Market Drivers & Challenges Trends Competition

Indian beer market is growing at 30% approximately. 60% of the population under the age group of 30 years the Indian beer market is expected to nearly double to 23.3 million hectoliters by 2012 from 12.5 Foreign breweries are eyeing the Indian beer market which is largely untapped and has growth potential

Drivers Young population

Low per capita consumption Rising income level

Challenges Regulatory Environment

High tax structure

With current duopoly situation and entry of foreign players beer industry in India will quickly witness consolidation Premium beer segment is outpacing the mainstream beer market Emerging new sub-categories of beer with consumers in India open for experimenting Growing demand for barley and evolving contract farming

More than 80 per cent of the market is controlled by the two players, UB and SAB Miller With Carlsberg and Anheuser Busch coming with their Global offering there is going to be an exciting battle in the beer industry

Global trends in Beer Industry

Beer has maintained a compound annual growth rate (CAGR) of 4.8% globally Despite economic pressures, total global beer consumption recovered slightly in 2010, growing at over 2% after a downturn in 2009, caused by the global economic recession The main growth coming from China, Africa, India and South America while developed markets declined by 1.7%

Global beer market volume growth is forecast to be 2.5%, led by continuing strong performances in Asia, Africa and Latin America China and Africa are expected to grow by almost 5% and Latin America by almost 3%. The 25 fastest-growing markets are forecast to deliver over 5% CAGR in beer volumes China is expected to account for almost 40% of this growth with Vietnam, Brazil, Ukraine, Nigeria, India and Peru contributing significantly

Indian Market Overview

Drivers & Challenges Characteristics and Trends Key Developments

Challenges Regulatory Environment High tax Structure

Drivers

Huge Market Potential Entry of International Brands Rising income levels

Indian Beer Market

Rise in barley price and emergence of contract farming

New forms of beer being introduced in the market

Characteristic and trends Premium beer market outpacing mainstream beer market Increase in merger and acquisition activity

With the Global Beer market being stagnant, the focus of International firms is on the untapped potential in India
Indian beer market has witnessed a steady growth of 10% over a decade India is currently among the top 3 markets in Asia in terms of growth rates The market is set to flourish with Global breweries eyeing India Per capita consumption amongst the lowest (Global average 22litres) Globalization playing a pivotal role

In the last 9 years beer consumption has been growing rapidly at a CAGR of 7% India is one of the world s fastest growing consumer markets Beer sales grew at nearly 90 per cent, compared to a less than 60 per cent growth for other alcoholic drinks A rapidly growing population, an emerging middle class with rising per-capita incomes and blossoming urban centers make India a powerful emerging market

Objectives of the Research

 To study consumers behavior towards global beers  To study the factors affecting buying behavior of beers  To find out consumer awareness towards global beers  To study consumption pattern of beer  To study alternative ways of product promotion

Major findings
Majority are males and only 12% are females A staggering 81 % are from the age group of 21-35  40% drink beer 1-2 times and 30% drink beer 3-4 times a week 36% of the respondent consumes 5-6 pints in a regular drinking 31% respondents always particular about the brand of beer. And the same percentage are sometimes particular about the brand of beer they drink 46% sometimes experimented with the brand of beer and a close 40% never experiment with the brand of beer Friends get together & Fun are the most influencing factors to consume beer Beer is most consumed when with friends Taste ,price and alcoholic content are the most important factor why they like their beer Favorite Indian brand Kingfisher  Favorite International brand - Tuborg Favorite beer brand overall Kingfisher followed by Tuborg

Weighted Average for Indian & Global Beer Brands

Parameters Taste Visual appeal Brand Image Alcohol Content Convenience to consume Market Availability Price Effervescence Quality Total Weighted Average Weight 8.11 7.85 7.90 7.49 7.39 7.09 7.36 7.18 60.37 Rate XXX XXX XXX XXX XXX XXX XXX XXX Product XXX XXX XXX XXX XXX XXX XXX XXX XXX

7.469 137

Weight * Rate = Product Weighted Average = Total product /Total weight Weighted Average for Global Beer Weighted Average for Indian Beer Brands Brands Indian Beer Brands Kingfisher Haywards Royal Challenge Khajurao Weighted Average 8.16 6.86 6.75 5.76 Global Beer Brands Fosters Carlsberg Tuborg Budweiser Weighted Average 7.68 7.64 7.46 7.18

Recommendations
 Increase the consumption amongst women drinkers by creating a new brand targeting women drinkers  Increase the number of times beer is consumed in a week by positioning beer as a refreshing drink  As the industry has the constraint of surrogate advertising, increasing BTL activities in bars, pubs, sports bars & restaurants  Providing tours to the distillery and making it into an event or an outing destination  Trying to build loyalty by creating online communities, sport bars, drinking friends  Creating a distinct and standardized taste as according to the research Taste plays a pivotal role more so than Price  Tuborg has created a niche for itself because of its Taste as well as the packing and Kingfisher has created a niche by its distinct taste and brand image ,Other brands can create a niche for themselves like Budweiser can promote itself as the most favorite American past time  Going ahead branding will play an important role, with so many Indian as well as foreign brands coming in India  A brand has to focus its communication on FRIENDS and FUN as according to the research these are the words beer is most associated with. Budweiser can capitalize on its name and use friendship in their communication as their name BUD can be capitalized upon

CHEERS !!!!!