Line Extension:Kingfisher Ultra

Group 8:Anamika Mundhra (04)Dwip Sengupta (86)Ekta Poddar (87)Hersh Kenkare (91)Saurav Mishra (112)Shiladitya Sengupta (114)

Beer Industry: IndiaMarket volume (in million litres), 2006-2011 % market share (by volume), 2011

Sales of beer by segment, % volume,2011 Key highlights of the industry

•Beer Industry grew at 12% in total volume terms in 2011 to reach 1.9 billion litres•3% decline in imported premium lager in 2011 due to domestic launch of launch of Heineken beer by UB Ltd•Average unit price of beer rose by 7 % in 2011•Imported from : Singapore, Germany, Mexico, Belgium, Netherlands•Exported to: UAE, Singapore, US, Bhutan, Malaysia•United Breweries Ltd. dominates the Indian beer market with >50% of the market share by volume

United Breweries Ltd. - KingfisherUB Group

Aviation Beverage Alcohol

Fertilizers Engineering

Spirits Wines Beer

Kingfisher UB Export Kalyani Black Label

Premium

Strong

Blue

Bohemia

ULTRA

Heineken

Flagship Product

Line Extension

Launch Date 18th September 2009

Extension Type

Line Extension into the Super Premium Segment

POD Distinctive Taste, Unique Packaging (embossed flint

bottle, with the ring pull crown and the gold metalized neck and

front label)

Competitors Carlsberg, Heineken and Budweiser

Flavor Subdued malty note balanced with a hoppy bitterness

Tag Line Touch It. Feel It. Taste It

Price MRP in India- Rs 110

Need to enter the segment

Changes in Indian consumers’ demands with increase in

disposable income- ready to pay a premium for THE BEST

Beer Market: Segmentation

92%

8%

Beer Type

Std. LagerPremium LagerSpecialityAles, Stouts & Bit-tersLow Alcohol •Charac

terized by consumer affordability

•Wide price range- many brands

PRICE Segmentation

•Divided by lager types & taste

•Dominated by premium & std. lagers

QUALITY Segmentation

United Breweries Ltd. - Kingfisher

0.000%

0.200%

0.400%

0.600%

0.800%

1.000%

1.200%

1.400%

1.600%

1.800%

2009 2010 2011

Contribution of Ultra to the Group’s Overall Market Share

Sales by Volume (Mn Litres)

• Repositioning as Aspirational Brand aids in line extension into Super Premium Segment

Other Growth Drivers: Growing economy

Reduction in stigma associated with alcohol

Low Per Capita Consumption of Alcohol(Scope of Growth)

Perception towards the Flagship Products (before Ultra) Kingfisher ULTRA

United Breweries Flagship Products Kingfisher Ultra423.6 385.1 -488.7 446.3 -567.8 520 -676.9 610.1 3.5894.1 705.3 8

1051.5 819.9 17.2

Repositioned into an aspiration

brand(2003-04)

Brand for successful, young professionalsAlways ready to take a break, chill outPromoted through popular brand ambassadors & events

2011

2006

Launch

Kingfisher Ultra showing a steady growth in revenues, from its launch in 2009 till 2011

*Ex. Store, Delhi, 2012

PRODUCT Flagship brand in

Annheuser-Busch’s India portfolio

4% beer content

PLACE Targets metros &

smaller towns in North, West & South India

2 manufacturing facilities in Hyd., Pune

PROMOTION Target market: see box Activities include• Budweiser Clubbing• Football events• Budweiser Life

PRICE Rs. 100 for 650 ml* Priced at a 30-35%

premium compared to mass market beers

Marketing Mix

Competitor: Annheuser Busch - Budweiser

TARGET SEGMENTGender: Male

Age: 21-40SEC: A & B

Brand Element

Description

Tagline“King of Beers” – best

taste, masculine nature to appeal to target segment

Logo Crown logo reinforces tagline

ColourRed colour scheme

symbolizes energy & confidence

Brand Associations

Description

Sponsorship Sporting events (Man. United official sponsor, FA

Cup)

Yet to significantly leverage on secondary associations in India (laws against alcohol

advertising)

Brand Company name 2008 2009 2010 2011

Budweiser Anheuser-Busch InBev India Pvt Ltd 5.5 16.0 12.8 20.0

Kingfisher Ultra United Breweries Ltd - 3.5 8.0 17.2

Carlsberg Carlsberg India Pvt Ltd - 8.0 11.9 14.5

Comparison of Consumer Need: KF Strong vs KF Ultra

Kingfisher Strong: Standard Segment

Kingfisher Ultra: Super Premium Segment

Quality ConsciousRelate beer to Prestige – Brand Responsive Increased westernized tasteBetter Image Refined taste

Consumption Contexte.g. at a party, commuting

Needse.g. thirsty, need to have fun

Consumer Specific Factorse.g. demographics

Product Consumption

Time specific situational factors

e.g. time of day

Beer Consumption

Provides the “touch & feel” experience through distinctive taste & superior packaging innovations

(Emperor Cans, Flint Bottles)

StrengthStyleYouthfulnessPower & Machoism

Same Taste – Extra Dum

Kingfisher Premium – The Flagship Brand Kingfisher Ultra – The Line Extension

Comparison of Brand Association: KF Premium vs KF Ultra

Positioned as Lifestyle BrandBrand Promise – King of Good TimesPromotion Strategy - Fun Platforms

Brand Associations

Sports Fashion Music OthersIPL – 5 TeamsF1 – 1 TeamNFL – 1 TeamCorporate 5’sCarting

Fashion AwardsDesignersSwimsuit CalendarFashion week

MTV AwardsTalent ShowsRocktober FestPub Rock FestSalsa Contest

TGIOFThematic pubNight BazaarsCasino Nights

Brand Associations

Larger than Life – consistent with existing imageAssurance of differentiated experienceTouch It. Feel It. Taste It

Movie – REEL Nights

Music- Soul Flip(King of DJ, Bappi Lahiri)Fashion – Fashion Weeks (across India)Special Events –Game For A Game,Lounge Parties

classy, modern, urban, confident, independent, self assured

Associated Imagery:

Fun, Youth, Refreshing, Energy, Popular, Leisure

Associated Imagery:

QUESTIONS?

Thank You!