Kingfisher

A Project on Marketing Strategy adopted by UBL for Kingfisher Beer


CONTENTS

1. Executive Summary

2. History, Contents, Classification and Types of Beer and

its Making

3. Board of Directors

4. Company Profile – History, Mission, Timelines, Organisation

Structure, Achievements

5. Code of Conduct

6. Investors

7. Beer Trivia and Hangovers

8. Marketing Mix of Kingfisher – Product, Price, Promotion

and Place

9. Findings and Conclusions

10. Problems and Suggestions

11. Bibliography

12. Annexures


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.


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 RaveendranS.Y.B.B.A.

J.D.C. Bytco College, Nasik


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) To understand the process of manufacturing, classification and types

of beer.

2) To understand the various marketing techniques adopted by UBL.

3) To understand the various advertising & sales promotion techniques.

4) To find out the consumer response towards the brand.

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.

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.


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


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

(Hops).

Malt is the 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 Beer…and ENJOY!


Dr. Vijay MallyaChairman

Ravi Nedungadi Director

Kalyan GangulyManaging Director

John Simon HuntDirector

John Dunsmore Director

Veronica Lesley Jackson

Director & CFO

Chugh Yoginder PalDirector

Sunil Kumar AlaghDirector

Chhagan Lal Jain Director

Govind Iyengar Company Secretary


It all began with 5 breweries in South India. The oldest

of which, Castle Breweries, dated back to 1857. United

Breweries, as these breweries were named in 1915 has

come a very long way.

Soon afterwards, the sight of bullock carts carrying

huge barrels or 'Hog's heads' containing beer became

a household sight. These carts wheeled their way to

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

of Beer in India. And the history of Beer Division of

United Breweries!

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.

The group Mission Statement embodies these objectives:

To be the recognized leader in our target markets

To be the preferred employer wherever we operate

To recognize the value of our human assets

To be the partner of choice for customers, suppliers, and other creators of

innovative concepts

Timelines

A Project on Marketing Strategy adopted by UBL for Kingfisher BeerMarch 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 formed2001-02 - Acquired GMR Vasavi, MP Breweries and41% share of Inertia Industries Ltd.65% share of Associated Breweries & Distilleries Ltd.97% share of Mangalore Breweries & Distilleries Ltd.2002 - Aquired Empee Breweries


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

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.


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 designerwear.

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."


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 Company’s success. The Company will uphold ethical and legal standards while pursuing its objectives. Consistent with these principles, the Company’s 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

1Act with integrity, probity, honesty, transparency and with utmost good

faith.

2

Actively assist in implementing the Company’s 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

from subjecting the Company to liability and/or loss of business.

2 Conflicts of Interest

A Project on Marketing Strategy adopted by UBL for Kingfisher BeerA “conflict of interest” exists when personal interest interferes in

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 Company’s

assets, labour or information for personal use except as outlined

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 program available to all Directors/Covered

Employees.

A Director’s 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

interest.

3 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

Conduct for Prevention of Insider Trading” is mandatory.

4 Competition and Fair Dealing

The Company strives to outperform its competition fairly and

honestly. Each Director/Covered Employee should deal fairly

with the Company’s 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 owner’s consent, or inducing such

disclosures by past or present employees of other companies is

prohibited.

5 Discrimination and Harassment

The Company is firmly committed to providing equal opportunity in all

aspects of employment and any illegal discrimination or harassment of

any kind is prohibited.

6 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

A Project on Marketing Strategy adopted by UBL for Kingfisher Beerhealth rules and practices and reporting accidents, injuries and unsafe

equipment, practices or conditions. Being under the influence of illegal

drugs and/or alcohol on the job is absolutely prohibited.

7 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.

8Protection and Proper Use of Company Assets and Proprietary

Information

All Director/Covered Employees must endeavour to protect the

Company’s 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 Company’s

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

liabilities.

9 Reporting any Illegal or Unethical Behavior

A Project on Marketing Strategy adopted by UBL for Kingfisher BeerIf 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

frivolous manner will be considered a violation of the Code.

10 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

regulations.

11 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.


:: 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.


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, gives

cause to expect acceleration in demand for beer in the coming years.


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.


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 :

A Project on Marketing Strategy adopted by UBL for Kingfisher BeerMARKETING MIX

PRODUCT PRICE PROMOTION PLACEBrand, Packaging and

QualityPricing Strategy &

DiscountsPersonal Selling &

AdvertisingManufacturing, 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 Ltd. have always been recognized for their

international quality. That's Beer at its best for the discerning

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.

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.


3. PROMOTION :

Personal Selling is an essential part in this business. The Co. appoints well-

qualified 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.


BIBLIOGRAPHY

www.kingfisherworld.com

www.google.com

Microsoft Encarta Encyclopedia

Books referred – Marketing by Philip Kotler.

Yes

No

Yes

No

Yes

No

0

2

4

6

8

10

12

18-30 30-45 45-60

Frequency of Drinking Beer

7%

20%

60%

13%

Daily

Weekly

Occasionally

Socially

HabitEnjoyment

HealthOther

S1

0

5

10

15

20

Reason to drink


SURVEY STATISTICS

1) Do you drink beer ?

Age Group

Yes No

18-30 10 230-45 11 145-60 9 3Total 30 6

2) How often do you drink ?

3) Why do you drink ?

Reason to Drink

No. of Persons

Habit 2Enjoyment 20

Health 5Other 3

Frequency to Drink

No. of Persons

Daily 2Weekly 6

Occasionally 18Socially 4

Brand Preference of Beer

46%

27%

10%

17%

Kingfisher

Knock Out

Khajuraho

Others

7%

27%

59%

7%

Home

Hotel

Party

Outdoors

0-200200-500

500-800800 & Above

S1

0

5

10

15

20

Monthly Expenditure on Beer


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

Monthly Expenditure on BeerRange of Amount No. of Persons

0-200 20200-500 7500-800 3

800 & Above 1

5) Which brand do you prefer ?

Brand NameNo. of

PersonsKingfisher 14Knock Out 8Khajuraho 3

Others 5

6) Where do you like to drink ?

LocationNo. of

PersonsHome 2Hotel 8Party 18Outdoors 2

TasteQuality

HardnessOthers

S1

0

2

4

6

8

10

12

14

16


7) What attracts you most about Kingfisher ?

Attracting FactorNo. of

PersonsTaste 6

Quality 16Hardness 7

Others 1

CONCLUSION

1. Thus, the above statistics show that about 83% people drink beer, most of

them do so occasionally.

2. They drink beer, primarily, for the purpose of enjoyment and 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 it’s 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.

Kingfisher

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