SWAMI KESHVANAND INSTITUTE OF TECHNOLOGY,

MANAGEMENT AND GRAMOTHAN

A STUDY ON PORTFOLIO ANALYSIS AND STRATEGIC

PERSPECTIVE OF KINGFISHER BEER

Submitted By: Aarushi Mathur

Title: A STUDY ON PORTFOLIO ANALYSIS AND STRATEGIC PERSPECTIVE

OF KINGFISHER BEER
Program: MBA
Semester: 2nd
Course: MINI PROJECT
Course code: M-209
Session: 2020-21
Submitted to the Course Faculty: Dr. Savita Choudhary
Date: 20th June,2021
 ACKNOWLEDGEMENT

I would like to express my special thanks to my Course Faculty HOD

Dr. Savita Choudhary and who gave me this opportunity to work on this
project “A STUDY ON PORTFOLIO ANALYSIS AND STRATEGIC PERSPECTIVE
OF KINGFISHER BEER" to get the concerned knowledge and enhance my
skills. Also, I would like to express my special gratitude to my college who
has given me a lot of guidance to work on this project.

Aarushi Mathur
MBA 2nd Semester
(2020-2021)
Signature:
Aarushi....
 CERTIFICATE

This is to certify that the thesis entitled, “A CASE STUDY ANALYSIS

PROJECT REPORT ON THE Kingfisher Beer”, being submitted
by Aarushi Mathur to the Dr. Savita Choudhary (Head of Department)

Swami Keshvanand Institute of Technology, Management and

Gramothan is a record of bonafide research work carried out by him.

This is to certify that the above statement made by the candidate is

correct to the best of my knowledge.

(Miss.Aarushi Mathur)
MBA 2nd Semester
1 Roll Number- 01
Date: 20th June,2020
 CONTENTS

1. EXECUTIVE SUMMARY

2. MARKETING MYOPIA

3. COST COMPONENT

4 INDUSTRY

5 .HISTORY OF BEER

A. Manufacturing process of beer

B. TYPES OF BEER

C. BREWERIES IN INDIA

6 INTRODUCTION TO KINGFISHER

A. The Challenger

B. Types of beer

C. In High Gear

D. March On To Mumbai

E. Loyalty Fishing

F. Market Shift

G. Keeping Momemntum

7 . MARKETING MIX OF KINGFISHER BEER

A. Product
B. Place
C. Price
D. Promotion
8 BCG MATRIX

9 ANSOFF MATRIX

10 PORTER'S FIVE FORCE MODEL

A. PORTER'S Value Chain

B. PORTER'S Generic Strategy

11 SWOT ANALYSIS

12 COMPETITIVE ADVANTAGE

13 FUTURE GROWTH

14 Suggestions & Conclusion

15 LEARNING

16 APPENDIX
A STUDY ON PORTFOLIO ANALYSIS
AND STRATEGIC PERSPECTIVE OF
KINGFISHER BEER
Group No.2
Praveen Kumar (035)
Gagan Kasliwal (078)
Sneha Keshan (084)
Ashmita Goyal (089)
Abhijeet Akash (092)
Jitendra Kumar (116)
Gupta
EXECUTIVE SUMARY
The present report is a unique effort to highlight the exuberance and achievements of the United
Breweries Ltd., a inimitable company, and the report, in a nutshell, has tried to give glimpse on
the company position, the industry analysis, comparative status, portfolio of its products Its core
competency, value chain etc.
The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took
its initial lessons in manufacturing beer from South Indian based British breweries. United
Breweries made its initial impact by manufacturing bulk beer for the British troops, which was
transported in huge barrels or "Hogsheads". At the age of 22, Vittal Mallya was elected as the
company's first Indian director in 1947. After a year, he replaced R G N Price as the chairman of
the company. Kingfisher, the Group's most visible and profitable brand, made a modest entry in
the sixties.
With currently into business of Spirits (United Spirits Ltd.), Wine, Beer (United breweries
Ltd.), Engineering (UB Engineering Limited), Fertilizers (Mangalore Chemicals and Fertilizers)
company has made its mark and presence in each sector it is in.
United Breweries Limited (UBL) - has assumed undisputed market leadership with a
national market share in excess of 50%. Through a process of aggressive acquisition and
market penetration, The UB Group today controls 60% of the total manufacturing capacity for
Beer in India. The flagship brand, Kingfisher is now sold in over 52 countries worldwide having
received many accolades for its quality.
As an economic force, India is believed to hold the potential to grow faster than any other BRIC
country over the next thirty to fifty years. The sub-continent’s Beer market has been equally
dynamic, growing by almost 90% since the turn of the Century. Exceptionally high growth was
generated in the northern states of Punjab, Haryana and Rajasthan which took full advantage of
reduced taxes and improvements in the distribution policy. In contrast to Russia, consumers are
displaying a distinct preference for Strong Beer which has gained market share steadily in
recent years and now accounts for almost 70% of total volume. Kingfisher Strong replaced
Kingfisher Premium as the leading Beer and the Kingfisher brand overall now holds a
commanding position.
MARKETING MYOPIA
It is Narrow-minded approach to a marketing situation where only short-range goals are
considered or where the marketing focuses on only one aspect out of many possible marketing
attributes. Because of its shortsightedness, marketing myopia is an inefficient marketing
approach. According to Theodore Levitt company should have a radar view rather than tunnel
view to its business and when we talk of UBL it is not at all myopic because it has foot falls not
just in breweries industry by products like distilleries, beer , wines, but has also entered into
airlines, footwear, fashion, apparels, sports. Company’s brand KINGFISHER is not new to any
one and has showed its presence in every sector it is in. Company has also gone for backward
integration and has various collaborations and JV’s with suppliers.

COST COMPONENT
One of the most and well reckoned step that UBL has taken in order to reduce the rising cost
and decreasing prodution (Appendix) of raw material barley over the year. Higher prices and
short supply of key raw materials like malt, hops and barley can reduce the profit margin and
affect Any price increase in this two commodities have a direct bearing in reducing the overall
operating margin. Due to price increase of barley by over 33% and increase in bottling cost,
during FY2008 the net profit margin fell by 26%. In states like Uttar Pradesh, Rajasthan and
Madhya Pradesh which, account for 80.34% of barley production in India, the area under
cultivation is shifting to other crops like sugarcane. As can be seen in the adjoining diagram, the
barley production has declined by over 60% from 3135 KMT to 1220KMT from 1975 to 2005. To
hedge the risk on rising raw material prices, UBL has entered into long term arrangements for
sourcing of the vital inputs. In addition it has extended its own contract farming initiatives in the
state of Punjab. The 51% Equity stake in Maltex Malsters Limited, a manufacturer of malt, is
also an initiative for vertical integration.

INDUSTRY
The Indian beer industry has been witnessing steady growth of 10 - 17% per year over the last
ten years. The rate of growth has increased in recent years, with volumes passing 170m cases
during the 2008- 2009 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.
In modern times, beer began to be exported to India in the early days of the
British Empire — the early 1700s. The first modern brewery in India was set up in Kasauli, in the
Himalaya mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer . The
Indian beer industry has witnessed a big change during the last five years. The industry was
previously dominated by competition between the Vijay Mallya-controlled United Breweries
Group and the Manu Chabbria-controlled Shaw Wallace. The scenario changed, however, with
the entry of SABMiller in India. The international beer giant started by acquiring small breweries
in the south but then completely changed the landscape with
the acquisition of Shaw Wallace’s beer portfolio for a reported US$264m in 2003. This gave
SABMiller ownership of strong brands like Haywards 5000, along with its existing brands. After
the acquisition, SABMiller focused on spreading its footprint across India, including opening new
breweries in states where Shaw Wallace did not have a presence.
In 2008, beer prices saw steep hikes in key beer consuming states. Consumers’
reactions to the price hikes saw many cut back on consumption, which adversely affected sales
growth. Excessive regulation and further extensions of government intervention, in the areas of
distribution and pricing, is affecting the growth and profitability of the industry as well as
restricting government revenues. In addition, restrictions on advertising and licensing of retail
outlets continue to present challenges to the Industry.
The Indian beer industry is plagued with a myriad of taxes & levies that vary from
state to state. These along with price regulation, inadequate market infrastructure and
restrictions in interstate movement of beer, pose a great challenge for the industry. Unlike most
developed countries where beer is less regulated and available freely, high level of regulation
and higher end consumer price hampers beer sales in India. Uniform tax regime for beer in all
states will be a boon for the industry. If implemented, it will help the beer industry by
rationalizing end consumer prices in all states, as is in the case of other consumer goods. In
addition to economic contribution, a uniform tax structure will also create increased agro
linkages that are beneficial to a country like India. It is important to realize that the beer sector
can contribute immensely to the agricultural sector, as beer is an agro-based product. Also
marginal barley farmers, particularly stand to benefit from the growth of the beer sector.
 HISTORY OF BEER

Beer is an old as the science of agronomy. As soon as

man learned to fit them in to his diet, bread and beer were two
of the earliest utilization. Both baking and brewing followed
similar processes up to a certain point during early civilization.
Processes show that in Mesopotamia 6000 years ago, beer
was made with barley malt and allowed to ferment. Beer also
was used in ancient Egypt, Greece and Rome. Translation of
uniform writings on a clay tablet found in ancient ninevch
describe Noah’s alleged preparations for the food and indicate
that beer was among the provisions that were loaded on the
ark.

Respite its antiquity and general use, beer attained little

commercial standing until about the 10th c. until then brewing
was largely followed as a domestic function like many as
baking and cooking. In the middle ages brewing like many
other arts was concentrated in the hands of churchmen.
Almost every monastery had its beerhouse and some of the
monks were as famous for their beer as are traipses for their
cheese and Benedictines for their liquors. Beer, in that period
also was closely identified with many religious and social
festivals. Such as church asses for raising church funds.

During the era exploration of American continent beer was

deemed an essential in the provisioning of ships. Water
stagnated quickly on a longtime. While beer remained comparatively whole some and palatable. Moreover its diet
properties although unidentified in those days helped ward off many of the diet deficiency ills to which passengers
and crews on long voyages were subject. The dwindling supply of beer on the may. Flower was a factor in the
pilgrim’s decision to seek harbor ahead of schedule.
 ECONOMICS ASPECTS

Country 1965 1975 1985

U.S.A 89783 108024 157863
W. Germany 26197 57471 79628
Great Britain 33960 41282 55056
USSR 15740 27006 51131
Japan 3453 7093 33482
France 10665 16869 19017
Australia 8588 10650 16481
Canada 5605 11546 18117
Mexico 5615 8732 16509
Spain 1434 8389 14162
Poland 4406 6592 10952
Brazil 6077 5629 14775
Czechoslovakia 8939 16022 19066

The output has been divided among approximately 100 breweries. The amount paid each year in federal
state and local taxes has been $9 per barrel. State taxes vary widely. The brewing industry also has
expenditures totaling well oversee and packing goods and for transportation , advertising and promotion.

Although more beer is produced in U.S.A, than in any other country. The U.S.A. ranks well below west
Germany, Luxembourg and other leading consumer nation in per capital consumption. In 1975 per capital
consumption in the U.S.A. were about 31 gallons(1117 liter’s) annually. Patterns of consumption vary greatly
within the U.S.A. and tend to be prohibition remain in effect through local option laws.
 MANUFACTURING PROCESS OF BEER
Beer is manufactured usually form barley, hops, yeast and sugar. The barley corn consist largely of
starch, which will not ferment and so it must first be converted into sugar, which ferments readily. This brought
about by malting the barely. During the malting process the barely is soaked and then kept in a warm
atmosphere so that it begins to germinate. As the barley germinate, it produces an enzyme called “diastase”
which will convert the starch into malt sugar. Which in turn are then converted to alcohol by the yeast enzymes
during the brewing. After malting the barely is milled and then washed together with hot water and sugar. The
resulting liquidate , known as wrote is pumped into large copper vessels where it is boiled with hops and sugar.
The hops act as a flavoring and as preservative. Next, the spent hops are separated from the boiled wort, which
is cooled and put into the fermenting vessels. The yeast is now added, and fermentation begins.

British beer begins fermentation at a temperature of about 15.6 degree c (60) degree and fermentation
takes form five to seven days. These beers are top fermented, that is the type of used floats on the top of the
liquid. The beer after fermentation, is drawknife into setting tanks where any residual yeast is removed and then
stored for a time ( from a few days to a few weeks, depending on the type of beer) at around o degree c (32
degree) to allow it mature before it ils rocked (filled) into bottles or cans.

Lager beers are bottom fermented, the yeast used setting at the bottom of the vessels during
fermentation, which begins at a temperature of from 6 degree c to 10 degree c and takes about 8 days. Lager
bears are matured for up to 3 months at 0 degree c before rocking ( the same lager is the word for store). During
the maturation period a second fermentation takes which clears the beer and improves its flavor and strength.

The term ‘ale’ originally applied to UN-hoped beers, but it is now widely used as a general name for top
fermented beer. The amount of hops used depends upon the type of beer being produced. A strong to p-times
the amount of hops used in malting a light lager.

Another factor which varies according to the type of beer being produced in the malting process. For
example, the barely for a top fermented beer may be germinated for 11 days and then dried at 107 degree c for 3
or 4 days, but barley for lager may only be for 7 or 8 days and then dried at a temperatures of bout 55 degree c.
When dark beer such as brown ales and stouts are to be made, The barley is also high roasted. The root lets
sprout form the barely during germination shrivel and drop off when it is dried, and they are usually collected and
sold for use in animal foods.

1. Trends

Since the realization of beer in U.S. in 1933 there has been a complete switch form dark to light beers
form drought to bottled and canned beer. Drought beer accounted for more than 2/3 of all beer sold in draught
beer most of the increase in packaged beers has been in canned beer.

2. Types of beer:

In the U.S. the name “Beer” is generally given to a bright, pale Golden, light boiled , crispy fresh beverage
that is drunks, chilled some where between 44 degree f and 48 degree f (6.6 degree c and 9 degree c ).
▪ Bock beer

It is a special, full bodied brew, some what darker and sweeter than regular beer. It is brewed in winter for
use in the spring. Bock beer day, the day on which it is first sold is planned to herald the arrival of spring. The
bock beer season lasts about six weeks.

▪ Malt liquor

It is a special kind of beer that varies considerably among brands. Some malk liquors are quite pale,
others are rather dark. Some are quite happy , others are only mildly so, their essential characteristics is a higher
alcoholic content than in other beers.

▪ Lager

It is generally understood to be a light bright and sparking beer, but today all malt beverages in the U.S.
are laggard.

▪ Pilsner

It is a term after seen on beer labels around the world. The original and the pilner beer is the pilsner
urquell which has been brewed at platen in bohemia. Czechoslovakia, for some 800 years and has never been
equaled.

• Ale:

It is an aromatic, golden, fuller-bodied and bitter malt beverage

with a slightly higher alcoholic contents than beer , all ales top
fermentation brews.

▪ Stout

It is darker, fuller bodied ale yielding a rich, ceremony foam,

strongly rousted most is used to give a richer body. It is sweeter and
less happy than regular ale.

▪ Sake

A Japanese brew made form rice, is given a high alcoholic

content by refermentation.
 BREWERIES IN INDIA:

Beer is an alcoholic beverage produce by the fermentation of maited barely. Although the preparation of
fermented beverages has been practiced in India since early times, the art of brewing of Europeans. The first
brewery was started in murre in 1860. Since then several others gave been established in different parts of the
country. At present there are 4 Europeans managed firms who are controlling most of the important breweries in
India

Location Annual production

capacity (1,000’s)
Buyer meakin Solon
Lucknow 10.89
Caravel
Ranikhet
Murre brewery Rawalpindi 15.00
company
United Brewery Bangalore
company Katie (Nilgiris) 15.92
madras
Bengal brewery Calcutta 2.10
company
Total 43.91
 INTROUDCTION TO KINGFISHER

There were 26 beer breweries in across India when the government called the game over in the early 70’s by
freezing the industries production capacity. Nobody was permitted to either expand existing units or build new
ones. In swift reaction, the cash rich Banglore based u. b group began buying up all the breweries if it possible
could bring its tally up to 10. Many of these were small, sick units going cheap. Given the government new anti-
alcohol pasture. U.B was amongst the few willing act on the future of the beer business. Rather than cost U.B.’s
actual consideration was that they were located in the north and east markets it wanted to gain access to (beer
being perishable product and transportation being a costly proposition, sales are usually combined to a radius to
few hundred KM around the brewery). Although the south and west accounted for an over whelning majority of
sale. U.B. was confident other part would grow, some U.B.’s brewing capacity was on par with that of its arch
rival, muhan meakin

The Challenger

Kingfisher was U.BS best beer brand. India’s largest selling brand, however, was still
golden eagle from ‘MEAKIN’ but marketing of beer is all about penetrating market and servicing
them efficiently. This call for an elaborate distribution systems, which has to tackle the
complexities caused by been being a state subject for registration. And states have vastly
differing duties and loss on beer, resulting in each state having to be considered an entirely
independent market. And here, thanks to foresighted expansion, U.B rensed an advantage.
When two in the East, four in the south, one in the West and three in the North. It had a wider
spread of breweries. And nine of them made kingfisher meakin. The market of golden eagle,
have seven and was considerably weaker in the south with excluding distributors. U.B began
pushing the brand into as many retail outlets as deep into markets as it could. Also it worked at
bringing the cycle time (from brewery to out lets) down to just two or three days for local markets
and seven to ten for those in other states. What’s more, the company could ensure consistency
in the quality of kingfisher beer made by different breweries, because it owned them all, in
contrast to its rival which owned them all, in contrast to its rival which owned just two (the other
five being associated suppliers. U.b went on to set up a “CENTRAL TECCHNICAL CELL” to
sample test beer from each plant for possible variations in taste caused by the different water
and production process.
In High Gear

Through the 80,s kingfisher sales grew dramatically. This, despite the fact that it had always been priced higher
than competing brands in the most markets. But kingfisher flanks were kept guarded by other U.b export and sun
lager priced below. In the mid 80,s the company decided to go for a aggressive brand. ‘Most thrilling chilled’ and
surrogate advertising reported to.

The colorful and clearly identified bird in the logo served as a strong visual memoir, what the brand needed was
greatly salience in the targets mind and thus, needed him to catch sight of the logo often enough. Kingfisher took
to high profile event sponsorship.

The kingfisher started sponsoring sailing rallies and horse race derbies. It deliberately stayed away from move
popular sports like and cricket and hockey, the sponsors of, which were lost in the cutter. By the prompting
sophisticated sports, the brand could cause an image association with them. The company had also kept the
target consumer in mind while making the choice. He is the young urban thrill seeker. To him water sports is
refreshing and so is kingfisher. And sailing brings to mind cool sea breeze and foaming water, symbols
associated with freshness. As also with beer publicity for the rally dose additional surrogate advertising for the
brand. There is thrill in horse racing too. The hereby a sport of the rich and influential gives the brand a premium
rub-off as well. Adding to this, kingfisher brings out a monthly video magazine an horses called horse power.

March on to Mumbai

Although strong in GOA and other western region markets, kingfisher had a nominal presence in Mumbai. India’s
largest single markets, which accounts for roughly 11% of sales in the country.

Around 1989, U.B’S flagship brand entered the city with a clear resource to topple the leading brand.
London pilsner from associated Breweries and distilleries (A B D).

K .F was up against several things. For one it did not had a brewery near Bombay. Also the market
demanded that the beer be of uniform quality. Releasing this U.B. decided to sources all beer from just one
brewery in Ludhiana, Punjab. But moving beer across the country was expensive and K.F had to save at an
average RS.2 more than locally made brands. A year after the launch, import levies in to the state were suddenly
raised more that tenfold. This made K.F Rs.4.5 more expensive than others; sales nuse divided by 22%. But to
the brand’s relief the local competitors raised prices too, narrowing the gas to roughly N 2 again.
Loyalty finishing

U.B believes in high visibility for king fisher has a means of staying foremost in the consumers mind.
Advertising agency “oglivly and mother” (o+m) hit upon an innovative campaign idea and decided to advertise the
very bird itself. With large visuals, every advertisement speaks to each of to 12 varieties of king fisher found in
India. The “bird series” campaign projects its vibrant, fun loving and cheerful personality. Thus building a
personality for the brand too, says one add “ this little chap is like every one else. Quit and shy until he gets high”.
The thrilling chilled line runs around the border.

The coming of steatite T.V gave an unexpected lease of life to beer advertising and king fisher mad e the
best of it. The brand’s commercial appear regularly on star T.V and BBC. It shows relaxed sailors, foaming sell
waves and beer, the type has parted again in the form of markedly increased brand loyalty. Infact, king fisher
gained ground even in beer bar (as opposed to take home retail) sales, which account for roughly 40% of the
national market, where dealer influenced counts for much. The bar tender or waiter is given a commission by
some marketers on each bottle cap of their brand, encouraging him to thrust it on to customers. king fisher claims
it relies on consumer insistence.

Finally in 1991, it dethroned golden eagle (which had slipped in to marketing coma, in comparison from the
top spot. selling about 9 million cases (a case contains 12 bottles ) a year, king fisher today commands 21%
share of the 43 million case market worth RS 1100 crore. A regional king pin was topped too. In Bombay’s 4.7
million cases per annum market, kingfisher sells about 1.5 million cases today ahead of London pilsners 1 million
.

MARKET SHIFT

Kingfisher leads, but the story is no quite over yet. Swarms of new entrants are around the corner. In 1991, the
government no new license policy collapsed to coincide. With kingfisher as tendency. So far, rough 95 new
licenses to make beer have been handed out and foreign brands are heading this way India’s per capital beer
drinking at 0.5 liters, is way below that abroad, and the enterants hope to expend the market. Its better taste and
western auva are cited to have confined mild beer, to up market drinkers. The reality new segment of strong beer
which target the lower budgeted drinking looking for a stronger kick is growing faster.

Keeping Momentum

Kingfisher is prepared to defined its leadership position. It has taken the lead in fragmenting the mild beer
market. Further, introducing brand varieties in the tiny (so far at 60% of total) Specially beer segment, to keep the
king fisher loyalist within its fold.

In 1984 was launched kingfisher draught (an beer on top) in Bangalore diet in 1991, which claimed to
certain 80% less colors than the regular beer the diet beer hopes to find favor with weight watchers, but follow the
famous American millerlites case by way of positioning and inside pushes the argument that all to be sole in
pubs. Made with softer water, this beer is milder and has less bizz. Also, it is sold, ‘fresh’ in late kingfisher came
diet in 1997, which claims to contain 80% less colories than the regular beer. The diet hopes to find favor with
weight watchers, but fallows the famous American millerlites case by waty of positioning and instead pushes the
argument that always one to drink much more.

By popularizing draught beer, kingfisher hopes to establish over beer consumption in bars, which accounts
for more then half the market in cities of the south and west. Also beer sold in smaller units like mugs, is
Expected to induce trails among non-drinkers, thus expanding the mild beer market. U.B first got the pub culture
going in Bangalore targeting the yippee who found beer drinking at home not as fashionable (besides being
cusnber some) as that in a beer bar with a distinctly western ambience. Today 125 pubs in the city sell kingfisher
draught exclusively.

Draught was launched in Bombay and is up against the leader, London draft form ABD which was launched
earlier and already has over 75 bars selling it. Kingfisher with less than a third hopes to top that figure. At the
moment however it is using out on both the fraternal and the price. It is using out on both the fraternal and the
price. It takes its rivals advantages of local production and has to transport the staff in chilled vans form goa, this
extents lets the rival supply in chilled vans form goa, this extense lets rivals supply draught cheaper to bar
owners, giving them higher margins estimated at RS. 2 per mug more than kingfisher.

But the company won’t last long. U.B’s eleventh brewery at Taloja near Bombay, is scheduled to start’s brewing
by year-end. The company plans to get draught beer rolling in other cities to and is hoping for relaxation of rules
on public beer drinking.

The rise of kingfisher could be credited to poor competition in a closed market. Its real test will come now, with
international brands about to top in by current performance, kingfisher should be able to hold its own.
 Marketing Mix Of Kingfisher Beer – Kingfisher Beer Marketing Mix

Product in the Marketing Mix Of Kingfisher Beer :

Alcoholic beer market has been on a rise in India and Kingfisher Beer has been able to carve out a unique place
of its own in the beer market that is estimated at more than 3,000 crore rupees. Kingfisher is
an international brand that stands for youth and excitement.
It is available in bottles, pints, slim cans and cans. Its products have a maximum alcohol content of 4.8%. Some
variants in its product kit are as follows-

Kingfisher Strong

Kingfisher Ultra Max

Kingfisher Blue

Kingfisher Buzz

Kingfisher Ultra

Kingfisher Premium

Kingfisher Strong Fresh

Kingfisher Draught

Kingfisher Red

Kingfisher Lager

Some of its related products are as follows-

Bullet

Kalyani Black Label

London Pilsner

UB Export

Zingaro

Kingfisher Bohemia
 Place in the Marketing Mix Of Kingfisher Beer :
Kingfisher Beer occupies 36% of the market share in India and has extended its presence to nearly sixty-nine
countries of the world including Japan, Canada, New Zealand and Norway. It has entered into an alliance with
Scottish and New Castle Plc, brewery giants so that it could use its international network in its own favour.
Kingfisher has a widespread distribution network to market its products.

It has tie-ups with several retailers that help in distribution of its products in various outlets so that it is easily
obtainable in bars, pubs, liquor shops, hotels, restaurants and clubs. The brand has extended its association with
airports so that its product is served in various lounges. Kingfisher beer has created a robust
distribution channel via online marketing system and is now available with a single click of a mouse.

Price in the Marketing Mix Of Kingfisher Beer :

Annual consumption of beer is on the rise in India compared to other countries because of change in lifestyle and
a reduction in general prices of beer. Kingfisher is a premium brand and serves high-quality beer. It faces fierce
competition from other entrants in this market but has not let this factor have any effect on its pricing strategy.

The brand has in fact maintained an aggressive and competitive strategy by adopting a premium pricing policy for
its qualitative products. It has sent a strong message that it will not be compromising the quality of its products
even if it has to increase its prices marginally higher than rival brands. This has actually worked in its favour and
resulted in n success of pricing policy and thus led to increasing in revenues.
 Promotions in the Marketing Mix Of Kingfisher Beer :
There is a ban on advertising of alcoholic beverages in India and it takes some manoeuvring to find the right
advertisement for its audiences. It has a descriptive tagline The King of Good Times. Kingfisher Beer has adopted
Surrogate marketing to promote its products in India. In other countries where it is not banned it has adopted the
usual methods of advertising directly with help of some beautiful ad campaigns. Ads are shown on television,
magazines and on hoardings.

The company has utilised social media to gain maximum coverage and advertised via Twitter, Facebook,
Instagram and blogs. It has been associated with sports and fashion industry to create brand visibility. In order to
create positive hype about its, brand Kingfisher has roped in several supermodels over the years to feature in its
calendars like Maya Hendricks, Deepika Padukone, Noyonita Lodh and Aisha Sharma. Kingfisher has also
entered into several sponsorship deals like its association with IPL cricket team in India and famous cricketers
Sourav Ganguly and Ajay Jadeja have acted as its brand ambassador.

BOSTON CONSULTANCY GROUP MATRIX (BCG

MATRIX)
It is a widely used portfolio management method for evaluating the performance of
business units. There are four quadrants in a BCG matrix: question marks, stars, cash
cows and dogs. On the X axis, market growth is measured, which indicates the level of
market attractiveness On the Y axis, market share is measured, that serves as a
measure of the company's strength in the market

STAR
Stars are high-growth, high-share businesses. Very often, they need heavy investment for
financing their rapid growth. Eventually, their growth slows down and they turn into cash cows.

• TAJMAHAL BEER:- Taj Mahal Premium Lager beer is prepared with finest malt
made at United Brewery own malt house using premium quality barley. It has a
distinct aroma and unique taste. The demand of this beer is mainly in abroad
(australia, france, usa) as it is premium priced and have bitter taste which is not
liked much in india though it is served in some premier hotels in india. The
demand outside is very good and it accounts for good market share in the
exported beer in india.
 • KINGFISHER STRONG:- spectacular growth of 36% is seen in strong beer
(against a market growth of 16%) was witnessed. Kingfisher Strong has now
achieved the number one position in the strong beer segment.

CASH COW
Cash cows are low-growth and high-share businesses. Such established and successful
business lines require less investment to maintain their market share. They generate a lot of
surplus that a company can use to pay its bills, or invest in other businesses.

• KINGFISHER LAGER BEER:- it has witnessed a market growth of 13% in

comparison to the lager beer industry growth of 9.4%.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
lager beer segment.

QUESTION MARK
Question marks are low-share business units, in a high-growth market. They require a lot of
cash, for maintaining the market share. Any business has to think between building a question
mark into stars or whether they have to be phased out

• LONDON PILSNER:- it has witnessed a market growth of more than 20% and
targeting a market share of 15% . (Indiantelevision.com)
 • KINGFISHER DRAUGHT:- this beer has less water in comparison to other beer
type. it has good market growth as it is proving success in its 2nd year still the
market share is less. (thaiindian.com)
• KINGFISHER BLUE:- this is launched around 8-9 months before to tap those
customer who wants less alcoholic beer in comparison to strong beer but more
than mild. It has around 6% alcohol content. Since it has launched sometime
before hence the market share occupied is less as strong beer and lager beer
segment is increasing very fast however market growth rate main up.

DOG
Dogs are low-growth and low-share businesses. They may generate enough surplus to maintain
themselves, but do not hold out the promise to be a large source of cash.
• UB ICE BEER:- this beer is launched for trendy people in 330ml can.It was
different from the traditional lager beer as it was made using a unique
refrigeration process which involves the formation of ice crystals which were
filtered out giving the brew a crisp, clear and strong taste. It did’nt got good
response as it has very low market growth instead people are drinking more the
lager and strong beer.
• KALYANI BLACK LABLE:- one of the oldest brand launched in 1969. It has low
market share as it is only popular in east india and it assumed to be economical .
the market growth for this brand is not good as people are shifting towards other
beers such as London pilsner which is also economical brand.

ANSOFF MATRIX
To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused
on the firm's present and potential products and markets (customers). By considering ways to
grow via existing products and new products, and in existing markets and new markets, there
are four possible product- market combinations.

MARKET PENETRATION
The firm seeks to achieve growth with existing products in their current market segments,
aiming to increase its market share.

• KINGFISHER LAGER PREMIUM:- it has witnessed a market growth of 13% in

comparison to the lager beer industry growth of 9.4%.in the lager beer segment,
UBL is doing market penetration in all the places by promoting the beer in every
state. UBL commands a market share of around 40% with 67% of the market
share in the lager beer segment.
 • KINGFISHER STRONG:- The company is investing much in this product and
also the customers are increasing due to the more alcoholic content and it has
registered spectacular growth of 36% in strong beer (against a market growth of
16%) was witnessed.

MARKET DEVELOPMENT
The firm seeks growth by targeting its existing products to new market segments.

• TAJMAHAL :- This beer is made mostly for export purpose and contain less alcoholic
content though the taste is unique due to its bitterness. The demand of this beer is
mainly in abroad (australia, france, usa) as it is premium priced and shave bitter taste
which is not liked much in india though it is served in some premier hotels in india.
• LONDON PILSNER:- this beer mainly aims lower income group as it is economical beer
and this beer contain less alcoholic content hence catering to all together different
segment.
PRODUCT DEVELOPMENT
The firms develops new products targeted to its existing market segments.

• KINGFISHER DRAUGHT:- this beer contain less amount of water and comes in
500ml can. Hence creating a new product in existing market
• KINGFISHER BLUE:- this is launched around 8-9 months before to tap those
customer who wants less alcoholic beer in comparison to strong beer but more
than mild. It has around 6% alcohol content. It is also done to create a new
product.
• KINGFISHER BOHEMIA:- Kingfisher- the brand that has been synonymous with
providing a "good time" to consumers have launched their own brand of wines in
India - "Kingfisher Bohemia". It is launched in 2008 to get the wider reach in the
alcoholic drink market.
• KINGFISHER ULTRA:- This will be launched within some months. It is a new
drink having sweetness in it.

DIVERSIFICATION
This resulted in the company entering new markets where it had no presence before

• KINGFISHER LEISURE WEAR:- kingfisher is diversified in the leisurewear segment

extending itself in the path of providing good time to customers.
• KINGFISHER AIRLINES:- kingfisher airlines had becomes a very well known company
in itself.this is a full-fledged carrier providing comfort to its fliers.
• KINGFISHER SWIMSUIT CALENDAR:- kingfisher also launch its annual swimsuit
calendar which is the second costliest calendar in the world.
• SPORTS:- kingfisher also diversified in various sports Current such as in Formula 1,
Rugby and Football.

PORTER’S FIVE FORCE MODEL

This model is developed by Michael Porter, this model analyzes the nature and intensity of
competition in an industry through five forces (rivalry, customers, supplier, new entrants, and
substitutes). These five forces are explained as below:-
BARGAINING POWER OF SUPPLIERS:- With increasing cost of raw material and decreasing
cost of barley suppliers bargaining power was high but with backward integration by acquiring
Maltex Malsters Ltd. And shifting their production of beer on malt company has achieved a hold
on its raw material and considerable reduced the supplier strenth and dependency. Company
has aslo collaborated with Government of pujab and haryana for supply of iits raw material.
RIVALRY:- Rivalry is the means through which competitors fight for position by using tactics
such as price, competition, advertisement battles, and new product introduction, to lower the
profits of competitors in the industry.
A CAGR of 11% is expected for beer in the next 5 years many MNcs are eyeing the
Indian market. Currently the major rivalry for kingfisher premium is Budweiser, Carlsberg, Foster
and Tiger and for kingfisher strong it’s Hayward 2000, Hayward 5000, Palone. SABMiller’s who
came to India by acquiring small breweries and made its hold as Best-selling strong beer brand
but still kingfisher being Largest-selling strong beer brand (29%market share) is currently being
supplied in 55 country. There are also some small local players that are in the market but
does not provide much threat to kingfisher.

THREAT OF NEW ENTRANCE:- Beer industry is in Growth phase with 11% CAGR, so it is
attractive for the new players. But strong brands like kingfisher and haywards which already
have their brand recall and extensive advertisement new entrants are expected to struggle to
expand their consumer base as they try to penetrate the beer market in India. Foreign brewers
have been eyeing the Indian market for some years now as India is widely acknowledged
to be the last untapped big growth market Several
international brewers have currently built brand associations and are marketing their brands
aggressively through various point-of-sale promotions throughout their distribution networks. But
with strong players in the market the new entrant will face problems of
a) Economies of scale For example benefit associated with bulk purchases and sales
b) Cost of entry For example investment in technology
c) Distribution channel For example ease of access for competitors
d) Government Legislations introduction of new laws might weaken companies position
e) Differentiation For example certain brands that cannot be copied
f) Supplier power Possibility of forward integration by supplier

BARGAINING POWER OF CUSTOMERS:- It is the extent to which customers are successful in

forcing prices down, or securing high quality or more service at the same price. Customers tend
to be powerful when the quantities they purchase form a large portion of the seller's total sales.
Buyer do not understand the quality of the beverages and as there are not many players in the
market the customer has less command over price.
THREAT OF SUBSTITUTE:- India is predominantly a spirits market and beer is a minority
preference for those who consume beverage alcohol. So substitute is biggest threat as
preference for beer among beverage drinker is less but the low penetration in beer consumption
in comparison to international levels offers the expectation of substantial and sustainable growth
in demand for beer in years to come, particularly given the youthful age of India’s population.

MICHAEL PORTER’S VALUE CHAIN

PRIMARY ACTIVITIES
INBOUND LOGISTICS:- Beer is brewed in either the company’s owned or non-owned
Breweries, with certain Breweries set up for certain functions. This also reduces the cost and
there is less treat of the suppliers. The company also has its franchise for the production of the
beer. The best example is of the Taloja plant situated in Mumbai. The experience of Kingfisher
brand since 1915 adds to the experience and efficiency of the firm. The is thing is also very
clear from its balance sheet as the EBITDA of United Breweries is 2675.2 Millions which is
35.61% more than previous year (2007-2008). The owned plant also has reduced the switching
cost of the suppliers of Kingfisher. Higher prices and short supply of key raw materials like malt,
hops and barley can reduce the profit margin and affect operations. Barley and glass bottles
constitute 12% and 40% of the total operating expense of UBL. Any price increase in this two
commodity has a direct bearing in reducing the overall operating margin. Due to price increase
of barley by over 33% and increase in bottling cost, during FY2008 the net profit margin fell by
26%.[10] In states like Uttar Pradesh, Rajasthan and Madhya Pradesh which, account for
80.34% of barley production in India, the area under cultivation is shifting to other crops like
sugarcane. The barley production has declined by over 60% from 3135 KMT to 1220 KMT from
1975 to 2005. To hedge the risk on rising raw material prices, UBL has entered into long term
arrangements for sourcing of the vital inputs. In addition it has extended its own contract farming
initiatives in the state of Punjab. The 51% Equity stake in Maltex Malsters Limited, a
manufacturer of malt, is also an initiative for vertical integration and excellence in inbound
logistics.

OPERATIONS:- 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.

OUTBOUND LOGISTICS:- No internal distribution/Use third party to distribute product.

The channel is very strong. As we know alcohol is a state subject in India and hence
each state has it own taxation, pricing and distribution policies. No inter state movement
of alcohol is allowed. Also since beer is not delinked from other spirits it is heavily taxed
at over 42%. Since tax on alcohol contributes to over 17% of state revenues, the
government is hesitant to change the tax treatment. Any further increase in taxation on
beer would shift consumer preference towards other alcohol products thereby reducing
the demand for beer. In states of Delhi, Andhra Pradesh, Karnataka, Tamil Nadu and
Kerala government controls the distribution of alcohol. Whereas in states of
Rajasthan, Bihar and Himachal Pradesh auction based distribution is used. Reforms in
the distribution system in these states would increase the competitiveness in the market
and lead to increased sales as was demonstrated by the 400% increase in beer sales in
 lowered the barriers to entry present in the industry and thus brings a more competitive
environment in the industry. But the quality and its channel is so strong that it doesn’t
find any threat from the new entrance. The corporate strategy of kingfisher to
demonstrate the complete plant to any of the distributer reaching the plant has improved
the brand loyalty and increase the switching cost for the users. It has a network of 23
distilleries across the country to meet the requirements at the regional level giving it an
unparalleled distribution reach within India.

MARKETING/SALES:- Lot of focus on quality marketing as well trained sales force to

sell the product in India is carried by the Brand. Vijay Mallya, the flamboyant CEO of
United Breweries - the company that owns the Kingfisher brand - is one of the most
flamboyant CEOs in Asia. Vijay Mallya believes in leading his brand from the front by
leveraging his personality. Vijay Mallya is referred to as India's Richard Branson. A great
part of the personality of the Kingfisher brand is based on Mallya's personality. He is
credited with having single handedly changed the image of his beer brand from a
commodity to a lifestyle brand. Hence he carry so strong brand marketing that it is said
that at every second 4 bottles of Kingfisher bottles are sold. Sales force is trained and
highly experienced.

SUPPORT ACTIVITIES
PROCUREMENT:- Choose high quality ingredients to ensure higher quality end result.
Heavy reliance on this process.
TECHNOLOGICAL:- In technology advancement they have automated the complete
plant in 2000 by the Allen Bradley system. This has considerably reduced the cost and
increase the rate of production. The cycle time is reduced to half of the previous
statistics.
INFRASTRUCTURE:- Very strong management with a good understanding for
competition and zeal for staying on top of industry. Its infrastructure is good as it is
backed by the parent brand of UB Groups.

PORTERS GENERIC STRATEGY

Companies can achieve competitive advantages essentially by differentiating their products and
services from those of competitors and through low costs. Firms can target their products by a
broad target, thereby covering most of the marketplace, or they can focus on a narrow target in
the market. According to Porter, there are three generic strategies that a company can
undertake to attain competitive advantage: cost leadership, differentiation, and focus.
Kingfisher is following a differentiated strategy by introducing a product range in all the
categories like premium beer, mild beer and strong beer cater to all the segments in the market.
They also differentiated their product through marketing their product by associating their brand
with major events, like sponsored West Indies team in world cup 1996 by showing a spirit of
team, IPL, east Bengal football club, Mumbai marathon, Bangalore open. With the company
target to youth segment it also
.

GE MATRIX

STRONG-HIGH
UNITED SPIRITS LIMITED:- With considering the fact that the Spirits market is growing at a
rate of 20% and United spirits have also shown a remarkable growth of 20% by volume. This is
a strong area for the company and company should invest and grow in it
UNITED BEVERAGE LIMITED:- Largest in India with a market share of 50%. Beer Market is
also showing a growth pace of 10-12% and the industry is projected to grow between 15% to
18% in the next two years.
➢ The regulatory framework across key markets in India is undergoing a progressive change.
➢ The liberalization of policy is expected to result in an increase in retail outlets as well as
rationalization of pricing.
KINGFISHER AIRLINES:- Kingfisher Airlines is No. 1 airline in India with a market share of
27.1% (December 2008). Nearest competitor airline is at 16.8% (Jet & Jetlite together have
24.4%).

The CAGR of market growth from FY 2004 to FY 2008 has been 31%. Whilst market growth
YoY dropped from FY 2007 to FY 2008, Indian airlines industry has shown a growth of 18% per
annum, the reduction has been primarily on account of unmanageable ATF price increase
leading to increase in fares.
MEDIUM-MEDIUM
UB ENGINEERING LIMITED:- UEL UB Engineering is a engineering and construction company
catering to cross section of industries in power, steel, cement and petrochemical sectors With a
recessionary condition in the market there is a medium growth seen while company has shown
triple digit growth in profit.
MANGALORE CHEMICALS & FERTILIZERS LIMITED:- Only Fertilizer plant in Karnataka, with
a dealer network of 2530 in South India and a well established brand “MANGALA”. With fertilizer
industry showing a medium growth of 10-12% the company is also on growth path.

Fe rtilizers,
15%
Engine erin Be er , 17%
g , 3%
Airline s ,
6%

Spirits , 59%

SWOT ANALYSIS

STRENGTHS
➢ Strongest Worldwide Distribution System
➢ Huge Finances backing from UB Group
➢ Oldest & Largest Player In India
➢ Worldwide known Brand

WEAKNESS
➢ High Concentration on Strong Beer Market .
➢ Too much diversified.

OPPORTUNITIES
➢ Beer consumption is increasing
➢ Per capita beer consumption in India - 0.5 litres which is very low
➢ Brand Extension Benefits
THREATS
➢ High Taxes & Regulations
➢ Prohibition on Advertising
➢ Indian Culture is a Major Hindrance
➢ Negative perceptions about alcoholic beverages widely prevalent
➢ Many International Player Entering In India
➢ This is a ‘regulated’ industry

COMPETITIVE ADVANTAGE
• MANAGEMENT TEAM
Professional Managed
Seasoned Professionals with Significant Industry Experience
• SEGMENT MARKET PRESENCE
Least Vulnerable to Policy Volatility due to Large Spread
• LOCAL SOURCING
• OPTIMAL, AS ALMOST COMPLETELY LOCALLY SOURCED
• MANUFACTURING
TECHNOLOGY Largest
Manufacturing Space
Maximum Capital
Utilization
• BRANDING
Strongest Brand
Significant Up
gradation Value
Chain Ownership
Initiatives Planned for Integrating into Retailing
• CORE COMPETENCY
Strong brand image with continuous innovation and technology
along with good marketing and distribution channel are the core strength of the
company

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

1. India has predominantly a warm/hot climate

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. 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.
 SUGGESTION AND CONCLUSION

The following are the some of the important suggestions that could be given to the firm, company and the

government so that the sale beer can be increased without letting it to come down further.

1. As the prices of beer are gong higher and higher

It is suggested to the firm to increase the capital, so that purchases can be made in accordance with the

demand of the market. So as be able to meet their demands.

2. The firm must adopt good market information system

So as to get necessary information to take decision about the market and the consumer behaviour. This more

information will help in knowing demands for brand of beer at that day and this will help to make orders

according to the existing demand.

3. The Government should decrease the figure of tax because

Every product has it now the same form there it goes on decreasing and now the same thing has happened to

sale of wines also. All these days price west high and sow it has reached its saturation and now the

consumers cannot afford so much and so they have started to regret with this, it is not only harmful to the

company, also to the nation which will not have the income without sales of wines and so this is even harmful

it. The government itself.

4. The salesman working in the firm are very few is number

The sales force may be increased so that every corner of Shimoga will get the product in time. Without

proper sales force, there are four persons cannot cover with area as a whole in lesser time. And at proper

time,
5. Consumer is said to be the king in the market

So levelly now and then his shies should be fulfilled as for as possible. At times credit facility may recur to be

extended in large numbers to face the Compton and also some gifts or incentives should be given to make them

happy. It must be so as to make them patronize kingfisher.

6. The advertising should be very much increased

This is very important because now a days the anti advertisement on wine is going in following sped that have

been supporting it , In every magazines, daukues etc., So advertisement towards drinking wine should be

make is full in the available path itself.

7. Problem of transportation form the warehouse of the firm is also one

Which has to be supposed. So efforts should be made as for as possible not to make their problems grow, as

the stock may not be received in time for sale.

8. Lot of sales promotional activities should be under taken

It includes personal selling, advertising and publicity the sales start to decrease.

Stimulating consumers mind, displays, shows and exhibition etc., when there is natural that the sales start to

decrease.

9. The firm should have a proper channel of distribution.

So that ultimate consumer must receive the product easily and at fair price. So proper the product easily and

at fair price, so proper distribution channel is essential to increase the sale information
CONCLUSIONS
For the purpose of increasing the sales and stabilizing increased sales. It should maintain proper brand image.

Ink this connection the factor like product play important role.

There fore a manufacturing concern should give attention towards goodwill of, increasing in quality and

quantity and decrease in price, further a wide publicity by different methods should also be adopted

They will help in establishing brand image and the increasing competitive increasing adopted.

Kingfisher beer maintains a highest share, to maintain and to improve the standards. They require correct

customer preference analysis, decrease in cost and increase in quality. Therefore the urgent need for kingfisher

is to take up convincing for customer by proper publicity and decreasing price and also by motivating consumers

by different methods. Kingfisher also reviser proper motivation of dealers to make then more involved in

kingfisher sales.
LEARNINGS

➢ Acquisition, Strategic alliance, joint ventures are important strategies to

sustain in the market, if there are large number of small players, threat of
foreign company entry.
➢ Diversification and innovation are the key drivers for tapping the market.
➢ Vertical integration helps to sustain in the market if production of raw
material decreases and cost increases.
➢ The concept of umbrella branding is used consistently and successfully by
kingfisher e.g. Kingfisher beer, Kingfisher fly.
➢ The industry analysis by five forces is an excellent tool one should use for
understanding the market.

APPENDIX