History of Beer

8/8/2019 History of Beer

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SYNOPSIS

NAME: RICKY KUSHALAPPA

REG NO: 07D2229

WORKING TITLE: Consumer behaviour towards beer market

OBJECTIVES / AIMS:

y The main objective of this study is to find out the consumer behaviour towards beer market.Sub Objective

y To study consumers brand preference of beer in pubs.y To study consumption patterns of beer.y To study the factors affecting buying behaviour of beer.y To study alternative ways of product promotion.

INTRODUCTION:

The trends in beer consumption have taken a leap into brands and this has lead to much

international highly priced beer being consumed by the normal men/women.

The attitude towards beer consumption is gradually taking a turn table as we see more people

being interested in the same.

Bangalore is called the pub city and this has contributed to the cities beer consumers. The

survey or report is done to figure out the changing trends about the consumption of beer in

Bangalore pubs & bars among the clientele.

METHODOLOGY OF RESEARCH: - Field Interviews

- Questionnaires

DATA GATHERING ANALYSIS: The data will be collected from four different pubs

i.e. couch in mg road, Firangi paani of BJN Group, Beach in Indranagar, Xtreme sports bar in

Banergatta road . The study will try to understand their clientele, working hours, everyday


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challenges, & government restrictions. Personal interviews will be held and samples will be

tested to understand the market for pubs and bars in Bangalore.

LIMITATIONS:

1. Unavailability of clientele during working hours.2. Peak hours during weak ends.

CONCLUSION:

This study will finally emphasise on the consumption patterns of beer in city of Bangalore. This

will pave way too many more pubs and bars in the city and also to find trends in beer among

different people.

BIBLIOGRAPHY:

y Web ( Beer consumers community-( face book)y Handbooks on pubs and bars ( Kingfisher food guide )


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Industry Basics

Alcohol Market

1.Spirits Whisky, Rum (Dark, White) Vodka, Brandy, Gin, Ready To Drink (RTD)

2. Beer Mild, Strong

3.Wine & Champaign Red Wine, White Wine, Champaign

4. Country Liquor

Location of consumption & Sale

ON PREMISE OFF PREMISE

Clubs Hyper Marts

Restaurants & Bar Super Marts

Permit RoomW

ine Shops

Modern on Trade (MOT): Pubs, Beer Shoppee


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Beer

Beer is the world's oldest and most popular alcoholic beverage. Some of the earliest known

writings refer to the production and distribution of beer. It is produced by the fermentation of

sugars derived from starch-based materialthe most common being malted barley; however,

wheat, corn, and rice are also widely used, usually in conjunction with barley.

The starch source is steeped in water. Enzymes in the malt break down the starch molecules,

producing a sugary liquid known as wort, which is then flavored with hops, which acts as a

natural preservative. Other ingredients such as herbs or fruit may be added. Yeast is then used to

cause fermentation, which produces alcohol and other waste products from anaerobic respiration

of the yeast as it consumes the sugars. The process of beer production is called brewing.

Beer uses many varying ingredients, production methods and traditions. Different types of yeast

and production methods may be used to classify beer as ale, lager or spontaneously fermented

beer. Some beer writers and organizations differentiate and categorise beers by various factors

into beer styles. Alcoholic beverages fermented from non-starch sources such as grape juice

(wine) or honey (mead), as well as distilled beverages, is not classified as beer.


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Different Strokes of Beer

LAGER Brewed using bottom-fermenting yeast that ferments slowly at a

low temperature to create a smoother, mellow beerALE Uses top-fermenting yeast, is a more aromatic and fruity product

STOUT Dark and heavy, with roasted unmalted barley and, often, caramelmalt or sugar

MILD BEER Developed as a sweeter and cheaper alternative to dark ales

BITTER Highly hopped for a more dry and aromatic beer. It is pale in colourbut strong

DARK BEER Barley is kilned for a longer period of time which creates richerflavours

FRUIT BEER Fruit , usually berries, is added either during primary fermentationor later

WHEAT BEER(WEIZEN)

Malted wheat and barley are used for this German style beer

A great many beers are brewed across the globe. Local traditions will give beers different names,giving the impression of a multitude of different styles. However, the basics of brewing beer are

shared across national and cultural boundaries.


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Alcoholic strength of Beer

While we all love the taste of beer, it's the alcohol content thats responsible for beers standing in

most societies. Its the alcohol content of beer that makes it the number one social lubricant. The

alcohol content of beer is generally denoted by the "percent alcohol by volume", or % ABV.

"Percent alcohol by wieght", % ABW, could also be used. It's easy to convert between them.ABW = 0.8 ABV. Beer ranges from less than 3% alcohol by volume (ABV) to almost 30%

ABV.

The alcohol content of beer varies by local practice or beer style. The pale lagers that most

consumers are familiar with fall in the range of 46%, with a typical abv

Of 5%.

"Low alcohol beer", also known as "non-alcoholic beer" contains less than 1% ABV. The

strongest beer ever made was the Hair of the Dog Brewing Company's barley wine named

"Dave", which was 29% ABV.

The alcohol in beer comes primarily from the metabolism of sugars that are produced during

fermentation. The quantity of fermentable sugars in the wort and the variety of yeast used to

ferment the wort are the primary factors that determine the amount of alcohol in the final beer.

Additional fermentable sugars are sometimes added to increase alcohol content, and enzymes are

often added to the wort for certain styles of beer (primarily "light" beers) to convert more

complex carbohydrates (starches) to fermentable sugars. Alcohol is a byproduct of yeast

metabolism and is toxic to the yeast; typical brewing yeast cannot survive at alcohol

concentrations above 12% by volume. Low temperatures and too little fermentation time

decreases the effectiveness of yeasts, and consequently decreases the alcohol content.

The type of beer plays a large role in the alcohol content. While it's not exact, if you know the

type of beer you can generally estimate how much alcohol you will be imbibing. This is an

important skill to have. For instance if you go to a pub and all your friends are drinking pale ales,

and you start ordering barley wines; if you try to keep up with them, you might not make it out

of the pub without being carried.

The following chart will help in these situations:


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Beer Alcohol Content Table

BeerType %ABV

Lager 4 5

Pilsner Lager 3 6

Wheat (Weissbier) 4 5

Porter 4 5

Bitter (ESB) 3 7

IPA (India Pale Ale) 5 7

Stout 5 10

Double (Dubbel) 6.5 9

Tripel (Trippel, Triple) 7.5 - 9.5

Barleywine 8 12


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History of beer

General history

Beer is one of the world's oldest beverages, possibly dating back to the 6th millennium BC, and

is recorded in the written history of ancient Egypt and Mesopotamia. The earliest Sumerianwritings contain references to beer. A prayer to the goddess Ninkasi known as "The Hymn to

Ninkasi" serves as both a prayer as well as a method of remembering the recipe for beer in a

culture with few literate people.

The earliest known chemical evidence of beer dates to circa 35003100 BC from the site of

Godin Tepe in the Zagros Mountains of western Iran. As almost any substance containing

carbohydrates, namely sugar or starch, can naturally undergo fermentation, it is likely that beer-

like beverages were independently invented among various cultures throughout the world. The

invention of bread and beer has been argued to be responsible for humanity's ability to develop

technology and build civilization.

As for the close link between bread- and beer-making, women produced most beer prior to the

introduction of hops in the thirteenth century, selling the beverage from their homes as a means

of supplementing the family income. However, by the 7th century AD beer was also being

produced and sold by European monasteries. During the Industrial Revolution, the production of

beer moved from artisanal manufacture to industrial manufacture, and domestic manufacture

ceased to be significant by the end of the 19th century. The development of hydrometers and

thermometers changed brewing by allowing the brewer more control of the process, and greater

knowledge of the results. Beer was also known by Slavic tribes in early 5th century.


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History of Beer in India

Modern beer brewing began for India in the early days of the British Empire the mid-1700s.

The demand for beer in the hot climate of many parts of India by the British administrators and

the troops was so great that it led to the creation of a completely new style of beer by GeorgeHodgson in his London brewery India Pale Ale also known as IPA. IPA is strong, highly

hopped ale designed to survive the five month ocean voyage to India without spoiling. India Pale

Ale was shipped with every voyage for over a century and became very popular in Britain and

North America.

In the late 1820s Edward Dyer moved from England to set up the first brewery in India at

Kasauli (later incorporated as Dyer Breweries in 1855) in the Himalaya Mountains, near Shimla,

producing Asia's first beer called Lion. The brewery was soon shifted to nearby Solan (close to

the British summer capital Shimla), as there was an abundant supply of fresh spring water there.

The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates.Dyer set up more breweries at Shimla, Murree, Rawalpindi and Mandalay.

Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan

Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and

Kirkee. In 1937, when Burma was separated from India, the company was restructured with its

Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange.

Following independence, in 1949 N.N. Mohan took over management of the company and the

name was changed to Mohan Meakin Ltd. The company continues to produce beer across India

to this day and Lion is still available in northern India. Lion was changed from an IPA to a lager

in the 1960s, when due to East European influence, most brewers in India switched frombrewing Ales to brewing lagers.

Today no brewer in India makes India Pale Ale. All Indian beers are either lagers (5 % alcohol

such as Australian lager) or strong lagers (8 % alcohol - such as the popular MAX super

strong beer). International Breweries Pvt. Ltd. have recently announced an intention to work with

Mohan Meakin to produce and launch an India Pale Ale called Indian IPA from India's first

brewery at Solan. Kingfisher,Haywards, Kalyani Black Label, Soumitree, Jaguar, Foster's,

Castle Lager, Royal Challenge, Max, Kings and Belo are popular Indian beer brands.

In various parts of north-eastern India, traditional rice beer is quite popular. Several festivalsfeature this nutritious, quite intoxicating, drink as part of the celebrations. The rice is fermented

in vats that are sometimes buried underground. Elephants are known to attack villages, with the

primary agenda of drinking from these vats. Following one such raid in north-eastern India, a

police officer in Dumka was quoted in the press as saying: "Tribals who love rice beer brew the

liquor at home. Elephants too are fond of this beer. Often it is found that, attracted by the strong

smell of the liquor, wild elephants tear down the tribal houses where the brew is stored.


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Overview of Indian Beer

Market Market

Definition The beer market consists of ales, stouts & bitters, low/no alcohol beers, premium

lager, specialty beers and standard lager. The market is valued according to retail selling price

(RSP) and includes any applicable taxes. The Indian beer market delivered strong, stable growth

over the last five years. Looking forward, this trend is expected to persist through to 2011. The

Indian beer market generated total revenues of $874.2 million in 2006, this representing a

compound annual growth rate (CAGR) of 6.6% for the five-year period spanning 2002-2006.

Standard lagers proved the most lucrative for the Indian beer market in 2006, generating total

revenues of $760.3 million, equivalent to 87% of the market's overall value. The performance of

the market is forecast to follow a similar pattern, with an anticipated CAGR of 6.8% for the five-

year period 2006- 2011 expected to drive the market to a value of $1,213 million by the end of2011.

Market Value :

Year $ million INR billion % Growth

2002 677.7 29.9

2003 722.5 31.9 6.60%

2004 769.4 33.9 6.50%2005 819.4 36.1 6.50%

2006 874.2 38.6 6.70%

CAGR 2002-2006 6.6%

Source: Datamonitor


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Market Segmentation I

Sales of standard lager form the most lucrative sector of the Indian beer market, with an 87%

share of the market's value. In addition, sales of premium lager generate a further 6.2% of the

market's revenues .

category %Share

Standard lager 87.00%

Premium lager 6.20%

Ales, stouts & bitters 3.20%

Low/no alcohol 2.90%

Specialty beer 0.70%

Total 100.0%

Market Segmentation II

India accounts for1.3% of the Asia-Pacific market by value. In comparison, Japan generates

45.5% of the market's revenues

Geography % Share

Japan 45.50%

China 36.40%

South Korea 9.50%

Rest of Asia-Pacific 7.30%

India 1.30%

Total 100.0%

Market Share


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United Breweries is the leading company in the Indian beer market, with a 50.3% share of the

market's volume. In comparison, SAB Miller accounts for 34.2% of the total market's volume.

Market share in volume

Company % Share

APB 4%

United Breweries Limited 50.30%

SAB Miller India 34.20%

Mohan Meakin 10.10%

Other 5.30%

Total 100.0%

Comparison of Indian & US Beer Industry

Indian Beer Industry


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The Indian beer industry has been witnessing steady growth of 7-9% per year over the last ten

years. The rate of growth has remained steady in recent years, with volumes passing 100m cases

during the 2005-2006 financial year. With the average age of the population on the decrease and

income levels on the increase, the popularity of beer in the country continues to rise.

The Indian beer market was estimated to be 6.7 million hectoliters (hl) in 2002-03. Beerconsumption has been growing rapidly at a CAGR (Compound Annual Growth Rate) of 7% over

the last 9 years, while growth in 2002-03 was 11 per cent. Indian growth rates compare favorably

with the global beer industry, which grew by about 2.6 per cent in 2001-02 Apart from providing

strong growth; India also provides attractive profit margins due to the consolidated nature of the

industry.

A comparison between China and India, for example, reveals that the Chinese beer market is

marked by intense competition, with several players being marginalized.

In China there are about 400 brewers, of which the top1

0 account for only 45 per cent of themarket. This has resulted in low profit margins for the Chinese beer players.

In contrast, the top two beer players in India account for about 75 per cent of beer sales in India

and the industry stands a chance to see more consolidation in the near future. The effect of this

consolidation can be seen in the fact that beer prices in India rarely go down with the competitive

pressures of new product or brand launches. In the past, whenever beer prices have gone down, it

has been due to either the lowering of duties by the government or the deregulation of

distribution (leading to lower margins for the distribution channel partners). In neither scenario

have the margins or revenues of beer manufacturers been affected.

Per capita consumption in India is hovering around a measly 1 litres per annum. These figures

pale into insignificance if one compares them with those of Czech Republic that has the highest

per capita consumannum. Per capita consumption is directly related to the taxation, according to

an industry observer.

US Beer Industry

The U.S. brewing industry is dominated by three firms Anheuser-Busch, SAB-Miller, and

Coors who together account for about 80% of beer shipments. Anheuser-Busch has been the

leading firm in the industry every year since 1957. Miller joined the top three in 1976, following

the introduction of Lite beer. Coors became one of the top three brewers in 1989 after it

expanded nationally and displaced Stroh. However, despite a high level of industry


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concentration, the real price of beer has been stable or declining since 1963. In recent years, a

number of marketing concerns have affected the industry leaders, including growth of beer

imports to an 11% share; a decline of sales of leading premium brands (Budweiser, Miller High

Life, Miller Genuine Draft); competition from new products and marketing methods (flavored

malt beverages, direct shipments of beer and wine); competition from specialty-craft brewers;

and continued attempts by neo-prohibition groups to demonize the industry, especially its

dvertising and marketing practices.

Determinants of growth of Indian Beer Market

The Indian beer market has been growing rapidly over the last 10 years, due to the positive

impact of demographic trends and expected changes, like:

Rising income levels:

India is home to nearly one-sixth of the global population and is one of the most attractive

consumer markets in the world today. Various research studies have shown that a rise in the


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income levels has a direct positive effect on beer consumption. The National Council for Applied

Economic Research (NCAER) projects India's 'very rich', 'consuming' and 'climbers' classes to

grow at a CAGR of15 per cent, 10 per cent and 2 per cent respectively. With this growth in

income levels, Indian beer consumption is expected to continue growing, at the very minimum,

at the growth rates witnessed in the last decade.

Changing age profile:

As a consequence of the high birth rates prevalent until the 1990s, a large proportion of the

Indian population is in the age group of 20-34 years. This age group is the most appropriate

target for beer marketers. This population trend will give a further boost to the growth of beer

consumption in India.Many global players are planning to enter the Indian beer sector and they

realise that a partnership with a local player is important to establish a successful presence in

India in a short time frame.

Changing lifestyles:

A deep-seated traditional social aversion to alcohol consumption has been a traditional feature

of the Indian society. However, as urban consumers become more exposed to western lifestyles,

through overseas travel and the media, their attitude towards alcohol is relaxing. Social habits are

undergoing a transformation as mixed drinks are becoming more popular. The greatest evidence

of this trend is the increase in beer consumption among women. With increasing urbanisation,

this acceptance is only going to rise.

Reduction in beer prices:

The Indian consumer typically values an alcoholic beverage on the basis of its 'kick' factor

versus its price. The following two factors therefore, affect the market for beer. Firstly, as moststates do not have a differential tax structure based on the alcohol content, strong beer.

In India the future of beer industry is very much optimistic because:

1. India has predominantly a warm/hot climate


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2. The beer-drinkers in the country are much younger than the average beer- drinker elsewhere

in the world. This makes them more likely to carry the brand with them for a lifetime.

3. Also, as the target audience becomes younger, a light beer is expected toattract first-time

drinkers, since it is much milder than any of the other beersin the country.

4. Increasing exposure to beer and wine drinking, mainly due to media and consumer mobility.

All these factors combined make the scenario very promising for beer industry and are 'in sync'

with their strategy for India.

UB (United Breweries Ltd.) is the market leader in the Indian beer market with a 40% market

share. Its flagship Kingfisher brand alone commands 25% market share. The company has

however been focussing on strong beer, which has driven growth. The company introduced its

strong beer, Kingfisher Strong during the year 2000 in the selected market of Maharashtra andKarnataka. The move came as a reactive move following increasing shift of consumers towards

strong beer, a trend started by Shaw Wallace. While the overall market grew marginally by 2%,

the strong beer market grew at 8-10% during the year at the expense of lager beer. The market is

now skewed towards strong beer with more than 60% of the market being strong beer market.

Beer mix today is approximately 60 percent lager beer and 40 percent strong beer. This ratio was

very different 4 years ago. Over the last four years strong beer has been the fastest growing

segment. This was completely usurped by Shaw Wallace. As of today while Shaw Wallace has

approximately 28 to 30 percent of the strong beer market, UB already has achieved 14 to 15

percent of that strong beer market and is growing very fast. It launched Kingfisher Strong only in

May of 2001. And once it is able to take Kingfisher Strong national, it will try to match Shaw

Wallace's market share over the next few years.

Apart from Kingfisher, and Foster's Beer, the other brands in the Indian market are Carling

Black Label, Carlsberg, Tiger, Barons, Heinekin, Budweiser, Corona, Dansberg, Golden Eagle,

Guru, Maharaja Premium Lager, Haake Beck, Haywards 2000 Beer, Haywards 5000, Haywards

skol, Flying Horse Royal Lager, Taj Mahal, Hi-Five, Ice, Kingfisher Diet, Kingfisher Strong,

Kirin, KnockOut, Legend, London Diet, London Draft, London Pilsner, Royal Challenge, San

Miguel Lager, Sand Piper, Strohs and Zingaro.


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The major brands which belong to large groups in the industry (apart from UB) are Shaw

Wallace - Royal Challenge Premium Lager, Haywards 2000 Premium Lager, Haywards 5000

Super Strong, Hi-Five and Lal Toofan.

South African Breweries India Ltd. - Knock-Out, Continental and Three Lions, a new brand that

was launched in the autumn of 2001 by SAB in Uttar Pradesh, Chandigarh and HimachalPradesh.

Other possible competition Radico Khaitan and beer international Interbrew has formed a joint

venture to distribute Interbrew's Beck's brand of beer in India. The premium lager beer segment

in India will be targeted. Radico has also announced the launch of its international division.

A lot of new variants promise to gain prominence, but mainly in niche urban segments. The

sophisticated consumer who drinks beer for the experience and not to get drunk will lap up ice

beer or light beer. In urban centers, apart from first time users companies are also targeting

women, who as 'the times they are a changing,' are entering the market for beer. Essentially,women shy away from beer consumption because it is associated with calories, and has

traditionally been a buddy drink, associated with pot-bellied men sitting at bars and shooting

darts.

Indian Brewing industryToday, the brewing industry is a huge global business, consisting of several dominant

multinational companies and many thousands of smaller producers ranging from brewpubs to

regional breweries. More than 133 billion liters (35 billion gallons) are sold per yearproducing

total global revenues of $294.5 billion in 2006.

InBev is the largest beer-producing company in the world, followed by SABMiller, which

became the second-largest brewing company when South African Breweries acquired Miller

Brewing in 2002. Anheuser-Busch holds the third spot.

Breweries in Maharashtra

Sr. Name of Brewery District Factory Address Phone No.

1 Associated Breweries &Distilleries

Thane Plot D103, TransThane creek ind area,Sion- Panvel Rd,

022-27671939


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A/P Shirwane

2 Hindustan Breweries &Bottling Ltd.

. Thane C/23-24, WagleIndustrial Estate

3 Bombay Breweries Raigad Plot M-1, MIDC,Industrial Area

022-27410632

4 Mohan Rocky SpringWater Breweries Ltd.

Raigad MohanWadi, Khopoli 02192-262461

5 Skol Breweries Raigad Kegaon, Tal Uran 022-27222139

6 Skol Breweries Ltd (Unitof Doburg Ltd.)

Satara E-1, MIDC IndustrialEstate 7 Arlem(Aurangabad

7 Breweries/Asia PacificBreweries-Heineken)

AurangabadPlot No H-9, 10,11,&13, MIDC IndustrialArea, Walunj

0240-2564172

8 Inertia Industries Aurangabad Plot No 1-10, MIDCArea, Walunj

0240-2554979

9 Fosters India Aurangabad M-99, MIDC, Walunj 0240-2554563

10 Lilasons Breweries Aurangabad 1-1-7 MIDC, Walunj 80240-255519

The Future

Recently, concern among citizens' groups over the excessive consumption of alcoholic

beverages by some individuals has initiated additional government regulation of beer. New

warnings have been added to labels, warning of impaired driving, hazards to pregnant

women, and other health ailments associated with alcohol consumption. Reduced tolerance

for drunk driving, for example, encouraged many brewing companies to advocate

responsible consumption. As a result, certain states have established laws to control the

alcoholic content of beer for sale within their jurisdiction. The beer industry will continue

to contend with these large social issues.

Much research is currently conducted in the area of plant engineering. Brewery

researchers are manipulating the genes of barley and other common grains to increase

their resistance to disease and to encourage helpful mutations. This genetic research also

extends to improving the yeast. Current research is aimed at producing yeast strains that

resist contamination and to making new varieties of yeast that can ferment carbohydrates,

which common yeasts cannot process.


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The brewing industry is also making advances in the area of rapid testing for

contaminants. New technology such as DNA probes and protein and chromosome finger-

printing is being developed by brewers to detect microorganisms that can adversely affect

the brewing process. Some of this technology is already in use in medical science for drug

screening, AIDS testing, and pregnancy testing. Brewers are eager to adapt this cutting

edge research to the beer industry.


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Conclusion

In a massive (over 100 million cases), fast-growing and difficult beer market like India

where beer drinkers have strong brand affinities and where brands like Kingfisher are

almost ubiquitous, Tiger beer needs to establish its unique identity and consumer base byfocusing on a niche market (as it cannot spend / act like big beer brands with deep

marketing pockets)

Tiger beer is a world beating, award winning, great tasting beer of very high quality.

Tiger beer has effectively been using the platforms of electronic music and contemporary

art to connect with its target consumers in the Indian market.

Marketing spends are limited so we need a guerilla marketing strategy to win.

Although beer consumers have strong loyalties, there are still needs which are not beingmet by their current beer brands.

Beer is largely perceived as a mass market product with no clearly defined target

consumer. Tiger beer needs to focus on a targeted niche market to differentiate itself and

position itself uniquely in the consumers mindscape.

Focus should be on the upwardly mobile beer drinker who enjoys drinking beer but still

has status & discernment needs which he would like to communicate through his brand

choices.


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3. SWOT ANALYSIS OF BANGALORE BEER MARKET

STRENGTHS

y Nascent stage, few players.y Growth rate per annum 30%.y Urban population increasing

every year.

WEAKNESSE

y Inconsistent quality of beer.y Poor awareness on beer.y Stringent and regressivegovernment rules with different

taxation across various states.

y High customs duties for foreignplayers.

OPPORTUNITIES

y Large domestic market withincreasing disposable income.

y Population changing lifestyleaccepting new trends.

y Export potential to rest of theworld.

y Growing tourism in India.

THREATS

y New players entering market at fastpace.

y Foreign players entering with tieups with local players.

y Better quality.


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RESEARCH

In order to understand the ground reality of the trends of beer in Bangalore market, a typical

pubs taverns were taken into study.

Couch , Firangi Paani, Beach, Eetreme sports bar in the city were taken into consideration for

the research process.

The research had two phase:

In the first phase:

Qualitative research with two focus groups was conducted. These sessions focused on

understanding the demography of beer consumers in the city and the consumers opinion about

beer. The respondents were selected using a convenience sampling. A wide range of ages and

socioeconomic classes were sought.

In the second phase:

Qualitative research with two focus groups was conducted. These sessions focused on

understanding the management behind beer sales and staff involved in its sales and their opinion

about beer.

There were two separate questionnaires designed for this purpose.

At designing the content of questionnaire these were few of the topics which were addressed:

y Consumption of beery Learning of beery Frequency of purchasey The beer style preferred

The questionnaire was also designed in a manner to understand the mind and behaviour of the

consumer and the employee with regard to opinion about beer. The answers were based on a

value system


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QUESTONNAIRE

1 Do you drink beer?Yes ( ) No ( )

2 How often do you drink?Once in 15days ( ) Once in a week ( )

More than once a week ( ) occasionally ( )

3 Where do you prefer to drink beer?Parties ( ) At Home ( ) Outside with friends ( )

4 Which is your favourite brand?.

5 If this brand is not available then your second choice inBrand of beer

.

6 You like beerMild ( ) Super strong ( ) Extra strong ( )

7 You like beer inCan ( ) Bottle ( ) Both ( )

8 You like beerChilled ( ) Warm ( )

9 You like the brand because ofPrice ( ) Taste ( )

Quality ( ) Availability ( )

10 Your brand is superior to other brand because of


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Price ( ) Taste ( )

Quality ( ) availability ( )

11 Would you like to switchover the brand?Yes ( ) No ( )

12 If Yes then why/ if No then why?Price ( ) Taste ( )

Quality ( ) availability ( )

13 Factors affecting buying behaviour of beerPrice ( ) Taste ( ) Quality ( )

Strongness ( ) Packaging ( ) Advertisement ( )

Availability ( ) Brand name ( )

14 What improvement you want in your brand?Price ( ) Taste ( ) Quality ( )

Availability ( ) Awareness ( )

15 Who is your best company while you consume beer?Parents ( ) Friends ( ) Colleagues ( ) Alone ( ) Others ( )

Demographic Profile of Respondent

Name ....................................Age.........


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Sex...Male ( ) Female ( ) Others ( )

Qualification: - HSc ( ) Graduation ( ) PG ( )

Professional ( )

Profession: - Service ( ) Business ( ) Professional ( )

Student ( )

Income: - Up to Rs5, 000 ( ) Rs5, 000- 10,000 ( )

Rs 10,000- 20,000 ( )

Thank You


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1. MANAGEMENT QUESTIONNAIRE Name . Sex .

Outlet . Years of Experience

Marketing Strategy - Sales & Pricing

1. What are our business objectives over the next two

years? Be as specific as possible, and make sure to

address the following goals:

Number of customers

Revenue

Profit

Market share

2. What is the process for selling our services or

products (list the key milestones in the process)? Do

we use any of the following processes?

Direct personal sale

Direct online sale

Indirect through channels

3.How important is price in the purchase decision process?

4. What is our current pricing structure, including discounts, product options, rebates,

and so on?


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5. Which of our competitors is considered the price leader? What does the price

leader charge for its offering?

6. What are our other competitors charging for their offerings?

7. What is the perceived value of our offering as compared to its price?

Competition

8. Which companies pose the greatest threat, and how do they differentiate themselves?

9. List the strengths and weaknesses of each of your competitors

10. Which competitors have the largest market share within our target market segments?


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2. SUMMARY OF BEER SALES1. COUCH

By Category:

Feb

2010

Mar

2010

Apr

2010

May

2010

Jun

2010

Jul

2010YTD

%

Bottles Bottles Bottles Bottles Bottles Bottles Bottles

K F Premier 810 770 665 852 680 723 4500 66.31%

K F Ultra 4 13 2 1 7 19 46 0.67%

Heniken 375 240 256 316 401 364 1952 28.76%

Corona 90 46 23 49 35 45 288 04.24%

TOTAL1279 1069 946 1218 1123 1151 6786 100%

2. FIRANGI PAANIBy Category:

Feb

2010

Mar

2010

Apr

2010

May

2010

Jun

2010

Jul

2010YTD

%


K F

Premier1293 1254 842 1136 1237 1256 7018 55.39%

K F Ultra 214 130 143 152 160 201 1000 07.89%

Heniken 760 647 539 830 459 614 3849 30.38%

Corona 198 85 172 136 74 136 801 06.32%

TOTAL2465 2116 1696 2254 1930 2207 12668 100%


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3. BEACHBy Category:

Feb

2010

Mar

2010

Apr

2010

May

2010

Jun

2010

Jul

2010YTD

%


K F

Premier170 164 158 124 139 78 833 66.32%

K F Ultra 6 0 0 0 3 0 9 00.71%

Heniken 78 40 63 72 83 37 373 29.69%

Corona 14 7 6 4 8 2 41 03.26%

TOTAL268 211 227 200 233 117 1256 100%

4. EXTREME SPORTS BARBy Category:

Feb

2010

Mar

2010

Apr

2010

May

2010

Jun

2010

Jul

2010YTD

%


K F

Premier

120 95 80 105 60 40 500 66.05%

K F Ultra 4 2 0 0 0 0 6 00.79%

Heniken 40 35 52 36 31 17 211 27.87%

Corona 24 3 4 6 3 0 40 05.28%

TOTAL 188 135 136 147 94 57 757 100%


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OVERALL SALES OF BEER IN ALL THE OUTLETS

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

k F Premier K F Ultra Heniken Corona

Chart Title


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3. ANALYSIS AND RESULTSFor consumers:

1. Majority of consumers are in the age group 20-40.2. For every 2 men that consume beer there are 3 women who consume beer.3. Beer is primarily brought by consumers who earn above 4 lakhs per annum.4. Most consumers learn about beer and beer drinking from friends and family, television

and books. Thus, this could provide an opportunity for beer labels to promote themselvesthrough such media through unique marketing campaigns.

5. Consumers most likely would consume beer at least once a week, the number going upon the weekends.

6. Buying of beer on an average is restricted to only once a month or foran occasion.7. Consumption per month is two bottles on an average.8. Consumers believe drinking beer is a healthy drink.9. 72% of the consumers know the ingredient used in making beer. And the rest of the

people consume beer for social needs

10.People like to consume beer in various locations 70% of them prefer to consume at pubs, restaurants, bars etc. and prefer consuming at home.

11.On an average consumer spend around 500 to 1,000 on beer.12.Most of the consumers preferK F Premier i.e. 60%, 33% prefer Heniken and 7% K F

Ultra . But all the consumers in the sampling prefer corona but only on special occasion.

13.57% of the consumer prefers domestic beer than imported beer.


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14.For own consumption of beer:57% of the consumers proffered domestic beer.

15. For public/social consumption:65% of the consumers preferred imported beer.

16.Price of beer reflects the quality of beer.Consumers rated it at 2.87.

17.The country where the beer originates is important when buying beer.Consumers rated it at 3.53.

18.Imported beer have better quality than domestic beer.Consumers rated it at

3.4.

19.Imported beer are costlier than domestic beer.Consumers rated it at 3.46.

20.The country of origin one chooses reflects status.Consumers rated it at 2.4.

21.Country of origin is important for social consumption.Consumers rated it at 3.


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4. ANALYSIS AND RESULTSFor management:

1. In retail outlets they sell more than 20 bottles and in restaurants they sell less than10 bottles.

2. In both retail outlets and in restaurants consumers preferK F Premier and the leastwine preferred is K F Ultra.

3. Customer spends around 500 to 1,000,but if the guest is in a group of hi- flyersthen he spends around 1,500 to 2,000.

4. 60% of the customers preferIndian brands and 40% of the customer preferinternational brand.

5. 75% of the customers know what beer are buying but few new beer drinkers and fewpeople wants give beer has a gift will enquire lot about the beer.

6. Storage of beer is a big problem to both retail and restaurant has Indian climate isnot suitable to store in room temperature.

.

7. In retail outlets have hindrance when selling outside Karnataka brand has the pricedifference is visible to the consumer but in restaurant it doesnt matter much has per

glass is almost the rate of other beer brands in India.

Whether:

(Scale 1= definitely false, 2= partly false, 3=partly true, 4= definitely true)

8. Price of beer reflects the quality of beerStaff rated it at 2.33.

9. The country where the beer originates is important when stocking of beer.Staff rated it at 3.67.

10.Imported beer have better quality than domestic beer.Staff rated it at 3.08.


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Bibliography & Webliography

Datamonitor, Beer in India, Industry profile.

The Business Line (Internet Edition).

International Dictionary of Marketing - Daniel Yadin

Marketing Management Millennium Editionby Philip Kotler

1. http://en.wikipedia.org/wiki/Portal:Beer

2. http://www.indiadiets.com/Health_flash/News/Beer_ better_than_milk.htm

3. http://www.drinks-business-review.com/

4. www.ratebeer.com5. www.drinkingbeer.net

6. http://indiabrew.blogspot.com/

7. http://www.thehindubusinessline.co

History of Beer

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