Social Media &

Indian Beer Industry: A Research Report

Picture Source: http://linxonesolutions.com/blog/?p=1199

 5 Key Research Findings
Kingfisher is the most popular brand among social
media users – slide 15,17 and 19.

Maharastra state is the targeted geographic

region for all Beer Brands – slide 15.

Twitter is the most used platform – slide 16.

People associate beer and cricket – slide 22 and 23.

Indian beer buyers are price sensitive – slide 22 and 23.

Picture sourrce: http://theoandrosa.blogspot.in/, http://en.wikipedia.org/wiki/Maharashtra, http://www.ditii.com/2011/10/06/twitter-platform-issue-tracker-deprecates-google-code-tracker/,

http://www.pinelandscc.co.za/2010/09/pcc-inv-xi-vs-cuylerville-cc/, http://www.legalfutures.co.uk/latest-news/index-to-measure-success-of-legal-reforms
 Contents
Indian Beer Industry Overview

Market Overview

Industry Analysis

Why Social Media is Required ??

Insights through Social Media

Conclusions of Analysis

Recommendations
Beer Industry Overview

Picture Source: http://www.novinite.com/view_news.php?id=103896

 Indian Beer Industry

Huge growth since the liberalization and opening up of

economy in 1991.

Intolerance towards alcohol in India has decreased through

globalization and cultural influence of western countries.

Majority of Indian population falls in the age group of 18-35

years, which is the targeted segment for beer sellers.

So, India has become the ideal market for the industry.
 Market overview
Indian beer market grew by 17.1% in 2010 to reach a
value of $5,022.8 million.

Volume grew by 13.8% in 2010 to reach 1,687.4 million

liters

Standard lager is the largest segment accounting for

91.8% of the market's total value.

United Breweries Limited is the leading player having

42.4% share of the market's volume.

Indian beer market is highly concentrated, with the top

three players holding 70.6% of the total market volume.

In 2015, forecasted to have a value of $9,639 million, an

increase of 91.9% since 2010.
 Drivers and challenges

Drivers Challenges
●
Beer sale in India is forecasted ●
Brewers must make innovative and
to grow at a CAGR of 17.2%. readily available products to
●
India has an emerging middle remain competitive
class-India has a healthy urban ●
Brewers must create a sense of
workforce. brand loyalty
●
63% of the country population ●
Utilization of brewing capacity – to
is between the ages of 15-24. keep manufacturing costs low.
●
Favorable regulatory
●
Clever advertising – to induce beer
drinkers to buy a particular brand
environment.
 Market Value and Volume
Market Value
250,000.00 30

25 In 2010, Indian beer market

200,000.00

20
grew by 17.1% to reach a value

% age growth
150,000.00 of $5,022.8 million. CAGR for
RS. millions

Rs. million
15
100,000.00
% Growth period 2006-2010 was 21.9%.
10

50,000.00
5

0.00 0
2006 2007 2008 2009 2010(e)
Year
Data source: Datamonitor

Market Volume
1800 18
Volumes grew by 13.8% in 2010
1600 16
1400 14 to reach a volume of 1,687.4
1200 12 million liters. CAGR for period
% Growth

1000 10 Volume (million ltrs)

Volume

800 8 % Growth 2006-2010 was 14.4%

600 6
400 4
200 2
0 0
2006 2007 2008 2009 2010(e)
Year
Data source: Datamonitor
 Market Characteristics
Market Segmentaion Market Share

Standard lager
91.8%
United Breweries
Premium lager Limited 42.4%
8.2%
SABMiller 22.8%
Ales, stouts &
bitters 0.0% Mohan Meakin
Limited 5.3%
Low/no alcohol
0.0% Others 29.4%
Specialty beer
0.0%

Data source: Datamonitor

Data source: Datamonitor

Standard lager is the largest United Breweries Limited is the

segment accounting for 91.8% of
the market's total value. The
premium lager segment comes
second and accounts for a
further 8.2% of the market.
leading having a 42.4% share of
the market's volume. SABMiller
comes second and accounts for
22.8% of the market.
 Environment Analysis
●
Market Liberalization
Political ●
Stringent Legal Policies
PEST Analysis

●
Change in exchange rate (foreign players)
Economical ●
Slow down of the developed economies and evolution of
emerging economies

●
Change in consumption pattern (adaption of western culture)
Social ●
Rise in the income levels, which has a direct positive effect on beer consumption
●
Rise in middle class and increase of urbanization

●
Innovation and Development of new products
Technological ●
State of the art of brewery technique
 Industry Analysis
Porter’s Five Forces Analysis
Buyer Power
●
Supermarket chains are able to negotiate very
strongly on price 5
●
But producers can also differentiate their
products quite strongly
Degree of rivalry Supplier Power
0
●
Non-vertically integrated businesses
Supplier Power ●
Independent barley growers can find
Medium alternative markets
New Entrants Substitutes

New Entrants
●
Barriers to entry are high.
●
But new entries can happen through Data source: Datamonitor
Medium differentiated products.

Indian beer market is

Main substitutes are spirits and wine. highly concentrated, with
Substitutes
●

●
Switching costs are not high for the top three players
Medium retailers.
holding 70.6% of the total
market volume.
Rivalry ●
Market is highly concentrated – high competition. Overall attractiveness of
●
Purchasers have low relatively low switching
Medium costs. the market is medium
Social Media Research
 Brands Considered
Refreshing beverage represents lifestyle choice for Indians.

Tuborg is famous for easy to drink, low flavored pilsner beer with its transparent
bottle

A Danish company’s with Pilsner Beer, a pleasing mix of bitter and sweet .

Toasted malti-ness and mild fruitiness of this pale gold lager.

This Aussie lager is full-bodied, malty and eminently drinkable.

Haywards 5000 is brewed with the choicest of malts and hops lending itself to a
unique flavor.

Fresh, light taste with transparent bottle

Known for great taste and innovation.

 Why Social Media?

The age group 21-30 years is

70% of the social media users
in India accessed a social
networking site daily-Neilsen
survey
37% of the heavy social media
the targeted segment for Beer
users in India fall in the age
market. They talk alot on social
group of 21-30 years
media, which can be exploited
(alootechie.com, Sept. 2010)
and used as competitive edge

• People talk a lot about their preferences and dislikes only.

• People uses the about beer daily.
• The keyword “BEER” tracked by us had about 250 daily conversations
in India.

Social Media Research has faster turn around time, has bigger sample size and is
more accurate and reliable.
Insights
through
Social Media

Picture source: http://emarketinguide.com/2010/11/few-web-updates-insights-part-2/

Audience Gender and Age Distribution

Audience Gender distribution Audience Age Distribution

45+ 0

23% 36-45 4

MALE 26-35 23
FEMALE
18-25 58

13-17 15
77%
0 10 20 30 40 50 60 70
Percentage

Beer brands have more male People in the age group of 18-25 years,
patronage than female. which is target segment for beer, talk
more about beer
Brand Localization

•Kingfisher is present in
almost all states of
India.

• Miller Lite has

noticeable presence
only in Tamil Nadu.

• Almost all brands are

most famous in
Maharastra.
 Channel Distribution
Channel Distribution
Miller Lite
Budweiser BLOGS
VIDEOS
Haywards 5000
DISCUSSIONS
Foster's NEWS
OTHERS
Heineken
FACEBOOK
Carlberg TWITTER
FLICKER
Tuborg
Kingfisher

0 .0 .0 .0 .0 .0 .0 .0 .0 .0 1
0. 10 20 30 40 50 60 70 80 90

Beer brands get highest coverage from Twitter and News.

Share of Voice and Brand Opinion
Brand Opinion
Share of Voice
100.0%
90.0%
Kingfisher 80.0%
Tuborg 70.0%
Carlsberg 60.0%
Heineken
Foster's 50.0%
Haywards 5000 40.0%
Budweiser 30.0%
Miller Lite
20.0%
10.0%
0.0%
r g g n r's 00 r ite
she bor ber eke te 50 ei se L
fi s r
ng Tu r ls in Fo ds dw ll e
Ki Ca He a r
B u M
i
a yw
Kingfisher has the maximum share of H
voice among all the brands, amounting
Positive Negative Neutral
to 88.3%. No doubt that it is the
market leader. Almost all the brands have equal amount
of both positive and negative opinions
with few negative once also.
 Social Buzz Benchmarking
Social Buzz Benchmarking*
100
90
• Kingfisher has the highest
80
70
Influence score, which make it the
60
most talked about brand among
50
competitors.
40
30
• Foster’s and Miller Lite have the
20
highest Opinion score, which
10
means that they have very less
0 negative opinions.
r g g n 's 00 r ite
she bor ber eke te
r 0 eise L
ng
fi Tu rls in Fo
s s5 w ll e
r
Ki Ca He rd ud i
wa B M
H ay

Opinion Score Influence Score

Definition of Buzz Metrics used for Benchmarking (more the better for both Scores)
Opinion Score: Opinion Score based on the sentiments of the posts towards the brand.
Influence Score: Influence Score defined by overall buzz, uniformity of the buzz over time,
and diversity of buzz across channels.

*Note : Global buzz ignored.

Platform Affinity and Buzz Score
Overall Audience Platform Affinity Buzz score*
80
70
60
50
BLOGS
DISCUSSIONS 40
NEWS 30
TWITTER 20
OTHERS
10
0
r g g en r's 00 r ite
she bor ber ek ts e 50 e i se L
fi s r
ng Tu rl in Fo ds dw ll e
Ki Ca He a r
B u M
i
a yw
H

People use twitter most to talk about Kingfisher has the maximum buzz score,
beer than any other platform. which means it gets maximum attention
among competitors.

Buzz Score: It is degree to which a brand get attention in market

*Note : Global buzz ignored.
 Why Kingfisher so Popular??
Opinion
Positive Negative Neutral

40%
47%

13%

Courtesy : www.wordle.net

• Kingfisher is famous among various beer brands due to its association with Cricket(IPL), which is
the most talked about work along with beer (slide 24).

• Kingfisher also have some negative sentiments in relation employee management issues (salaries,
boycott etc) , covered extensively by news media.
Opinion Score v/s Influence Score
100
90
80
70
60
50
40
Opinion Score
30 Influence Score
20
10
0
r g g n 's 0 r ite
he or er ke r 00 se
fis
Tu
b
r ls
b
in
e
oste s 5 wei er
L
ng Ca He F rd d ill
Ki wa Bu M
a y
H

A regression test was run on carried on Opinion score and Influence score. The value of regression
coefficient R2 =0.2030, which proves that there is no established relationship between Opinion
score and Influence score.

This also disproves the point that when people talk they talk only negative or only positive.
What is talked about Beer? (1/2)

Courtesy : www.wordle.net

The most used words in association with beer:

IPL, People, Kingfisher, Easter, Cricket, Price, Party , Food and Tax
What is talked about Beer? (2/2)
Keyword Analysis
16% 2%
IPL (Cricket)
People
1%
10% 47% Kingfisher
Easter
Price
Party
4% Food
Tax
18%

2%

 Common Topic of Discussion

• People associate beer mostly with cricket. Maybe they want to drink beer while watching
cricket.
• Second most talked about keyword is “Kingfisher”. Common people
Courtesy relate beer with
: www.wordle.net

Kingfisher in India.
• People also associate beer and food.
• Price is also talked about in association with beer. This represents cost sensitive customers.
 Conclusions of Analysis
Beer brands have more male patronage than female. They should also target female
population.

Tuborg and Carlsberg do not have good brand patronage across nation. Kingfisher has the
best national coverage.

Price is also talked about in association with beer. It can serve as an input to company’s
pricing strategy.

Courtesy : www.wordle.net
Cricket and beer go together. Beer companies can create brand campaigns associated with
cricket to be more successful.
 Recommendations
People talking in social media falls in the same age group as targeted customers of Beer
companies. So it is suggested that brands make good use of Social Media.

Brand Image can be created and managed through social media by engaging existing and
potential customers.

Innovative products is the requirement to remain competitive in beer industry. What the
customers actually want can be known by tracking their online conversations.

By adding online strategy to their marketing mix, Beer companies can tie together everything
they are doing both offline and online.

Beer companies can use online crowd-sourcing for product development. People will tell you
what they want.
Courtesy : www.wordle.net

By creating online buzz, beer companies can reduce their marketing expense.
 Research Methodology
1. General characteristics of Indian beer are analyzed using the report “Beer in
India” December, 2011 by Datamonitor.

2. Analysis using social media

1. 15 Brands of Indian Beer Industry were considered.
2. Data was collected from April 1, 2012 to April 17, 2012.
3. Chosen channels are – Twitter, Facebook, Blogs, News, Flickr, Forums
and Youtube.
4. Buzz in the Social Media Space about the brands were tracked using
Simplify360.

3. Conclusions are drawn considering general Industry characteristics and insights

from the social media.
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