Kingfisher Beer Mkt Plan 2

Topics: Marketing, Alcoholic beverage, Beer Pages: 11 (2461 words) Published: December 25, 2014
Executive Summary
Kingfisher is an Indian beer brewed by United Breweries Group, Bangalore. The brand was launched in 1978. With a market share of over 36%, it is India's largest selling beer, with 1 out of every 3 bottles of beer sold in India being a Kingfisher brand. It is currently available in 52 countries outside India. With the change in the lifestyle of the people, the beer market is increasing in India. The Indian beer industry has been witnessing steady growth of 7-9% per year over the last ten years and in the last 5 years; the total beer market has seen a 10% CAGR (compound annual growth rate). The rate of growth has remained steady in recent years. India is predominantly a hard spirits market and beer is a minority preference for those who consume Beverage Alcohol. Beer makes only 4% by revenue of the total alcoholic market. It would be pertinent to mention that while per capita consumption of spirits in India is 65% of global average, in the case of beer it is a mere 3% of global average. Average Indian drinker consumes - 1.7 litres of beer a year. (Hong Kong- 22 litres, China- 37 litres, US-74 litres).

Since the percentage of beer drinkers is too less in the alcohol consumer market, Kingfisher beer will focus to increase its market share among the alcohol consumers and also try to capture the untapped market. Since a large number of foreign brands have entered the Indian market the focus will also be to form marketing strategies to remain as the market leader and further increase the market share. Situation Analysis

Market Summary

Current Scenario:
With the government opening up the market for foreign companies International players are entering the Indian market and giving competition to the Indian brands especially in the last 2 years many companies have come. The major competitors are Budweiser and Carlsberg. Anheuser-Busch the makers of the legendary Budweiser, having a tag line of “King of beers”, entered the Indian market through a joint venture with the Hyderabad based crown beers. Carlsberg which promotes beer brands among the soccer fans, declared to venture India venturing with south Asian Breweries. The Indian Beer market is mainly dominated by Kingfisher Beer (UB Group) which has nearly 48% of the market share and SAB Miller is having a market share of 38% and rest is taken by other brands. Beer market just started to evolve and there is a huge potential both for Kingfisher and the competitors to capture. The Indian market has a diversified geography and a huge variety of social and cultural setup, different tax laws in different states. The tax imposed on the alcoholic beverages is very high which makes the competition even tougher.

Target markets:
Beer's key consumers are young, adults and professionals aged 20 - 40 years. Moreover beer will become increasingly affordable to a growing number of people in India. Increase in number of upper & middle class households of 123m by 2025 can also increase the base of the target market. The below figure gives the description which all segments we need focus. The working class are the major consumers of Beer as they have greater disposable income. They are mainly present in the urban area which consists of the Metros and the Tier1 cities in Indian. There has been an increase in the number of urban female drinkers for beer, who usually prefer light drinks can also remain as a target segment. The focus is also to bring the first time users under the target segment and regular users of other brands shift to Kingfisher beer.

Middle and upper class will drive 12.5x consumption growth which can help in increasing the revenue. Higher income expected to support significant increase in discretionary spend. Beer is not a common man drink in India. Since the price of the beer is higher than the normal alcoholic drinks, the key customers are those whose income level is higher. The graph below gives a statistical analysis of how per capita beer...
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