A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

CONTENTS

1. 2.

Executive Summary History, Contents, Classification and Types of Beer and its Making

3. 4.

Board of Directors Company Profile History, Mission, Timelines, Organisation Structure, Achievements

5. 6. 7. 8.

Code of Conduct Investors Beer Trivia and Hangovers Marketing Mix of Kingfisher Product, Price, Promotion and Place

9. 10. 11. 12.

Findings and Conclusions Problems and Suggestions Bibliography Annexures

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

DECLARATION

I, the undersigned, Mr. Ashwinkumar Raveendran, student of S.Y.B.B.A. from Bytco College, declare that this project entitled The Marketing Strategy adopted by United Breweries Ltd. For Kingfisher Beer was carried out by me in the partial fulfillment of the course B.B.A. under University of Pune during 2007-08. This project was undertaken as a part of academic curriculum according to the University rule, norms and by no commercial interests and motives.

PLACE : Nashik

SIGN : ________________ NAME : ASHWINKUMAR RAVEENDRAN.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

ACKNOWLEDGEMENT

I would like to express my boundless gratitude to Mr. Manoj Vaswani, Manager, Vaswani Brandy House, Nasik Road for extending his kind co-operation and providing information regarding the Marketing Mix adopted by Kingfisher Beer. I would also like to thank Prof. Vikrant Aher, who provided his sound guidance and extended his support to prepare this project report.

I would like to express my thanks to all other innumerable people, including my friends and seniors whom I might have forgotten to mention but nevertheless have played an important role and were an integral part of my research to make it a memorable one.

Last but not the least, my thanks to J.D.C. Bytco College, Nasik and Pune University who gave me an opportunity to reap the experience of working in the esteemed organization.

Ashwinkumar Raveendran S.Y.B.B.A. J.D.C. Bytco College, Nasik

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

EXECUTIVE SUMMARY Kingfisher is the leading brand in the beer industry and it has maintained a professional marketing attitude to overcome the stiff competition. Their professional character is seen not only from the quality of their product, but also from their innovative management techniques. It is this eminence of this brand that has fascinated me to study the product and the marketing strategy adopted by United Breweries Ltd. The objective of preparing this report was :

1)
2) 3)

To understand the process of manufacturing, classification and types of beer. To understand the various marketing techniques adopted by UBL. To understand the various advertising & sales promotion techniques. To find out the consumer response towards the brand.

4)

I have enjoyed conducting research on this subject as it is an interesting but unnoticed subject and it has helped me to learn the history, making and marketing techniques in beer industry. It is truly the King of good times & I had a good time studying it.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

History of Beer
When you next cool down with a cold beer, take a minute to think of the ancient tradition of beer making and what goes into this special brew. There is a 4000 year-history dating back to the region now known as Iraq but it was the Monks of Europe, who nurtured the art of brewing. Most significantly, it was in 1842 that the golden-coloured LAGER, that's been copied around the world, was first brewed by Bavarian, Josef Groll. What goes into beer? BARLEY grains are turned into MALT (i.e. from starch to fermentable sugars) by being germinated, roasted & mashed MALT is put into hot (slightly salty) WATER HOPS is added to help the chemical process along and for the taste and flavour (in India the HOPS flower is grown in Kashmir and Himachal Pradesh) YEAST is added to trigger the chemical process called fermentation. After a week fermenting, the next process is conditioning or building up the carbon dioxide to give the beer its white frothy head. Finally, after filtering, the beer is heated to kill off any bacteria and to preserve it when it's in the bottle. Just as brewers skillfully blend scotches or wines, different BEERS are created the same way. The art is to blend different malts as well as use various fermentation processes.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Lager: A pale, light brew, it is stored for a specified period before being bottled or canned. This German word means "storehouse". Pilsner: A type of lager beer, it is light with 3.0 - 3.8% alcohol and has a medium hp flavour. Ale: Top fermented, this kind of beer has distinct hop aroma. The alcohol content is around 4 - 5%. Stout: Dark with burnt flavour and strong malt aroma; it is heavily hopped and contains 5 - 6.5% alcohol. Porter: This is less dark than stout, even less hopped and is somewhat sweet. Alcohol content is around 5%. Creamy Ale: A highly carbonated beer that is produced by a combination of Ale and lager. Malt: A strong flavoured, high alcohol content beer that ranges in flavour and colour. Types of Beer Top Fermented. eg. Ales (typical English beer) Wheat Beer Bottom Fermented

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

The

healthful,

zestful

drink

surprised

with

the

adjectives? The components that give Beer form are well established for their nutritive value- Barley malt, cane sugar, crystal clear water and aromatic flowers Malt is the (Hops). principal brewing material that provides carbohydrates.

Carbohydrates are the source of raw material for alcohol and nitrogen compounds which contribute to Beer's flavour. The processes of malting barley used for brewing purposes are Steeping, Germination and Kilning. Hops are significant as they contain the bitter compounds (Humulones), which give Beer the characteristic bitter taste. Certain preservatives help this natural process. Even the alcohol in Beer evolves naturally from the starch and sugars in the raw ingredients! And the stable that brings the best out of Beer - UB chooses ingredients and the skill of master craftsmen that assures the quality. And this is process that goes into making Kingfisher Beer. The product called Wort is separated from the used grain and poured into fermentation tanks where yeast is added. After fermentation is completed, Beer is filtered and transferred in to separate tanks - called lager tanks, for maturation. And that's when the Beer is ready to be bottled and served. So what are you waiting for? Pick up Kingfisher Beerand ENJOY!

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

It all began with 5 breweries in South India. The oldest of which, Castle Breweries, dated back to 1857. United Dr. Vijay Mallya Breweries, as these breweries were named in 1915 has Chairman come a very long way. Soon afterwards, the sight of bullock carts carrying huge barrels or 'Hog's heads' containing beer became
Ravi NedungadihouseholdKalyan These carts wheeled their Huntto John Simon way a sight. Ganguly Director Managing Director Director the customers, including British troops, living in and

around Madras, Bangalore and the Nilgiris. Almost immediately, the brew from UB became a favourite, especially with the British troops. So began the history
Veronica Lesley of John Dunsmore Beer in India. And the history of Beer Division of Chugh Yoginder Pal Jackson Director United Breweries! Director Director & CFO

The company was bought by late Mr. Vittal Mallya in 1947, and since then has never looked back. Today each one of the 32,000 Beer outlets in India sells one brand or the other from United Breweries. Sunil Kumar Alagh Chhagan Lal Jain Govind Iyengar Director Director Company Secretary
The group Mission Statement embodies these objectives:

To To To To

be the recognized leader in our target markets be the preferred employer wherever we operate recognize the value of our human assets be the partner of choice for customers, suppliers, and other creators

of innovative concepts

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Timelines March 15th, 1915 - Mr. Thomas Leishman purchased 5 breweries to form United Breweries Ltd. with its registered office at 17 Armenian Street, Chennai -1. 1940's 1944 - First Bottled Beer under the label "Exports Beer". 1948 - Mr. Vittal Mallya became the first Chairman. 1950's Registered office moved to Bangalore. 1960's 1960 - Kalyani Breweries was set up. 1965 - Kesarwal Beverage was set up in Goa. 1970's 1972 - High Range Breweries set up in Chertalla in Kerala. 1974 - UB Beer exported to Aden and Middle East. 1978 - Punjab Breweries was formed. 1980's 1981 - Canned Beer was introduced. 1982 - UB's Kingfisher Lager hit parlours in England and USA. 1990's 1996 - UB purchased 30% equity of National Sorghum Breweries in South Africa. 1997- 98 - Invested in Brewing Business in USA by purchasing 6 Micro Breweries. 2000-2004 2000 - Associated Breweries & Distilleries Ltd. and Mangalore Breweries & Distilleries Ltd. were acquired. 2001 - MABL was formed 2001-02 - Acquired GMR Vasavi, MP Breweries and 41% share of Inertia Industries Ltd. 65% share of Associated Breweries & Distilleries Ltd. 97% share of Mangalore Breweries & Distilleries Ltd. 2002 - Aquired Empee Breweries

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

The beginnings of what is today The UB Group are rooted in the flagship company, United Breweries Limited, (UBL) also referred to as the Beer Division of the UB Group. Led by Mr. Kalyan Ganguly, President & Managing Director, it has around 40% market share in the country. Millennium Alcobev Pvt Ltd., (MABL), is the Joint Venture Company in which UB along with its subsidiary and Scottish & Newcastle of the UK have equal stake of 50%. United Breweries Limited, the flagship company of the UB Group, has an association with the brewing dating back over five decades, starting with 5 breweries in South India in 1915. From bullock cart-loaded barrels or 'hogheads' of frothing ale, the Beer business as gone on to become the undisputed 'king' in the Indian beer market. Here, innovative, creative and aggressive marketing is complemented by a strong distribution network. A management focused on building brand equity on one hand and exploiting it to the hilt on the other. A concerted emphasis on quality. UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the Country. Quality and hygiene are the key elements of the United Breweries' manufacturing philosophy. To this end, the Central Scientific Laboratory (CSL), headquartered at Bangalore sets standards for all its breweries. Quality Management Systems laid out along the lines of ISO 9000 are strictly adhered to, controlling quality at every stage of production, from raw materials to the end product. Also, besides controlling the production process, the CSL analyses the Company's beer taken off market shelves all over the Country, the competition's beers and beers across the world. These beers are tested as per the standards laid down by the European

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Brewery Convention on 40 different parameters. By these standards, United Breweries' beers don't just equal, but even surpass, several Dutch and American beers. Its flagship brand 'Kingfisher', has achieved international recognition consistently, and has won many awards in International Beer Festivals. Kingfisher Premium Lager beer is currently available in 52 countries outside India and leads the way amongst Indian beers in the International market. It has been ranked amongst the top 10 fastest growing brands in the UK. In addition, UBL has also entered into mutli-faceted strategic alliance with Scottish & NewCastle Plc (S&N), an international brewery major, with $6 billion in revenue and a market capitalization of $5.4 billion. This alliance, apart from having a joint venture in India, will allow S&N to market it International brands like Kronenbourg in India, while UBL will utilize S&N's global network to further globalize its Kingfisher.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

The largest selling Beer in India. Commands a 29% market share in the country. 6 bottles of Kingfisher are sold every second in India. Available in 52 countries across the globe. The first among Indian brands to launch its own range of designer wear. Won the World's best Lite Lager Award at the Stockholm Beer Festival in 1994. Won the World's best Lite Lager Award at the Stockholm Beer Festival in 1995. Won the Gold medal at the World Beer Championship held in Chicago in 1997. Won the first prize for the label work category at the Asian GrandPrix Cyrel 2000 Label award. First Prize in the International Beer Awards organised by the New Zealand Hop Marketing Board. Won the Bronze award at the 'Australian International Beer Awards' in the "International Packaged Beer Section for the year 2000."

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Introduction The Board of Directors (the Board) of United Breweries Limited (the Company) has adopted the following Code of Business Conduct and Ethics (the Code) for directors of the Company (Directors) and all employees of the rank of Vice-President and above (Covered Employees). The Board of Directors has the right to expand/amend the extent and coverage of employees under this Code. The Company is committed to ethical and lawful business conduct and perceives it as critical to the Companys success. The Company will uphold ethical and legal standards while pursuing its objectives. Consistent with these principles, the Companys Board has adopted the Code for compliance both in letter and spirit by all Directors and Covered Employees. While it is not possible to anticipate every situation or circumstance that may arise, the Code is intended to serve as a broad guide. The Board reserves the right to amend, alter or terminate the Code at any time and for any reason, subject to applicable law. Directors/Covered Employees who violate/deviate from the requirements of the Code will attract disciplinary action which may include termination of office /employment. In performing their functions, Directors and Covered Employees will Act with integrity, probity, honesty, transparency and with utmost good faith. Actively assist in implementing the Companys Objectives and creating an organization that is responsive, positive and driven by business and social needs. 1 Compliance with Laws, Rules and Regulations All Directors and Covered Employees must respect and obey all the applicable laws of the countries in which the Company operates. Violations of laws, rules and regulations may subject Directors/Covered Employees to individual criminal or civil liability, in addition to disciplinary action by the Company, apart 2 from subjecting the Company to liability and/or loss of business. Conflicts of Interest A conflict of interest exists when personal interest interferes in

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

any way with the interests of the Company. As a general rule, Directors/Covered Employees should avoid actual or apparent conflicts of interest between their personal and professional relationships. A situation of conflict of interest arises when a Director/Covered Employee has interests that may make it difficult to perform his or her company work objectively and effectively. Another example of situation of conflict of interest is when a Director/Covered Employee or members of his or her family, receives personal benefits as a result of his or her position in the Company. It is deemed to be a conflict of interest or independence for a Director/Covered Employee to work simultaneously for a competitor, customer or supplier. Directors/Covered Employees are not allowed to work for a competitor as a consultant or board member unless approved by the Board. Conflicts of interest are prohibited as a matter of Company policy, except in exceptional circumstances and with the prior approval of the Board and subject to limitations imposed by law. It is not possible to describe all situations of conflicts of interest that could arise. Conflicts of interest may not always be clear-cut, so if a Director/Covered Employee is unclear, he/she should seek guidance of his/her immediate superior and/or the Chairman of the Audit Committee. The purpose of business entertainment and gifts in a commercial setting is to create goodwill and sound working relationships, not to gain unfair advantage with customers or suppliers. No costly/unusual gift or entertainment should be offered, given, provided or accepted by any Director/Covered Employee or his/her relatives. Directors / Covered Employees may not use the Companys assets, labour or information for personal use except as outlined

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

in Section 8, Protection and Proper Use of Company Assets and Proprietary Information, or unless approved by the Chairman of the Audit Committee or as part of a compensation or expense reimbursement Employees. A Directors disclosure of interest under Section 299 of the Companies Act, 1956 shall be treated as sufficient compliance under this clause regarding situations of potential conflicts of 3 interest. Insider Trading In order to assist with compliance with laws/regulations against insider trading, the Company has adopted the Code of Conduct for Prevention of Insider Trading governing trading in securities of the Company and Group Companies that is applicable to every Director/designated employee. Abiding by the Code of 4 Conduct for Prevention of Insider Trading is mandatory. Competition and Fair Dealing The Company strives to outperform its competition fairly and honestly. Each Director/Covered Employee should deal fairly with the Companys customers, suppliers, competitors and employees and should not take unfair advantage of anyone through any intentional unfair-dealing practice. Pilfering proprietary information, possessing trade secret information that was obtained without the owners consent, or inducing such disclosures by past or present employees of other companies is 5 prohibited. Discrimination and Harassment The Company is firmly committed to providing equal opportunity in all aspects of employment and any illegal discrimination or harassment of 6 any kind is prohibited. Health and Safety The Company strives to provide each employee with a safe and healthy work environment. Every Director/Covered Employee has responsibility for maintaining a safe and healthy workplace by following safety and program available to all Directors/Covered

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

health rules and practices and reporting accidents, injuries and unsafe equipment, practices or conditions. Being under the influence of illegal 7 drugs and/or alcohol on the job is absolutely prohibited. Confidentiality Directors/Covered Employees shall maintain the confidentiality of information entrusted to them by the Company and any other confidential information about the Company that comes to them, from whatever source, in their capacity as Directors/Covered Employees, except when disclosure is duly authorized by the Chief Executive Officer or Chief Financial Officer or the Audit Committee or the Board of Directors or is required by laws or regulations. Confidentiality extends to information that suppliers and customers have entrusted to the Company. Use of confidential information for personal gain is strictly prohibited. Protection and Proper Use of Company Assets and Proprietary Information All Director/Covered Employees must endeavour to protect the

Companys assets and ensure their efficient use. Any suspected incident of fraud or theft should be immediately reported to the Head of Human Resource Department and in appropriate cases, the Chairman of the Audit Committee for investigation. Company assets should not be used for personal use, though incidental personal use may be permitted when properly authorized. The obligation of Director/Covered Employees to protect the Companys assets includes protecting its proprietary information. Proprietary information includes intellectual property such as trade secrets, patents, trademarks, designs and copyrights, as well as business, marketing and service plans, engineering and manufacturing ideas, designs, databases, records and unpublished financial data. Unauthorized use or distribution of this information is not only a violation of Company policy and the terms of employment with the Company, but could also be illegal and result in civil and/or criminal 9 liabilities. Reporting any Illegal or Unethical Behavior

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

If any Director/Covered Employee believes that a violation of or significant deviation from the Code has occurred or has become unavoidable, he/she must contact the Head of the Human Resources Department and in appropriate cases the Chairman of the Audit Committee. Use of the above reporting procedures in bad faith or in a false or 10 frivolous manner will be considered a violation of the Code. Waiver of the Code Any waiver of the Code or any provision of the Code for any Director/Covered Employee must be made only by the Board of Directors and disclosed as required by law or SEBI/Stock Exchange 11 regulations. Compliance Procedures Every Director and Covered Employee shall annually confirm on or before April 15 compliance of the Code in the prescribed form given in the Annexure.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

:: Investors :: During the year 2005-2006, United Breweries Limited (UBL) has achieved a volume growth of 18% over the volume last year. The industry has grown at a rate of 14% during the period. For the year ended March 31, 2006 the volume stood at 43.4 million cases as compared to 36.4 million cases as on March 31, 2005. Against an industry volume growth of 14% for the year, your Company has continued to outperform the market in both the strong and mild beer segments. While the mild beer segment witnessed a growth of 13% (against a market growth of 9.4%), and spectacular growth in strong beer of 36% (against a market growth of 16%) was witnessed. Kingfisher Strong has now achieved the number one position in the strong beer segment, followed by Kingfisher Premium which continues to remain a leading brand in the mild beer segment. Net sales for the year under review stood at Rs.6873.5 million as against Rs.5153.8 million in the previous year representing an increase of 33.3%. Kingfisher Strong has witnessed remarkable growth during the last 6 years after its launch. Kingfisher Strong has crossed sales of 17 million cases growing by 36% compared to an industry growth rate of 16% in the strong beer segment. In this segment UBL is the market leader in 7 out of the 10 largest states of India and in the lager beer segment, UBL is the market leader in all the 10 largest states of the Country. UBL commands a market share of around 40% with 67% of the market share in the mild beer segment and 27% in the strong beer segment. The sales of lager beer have been flat or mildly de-growing, whereas over the last 5 years the share of strong beer in the overall industry is over 65%. UBL continues to lead the industry with overall market share of 40%, Kingfisher Premium Lager achieved sales in excess of 20 million cases representing a market share of 65% in the mild beer segment. Kingfisher Strong has become the No.1 Strong Beer in India selling over 17 million cases, and, commanding a market share of 19% in the strong beer segment. Kingfisher Strong crossed 2 million cases (sales) in 5 major markets, which is a record in itself.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Innovative launches of Kingfisher Stubby in Goa, launch of Kingfisher 650 ml in a innovative international carton pack in key markets, launch of London Pilsner 330 ml can pack in Mumbai and London No.1 Strong 330 ml bottle in Karnataka has provided further competitive advantage. Promotional events like Kingfisher Premium "Voice of Goa" and the "Great India Oktoberfest" coupled with various snack promotions have not only given a boost in volumes but also expanded the consumer base. UB Export Lager continues to deliver superior value to the consumer supported by its brand Ambassador Upendra. Capacities created in Australia and New Zealand through contract

agreements have further enhanced brand equity and retention. UBL management's undiluted focus on the consumer with an emphasis on delivering value has enhanced the perception of brands in the consumers mind. With a rapid growth in GDP at 8%, higher disposable income, change in consumer behaviour, advent of, and exposure to, western infl uences, liberalisation in retail/distribution, the beer market in India is growing rapidly and is expected to grow at a rate of over 10% year on year. Growth in income for the young educated population, particularly in the service industry, cause to expect acceleration in demand for beer in the coming years. gives

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Beer is less fattening than milk! If you put salted peanuts in a glass of beer, the peanuts will dance around! After consuming a bucket or two of vibrant brew they called ale, the Vikings would head fearlessly into battle often without armor or even shirts. In fact, the term "berserk" means "bare shirt" in Norse, and eventually took on the meaning of their wild battles. In medieval England beer was often served with breakfast. Did you know that in order to get rid of the foam off the top of a beer mug all you have to do is stick your fingers in it? Czech's are well known as the biggest consumers of beer per male in the world. A Czech man Jan Honza Zampa currently holds the record for downing one litre of beer in 4.11 seconds! If a hippo were to bite your leg, the hole would be big enough to pass a beer bottle through! In Bavaria, beer is not an alcoholic drink. It is legally defined as a staple food. Beer is an essential source of B complex vitamins. Brewery is the place where Beer is made. Distillery is the place where Whisky is made. Winery is the place where Wine is made.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Spinning head? Thumping heart? Yeah buddy... Last night's party seems to have done wonders. And what the hell is this Hangover? Good question... Technically speaking, Hangover is the disagreeable physical after-effect of drunkenness, such as a headache or stomach disorder; usually felt several hours after cessation of drinking. Too technical?? How to avoid that 'not-so-wanted' feeling called hangover? Eat before drinking. Grab anything edible that comes your way. Simply because food slows the rate at which alcohol is absorbed. Sip and savour your Beer rather than gulping it down in one go. Yes, you believe in knowing no limits But sensibly speaking, one should know and respect his personal drinking limit. A hard fact to digest? But to be followed nonetheless! Drink as much water as you can. Don't sleep immediately after a Beer. Party hard or dance, but don't go off to sleep right away. A few remedies to get you back on your toes. Drink fresh juices. They flush the system of toxins and rehydrate your body. Take multivitamins. Honey can do wonders. Rest to get in shape. Yeah, the best remedy we presume!

MARKETING MIX ADOPTED FOR KINGFISHER BEER :

MARKETING MIX

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

PRODUCT Brand, Packaging and Quality

PRICE Pricing Strategy & Discounts

PROMOTION Personal Selling & Advertising

PLACE Manufacturing, Physical distribution and channels of distribution

1.

PRODUCT :-

A name synonymous with Beer in India - Kingfisher stands for excitement, youth and camaraderie. The Beer brands manufactured and marketed by United Breweries consumer! The largest selling Beer in India Commanding a 29% market share in the country One out of every 4 bottles of beer sold every second in India Available in 52 countries across the globe The first among Indian brands to launch its own range of designer wear 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 UB group. Ltd. have always been recognized for their international quality. That's Beer at its best for the discerning

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

Since the launch, Kingfisher Beer has become one of the largest selling beer brands in the world. "It's flying" and the mood is upbeat - both within the Company and among consumers. 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.

2.

PRICE :

The price of the beer is decided keeping in mind the cost incurred, the excise duty, the profits desired by the Co. and the distributor and the market competition. Excise duty and market competition plays an important role in determining the price of the product. Currently, 300% excise duty is payable on beer. Thus, if the beer is manufactured at Rs. 11/-, then the excise duty payable is Rs. 33/- and thus the total costs incurred would be Rs. 44/-. The price of the beer is as follows : Rs. 70/- for 650 ml Kingfisher Premium bottle. Rs. 38/- for 330 ml Kingfisher Premium bottle. Rs. 60/- for 500 ml Kingfisher Premium can. Rs. 40/- for 330 ml Kingfisher Premium can. The prices vary according to place of purchase e.g. prices are higher in hotels than in beer shops. Kingfisher is relatively high priced than its competitors. This is because price and quality have a direct variation. Discounts are not offered to customers. The Co. has discount schemes for the vendors to encourage the sales. The discount scheme for vendor depends upon the quantity demanded and the geographical area or the demand. In Maharashtra, the general scheme is 16 cases of beer on purchase of 100 cases and 7 cases of beer on purchase of 50 cases.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

3. PROMOTION :
Personal Selling is an essential part in this business. The Co. appoints wellqualified and highly experienced and trained personnel to assist the distributor and act as a Co. representative. The Govt. has banned advertising commercials on Television. Hence, companies advertise their product by way of newspapers, radio, hoardings and posters. However, kingfisher has not adopted any such major media of advertisement. Kingfisher started manufacturing Kingfisher Pure Aqua Mineral Water and made its Television advertisement to maintain the brand image in the minds of the people. It organizes many international events such as music concerts and yearly calendars. Moreover, it is observed that the activities of the Chairman, Mr. Vijay Mallya, catches media attention and it also helps in the promotion of the beer. 4. PLACE :

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

:: Production - Plants around India :: Quality and hygiene are the key elements of the united breweries manufacturing philosophy. To this end, the central scientific laboratory (CSL) at their headquarters at Bangalore is manned by highly qualified scientists and equipped with sophisticated instrumentation. The CSL sets standards for all its breweries. A manual has been developed laying down quality management systems on the lines of ISO 9000. So quality is controlled at every stage of production, from raw materials to the end product. Besides controlling the production process, the CSL analyses the company's beer taken off market shelves all over the country, the competition's beers and beers across the world. These beers are tested as per the standards laid down by the European Brewery Convention on 40 different parameters with particular attention paid to apparent extract, bitterness, colour, diacetyl, ethanol, foam stability and haze. By these standards, United Breweries' beers don't just equal, but surpass several Dutch and American beers.

The distribution channel is as follows :

Factory

Distributor

Vendor

Consumer

The Company appoints a distributing agency which is the sole distributor of the beer in the respective area. The stock is delivered from the factory to the distributor and then, it becomes the responsibility of the distributor to distribute the product in the market. The distributor appoints several salesmen to sale the product by doing field work. A distributor may have more than one brand of liquor. The distributor acts as a wholesaler as he buys the product from the Co. in bulk quantities, stores and distributes it. When the product reaches the vendor, he sales it from his shop by method of counter sales. He acts as the retailer. This is the chain of distribution followed by UBL for Kingfisher. In fact, this method is generally adopted for distribution of all types of liquor.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

BIBLIOGRAPHY www.kingfisherworld.com www.google.com Microsoft Encarta Encyclopedia Books referred Marketing by Philip Kotler.

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

SURVEY STATISTICS

1) Do you drink beer ?

Age Group 18-30 30-45 45-60 Total Yes 10 11 9 30 No 2 1 3 6

12 10 8 6 4 2 0

No

No No

Yes

Yes Yes

18-30

30-45

45-60

2) How often do you drink ?

Frequency to Drink Daily Weekly Occasionally Socially No. of Persons 2 6 18 4
Frequency of Drinking Beer

13%

7% 20% Daily Weekly Occasionally Socially

60%

3) Why do you drink ?

Reason to Drink Habit Enjoyment Health Other No. of Persons 2 20 5 3
Reason to drink
20 15 10 5 0 Habit Enjoyment S1 Health Other

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

4) How much do you spend on beer in a month ?

Monthly Expenditure on Beer Range of Amount No. of Persons 0-200 20 200-500 7 500-800 3 800 & Above 1
Monthly Expenditure on Beer

20 15 10 5 0 0-200

200-500 500-800

S1 800 & Above

5) Which brand do you

prefer ?
Brand Name Kingfisher Knock Out Khajuraho Others No. of Persons 14 8 3 5
Brand Preference of Beer

17% 10% 46% Kingfisher Knock Out Khajuraho Others 27%

6) Where do you like to drink ?

Location Home Hotel Party Outdoors No. of Persons 2 8 18 2
7% 7% 27% Home Hotel Party Outdoors 59%

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer

7) What attracts you most about Kingfisher ?

Attracting Factor Taste Quality Hardness Others No. of Persons 6 16 7 1
16 14 12 10 8 6 4 2 0 Taste Quality S1 Hardness Others

CONCLUSION 1. 2.
Thus, the above statistics show that about 83% people drink beer, They drink beer, primarily, for the purpose of enjoyment and

most of them do so occasionally. generally spend upto Rs. 200/- in a month for drinking beer. Most of them like to drink at party. 3. According to my survey, Kingfisher is the most preferred brand of beer and people prefer it because of its quality, hardness and taste. Thus, it can be observed that beer industry is an emerging industry in India. However, some people still regard drinking beer as morally unethical. Despite this, the overall sales volume has increased in recent years. RECOMMENDATIONS Kingfisher is a leading brand of beer and it has earned a market reputation over its competitors. It enjoys a majority of market share and does not have any at par competition at present. It does not have any major promotion or marketing strategy. However, recently, there has been a launch of new brands of beer which can give competition to Kingfisher and it should be ready to face the same in order to retain its market share.