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: India

Market 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. - Kingfisher

UB Group
Aviation Fertilizers Engineering
Beverage Alcohol
Launch Date 18th September 2009

Extension Type
POD

Line Extension into the Super Premium Segment

Distinctive Taste, Unique Packaging (embossed flint bottle, with the ring pull crown and the gold metalized neck and front label) Carlsberg, Heineken and Budweiser Subdued malty note balanced with a hoppy bitterness Touch It. Feel It. Taste It MRP in India- Rs 110 Changes in Indian consumers demands with increase in disposable income- ready to pay a premium for THE BEST

Spirits

Wines

Beer

Kingfisher
Premium Strong Blue Bohemia ULTRA
Heineken

UB Export
Flagship Product

Kalyani Black Label

Competitors Flavor Tag Line Price Need to enter the segment

Line Extension

Beer Market: Segmentation

Beer Type
0% 8% Std. Lager

PRICE Segmentation
QUALITY Segmentation

Characterized by consumer affordability Wide price range- many brands Divided by lager types & taste Dominated by premium & std. lagers

Premium Lager
Speciality 92% Ales, Stouts & Bitters

United Breweries Ltd. - Kingfisher

Contribution of Ultra to the Groups Overall Market Share
1.800% 1.600% 1.400% 1.200% 1.000% 0.800% 0.600%

Sales by Volume (Mn Litres)

United Breweries
2006

0.400% 0.200% 0.000% 2009 2010 2011

Launch

2011

Flagship Products Kingfisher Ultra 423.6 385.1 488.7 446.3 567.8 520 676.9 610.1 3.5 894.1 705.3 8 1051.5 819.9 17.2

Kingfisher Ultra showing a steady growth in revenues, from its launch in 2009 till 2011 Perception towards the Flagship Products (before Ultra)
Repositioned into an aspiration brand(2003-04)

Kingfisher ULTRA
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)

Brand for successful, young professionals Always ready to take a break, chill out Promoted through popular brand ambassadors & events

Competitor: Annheuser Busch - Budweiser

PRODUCT
Flagship brand in Annheuser-Buschs India portfolio 4% beer content

PLACE
Targets metros & smaller towns in North, West & South India 2 manufacturing facilities in Hyd., Pune

PRICE

Marketing Mix

Brand Element
Tagline Logo

Description
King of Beers best taste, masculine nature to appeal to target segment
Crown logo reinforces tagline Red colour scheme symbolizes energy & confidence

PROMOTION

Rs. 100 for 650 ml* Priced at a 30-35% premium compared to mass market beers

Target market: see box Activities include Budweiser Clubbing Football events Budweiser Life
*Ex. Store, Delhi, 2012

TARGET SEGMENT Gender: Male Age: 21-40 SEC: A & B Brand Budweiser Kingfisher Ultra Company name 2008 2009 2010 2011

Colour

Brand Associations
Sponsorship

Description
Sporting events (Man. United official sponsor, FA Cup)

Anheuser-Busch InBev 5.5 16.0 12.8 20.0 India Pvt Ltd United Breweries Ltd 3.5 8.0 17.2

Carlsberg

Carlsberg India Pvt Ltd

8.0 11.9 14.5

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

Comparison of Consumer Need: KF Strong vs KF Ultra

Kingfisher Strong: Standard Segment
Time specific situational factors e.g. time of day

Beer Consumption

Strength Style Youthfulness Power & Machoism

Consumption Context e.g. at a party, commuting

Needs e.g. thirsty, need to have fun

Product Consumption

Same Taste Extra Dum

Kingfisher Ultra: Super Premium Segment

Consumer Specific Factors e.g. demographics

Quality Conscious Relate beer to Prestige Brand Responsive Increased westernized taste Better Image Refined taste Provides the touch & feel experience through distinctive taste & superior packaging innovations (Emperor Cans, Flint Bottles)

Comparison of Brand Association: KF Premium vs KF Ultra

Kingfisher Premium The Flagship Brand
Positioned as Lifestyle Brand Brand Promise King of Good Times Promotion Strategy - Fun Platforms

Kingfisher Ultra The Line Extension

Larger than Life consistent with existing image Assurance of differentiated experience Touch It. Feel It. Taste It

Brand Associations Sports

IPL 5 Teams F1 1 Team NFL 1 Team Corporate 5s Carting

Brand Associations Others

TGIOF Thematic pub Night Bazaars Casino Nights

Fashion
Fashion Awards Designers Swimsuit Calendar Fashion week

Music
MTV Awards Talent Shows Rocktober Fest Pub Rock Fest Salsa Contest

Movie REEL Nights Music- Soul Flip(King of

DJ, Bappi Lahiri) Fashion Fashion Weeks (across India)

Special Events
Game For A Game, Lounge Parties

Associated Imagery: Fun, Youth, Refreshing, Energy, Popular, Leisure

Associated Imagery: classy, modern, urban, confident, independent, self assured

QUESTIONS?

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