the historic evolution of beer consumption in the world indicates that
consumption of beer has changed importantly over time. Also over the past 50 years
consumption patterns in beer have changed strongly, with decreasing consumption in the
traditional beer drinking nations and strong growth in emerging economies.
They analyzed the determinants for beer consumption and estimate an empirical model
toexplain what makes a country a beer drinking nation. Our first empirical result is that the
relationship between income and beer consumption is non-linear. Beer consumption initially
increases with rising incomes, but at higher levels of income beer consumption falls with
further income growth. Second, we find that in countries that were originally beer drinking,
the share of beer in total alcohol consumption reduces with opening of trade and increasing
globalization, while this is not the case in the non-beer drinking nations. These findings are
partially consistent with the idea that there is convergence in the consumption patterns of
alcoholic beverages, as suggested in the literature.
Finally, other factors that can explain the different levels of beer consumption between
countries are the climatic conditions, the importance of different religions in the country and
the relative price of beer to other alcoholic drinks.
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1. ric Larivire
2. Bruno Larue
3. Jim chalfant
In this paper, the demand for beer, wine, spirits and soft drinks in Ontario is modeled in two
parts: an equation is specifiec to endogenize group expenditures and a demand system is set
up to allocate budgeted group expenditures across types o beverages. Advertising is allowed
to influence both the level of group expenditures and its allocation. Three popula advertising
specifications are compared using theJ-test and the likelihood dominance criterion. Even
though all threi specifications fitted well according to standard criteria, the calculated
expenditure, price and advertising elasticities wen sensitive to the manner with which
advertising is specified. This clearly highlights the need to rely on a sound criterion t<
identify a dominant specification. From the identified dominant specification, we found that
advertising has very subtle effect on expenditures on alcoholic beverages (group and
individual beverages). Thus, advertising is not effective in enlarginj markets and this suggests
that firms (especially breweries) use advertising to compete in zero-sum market share games.
From i public policy perspective, our results are comforting but future research should
investigate whether the neutral effect o advertising on aggregated expenditures hide
substantial offsetting changes in the drinking habits of individuals.
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According to the author the demand for alcohol literature is vast and much conflicting
information about the nature of the demand for alcoholic beverages has been
published. This paper presents a survey of the literature, and then uses the
technique of meta-regression analysis to establish insights into the nature of the
demand for beer, wine and spirits. Unlike previous meta-studies of the demand for
alcoholic beverages this study adjusts for the precision of each elasticity estimate.
The analysis presented suggests reported elasticity estimates will be influenced by
such factors as estimation technique, data frequency and time period under
consideration. With respect to time, the findings suggest that the demand for
alcoholic beverages has become less inelastic since the mid-1950s and that the
income elasticity has been falling since the mid-1960s. The analysis also found
support for the idea that alcohol as a commodity group is a necessity, and that
consumers respond to price discounting with inventory behaviour rather than true
substitution behaviour. Little support is found for the idea that the demand for
alcoholic beverages varies fundamentally across most countries, although wine may
be an exception.
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Age group
6%
12%
30%
18-21
21-25
12%
25-35
35-50
50& above
40%
In the survey of 100 there are Respondents under different age group:Age
No. Of
Respondents
18-21 yrs
30%
21-25 yrs
40%
25-35 yrs
12%
35-50 yrs
12%
50 yrs and
6%
above
Page 31
Occupation
16%
46%
Service
Business
Student
38%
occupation
No of Respondents in (%)
Service
46%
Business
38%
Student
16%
Page 32
Consumption of beer
10%
Daily
40%
20%
once in week
twice in week
once in month
once in six months
20%
10%
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Preferred Brand
6%
10%
Kingfisher
fosters
8%
Carlsberg
Budweiser
8%
60%
8%
Hayward
others
Page 34
10%
Brand name
Quantity
Taste
10%
Satisfaction
Value for money
10%
influenced by friends
30%
From the survey of 100 respondents 30 % respondents look at Brand name while Selecting
beer , 10 % respondents look at Quantity while selecting beer, 30 % respondents look at taste
while selecting beer, 10 % respondents look at satisfaction while selecting beer, 10 %
respondents look at value for money while selecting beer, 10 % respondents look at influence
of friends while selecting beer.
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50-100 RS
50%
From the survey of 100 respondents 20 % respondents spend 200-250 RS on one time
purchase of beer, 20 % respondents spend 150-200 RS on one time purchase of beer,
50% respondents spend 100-150 RS on one time purchase of beer and 10 %
respondents spend 50-100 RS on one time purchase of beer.
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NO
From the survey of 100 respondents 30 % respondents will switch to another brand if
the price of Kingfisher increases while 70 % respondents will remain loyal to
Kingfisher instead of increase in prices.
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Place of Purchase
70%
60%
50%
40%
30%
20%
10%
0%
Wine stores
Club
Bar
Pub
From the survey of 100 respondents 60 % respondents Purchase beer from wine stores, 10 %
respondents Purchase beer from club, 20 % respondents Purchase beer from Bar, 10 %
respondents Purchase beer from Pub.
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Social occasions
when in mood at home
30%
with friends
formal party
10%
10%
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good
satisfactory
non satisfactory
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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.
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.
Page 43
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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4. A paper entitled The Demand for Beer, Wine and Spirits by by James J.
Fogarty.
5. Tremblay, V. J. and C.H. Tremblay (2005). The US brewing industry: Data and
economic analysis,.
6. Poelmans, E. and J. F. M. Swinnen (2011). A Brief Economic History of Beer,
in: Swinnen, J. F.M. (ed.), The Economics of Beer, Oxford: Oxford University
Press.
Page 45
Age__________
No
Once in a week
Twice in a week
Once in month
Fosters
Carlsberg
Hayward
Others
Quantity
Satisfaction
influenced by friends
Any other
5. How much do you spend on a one time purchase?
Yes
No
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Club
Bar
Pub
Social Occasions
With friends
Formal party
9. What would you prefer having beer in? And why?
Bottle
Can
A designer glass
b. Price.
d. Taste.
e. Packing.
c. Flavour
f. Other
Good
Not Satisfactory
No
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