SYNOPSIS

NAME: RICKY KUSHALAPPA

REG NO: 07D2229

WORKING TITLE: Consumer behaviour towards beer market

OBJECTIVES / AIMS:
 The main objective of this study is to find out the consumer behaviour towards beer market.

Sub Objective

 To study consumers brand preference of beer in pubs.

 To study consumption patterns of beer.
 To study the factors affecting buying behaviour of beer.
 To study alternative ways of product promotion.

INTRODUCTION:
The trends in beer consumption have taken a leap into brands and this has lead to much
international highly priced beer being consumed by the normal men/women.

The attitude towards beer consumption is gradually taking a turn table as we see more people
being interested in the same.

Bangalore is called the pub city and this has contributed to the cities beer consumers. The
survey or report is done to figure out the changing trends about the consumption of beer in
Bangalore pubs & bars among the clientele.

METHODOLOGY OF RESEARCH: - Field Interviews

- Questionnaires

DATA GATHERING ANALYSIS: The data will be collected from four different pubs
i.e. couch in mg road, Firangi paani of BJN Group, Beach in Indranagar, Xtreme sports bar in
Banergatta road . The study will try to understand their clientele, working hours, everyday
challenges, & government restrictions. Personal interviews will be held and samples will be
tested to understand the market for pubs and bars in Bangalore.

LIMITATIONS:
1. Unavailability of clientele during working hours.
2. Peak hours during weak ends.

CONCLUSION:
This study will finally emphasise on the consumption patterns of beer in city of Bangalore. This
will pave way too many more pubs and bars in the city and also to find trends in beer among
different people.

BIBLIOGRAPHY:
 Web ( Beer consumers community-( face book)
 Handbooks on pubs and bars ( Kingfisher food guide )
Industry Basics

Alcohol Market
1.Spirits –Whisky, Rum (Dark, White) Vodka, Brandy, Gin, Ready To Drink (RTD)

2. Beer – Mild, Strong

3.Wine & Champaign –Red Wine, White Wine, Champaign

4. Country Liquor

Location of consumption & Sale

ON PREMISE OFF PREMISE

Clubs Hyper Marts

Restaurants & Bar Super Marts

Permit Room Wine Shops

Modern on Trade (MOT): Pubs, Beer Shoppee

Beer
Beer is the world's oldest and most popular alcoholic beverage. Some of the earliest known
writings refer to the production and distribution of beer. It is produced by the fermentation of
sugars derived from starch-based material—the most common being malted barley; however,
wheat, corn, and rice are also widely used, usually in conjunction with barley.

The starch source is steeped in water. Enzymes in the malt break down the starch molecules,
producing a sugary liquid known as wort, which is then flavored with hops, which acts as a
natural preservative. Other ingredients such as herbs or fruit may be added. Yeast is then used to
cause fermentation, which produces alcohol and other waste products from anaerobic respiration
of the yeast as it consumes the sugars. The process of beer production is called brewing.

Beer uses many varying ingredients, production methods and traditions. Different types of yeast
and production methods may be used to classify beer as ale, lager or spontaneously fermented
beer. Some beer writers and organizations differentiate and categorise beers by various factors
into beer styles. Alcoholic beverages fermented from non-starch sources such as grape juice
(wine) or honey (mead), as well as distilled beverages, is not classified as beer.
Different Strokes of Beer

LAGER Brewed using bottom-fermenting yeast that ferments slowly at a

low temperature to create a smoother, mellow beer
ALE Uses top-fermenting yeast, is a more aromatic and fruity product

STOUT Dark and heavy, with roasted unmalted barley and, often, caramel
malt or sugar
MILD BEER Developed as a sweeter and cheaper alternative to dark ales

BITTER Highly hopped for a more dry and aromatic beer. It is pale in colour
but strong
DARK BEER Barley is kilned for a longer period of time which creates richer
flavours
FRUIT BEER Fruit , usually berries, is added either during primary fermentation
or later
WHEAT BEER Malted wheat and barley are used for this German style beer
(WEIZEN)

A great many beers are brewed across the globe. Local traditions will give beers different names,
giving the impression of a multitude of different styles. However, the basics of brewing beer are
shared across national and cultural boundaries.
Alcoholic strength of Beer
While we all love the taste of beer, it's the alcohol content thats responsible for beers standing in
most societies. Its the alcohol content of beer that makes it the number one social lubricant. The
alcohol content of beer is generally denoted by the "percent alcohol by volume", or % ABV.
"Percent alcohol by wieght", % ABW, could also be used. It's easy to convert between them.
ABW = 0.8 × ABV. Beer ranges from less than 3% alcohol by volume (ABV) to almost 30%
ABV.

The alcohol content of beer varies by local practice or beer style. The pale lagers that most
consumers are familiar with fall in the range of 4–6%, with a typical abv

Of 5%.

"Low alcohol beer", also known as "non-alcoholic beer" contains less than 1% ABV. The
strongest beer ever made was the Hair of the Dog Brewing Company's barley wine named
"Dave", which was 29% ABV.

The alcohol in beer comes primarily from the metabolism of sugars that are produced during
fermentation. The quantity of fermentable sugars in the wort and the variety of yeast used to
ferment the wort are the primary factors that determine the amount of alcohol in the final beer.
Additional fermentable sugars are sometimes added to increase alcohol content, and enzymes are
often added to the wort for certain styles of beer (primarily "light" beers) to convert more
complex carbohydrates (starches) to fermentable sugars. Alcohol is a byproduct of yeast
metabolism and is toxic to the yeast; typical brewing yeast cannot survive at alcohol
concentrations above 12% by volume. Low temperatures and too little fermentation time
decreases the effectiveness of yeasts, and consequently decreases the alcohol content.

The type of beer plays a large role in the alcohol content. While it's not exact, if you know the
type of beer you can generally estimate how much alcohol you will be imbibing. This is an
important skill to have. For instance if you go to a pub and all your friends are drinking pale ales,
and you start ordering barley wines; if you try to keep up with them, you might not make it out
of the pub without being carried.

The following chart will help in these situations:

Beer Alcohol Content Table

Beer Type %ABV

Lager 4–5

Pilsner Lager 3–6

Wheat (Weissbier) 4–5

Porter 4–5

Bitter (ESB) 3–7

IPA (India Pale Ale) 5–7

Stout 5 – 10

Double (Dubbel) 6.5 – 9

Tripel (Trippel, Triple) 7.5 - 9.5

Barleywine 8 – 12
History of beer

General history
Beer is one of the world's oldest beverages, possibly dating back to the 6th millennium BC, and
is recorded in the written history of ancient Egypt and Mesopotamia. The earliest Sumerian
writings contain references to beer. A prayer to the goddess Ninkasi known as "The Hymn to
Ninkasi" serves as both a prayer as well as a method of remembering the recipe for beer in a
culture with few literate people.

The earliest known chemical evidence of beer dates to circa 3500–3100 BC from the site of
Godin Tepe in the Zagros Mountains of western Iran. As almost any substance containing
carbohydrates, namely sugar or starch, can naturally undergo fermentation, it is likely that beer-
like beverages were independently invented among various cultures throughout the world. The
invention of bread and beer has been argued to be responsible for humanity's ability to develop
technology and build civilization.

As for the close link between bread- and beer-making, women produced most beer prior to the
introduction of hops in the thirteenth century, selling the beverage from their homes as a means
of supplementing the family income. However, by the 7th century AD beer was also being
produced and sold by European monasteries. During the Industrial Revolution, the production of
beer moved from artisanal manufacture to industrial manufacture, and domestic manufacture
ceased to be significant by the end of the 19th century. The development of hydrometers and
thermometers changed brewing by allowing the brewer more control of the process, and greater
knowledge of the results. Beer was also known by Slavic tribes in early 5th century.
History of Beer in India

Modern beer brewing began for India in the early days of the British Empire — the mid-1700s.
The demand for beer in the hot climate of many parts of India by the British administrators and
the troops was so great that it led to the creation of a completely new style of beer by George
Hodgson in his London brewery — India Pale Ale also known as IPA. IPA is strong, highly
hopped ale designed to survive the five month ocean voyage to India without spoiling. India Pale
Ale was shipped with every voyage for over a century and became very popular in Britain and
North America.

In the late 1820s Edward Dyer moved from England to set up the first brewery in India at
Kasauli (later incorporated as Dyer Breweries in 1855) in the Himalaya Mountains, near Shimla,
producing Asia's first beer called Lion. The brewery was soon shifted to nearby Solan (close to
the British summer capital Shimla), as there was an abundant supply of fresh spring water there.
The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates.
Dyer set up more breweries at Shimla, Murree, Rawalpindi and Mandalay.

Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan
Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and
Kirkee. In 1937, when Burma was separated from India, the company was restructured with its
Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange.
Following independence, in 1949 N.N. Mohan took over management of the company and the
name was changed to Mohan Meakin Ltd. The company continues to produce beer across India
to this day and Lion is still available in northern India. Lion was changed from an IPA to a lager
in the 1960s, when due to East European influence, most brewers in India switched from
brewing Ales to brewing lagers.

Today no brewer in India makes India Pale Ale. All Indian beers are either lagers (5 % alcohol
— such as Australian lager) or strong lagers (8 % alcohol - such as the popular MAX super
strong beer). International Breweries Pvt. Ltd. have recently announced an intention to work with
Mohan Meakin to produce and launch an India Pale Ale called Indian IPA from India's first
brewery at Solan. Kingfisher, Haywards, Kalyani Black Label, Soumitree, Jaguar, Foster's,
Castle Lager, Royal Challenge, Max, Kings and Belo are popular Indian beer brands.

In various parts of north-eastern India, traditional rice beer is quite popular. Several festivals
feature this nutritious, quite intoxicating, drink as part of the celebrations. The rice is fermented
in vats that are sometimes buried underground. Elephants are known to attack villages, with the
primary agenda of drinking from these vats. Following one such raid in north-eastern India, a
police officer in Dumka was quoted in the press as saying: "Tribals who love rice beer brew the
liquor at home. Elephants too are fond of this beer. Often it is found that, attracted by the strong
smell of the liquor, wild elephants tear down the tribal houses where the brew is stored.”
Overview of Indian Beer

Market Market
Definition The beer market consists of ales, stouts & bitters, low/no alcohol beers, premium
lager, specialty beers and standard lager. The market is valued according to retail selling price
(RSP) and includes any applicable taxes. The Indian beer market delivered strong, stable growth
over the last five years. Looking forward, this trend is expected to persist through to 2011. The
Indian beer market generated total revenues of $874.2 million in 2006, this representing a
compound annual growth rate (CAGR) of 6.6% for the five-year period spanning 2002-2006.
Standard lagers proved the most lucrative for the Indian beer market in 2006, generating total
revenues of $760.3 million, equivalent to 87% of the market's overall value. The performance of
the market is forecast to follow a similar pattern, with an anticipated CAGR of 6.8% for the five-
year period 2006- 2011 expected to drive the market to a value of $1,213 million by the end of
2011.

Market Value :

Year $ million INR billion % Growth

2002 677.7 29.9

2003 722.5 31.9 6.60%

2004 769.4 33.9 6.50%

2005 819.4 36.1 6.50%
2006 874.2 38.6 6.70%
CAGR 2002-2006 6.6%
Source: Datamonitor
Market Segmentation I
Sales of standard lager form the most lucrative sector of the Indian beer market, with an 87%
share of the market's value. In addition, sales of premium lager generate a further 6.2% of the
market's revenues .

category %Share

Standard lager 87.00%

Premium lager 6.20%

Ales, stouts & bitters 3.20%

Low/no alcohol 2.90%

Specialty beer 0.70%

Total 100.0%

Market Segmentation II
India accounts for 1.3% of the Asia-Pacific market by value. In comparison, Japan generates
45.5% of the market's revenues

Geography % Share
Japan 45.50%

China 36.40%

South Korea 9.50%

Rest of Asia-Pacific 7.30%

India 1.30%

Total 100.0%

Market Share
United Breweries is the leading company in the Indian beer market, with a 50.3% share of the
market's volume. In comparison, SAB Miller accounts for 34.2% of the total market's volume.
Market share in volume

Company % Share

APB 4%

United Breweries Limited 50.30%

SAB Miller India 34.20%

Mohan Meakin 10.10%

Other 5.30%

Total 100.0%

Comparison of Indian & US Beer Industry

Indian Beer Industry

 The Indian beer industry has been witnessing steady growth of 7-9% per year over the last ten
years. The rate of growth has remained steady in recent years, with volumes passing 100m cases
during the 2005-2006 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.

The Indian beer market was estimated to be 6.7 million hectoliters (hl) in 2002-03. Beer
consumption has been growing rapidly at a CAGR (Compound Annual Growth Rate) of 7% over
the last 9 years, while growth in 2002-03 was 11 per cent. Indian growth rates compare favorably
with the global beer industry, which grew by about 2.6 per cent in 2001-02 Apart from providing
strong growth; India also provides attractive profit margins due to the consolidated nature of the
industry.

A comparison between China and India, for example, reveals that the Chinese beer market is
marked by intense competition, with several players being marginalized.

In China there are about 400 brewers, of which the top 10 account for only 45 per cent of the
market. This has resulted in low profit margins for the Chinese beer players.

In contrast, the top two beer players in India account for about 75 per cent of beer sales in India
and the industry stands a chance to see more consolidation in the near future. The effect of this
consolidation can be seen in the fact that beer prices in India rarely go down with the competitive
pressures of new product or brand launches. In the past, whenever beer prices have gone down, it
has been due to either the lowering of duties by the government or the deregulation of
distribution (leading to lower margins for the distribution channel partners). In neither scenario
have the margins or revenues of beer manufacturers been affected.

Per capita consumption in India is hovering around a measly 1 litres per annum. These figures
pale into insignificance if one compares them with those of Czech Republic that has the highest
per capita consumannum. Per capita consumption is directly related to the taxation, according to
an industry observer.

US Beer Industry
The U.S. brewing industry is dominated by three firms – Anheuser-Busch, SAB-Miller, and
Coors – who together account for about 80% of beer shipments. Anheuser-Busch has been the
leading firm in the industry every year since 1957. Miller joined the top three in 1976, following
the introduction of Lite beer. Coors became one of the top three brewers in 1989 after it
expanded nationally and displaced Stroh. However, despite a high level of industry
concentration, the real price of beer has been stable or declining since 1963. In recent years, a
number of marketing concerns have affected the industry leaders, including growth of beer
imports to an 11% share; a decline of sales of leading premium brands (Budweiser, Miller High
Life, Miller Genuine Draft); competition from new products and marketing methods (flavored
malt beverages, direct shipments of beer and wine); competition from specialty-craft brewers;
and continued attempts by neo-prohibition groups to demonize the industry, especially its
dvertising and marketing practices.

Determinants of growth of Indian Beer Market

The Indian beer market has been growing rapidly over the last 10 years, due to the positive
impact of demographic trends and expected changes, like:

Rising income levels:

India is home to nearly one-sixth of the global population and is one of the most attractive
consumer markets in the world today. Various research studies have shown that a rise in the
income levels has a direct positive effect on beer consumption. The National Council for Applied
Economic Research (NCAER) projects India's 'very rich', 'consuming' and 'climbers' classes to
grow at a CAGR of 15 per cent, 10 per cent and 2 per cent respectively. With this growth in
income levels, Indian beer consumption is expected to continue growing, at the very minimum,
at the growth rates witnessed in the last decade.

Changing age profile:

As a consequence of the high birth rates prevalent until the 1990s, a large proportion of the
Indian population is in the age group of 20-34 years. This age group is the most appropriate
target for beer marketers. This population trend will give a further boost to the growth of beer
consumption in India.Many global players are planning to enter the Indian beer sector and they
realise that a partnership with a local player is important to establish a successful presence in
India in a short time frame.

Changing lifestyles:
A deep-seated traditional social aversion to alcohol consumption has been a traditional feature
of the Indian society. However, as urban consumers become more exposed to western lifestyles,
through overseas travel and the media, their attitude towards alcohol is relaxing. Social habits are
undergoing a transformation as mixed drinks are becoming more popular. The greatest evidence
of this trend is the increase in beer consumption among women. With increasing urbanisation,
this acceptance is only going to rise.

Reduction in beer prices:

The Indian consumer typically values an alcoholic beverage on the basis of its 'kick' factor
versus its price. The following two factors therefore, affect the market for beer. Firstly, as most
states do not have a differential tax structure based on the alcohol content, strong beer.

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. Also, as the target audience becomes younger, a light beer is expected toattract first-time
drinkers, since it is much milder than any of the other beersin the country.

4. 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.

UB (United Breweries Ltd.) is the market leader in the Indian beer market with a 40% market
share. Its flagship Kingfisher brand alone commands 25% market share. The company has
however been focussing on strong beer, which has driven growth. The company introduced its
strong beer, Kingfisher Strong during the year 2000 in the selected market of Maharashtra and
Karnataka. The move came as a reactive move following increasing shift of consumers towards
strong beer, a trend started by Shaw Wallace. While the overall market grew marginally by 2%,
the strong beer market grew at 8-10% during the year at the expense of lager beer. The market is
now skewed towards strong beer with more than 60% of the market being strong beer market.

Beer mix today is approximately 60 percent lager beer and 40 percent strong beer. This ratio was
very different 4 years ago. Over the last four years strong beer has been the fastest growing
segment. This was completely usurped by Shaw Wallace. As of today while Shaw Wallace has
approximately 28 to 30 percent of the strong beer market, UB already has achieved 14 to 15
percent of that strong beer market and is growing very fast. It launched Kingfisher Strong only in
May of 2001. And once it is able to take Kingfisher Strong national, it will try to match Shaw
Wallace's market share over the next few years.

Apart from Kingfisher, and Foster's Beer, the other brands in the Indian market are Carling
Black Label, Carlsberg, Tiger, Baron’s, Heinekin, Budweiser, Corona, Dansberg, Golden Eagle,
Guru, Maharaja Premium Lager, Haake Beck, Haywards 2000 Beer, Haywards 5000, Haywards
skol, Flying Horse Royal Lager, Taj Mahal, Hi-Five, Ice, Kingfisher Diet, Kingfisher Strong,
Kirin, KnockOut, Legend, London Diet, London Draft, London Pilsner, Royal Challenge, San
Miguel Lager, Sand Piper, Strohs and Zingaro.
The major brands which belong to large groups in the industry (apart from UB) are – Shaw
Wallace - Royal Challenge Premium Lager, Haywards 2000 Premium Lager, Haywards 5000
Super Strong, Hi-Five and Lal Toofan.

South African Breweries India Ltd. - Knock-Out, Continental and Three Lions, a new brand that
was launched in the autumn of 2001 by SAB in Uttar Pradesh, Chandigarh and Himachal
Pradesh.

Other possible competition – Radico Khaitan and beer international Interbrew has formed a joint
venture to distribute Interbrew's Beck's brand of beer in India. The premium lager beer segment
in India will be targeted. Radico has also announced the launch of its international division.

A lot of new variants promise to gain prominence, but mainly in niche urban segments. The
sophisticated consumer who drinks beer for the experience and not to get drunk will lap up ice
beer or light beer. In urban centers, apart from first time users companies are also targeting
women, who as 'the times they are a changing,' are entering the market for beer. Essentially,
women shy away from beer consumption because it is associated with calories, and has
traditionally been a buddy drink, associated with pot-bellied men sitting at bars and shooting
darts.

Indian Brewing industry

Today, the brewing industry is a huge global business, consisting of several dominant
multinational companies and many thousands of smaller producers ranging from brewpubs to
regional breweries. More than 133 billion liters (35 billion gallons) are sold per year—producing
total global revenues of $294.5 billion in 2006.

InBev is the largest beer-producing company in the world, followed by SABMiller, which
became the second-largest brewing company when South African Breweries acquired Miller
Brewing in 2002. Anheuser-Busch holds the third spot.

Breweries in Maharashtra
Sr. Name of Brewery District Factory Address Phone No.

1 Associated Breweries & Thane Plot D103, Trans 022-27671939

Distilleries Thane creek ind area,
Sion- Panvel Rd,
 A/P Shirwane
2 Hindustan Breweries & . Thane C/23-24, Wagle
Bottling Ltd. Industrial Estate
3 Bombay Breweries Raigad Plot M-1, MIDC, 022-27410632
Industrial Area
4 Mohan Rocky Spring Raigad Mohan Wadi, Khopoli 02192-262461
Water Breweries Ltd.
5 Skol Breweries Raigad Kegaon, Tal Uran 022-27222139

6 Skol Breweries Ltd (Unit Satara E-1, MIDC Industrial

of Doburg Ltd.) Estate 7 Arlem
(Aurangabad

7 Breweries/Asia Pacific AurangabadPlot No H-9, 10,11,& 0240-2564172

Breweries-Heineken) 13, MIDC Industrial
Area, Walunj

8 Inertia Industries Aurangabad Plot No 1-10, MIDC 0240-2554979

Area, Walunj
9 Foster’s India Aurangabad M-99, MIDC, Walunj 0240-2554563

10 Lilasons Breweries Aurangabad 1-1-7 MIDC, Walunj 80240-255519

The Future

Recently, concern among citizens' groups over the excessive consumption of alcoholic
beverages by some individuals has initiated additional government regulation of beer. New
warnings have been added to labels, warning of impaired driving, hazards to pregnant
women, and other health ailments associated with alcohol consumption. Reduced tolerance
for drunk driving, for example, encouraged many brewing companies to advocate
responsible consumption. As a result, certain states have established laws to control the
alcoholic content of beer for sale within their jurisdiction. The beer industry will continue
to contend with these large social issues.
Much research is currently conducted in the area of plant engineering. Brewery
researchers are manipulating the genes of barley and other common grains to increase
their resistance to disease and to encourage helpful mutations. This genetic research also
extends to improving the yeast. Current research is aimed at producing yeast strains that
resist contamination and to making new varieties of yeast that can ferment carbohydrates,
which common yeasts cannot process.
The brewing industry is also making advances in the area of rapid testing for
contaminants. New technology such as DNA probes and protein and chromosome finger-
printing is being developed by brewers to detect microorganisms that can adversely affect
the brewing process. Some of this technology is already in use in medical science for drug
screening, AIDS testing, and pregnancy testing. Brewers are eager to adapt this cutting
edge research to the beer industry.
Conclusion

• In a massive (over 100 million cases), fast-growing and difficult beer market like India
where beer drinkers have strong brand affinities and where brands like Kingfisher are
almost ubiquitous, Tiger beer needs to establish its unique identity and consumer base by
focusing on a niche market (as it cannot spend / act like big beer brands with deep
marketing pockets)

• Tiger beer is a world beating, award winning, great tasting beer of very high quality.
Tiger beer has effectively been using the platforms of electronic music and contemporary
art to connect with its target consumers in the Indian market.

• Marketing spends are limited so we need a guerilla marketing strategy to win.

• Although beer consumers have strong loyalties, there are still needs which are not being
met by their current beer brands.

• Beer is largely perceived as a mass market product with no clearly defined target
consumer. Tiger beer needs to focus on a targeted niche market to differentiate itself and
position itself uniquely in the consumer’s mindscape.

• Focus should be on the upwardly mobile beer drinker who enjoys drinking beer but still
has status & discernment needs which he would like to communicate through his brand
choices.
 3. SWOT ANALYSIS OF BANGALORE BEER MARKET
STRENGTHS
 Nascent stage, few players.
 Growth rate per annum 30%.
 Urban population increasing
every year.
OPPORTUNITIES
 Large domestic market with
increasing disposable income.
 Population changing lifestyle
accepting new trends.
 Export potential to rest of the
world.
 Growing tourism in India.
WEAKNESSE
 Inconsistent quality of beer.
 Poor awareness on beer.
 Stringent and regressive
government rules with different
taxation across various states.
 High customs duties for foreign
players.
THREATS
 New players entering market at fast
pace.
 Foreign players entering with tie
ups with local players.
 Better quality.
 RESEARCH

In order to understand the ground reality of the trends of beer in Bangalore market, a typical
pubs taverns were taken into study.

Couch , Firangi Paani, Beach, Eetreme sports bar in the city were taken into consideration for
the research process.

The research had two phase:

In the first phase:

Qualitative research with two focus groups was conducted. These sessions focused on
understanding the demography of beer consumers in the city and the consumer’s opinion about
beer. The respondents were selected using a convenience sampling. A wide range of ages and
socioeconomic classes were sought.

In the second phase:

Qualitative research with two focus groups was conducted. These sessions focused on
understanding the management behind beer sales and staff involved in its sales and their opinion
about beer.

There were two separate questionnaires designed for this purpose.

At designing the content of questionnaire these were few of the topics which were addressed:
 Consumption of beer
 Learning of beer
 Frequency of purchase
 The beer style preferred

The questionnaire was also designed in a manner to understand the mind and behaviour of the
consumer and the employee with regard to opinion about beer. The answers were based on a
value system
 QUESTONNAIRE
1 Do you drink beer?
Yes ( ) No ( )

2 How often do you drink?

Once in 15days ( ) Once in a week ( )
More than once a week ( ) occasionally ( )

3 Where do you prefer to drink beer?

Parties ( ) At Home ( ) Outside with friends ( )

4 Which is your favourite brand?

.

5 If this brand is not available then your second choice in

Brand of beer
.

6 You like beer

Mild ( ) Super strong ( ) Extra strong ( )

7 You like beer in

Can ( ) Bottle ( ) Both ( )

8 You like beer

Chilled ( ) Warm ( )

9 You like the brand because of

Price ( ) Taste ( )
Quality ( ) Availability ( )

10 Your brand is superior to other brand because of

 Price ( ) Taste ( )
Quality ( ) availability ( )

11 Would you like to switchover the brand?

Yes ( ) No ( )

12 If “Yes” then why/ if “No” then why?

Price ( ) Taste ( )
Quality ( ) availability ( )

13 Factors affecting buying behaviour of beer

Price ( ) Taste ( ) Quality ( )
Strongness ( ) Packaging ( ) Advertisement ( )
Availability ( ) Brand name ( )

14 What improvement you want in your brand?

Price ( ) Taste ( ) Quality ( )
Availability ( ) Awareness ( )

15 Who is your best company while you consume beer?

Parents ( ) Friends ( ) Colleagues ( ) Alone ( ) Others ( )

Demographic Profile of Respondent

Name ....................................Age.........
Sex...Male ( ) Female ( ) Others ( )

Qualification: - HSc ( ) Graduation ( ) PG ( )

Professional ( )

Profession: - Service ( ) Business ( ) Professional ( )

Student ( )

Income: - Up to Rs5, 000 ( ) Rs5, 000- 10,000 ( )

Rs 10,000- 20,000 ( )

Thank You
 1. MANAGEMENT QUESTIONNAIRE

Name . Sex .

Outlet . Years of Experience

Marketing Strategy - Sales & Pricing

1. What are our business objectives over the next two

years? Be as specific as possible, and make sure to

address the following goals:

• Number of customers

• Revenue

• Profit

• Market share

2. What is the process for selling our services or

products (list the key milestones in the process)? Do

we use any of the following processes?

• Direct personal sale

• Direct online sale

• Indirect through channels

3.How important is price in the purchase decision process?

4. What is our current pricing structure, including discounts, product options, rebates,
and so on?
5. Which of our competitors is considered the price leader? What does the price
leader charge for its offering?

6. What are our other competitors charging for their offerings?

7. What is the perceived value of our offering as compared to its price?

Competition

8. Which companies pose the greatest threat, and how do they differentiate themselves?

9. List the strengths and weaknesses of each of your competitors

10. Which competitors have the largest market share within our target market segments?
 2. SUMMARY OF BEER SALES

1. COUCH

By Category:
Feb Mar Apr May Jun Jul
YTD
2010 2010 2010 2010 2010 2010 %
Bottles Bottles Bottles Bottles Bottles Bottles Bottles
K F Premier 810 770 665 852 680 723 4500 66.31%
K F Ultra 4 13 2 1 7 19 46 0.67%
Heniken 375 240 256 316 401 364 1952 28.76%

Corona 90 46 23 49 35 45 288 04.24%

TOTAL
1279 1069 946 1218 1123 1151 6786 100%

2. FIRANGI PAANI

By Category:

Feb Mar Apr May Jun Jul

YTD
2010 2010 2010 2010 2010 2010 %

Bottles Bottles Bottles Bottles Bottles Bottles Bottles

KF
1293 1254 842 1136 1237 1256 7018 55.39%
Premier
K F Ultra 214 130 143 152 160 201 1000 07.89%

Heniken 760 647 539 830 459 614 3849 30.38%

Corona 198 85 172 136 74 136 801 06.32%

TOTAL 2465 2116 1696 2254 1930 2207 12668 100%

 3. BEACH
By Category:
Feb Mar Apr May Jun Jul
YTD
2010 2010 2010 2010 2010 2010 %
Bottles Bottles Bottles Bottles Bottles Bottles Bottles
KF
170 164 158 124 139 78 833 66.32%
Premier
K F Ultra 6 0 0 0 3 0 9 00.71%
Heniken 78 40 63 72 83 37 373 29.69%
Corona 14 7 6 4 8 2 41 03.26%
TOTAL
268 211 227 200 233 117 1256 100%

4. EXTREME SPORTS BAR

By Category:
Feb Mar Apr May Jun Jul
YTD
2010 2010 2010 2010 2010 2010 %
Bottles Bottles Bottles Bottles Bottles Bottles Bottles
KF 120 95 80 105 60 40 500 66.05%
Premier
K F Ultra 4 2 0 0 0 0 6 00.79%
Heniken 40 35 52 36 31 17 211 27.87%
Corona 24 3 4 6 3 0 40 05.28%
TOTAL 188 135 136 147 94 57 757 100%

OVERALL SALES OF BEER IN ALL THE OUTLETS

 Chart Title
70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
k F Premier K F Ultra Heniken Corona
 3. ANALYSIS AND RESULTS

For consumers:

1. Majority of consumers are in the age group 20-40.

2. For every 2 men that consume beer there are 3 women who consume beer.

3. Beer is primarily brought by consumers who earn above 4 lakhs per annum.

4. Most consumers learn about beer and beer drinking from friends and family, television
and books. Thus, this could provide an opportunity for beer labels to promote themselves
through such media through unique marketing campaigns.

5. Consumers most likely would consume beer at least once a week, the number going up
on the weekends.

6. Buying of beer on an average is restricted to only once a month or for an occasion.

7. Consumption per month is two bottles on an average.

8. Consumers believe drinking beer is a healthy drink.

9. 72% of the consumers know the ingredient used in making beer. And the rest of the
people consume beer for social needs

10. People like to consume beer in various locations 70% of them prefer to consume at pubs
, restaurants, bars etc. and prefer consuming at home.

11. On an average consumer spend around 500 to 1,000 on beer.

12. Most of the consumers prefer K F Premier i.e. 60%, 33% prefer Heniken and 7% K F
Ultra . But all the consumers in the sampling prefer corona but only on special occasion.

13. 57% of the consumer prefers domestic beer than imported beer.

14. For own consumption of beer:

57% of the consumers proffered domestic beer.
15. For public/social consumption:
65% of the consumers preferred imported beer.

16. Price of beer reflects the quality of beer.

Consumers rated it at 2.87.

17. The country where the beer originates is important when buying beer.
Consumers rated it at 3.53.

18. Imported beer have better quality than domestic beer.

Consumers rated it at 3.4.

19. Imported beer are costlier than domestic beer.

Consumers rated it at 3.46.

20. The country of origin one chooses reflects status.

Consumers rated it at 2.4.

21. Country of origin is important for social consumption.

Consumers rated it at 3.
 4. ANALYSIS AND RESULTS

For management:
1. In retail outlets they sell more than 20 bottles and in restaurants they sell less than
10 bottles.

2. In both retail outlets and in restaurants consumers prefer K F Premier and the least
wine preferred is K F Ultra.

3. Customer spends around 500 to 1,000, but if the guest is in a group of hi- flyers
then he spends around 1,500 to 2,000.

4. 60% of the customers prefer Indian brands and 40% of the customer prefer
international brand.

5. 75% of the customers know what beer are buying but few new beer drinkers and few
people wants give beer has a gift will enquire lot about the beer.

6. Storage of beer is a big problem to both retail and restaurant has Indian climate is
not suitable to store in room temperature.
.
7. In retail outlets have hindrance when selling outside Karnataka brand has the price
difference is visible to the consumer but in restaurant it doesn’t matter much has per
glass is almost the rate of other beer brands in India.

Whether:
(Scale 1= definitely false, 2= partly false, 3=partly true, 4= definitely true)

8. Price of beer reflects the quality of beer

Staff rated it at 2.33.

9. The country where the beer originates is important when stocking of beer.
Staff rated it at 3.67.

10. Imported beer have better quality than domestic beer.

Staff rated it at 3.08.
Bibliography & Webliography

• Datamonitor, Beer in India, Industry profile.

• The Business Line (Internet Edition).

• International Dictionary of Marketing - Daniel Yadin

• Marketing Management Millennium Editionby Philip Kotler

1. http://en.wikipedia.org/wiki/Portal:Beer
2. http://www.indiadiets.com/Health_flash/News/Beer_ better_than_milk.htm
3. http://www.drinks-business-review.com/
4. www.ratebeer.com
5. www.drinkingbeer.net
6. http://indiabrew.blogspot.com/
7. http://www.thehindubusinessline.co