18045229 marketing of beer in mumbai

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Table of Content

Industry Basics...........................................................................................................4

Alcohol Market.......................................................................................................4

Location of consumption & Sale...........................................................................4Business hours prescribed in Maharashtra.........................................................5

Universe for selling Beer in Mumbai....................................................................5

Beer..............................................................................................................................6

Different Strokes of Beer.......................................................................................7

Alcoholic strength of Beer.....................................................................................8

History of Beer.........................................................................................................10

General History....................................................................................................10

History of Beer in India.......................................................................................11

Overview of Indian Beer Market ...........................................................................13

Market Definition.................................................................................................13

Market Segmentation I........................................................................................14Market Segmentation II......................................................................................14

Market Share .......................................................................................................15

Comparison of Indian & US Beer Industry...........................................................16

Indian Beer Industry...........................................................................................16

US Beer Industry .................................................................................................17

Determinants of growth of Indian Beer Market...................................................18

Indian Brewing industry.........................................................................................23

Breweries in Maharashtra...................................................................................23

Mashing.................................................................................................................27

Sparging................................................................................................................27

Boiling...................................................................................................................27Fermentation........................................................................................................28

Pasteurisation.......................................................................................................28

Packaging..............................................................................................................28

Ingredients of Beer...................................................................................................30

Water.....................................................................................................................30

Malt.......................................................................................................................30

Hops.......................................................................................................................30

Yeast......................................................................................................................31

Clarifying agent....................................................................................................31

Categorizing beer by................................................................................................32

Yeast......................................................................................................................32

Ale..........................................................................................................................32

Lager.....................................................................................................................32

Lambic beers........................................................................................................33

Pale and dark beer...............................................................................................33

Serving......................................................................................................................34

Draught and keg...................................................................................................34

Cask-conditioned ales..........................................................................................34

Bottles....................................................................................................................34

Cans.......................................................................................................................34

Vessels....................................................................................................................35

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Serving temperature................................................................................................35

By-products / Waste.................................................................................................36

Taxation Policies ......................................................................................................37

Excise Duties.........................................................................................................37

Octroi ...................................................................................................................37

About APB................................................................................................................38

Corporate Profile.................................................................................................38

Fraser & Neave, Limited ....................................................................................39

Heineken ..............................................................................................................39

Members of the Asia Pacific Breweries Group......................................................40

Senior Management of APB....................................................................................42

APB - INDIA............................................................................................................43

Core Values ..........................................................................................................43

Locations of Operation........................................................................................45

Organization Structure............................................................................................46

Brand Portfolio .......................................................................................................47Tiger Beer.............................................................................................................47

Baron's Strong Brew ...........................................................................................48

Cannon 10000 Super Strong Beer .....................................................................48

APB International Brands......................................................................................50

Heineken ..........................................................................................................50

ABC Extra Stout .............................................................................................50

Anchor ..............................................................................................................50

Marketing Mix of Tiger Beer..................................................................................51

Product..................................................................................................................53

Price ......................................................................................................................58

Factors affecting pricing decisions ................................................................58Primary considerations in price setting ........................................................58

Pricing in Mumbai...........................................................................................59

Place......................................................................................................................61

Distribution Network.......................................................................................62

Distributors of APBI........................................................................................63

Promotion.................................................................................................................65

Major Tools in Marketing Beer......................................................................65

Marketing Activities at APBI .........................................................................65

Sales Promotion....................................................................................................71

Various sales promotions techniques adopted at APBI................................74

Permit Room Activation..................................................................................76Tracking Effectiveness of sales promotion.........................................................78

Designing a Powerful Sales Promotion..........................................................78

Packaging .................................................................................................................79

Beer Advertising ......................................................................................................82

Surrogate Advertising in liquor industry ..........................................................83

Surrogate for Tiger Beer - Tiger Translate .......................................................84

Why Tiger Translate in India..........................................................................84

Competitors of Tiger Beer in Mumbai ..................................................................86

Carlsberg .............................................................................................................86

Budweiser..............................................................................................................87

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Kingfisher Mild....................................................................................................89

Fosters ..................................................................................................................91

Health effects............................................................................................................92

Community & Environment ..................................................................................94

A Responsible Beer Company ............................................................................94

Asia Pacific Breweries Foundation.....................................................................94

Responsible Alcohol Consumption.....................................................................95

SWOT Analysis of APBI..........................................................................................97

Why Beer better than Milk.....................................................................................99

Top 10 Reasons Beer is Good for your Health ....................................................101

The Future..............................................................................................................104

Conclusion .............................................................................................................106

Questionnaire.........................................................................................................108

Bibliography & Webliography .............................................................................112

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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

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Business hours prescribed in Maharashtra

Business hours for Policy

FL-III(Permit Room)

11.30 a.m. to 1.30 am in Mumbai & Thane11.30 a.m. to 11.00 p.m. elsewhere

FL-II(IMFL Retail Shops)

10.00 a.m. to 10.30 p.m. in Mumbai & Thane

10.00 a.m. to 9.30 p.m. elsewhere

CL-III(CL Retail shops & Permit room)

10.00 a.m. to 12.00 Midnight in Municipal Area

10.00 a.m. to 10.00 p.m. elsewhere

E & E – II (Beer Bar & Wine Bar) 9.00 a.m. to 12.00 Midnight

Universe for selling Beer in Mumbai

Name of Location Number

Institutions 450

Permit Room 1172

Retail Shops 570

Beer Shoppee 60

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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.

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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, caramelmalt 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 (WEIZEN)

Malted wheat and barley are used for this German style beer

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.

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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 sometimesadded 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:

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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

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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.

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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 oldShimla 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,

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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."

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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

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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%

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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%

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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 consumption of 156.9 litres per

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annum. 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 advertising and marketing practices.

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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.

18



19



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 basedon the alcohol content, strong beer.

In India the future of beer industry is very much optimisticbecause:

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 to

attract first-time drinkers, since it is much milder than any of the other beers

in 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.

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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 alsoannounced 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

21



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.

22



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& Distilleries

Thane Plot D103, TransThane creek ind area,Sion- Panvel Rd,A/P Shirwane

022-27671939

2 Hindustan Breweries &Bottling Ltd.

Thane C/23-24, WagleIndustrial Estate

3 Bombay Breweries Raigad Plot M-1, MIDC,Industrial Area

022-27410632

4 Mohan Rocky SpringWater Breweries Ltd.

Raigad Mohan Wadi, Khopoli, 02192-262461

5 Skol Breweries Raigad Kegaon, Tal Uran 022-27222139

6 Skol Breweries Ltd(Unit of Doburg Ltd.)

Satara E-1, MIDC IndustrialEstate

7 Arlem (AurangabadBreweries/Asia PacificBreweries-Heineken)

Aurangabad Plot No H-9, 10,11,&13, MIDC IndustrialArea, Walunj

0240-2564172

8 Inertia Industries Aurangabad Plot No 1-10, MIDCArea, Walunj

0240-2554979

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

10 Lilasons Breweries Aurangabad 1-1-7 MIDC, Walunj, 8 0240-2555198

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Bansilal Nagar

11 Pals Distilleries Aurangabad L-5, MIDC, Walunj 0240-2555236

Brewing Process

Beer is made by brewing. The essential stages of brewing are mashing,

sparging, boiling, fermentation, and packaging. Most of these stages can be

accomplished in several different ways, but the purpose of each stage is the same

regardless of the method used to achieve it.

24



Image Courtesy: Aurangabad Breweries Ltd.Batch Size: 100 HLTime Taken for each brew – 8.5 HrsMax. No. of Brews/ Days - 06 Nos.

25



Fermentation Flow Chart

Image Courtesy: Aurangabad Breweries Ltd.Total No. of Unitanks:9

Total Fermnters : 8 Nos.

Total Storage Tanks : 12 Nos.

Total No. of Bright Beer Tanks : 04

26



Stages in Beer Making

Mashing

Mashing manipulates the temperature of a mixture

of water and a starch source (known as mash) in order to

convert starches to fermentable sugars. The mash goes

through one or more stages of being raised to a desired

temperature and left at the temperature for a period of time.

During each of these stages, enzymes (alpha and beta

amylase primarily) break down the long dextrins that are

present in the mash into simpler fermentable sugars, such as

glucose. The number of stages required in mashing depends

on the starch source used to produce the beer. Most malted

barley used today requires only a single stage.

Sparging

Sparging (a.k.a. Lautering) extracts the fermentable liquid, known as wort,

from the mash. During sparging the mash is contained in a lauter-tun, which has a

porous barrier through which wort but not grain can pass. The brewer allows thewort to flow past the porous barrier and collects the wort. The brewer also adds

water to the lauter-tun and lets it flow through the mash and collects it as well. This

rinses fermentable liquid from the grain in the mash and allows the brewer to gather

as much of the fermentable liquid from the mash as possible. The leftover grain is

not usually further used in making the beer. However, in some places second or even

third mashes would be performed with the not quite spent grains. Each run would

produce a weaker wort and thus a weaker beer.

Boiling

Boiling sterilises the wort and increases the concentration of sugar in the

wort. The wort collected from sparging is put in a kettle and boiled, usually for

about one hour. During boiling, water in the wort evaporates, but the sugars and

other components of the wort remain; this allows more efficient use of the starch

sources in the beer. Boiling also destroys any remaining enzymes left over from the

27



mashing stage as well as coagulating proteins passing into the wort, especially from

malted barley, which could otherwise cause protein 'hazes' in the finished beer. Hops

are added during boiling in order to extract bitterness, flavour and aroma from them.

Hops may be added at more than one point during the boil. As hops are boiledlonger, they contribute more bitterness but less hop flavour and aroma to the beer.

Fermentation

Fermentation uses yeast to turn the sugars in wort to alcohol and carbon

dioxide. During fermentation, the wort becomes beer. Once the boiled wort is cooled

and in a fermenter, yeast is propagated in the wort and it is left to ferment, which

requires a week to months depending on the type of yeast and strength of the beer. In

addition to producing alcohol, fine particulate matter suspended in the wort settles

during fermentation. Once fermentation is complete, the yeast also settles, leaving

the beer clear. Fermentation is sometimes carried out in two stages, primary and

secondary. Once most of the alcohol has been produced during primary

fermentation, the beer is transferred to a new vessel and allowed a period of

secondary fermentation. Secondary fermentation is used when the beer requires long

storage before packaging or greater clarity.

Pasteurisation

Pasteurisation is an optional stage of the beer process in which the beer is

slowly heated and cooled to kill off any existing bacteria in order to maintain longer

shelf life. This is generally a stage not included in higher end beers, but is quite

common in mass-produced beers such as American-Style lite beers, and other mass-

produced lagers. It is less common in ales as pasteurization can change the many

flavours.

Packaging

Packaging, the fifth and final stage of the brewing process, prepares the beer

for distribution and consumption. During packaging, beer is put into the vessel from

which it will be served: a keg, cask, can or bottle. Beer is carbonated in its package,

either by forcing carbon dioxide into the beer or by "natural carbonation". Naturally

carbonated beers may have a small amount of fresh wort/sugar and/or yeast added to

28



them during packaging. This causes a short period of fermentation which produces

carbon dioxide.

29



Ingredients of Beer

Beer is made from 4 simple ingredients; water, grain

(barley, wheat, rice, corn, or other cereals), yeast, and hops.

Other ingredients are used by many brewers to create

distinctive tastes and characters. Brewing beer is a mix of

both chemistry and art. The most successful brewer will not

only understand all aspects of brewing but will also have

the love and devotion of the beer drinker.

Water

Beer is composed mostly of water, and the water used to make beer nearly

always comes from a local source. The mineral components of water are important

to beer because minerals in the water influence the character of beer made from it.

Different regions have water with different mineral components. As a result, it is

argued that the mineral components of water have an influence on the character of

regional beers.

Malt

The starch source in a beer provides the fermentable material in a beer and is

a key determinant of the character of the beer. The most common starch source used

in beer is malted grain. Grain is malted by soaking it in water, allowing it to begin

germination, and then drying the partially germinated grain in a kiln. Malting grain

produces enzymes that convert starches in the grain into fermentable sugars.

Different roasting times and temperatures are used to produce different colours of

malt from the same grain. Darker malts will produce darker beers.

Hops

The flower of the hop vine is used as a flavouring and preservative agent in

nearly all beer made today. The flowers themselves are often called "hops". Hops

contain several characteristics that brewers desire in beer: hops contribute a

30



bitterness that balances the sweetness of the malt; hops also contribute floral, citrus,

and herbal aromas and flavours to beer.

The acidity of hops acts as a preservative that—after its introduction—gave

brewers the ability to transport their product over longer distances, thereby allowing

for the rise to commercial breweries. The bitterness of beers is measured on the

International Bitterness Units scale.

Yeast

Yeast is the microorganism that is responsible for fermentation in beer. Yeast

metabolizes the sugars extracted from grains, which produces alcohol and carbon

dioxide, and thereby turns wort into beer. In addition to fermenting the beer, yeast

influences the character and flavour. The dominant types of yeast used to make beer

are ale yeast and lager yeast; their use distinguishes ale and lager.

Clarifying agent

Some brewers add one or more clarifying agents to beer. Common examplesof these include isinglass finings, obtained from swimbladders of fish; Irish moss, an

seaweed; Polyclar (artificial); and gelatin. Clarifying agents typically precipitate out

of the beer along with protein solids, and are found only in trace amounts in the

finished product.

31

http://en.wikipedia.org/wiki/Bitter_(taste)

http://en.wikipedia.org/wiki/Bitter_(taste)



Categorizing beer by

Yeast

The most common method of categorizing beer is by the behavior of the

yeast used in the fermentation process. In this method of categorizing, those beers

which use fast-acting yeast, which leaves behind residual sugars, are termed ales,

while those beers which use a slower and longer acting yeast, which removes most

of the sugars, leaving a clean and dry beer, are termed lagers. Differences between

some ales and lagers can be difficult to categorize.

Ale

Modern ale is commonly defined by the strain of yeast used and the

fermenting temperature. Ales are normally brewed with top-fermenting yeasts. The

important distinction for ales is that they are fermented at higher temperatures and

thus ferment more quickly than lagers.

Ale is typically fermented at temperatures between 15 and 24 °C (60 and 75

°F). At these temperatures, yeast produces significant amounts of esters and other secondary flavour and aroma products, and the result is often a beer with slightly

"fruity" compounds resembling apple, pear, pineapple, banana, plum, or prune,

among others.

Lager

Lager is the English name for bottom-fermenting beers of Central European

origin. They are the most commonly consumed beers in the world. The name comes

from the German lagern ("to store"). Lagers originated from European brewers

storing beer in cool cellars and caves and noticing that the beers continued to

ferment, and also to clear of sediment. Modern methods of producing lager were

pioneered by Gabriel Sedlmayr the Younger, who perfected dark brown lagers at the

Spaten Brewery in Bavaria, and Anton Dreher, who began brewing a lager, probably

32

http://en.wikipedia.org/w/index.php?title=Gabriel_Sedlmayr&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Gabriel_Sedlmayr&action=edit&redlink=1



of amber-red colour, in Vienna in 1840–1841. With improved modern yeast strains,

most lager breweries use only short periods of cold storage, typically 1–3 weeks.

Lambic beers

Lambic beers, a speciality of Belgian beers, use wild yeasts, rather than

cultivated ones. Many of these are not strains of brewer's yeast, and may have

significant differences in aroma and sourness.

Pale and dark beer

The most common colour is pale amber produced from using pale malts.

Pale lager is a term used for beers made from malt dried with coke. Coke had been

first used for roasting malt in 1642, but it wasn't until around 1703 that the term pale

ale was first used.

Dark beers are usually brewed from a pale malt or lager malt base with a

small proportion of darker malt added to achieve the desired shade. Other colourants

—such as caramel—are also widely used to darken beers. Very dark beers, such as

stout use dark or patent malts that have been roasted longer. Guinness and similar

beers include roasted unmalted barley.

33



Serving

Draught and keg

Draught beer from a pressurized keg is the most common method of

dispensing in bars around the world. A metal keg is pressurized with carbon dioxide

(CO2) gas which drives the beer to the dispensing tap or faucet. Some beers, notably

stouts, such as Guinness and "smooth" bitters, such as Boddingtons, may be served

with a nitrogen/carbon dioxide mixture. Nitrogen produces fine bubbles, resulting in

a dense head and a creamy mouth feel. Some types of beer can also be found in

smaller, disposable kegs called beer balls.

Cask-conditioned ales

Cask-conditioned ales (or "cask ales") are unfiltered and unpasteurised beers.

These beers are termed "real ale" by the Camra organisation. Typically, when a cask

arrives in a pub, it is placed horizontally on a stillage and allowed to cool to cellar

temperature, before being tapped and vented—a tap is driven through a (usually

rubber) bung at the bottom of one end, and a hard spile or other implement is used to

open a hole in the side of the cask, which is now uppermost. At this point the beer is

ready to sell, either being pulled through a beer line with a hand pump, or simply

being "gravity-fed" directly into the glass.

Bottles

Most beers are cleared of yeast by filtering when bottled. However, bottle

conditioned beers retain some yeast—either by being unfiltered, or by being filtered

and then reseeded with fresh yeast. It is usually recommended that the beer be

poured slowly, leaving any yeast sediment at the bottom of the bottle.

Cans

Many beers are sold in beverage cans, though there is considerable variation

in the proportion between different countries. People either drink from the can or

pour the beer into a glass. Cans protect the beer from light and have a seal less prone

to leaking over time than bottles. Cans were initially viewed as a technological

breakthrough for maintaining the quality of a beer, then became commonly

34



associated with less-expensive, mass-produced beers, even though the quality of

storage in cans is much like bottles.

Vessels

Beer is consumed out of a variety of vessels, such as a glass, a beer stein, a

mug, a pewter tankard, a beer bottle or a can. Some drinkers consider that the type

of vessel influences their enjoyment of the beer. Some breweries offer branded

glassware intended only for their own beers.

Serving temperature

The temperature of a beer has an influence on a drinker's experience. Colder

temperatures allow fully attenuated beers such as pale lagers to be enjoyed for their

crispness; while warmer temperatures allow the more rounded flavours of an ale or a

stout to be perceived. Beer writer Michael Jackson proposed a five-level scale for

serving temperatures:

• Well chilled (7 °C/45 °F) for "light" beers (pale lagers),

• Chilled (8 °C/47 °F) for Berliner Weisse and other wheat beers,

• Lightly chilled (9 °C/48 °F) for all dark lagers, altbier and German wheat

beers,

• Cellar temperature (13 °C/55 °F) for regular British ale, stout and most

Belgian specialties and

• Room temperature (15.5 °C/60 °F) for strong dark ales and barley wine.

35



By-products / Waste

Beer brewing produces several byproducts that can be used by other

industries. During the malting of the barley, rootlets form on the grain and drip off.

These can be collected and used for animal feed. The hops that are filtered out from

the finished wort can also be collected and used again as fertilizer. The residual yeast

from the brewing process is a rich source of B vitamins. It can be put to use by

pharmaceutical companies to make vitamins or drugs, or used as a food additive.

Used beer cans and beer bottles are routinely recycled.

36



Taxation Policies

Excise Duties

Government has different policies for charging excise on mild beer and

strong beer which is highlighted in the table below.

Mild Beer Strong Beer

1 100% of Manufacturing cost 1 125% of Manufacturing cost

2 RS. 16 Per Litre 2 RS. 20 Per Litre

Which ever is higher of above two conditions

Octroi

Previously 4 to 7 per cent of octroi duty was charged on beer on billed

invoice, but government came to know the loop hole in the system of which undue

advantage was taken by the companies so to curb this government has decided to

charge 4 – 7% octroi on MRP of product after giving discount of 25%.

37



About APB

Corporate ProfileListed on the Singapore Exchange, Asia Pacific Breweries Limited (APB) is

one of the key players in the beer industry. A joint venture between the Fraser and

Neave Group of companies and Heineken International, APB was established as

Malayan Breweries Limited (MBL) in 1931. It went on to open its first brewery in

Singapore and launched the award-winning Tiger Beer a year later.

To more accurately reflect the growing regionalization of its business

interests, MBL was renamed Asia Pacific Breweries Limited in 1990. Today, APB

oversees a portfolio of over 40 beer brands and brand variants, including Tiger

Beer, Heineken, Anchor and ABC Stout. The group operates an extensive global

marketing network, which spreads across 60 countries and is currently supported by

breweries in countries including Singapore, Cambodia, China, India, Laos,

Malaysia, Mongolia, New Zealand, Papua New Guinea, Sri Lanka, Thailand,

and Vietnam.

With more than 70 years in the brewing industry, APB has been consistently

ranked by the Far Eastern Economic Review as one of the top companies in Asia.

KPMG also rated APB as among the top ten value creators in Singapore, for having

consistently added value for its customers, consumers and shareholders.

APB benchmarks itself against international brewing standards and observes

the most stringent brewing process that sees no less than 250 quality control

checks. This explains why APB breweries are among the forerunners in their

respective markets with various Quality Assurance Certifications including the

ISO 9002, ISO 9001:2000, and the Hazard Analysis and Critical Control Point.

APB's flagship brew, Tiger Beer commands a strong following in Asia and

is also widely enjoyed in many European Cities such as London, Manchester,

Dublin, Glasgow, Berlin, Copenhagen, Stockholm and many others. The

internationally recognised Singapore beer has accumulated a long list of accolades,

awards and distinctions.

38



APB is also one of the few corporate organizations in Singapore to set up its

own philanthropic foundation, the Asia Pacific Breweries Foundation to render

financial aid to causes in Creativity Development, Achievements in Human

Excellence and Humanitarian Awards.

Fraser & Neave, Limited

Fraser and Neave, Limited (F&N) is a leading Pan Asian Consumer Group

with core expertise and dominant standing in the Food and Beverage, Property and

Printing & Publishing industries. Leveraging on its strengths in marketing and

distribution; research and development; brands and financial management; as well as

acquisition experience, it provides key resources and sets strategic directions for its

subsidiary companies across all three industries. F&N's commitment is to grow and

strengthen its core businesses so as to provide sustainable earnings to shareholders

through geographical expansions.

Today, F&N owns an impressive array of renowned brands that enjoy market

leadership across a mix of beer, dairies, soft drinks and beverages; residential

properties, retail malls and serviced residences; as well as publishing and printing

services. Listed on the Singapore Exchange, F&N's shareholders' funds are in excess

of S$3billion, and its total assets employed exceed S$7billion. F&N is present in

more than 20 countries spanning across Asia Pacific, Europe and USA and employs

more than 14,000 employees worldwide.

Heineken

Heineken has its roots in Amsterdam, where in 1864, Gerard Adriaan

Heineken acquired the Hooiberg (Haystack) brewery. This brewery itself dates back

to 1592. Heineken N.V. is the most international brewer in the world. The Heineken

brand is sold in almost every country in the world and the company owns over 115

breweries in more than 65 countries with a total volume of 113 million hectolitres.

Heineken owns and manages a strong portfolio of more than 120 top selling brands,

which has Heineken at its centre.

39



Members of the Asia Pacific Breweries Group

Cambodia

• Cambodia Brewery Ltd.

China• Heineken-APB (China) Management Services Co. Ltd.

• Shanghai Asia Pacific Brewery Co. Ltd.

• Hainan Asia Pacific Brewery Company Ltd.

• Kingway Trading (Shanghai) Co. Ltd.

• Jiangsu DaFuHao Breweries Co. Ltd.

India• Asia Pacific Breweries (Aurangabad) Ltd.

• Asia Pacific Breweries (Pearl) Ltd.

Laos• Lao Asia Pacific Breweries Ltd.

Malaysia• Guinness Anchor Berhad

Mangolia• MCS-Asia Pacific Brewery LLC

New Zealand• DP Breweries Limited

Papua New Guinea• South Pacific Brewery Ltd.

Singapore• Asia Pacific Breweries (Singapore) Pte. Ltd.

• Tiger Exports Pte. Ltd.

Sri Lanka• Asia Pacific Brewery (Lanka) Limited.

Thailand• Thai Asia Pacific Breweries Co. Ltd.

Vietnam• Hatay Brewery Ltd.

40



• Vietnam Brewery Ltd.

41



Senior Management of APB

Mr Koh Poh Tiong

Chief Executive Officer

Mr Chris Kidd

Regional Director, Indochina

Dr Les Buckley

Regional Director, S.E.A / Oceania

Mr Huang Hong Peng

Regional Director, CEO's Office

Mr Lee Meng Tat

Regional Director, China

Mr Vivek Chhabra

Regional Director, South Asia & Director, Group Business Development

Ms Loy Juat Boey

Director, Group Finance

Mr Nah Kok Chun

General Manager, CEO's Office

Ms Sarah Koh

General Manager, Group Corporate Communications

Ms Geraldine Lim

General Manager, Group Legal

Mr Edmond Neo

General Manager, Group Commercial

Ms Yvonne Yeo

Director, Group Human Resource

42



Registration No:

B.S.T. NO. 431136-S-17 DT. 01-04-96CST NO. 431136-C-10 DT. 01-04-96

APB - INDIA

Office Address: 405, Rachanaa Magnum Opus,

Shanti Nagar Industrial Area,

Near Grad Haytt Hotel, Vakola,

Santacruz East, Mumbai 400 055

On 2 May 2006, APB made its

second investment in South Asia by

expanding its brewery network to

include India. APB currently holds a

76% stake in Asia Pacific Breweries (Aurangabad) Limited (APB (Aurangabad))

which owns a brewery in Maharashtra. APB (Aurangabad) produces and markets

Tiger, Baron's and Cannon-10000.

Extending its footprint to Andhra Pradesh, APB on 30 June 2006, entered yet

another joint venture partnership to set up Asia Pacific Breweries-Pearl PrivateLimited. APB holds the majority stake of 67% in the joint venture company which is

building a Greenfield Brewery just outside Hyderabad. The brewery is expected to

commence operation in 2008.

Today total turnover of the company is approximately 100 crores Asia

Pacific Breweries (Aurangabad) Ltd. & Pearl

Core Values

• Be passionate about your work.

• Instill sense of urgency.

• Maintain the highest standard of ethics and integrity.

• Work as a team, with respect for each other.

• Deliver quality in all that we do.

• Be cost conscious.

43



• Maintain business confidentiality.

• Have fun at work and strike balance between work and personal life.

44



Locations of Operation

• Mumbai & Navi Mumbai

• Thane & Raigarh

• Delhi

• Goa

• Hyderabad

• Aurangabad

• Bangalore

45



Organization Structure

46



Brand Portfolio

APB Maintains approach of a multi-brand portfolio in each market, it enjoys

an extensive reach across different market segments in different countries. Today,

APB oversees a portfolio of over 40 beer brands including Tiger Beer and Heineken

and several brand variants.

APB BRANDS in India

• Tiger beer

• Baron’s Strong Brew.

• Cannon 10000

Tiger Beer

47



Details of Tiger beer are discussed in detail in marketing mix section of this project.

Baron's Strong Brew

Launched in Singapore in 1997, Baron's Strong Brew is European to the last

drop. Traditionally blended from the finest European hops and malt for a strong

smooth taste, Baron's delivers a message of solid European heritage. Its authenticity

has translated into a strong presence in the high alcohol beer category. Baron's

packaging is distinctive in design, reflecting its premium image and quality.

Cannon 10000 Super Strong Beer

Cannon 10000 is a flagship brand of Aurangabad Breweries which is now

acquired by APB. Cannon 10000 enjoys strong brand recall and reach in Tier 2 and

Tier 3 cities of India. As name suggests brand is famous for its super strong beer

image and stronger kick. Thus calling it strong beer for strong men.

48



49



APB International Brands

Heineken

Embraced by drinkers in over

170 countries, Heineken possesses the widest

international presence of any international

beer brand. Distinctive in a green bottle, its

exclusive image finds rapport with

sophisticated young adult consumers who

enjoy cutting-edge music experiences and

premier sporting events.

ABC Extra Stout

Determined, confident and successful, APB's proprietary ABC Extra Stout

reflects its core drinker's values and self-image. ABC Stout drinkers know what they

want and will go the extra mile to get it. They want the best and do not settle for

anything less. Appreciated for its full-bodied and robust taste, ABC is the leading

premium stout in Cambodia.

Anchor

Anchor was first brewed in Singapore over 70 years ago using German

technology and brew masters. Anchor's value-for-money positioning and its

refreshing and signature crisp taste have clearly struck a chord with drinkers in over

10 countries in Asia.

50



Marketing Mix of Tiger Beer Marketing mix is defined as the set of controllable tactical

marketing tools that the firm blends to produce the response it wants in

the target market. The marketing mix consists of everything the firm can

do to influence the demand for its product.

51



Robert Lauterborn suggested that the sellers’ 4 Ps correspond to the customers’ 4 Cs.

52



Product

Tiger beer is one of the world's finest beers, It was launched in 1932; Tiger

Beer is enjoyed in more than 60 countries across the globe including Europe, USA,

Latin America, Australia and the Middle East.. The distinctive taste of Tiger Beer is

favoured by the modern man of today. Tiger Beer is synonymous with self-

progression, manliness and social engagement. As a world class, award-winning

quality beer that is winning the world over, Tiger Beer is on track in realizing its

aspiration of becoming

a leading pan-Asian beer brand.

Tiger Story“Brewed exclusively and with dedication

In Asia since 1932, using the finest quality hops

And malted barely, tiger beer has a distinctive

Clean and crisp taste that’s winning the world over”

Punch Line – It’s Tiger Time / Enjoy Winning

53



54



Various Captions of Tiger Print Ads overseas

Tiger has used various headlines in it’s print ads to capture consumer

attention. Some of it is as follows.

• It’s Tiger time

• Enjoy winning

• Passion for winning

• Sometime it’s OK to let other beat you but only in their dream

• Reserved for winners

• Here’s a way to start your winning streak

• Pick a winner

• I only serve winners

• Don’t stop until you reach the top

• Real winners have lots of love to give.

• Winners go further

• Winners get the best seats

• The view is better when you’re on the top

• Some victories are hollow; others have tiger beer in them.

55



Tiger Beer fact sheet

• Launched in 1932, Tiger Beer is APB's flagship brand. Today, Tiger Beer is

brewed in ten countries and available in over 60 countries worldwide

including Europe, USA, Latin America, Australia and the Middle East.

• Tiger is available in more than 60 countries with strong position in markets

of Southeast Asia such as Singapore, Malaysia and Vietnam.

• In the western markets such as the UK and USA, Tiger Beer has been

embraced as a leading premium brew that hails from the Far East.

• In May 2006, Anheuser-Busch was appointed the importer of Tiger Beer in

the USA. The tie-up has since given APB access to a strong network of 500

wholesalers and Tiger Beer is currently traded in 48 of 50 states there.

• This authentic Singapore brand can be found in over 8,000 premium

bars/clubs and distribution outlets in UK's major cities such as London,

Manchester, Leeds, Newcastle, etc.

• Tiger Beer's award-winning taste has picked up over 40 internationally

acclaimed accolades and awards. The most notable include the Brewing

Industry International Awards, UK, 1998 (the equivalent of the Oscar Awards

for the brewing industry) and more recently, Tiger Beer won the Gold medal

in the European Style Pilsener category of the 2004 World Beer Cup, a

competition which is considered "the Olympics of Beer Competitions" by the

industry.

• Tiger Beer has become such a recognizable and much sought-after import

premium beer in UK that it was named UK Cool Brand Leader each year

from 2004 to 2006 - a recognition given to the coolest brands in UK.

• Tiger Beer also topped a list of 50 beer brands and was crowned the NUTS

(a weekly magazine in the UK) Beer of the Year 2004. These recognitions

56



reaffirmed that apart from industry medals, Tiger Beer is also gaining greater

popularity with its growing number of fans.

57



Price

Price is the amount of money charged for the product or service, the sum of

values that consumer exchange for the benefits of having or using the product or

service.

Factors affecting pricing decisions

Primary considerations in price setting

58



Pricing in Mumbai

Following list provides information regarding number of companies and

brands operating in Mumbai along with their MRP and End Consumer Price (ECP).

ECP = MRP + Taxes. Prices are as in the month of June 2008.

APB (Aurangabad) Ltd

Brand Name Type M.R.P. E.C.P.

Cannon 10000 Strong Beer 54.15 64.98

Baron’s Strong Beer 58.35 70

Tiger Mild Beer 58.33 70

UB Group

Name of Brand Type M.R.P. E.C.P.

Kingfisher Strong Strong Beer 59.95 71.94

Kingfisher Mild Mild Beer 55.80 66.96

London Pilsner Mild Beer 35 42

Zingaro Strong Beer Strong Beer 55.79 66.95

SAB MILLER


Foster Mild Beer 60 72

Royal Challenge Mild Beer 54.17 65

Haywards 5000 Strong Beer 60 72

Haywards 2000 Strong Beer 54.17 65

Knock Out Strong Beer 56.67 68

Castle Lager Mild Beer 45 54

Amberro Lager Mild Beer 35 42

59



LILA SONS


Khajuraho Strong Beer 54.98 65.98

Khajuraho 10000 Strong Beer 54.98 65.98

Khajuraho Lite Mild Beer 33.34 40.01

Other Competitors


Budweiser (Anheuser-Busch) Mild 62.49 74.99

Carlsberg (South Asia Breweries Pvt. Ltd.) Mild 66.66 80

King Cobra Strong 56.66 67.99

Cobra Mild

Meakin 10000 Strong

60



Place

APB has breweries in Singapore, Malaysia, Thailand, Vietnam, Cambodia,

China, New Zealand, Papua New Guinea, India and Sri Lanka. It also has joint

ventures in India, Laos and Mongolia, and distributes to over 60 countries

worldwide. The company's stronghold is in Asia Pacific, especially in Singapore,

Malaysia, Vietnam, Cambodia, Papua New Guinea and New Zealand.

In the USA, Tiger Beer’s presence is strong in New York, Miami, San

Francisco and Boston.

In the UK, Tiger Beer can be found in over 8,000 premium bars/clubs anddistribution outlets in UK’s major cities such as London, Manchester, Leeds,

Newcastle, Inverness, etc.

In March 2006, Anheuser-Busch was appointed the U.S. importer of Tiger

Beer. The new agreement significantly broadens Tiger Beer’s U.S. distribution

opportunities by giving Asia Pacific Breweries access to Anheuser-Busch’s network

of nearly 600 independent wholesalers. In 2005, the brand recorded double-digit

growth in the United States.

In India On-trade sales form the leading distribution channel account for

nearly 70% share of the market by volume. Company has appointed total 16

distributors in Maharashtra including Marathwada, & Vidrbha.

61



Distribution Network

Distributors

On / Off PremiseLocations

End Consumer

APBBreweries

62



64



PromotionPromotion includes advertising and other forms of sales presentations,

designed to encourage fast consumer or trade up-take of a product or service. The

form of any promotion depends on the product, the marketing plan and its

objectives, and on the imagination of the product management team. It can vary

from a simple in-store demonstration, or sampling, or a tie-in with on premises. A

range of promotional tools, techniques and activities are mixed and matched to meet

the needs of individual marketing campaigns.

Major Tools in Marketing Beer

Publications: Companies rely extensively on published materials to reach and

influence target markets, including annual reports, brochures, articles, printed and

on-line newsletters and magazines, and audiovisual materials.

Events: Companies can draw attention to new products or other company activities

by arranging special events like news conferences, on-line chats, contests and

competitions, and sport and cultural sponsorships that will reach the target publics.

News: One of the major tasks of PR professionals is to find or create favorable news

about the company, its products, and its people. The next step is getting the media to

accept press releases and attend press conferences.

Marketing Activities at APBI

• Brand Advertising

• Promotional Activities in on & off trade

• Experiential marketing

• Consumer planning

• Relationship marketing

• Consumer PR

• Brand Website & online activities

65



• Packaging

66



Factors Influencing Company Marketing Strategy

There are various forms of marketing which are used for promoting the

product in market. They are pull marketing, push marketing, ATL & BTL activities.

Obviously not every campaign will include every element in the mix, but every

viable campaign must incorporate some of them. They are explained in detail below.

67



Marketing professional need to understand following four concepts viz. Pull

marketing, push marketing, ATL & BTL for effective execution of any marketing

campaign. Company can select on the tool or combination of it based on product

type and marketing objective. Let’s look at them in detail.

Pull marketingAdvertising is one of the most powerful forms of "Pull" marketing—

persuading the customer to try a product and continue to use the product. It is a paid

form of impersonal promotion that can appear in many venues:

• Print brochures or

flyers

• Billboards &

Hoardings

• Point-of-Purchase

Ads

• Television and

radio ads

Push Marketing"Push" marketing occurs when the product is

"pushed" from the seller to the consumer. The most common

type of push marketing is when a company uses a direct

sales force to all on prospective companies or consumers. It

is the salesperson's task to persuade the consumer to

purchase the product.

Above The Line (ATL) Activities

ATL denotes advertising expenditure on mass media

advertising, including press, television, radio, and posters. It

is traditionally regarded as all advertising expenditure on

which a commission is payable to an advertising agency.

Company has appointed various agencies to carry out its

ATL activities efficiently. They are:

• Leo Burnett

• Load Star

• 70 Media

• Weber Shandwick

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Below The Line (BTL) Activities

BTL Denotes advertising expenditure in which no

commission is payable to an advertising agency. For

example, direct mail, exhibitions, point-of-sale material, andfree samples are regarded as below-the-line advertising.

POPs - Ads at Consumer touch points

• Wobblers

• Shelf Talkers

• Posters

• Bar (on-premise)

Merchandise

• Coaster

• Tent Cards

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APB’s Marketing Supporting Agencies

Ad-agency• Leo Burnett

Media Planner

• McCann Erickson

• Load Star (Working on the ATL plan)

Event Management Company

• Seventy Media

Sales Promotion / Brand activation Agency

• Market Men

• RW Promotions Pvt. Ltd.

• Candid Marketing

Outdoor Advertising Agency

• Outdoor Advertising Professionals (OAP)

Shop Signage Agency• Signage World

• Map Arts

PR Agency

• Weber Shandwick (A unit of The Interpublic

Group)

Duties & Responsibilities of PR Agency

• Tracks & Monitors Media Daily.

• Prepares Fortnightly/Monthly reports/ drouchers

• Maintains Clips/Folders

• Provides Collateral

• Maintains Professional relationship with the media,

by regularly sharing information

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• Regularly follows up with media on press releases

related to beer

• Ensures Event Collateral

• maintaining journalists & publications profiles

Sales Promotion

Sales promotion, a key ingredient in many marketing

campaigns, is a collection of incentive tools, usually short

term, designed to stimulate trial of a product or service,

quicker or greater purchase. These include discounts, gifts

or give-away, free goods, cooperative advertising, and tradeshows. Advertising offers a reason to buy; sales

promotion offers an incentive to buy.

Objective of Sales PromotionSales-promotion tools can be used to achieve a

variety of objectives. Sellers use incentive-type promotions

to attract new triers, to reward loyal customers, and toincrease the repurchase rates of occasional users.

• Awareness

• Trials

Tools of Sales Promotion

Sales promotion includes

tools for consumerpromotion:

Trade promotion

Includes:

Business and sales force

promotion includes:

• Samples,

• Coupons,

• Cash Refund Offers,

• Prices Off,

• Prizes,

• Prices off,

• Advertising and display

allowances,

• Free goods

• Trade shows and

conventions,

• Contests for sales reps,

• Specialty advertising

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• Free Trials,

• Tie-In Promotions,

• Cross-Promotions,

• Point-Of-Purchase

Displays,

• Demonstrations

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Relationship between PLC & Marketing Strategies

Like human beings, products also have life cycles.

That is, they're born, and then—over time—their sales grow,

mature, and finally decline. The strategies with which you

market a product need to change with each of these life-

cycle phases. The table below shows a few examples of how

this might work:

PLCStage

Characteristics MarketingObjectives

Market Strategies

Product

Introduction

Low sales, high cost per

customer, no profits, few

competitors

Create product

awareness and trial

Offer a basic product,

Use heavy promotions

to entice trial

Product

Growth

Rising sales and profits,

more and more competitors

Maximize market

share

Offer product

Extensions

Product

Maturity

Peaking sales and profits,

stable or declining number

of competitors

Maximize profit

while defending

market share

Diversify brands

Intensify promotion to

encourage switching

to new brands

Product

Decline

Declining sales, profits, and

number of competitors

Reduce expenditure

and "milk" the

brand

Phase out weak

Products,

Cut price;

Reduce promotion

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Various sales promotions techniques adoptedat APBI

1. PRODUCT LAUNCH OFFERS FOR DEALERSFOR TIGER

• Entry incentive scheme: 10 cases you get 4 cases

free

(one time validity for 45 days from date of

launch)

• Subsequent offer

o 15 cases 1 case free



o 250 cases Singapore Trip (One person

only)

o 450 cases Singapore Trip (Two person

only)

2. Rs. 2 for Cap of Baron’s to waiters

3. Gifts (Pens, Openers) to people who preferred to

drink Barron’s over other brand

4. On Premise promotion items like Ice buckets,

Serving tray, Ash Tray, Premium Openers, Wall

Clocks etc. given to Permit room owners

5. Promoters hired for Brand awareness campaign of Baron’s and Tiger

6. Tiger Bucket offer (Get 4 Tiger in price of 3)

7. IPL Activation promotion

8. Association with MTV splitz villa – a youth oriented

program

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9. Program on Radio One 94.3 FM with “Malini till

mid night moon” for 3 months from 19th May till 18th

Aug.

10. Bar promoter girls promotions11. Mall Activation

12. Permit room activations

13. Various promotional offers in institutions

• Meal Combo

• Sunday

Brunch

• Tiger Bucket

(grab 4 pints at

price of 3)

• Exclusive tiger

beer tie-ups

• Bar night

• Food Festivals

• Karaoke Nite

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Permit Room Activation

Points to be considered while permit room promotion

• Time 6.30 pm to 10.30 pm

• Days of promotion: Wednesday, Friday, Saturday,

Sunday

• Promoters need to reach outlet by 6.00 pm

• Promoters need to carry certain items with them viz.

Call Sheet, Tent Cards, Banners, Tiger Quick Card.

• Once they reach outlet they will ask rate of TIGER

in that particular outlet

• While promotions they should keep Tiger Quart

bottle with them, and give it to consumers while they

do quality presentations

Steps followed for permit room activation of Tiger Beer

1. Identify promotion need

2. Hire Agency

3. Briefing the agency

4. Agency come out with plan / idea to promote

product

5. Approval of idea or asked to come with new idea

6. Cost approvals by company

7. Agency to brief operation department

8. Recce (Reconnaissance) / Field survey by agency

9. Supplying gifts to be given to consumers

10. Start of activity / Execution of plan

11. Report submission by agency at the end of every day

activity

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Tracking Effectiveness of sales promotion

There are various ways for checking effectiveness of sales promotions:

1. Check our sales volumes of outlet pre, during and post promotion

2. Go to junk yard of outlet where they keep empty bottles to check actual sales performance of brand.

Designing a Powerful Sales Promotion

• Use sales promotions with advertising: For

example, combine a price promotion with an ad

emphasizing the product's features or with a point-

of-purchase display. Or if you're marketing to

businesses through trade shows or conventions,

combine poster ads with sales-rep selling contests to

get the most impact.

• Be clear about your objectives: Your goals for sales

promotions will vary with your target market. If

you're targeting retailers, persuade them to carry

your company's new offerings, to stock more

inventories, to encourage off-season buying, or to

offset competitive promotions.

• Choose the appropriate promotion tools:

Depending on your objectives, select the right tools.

For salespeople, launch sales contests—with prizes

to the winners. If you're marketing to businesses

through trade shows or conventions, use

publications, videos, and other audiovisual materials

to generate new sales leads, meet new customers

face to face, sell more to existing customers, and

educate customers.

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• Use sales promotions in markets of high brand

dissimilarity: Sales promotions tend to attract brand

switchers who look primarily for low price, good

value, or premiums. You'll get more and longer-

lasting market share if you use such incentives in

markets of high brand dissimilarity.

• Distinguish between price promotions and added-

value promotions:

Sales promotions, with their incessant prices off,

coupons, deals, and premiums, can devalue the

product offering in consumers' minds. Make sureyour promotions enhance your brand image.

• Pretest your sales promotion program Use pretests

(small trial runs) to determine whether the

promotional tools you've chosen are appropriate, the

incentive size will produce enough sales response

without costing the company too much, and the

presentation is efficient.

Packaging

Packaging, as defined by Kotler and Keller, refers to

‘all the activities of designing and producing the container

for a product.’ Though the primary purpose of packaging is

to serve against damage during the movement of the

product, it is no longer the only purpose that it serves.

Packaging, and not the product, is the first touch-point that

the customer comes into contact with. A substandard

product within a unique packaging might be easier to sell as

against a superior product packaged in a substandard pack.

Superior packaging would not ensure repeat sales though.

Packaging is an effective tool to make the product

distinguishable in the clutter.

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Packaging, the fifth and final stage of the brewing

process, prepares the beer for distribution and consumption.

During packaging, beer is put into the vessel from which it

will be served: a keg, cask, can or bottle. Beer is carbonatedin its package, either by forcing carbon dioxide into the beer

or by "natural carbonation".

Most products have multiple levels of packaging.

For example, Tiger Beer is packed in a glass bottle (primary

package). These individual bottles are then packed in

cartoon case (secondary package). Each of these packages

serve a different purpose.

Tiger Bottle Shield Tiger Label Design

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Primary Pack – 330 ml Pint Bottle Primary Pack – 650 ml Quart Bottle

Secondary Pack - 4 X 330 ml Bottle PackImported (etch-out)

Secondary Pack - 6 X 330 ml Bottle PackImported (etch-out)

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Beer Advertising

Advertising of beer is a topic that has frequently

attracted the attention of industrial organization economists.

For beer advertising several interrelated issues should be

analyzed, including:

1. The importance of advertising and product

differentiation for structural change in the brewing

industry

2. The manner and extent to which brewers canstrategically alter market shares using advertising

3. The social costs of alcohol advertising and

marketing.

Analyses of both issues include attempts to

determine the net welfare effects of beer advertising. On the

third issue, economists have analyzed advertising’s possible

influence on alcohol consumption and underage drinking,

and as a contributor to social costs such as drunken driving

fatalities. Several regulatory concerns are related to this

issue, including use of advertising bans; advertising

placements that might target underage youth; legal rights of

states under the three-tier system of alcohol distribution; and

other advertising or marketing restrictions that affect

competition in the industry (e.g., price advertising bans,

price-posting and price affirmation laws)

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Surrogate Advertising in liquor industry

The rule says “Advertisements which lead to sale,

consumption and promotion of liquor should not be

allowed.” So, in Surrogate Marketing, a product which is

different from the main product is advertised, and has the

same brand name as the main product. The product is called

as “surrogate” and advertising through this channel is called

“Surrogate Advertising”. It may include CDs, water,

clothing, Apple juice, fashion accessories, sports goods or

even events sponsoring!

Surrogate advertising has been around ever since

someone decided that certain things were probably not good

in the interests of the community at large. The wisdom of

the Government extends only to banning the advertising of

tobacco or liquor. Not to the manufacture or marketing of

these supposedly deadly substances. It is legal to

manufacture liquor and cigarettes or beedis. It is legal to sell

cigarettes at every roadside stall, even to unsuspecting

children. But it is illegal to advertise it. And that is precisely

why you have to live with surrogate advertising.

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Surrogate for Tiger Beer - Tiger Translate

Tiger Translate is about art, music and

encouragement, the essence of it lies in the fact that it’s an

experience. It is about walking through spaces and feeling

the vibes around.

So with the launch of the very first Tiger Translate

event in India, it is important to introduce people to this

unique Tiger Translate experience again and again again

in different regions of India

Why Tiger Translate in India

Given the fact internationally Tiger Translate was

conceived as a platform for Tiger Beer to interact with the

youth through art and music, post the launch of Tiger Beer

in India it became a natural progression to launch Tiger

Translate in India and expose the Indian youth to this unique

Tiger Translate experience.

While giving this experience, establish Tiger Beer as

the preferred beer with the youth and provides a stage that

brings the best of Asian creativity to the world and the best

of world to Asia.

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On May 24th 2008, Tiger Translate made its Indian

debut at Yashab near Red light in Kala Ghoda, Mumbai. In a

first of its kind event on the Indian scene where creative

talents from across many art forms find home under a singleroof, From live paint artists to musicians, from

photographers to audio-visual artists will come together to

celebrate Asian and in particular Indian creativity on a never

before scale

Tiger Translate launched in India on 24th May 2008

The event was launched through a glittering event in

Red Light and Yashaab. Guest lists comprising of the known

names form the various art faculty were present to pledge

their support to the Tiger Translate platform.

The launch for Tiger Translate was done by having

an interacting session with the media with the artists who

had come participate and perform at the launch of Tiger

Translate. Around 657 guests/artists and numerous media

turned out for this unique Tiger Translate experience

continued till very late in the night.

More info and interaction continues through the

various substances at different places in Mumbai featuring

different Art forms each of these events form a platform for

Tiger Beer to interact with it’s audience/TG. Finalists from

Mumbai are eligible to be showcased in the translate Global

even taking place in London

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Events under tiger translate

Graffiti Art

Photography

World Music

Visual Animation

Judges on the panel

Brinda chudasama miller

Tino Francorsi

Munir Kabani

Pravina & jamal macklia

Competitors of Tiger Beer in Mumbai

• Carlsberg

• Budweiser

• Kingfisher Mild

• Foster

Carlsberg

The Carlsberg Group is a large brewing company

founded in 1847 by J. C. Jacobsen after the name of his son

Carl (Carl Jacobsen). The headquarters are in Copenhagen,

Denmark. The company's main brand is Carlsberg Beer, but

it also brews Tuborg as well as local beers. After merging

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with the brewery assets of Norwegian conglomerate Orkla

ASA in January 2001, Carlsberg became the 5th largest

brewery group in the world, employing around 31,000

people.

Carlsberg's tagline "Probably the best beer in the

world" was created in 1973 by Saatchi and Saatchi for the

UK market. It began to appear in company corporate ads

around the world from the 1980s onwards.

Carlsberg operates in India through South Asia

Breweries Pvt Ltd, which manages the company''s

businesses in the Asian region comprising India, Sri Lanka

and Thailand.

South Asia Breweries Pvt. Ltd.

South Asia Breweries Pvt. Ltd., Plot 52, Sector 32,

Gurgaon , India is Foreign direct investment company

formed to brew, market Carlsberg brand beer in India.

Carlsberg beer from South Asia Breweries is launched at

various states in India, including Delhi / NCR, Maharashtra,

Punjab, W Bengal, U.P., Goa with three operational

breweries one in Rajasthan and one at Maharashtra and one

at Himachal Pradesh. South Asia Breweries Pvt. Ltd.

currently employ over 200 professionals and demonstrates

strong market presence in share of premium beer sector in

India. Carlsberg launched in Mumbai on 14th May 2008.

Budweiser

Budweiser (Anheuser-Busch), from

Anheuser-Busch in the United States. Marketed as

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"Budweiser" in United States and Canada, and marketed as

"Bud" or "Anheuser-Busch B" in Europe.

Budweiser was introduced in 1876 when company

founder Adolphus Busch set out to create the United States’

first truly national beer brand – brewed to be universally

popular and transcend regional tastes. Each batch of

Budweiser follows the same family recipe used by five

generations of Busch family brewmasters. Samples of

Budweiser are flown into St. Louis everyday from each of

A-B’s 12 regional breweries. There, in a special tasting

room, the beer is sampled and judged by our brewmasters to

ensure its quality and consistency.

Anheuser-Busch International and Crown Beers have

signed a 50:50 joint venture agreement to brew market and

distribute The King of Beers and other brands in India.

Crown Beers India Ltd. includes a new 500,000-hectoliter

brewery in the southern city of Hyderabad. Crown Beers

India Ltd. will collaborate on all local management,

marketing and sales decisions, according to a press release

from the St Louis-based beer major.

``The Hyderabad brewery was designed to uphold

Anheuser-Busch's high standard of quality for brewing

Budweiser,'' said Mr Srikanth M. Reddy, Joint Managing

Director of Crown Breweries Ltd.

An Anheuser-Busch brewmaster will oversee local

production of Budweiser at the brewery, to assure the same

crisp, distinctive taste enjoyed by consumers around the

world. Budweiser is an American lager brewed since 1876

using a blend of US and European hops, and a combination

of barley malts and rice, the release added.

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Crown Beers is planning massive below-the-line

activities to make its presence felt in the market.

Kingfisher Mild

The beginnings of what is today The UB Group

are rooted in the flagship company, United Breweries

Limited, (UBL) also referred to as the Beer Division of

the UB Group. Led by Mr. Kalyan Ganguly, President

& Managing Director, it has around 48% market share

in the country.

Millennium Alcobev Pvt. Ltd., (MABL), is the Joint

Venture Company in which UB along with its subsidiary

and Scottish & Newcastle of the UK have equal stake of

50%.

United Breweries Limited, the flagship company of the UB Group, has an association with the brewing dating

back over five decades, starting with 5 breweries in South

India in 1915. From bullock cart-loaded barrels or

'hogheads' of frothing ale, the Beer business has gone on to

become the undisputed 'king' in the Indian beer market.

Here, innovative, creative and aggressive marketing

is complemented by a strong distribution network. A

management focused on building brand equity on one hand

and exploiting it to the hilt on the other. UBL today boasts

an impressive spread of own and contract manufacturing

facilities throughout the Country.

Kingfisher has achieved international recognition

consistently, and has won many awards in International Beer

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Festivals. Kingfisher Premium Lager beer is currently

available in 52 countries outside India and leads the way

amongst Indian beers in the International market. It has been

ranked amongst the top 10 fastest growing brands in theUK.

In addition, UBL has also entered into mutli-faceted

strategic alliance with Scottish & NewCastle Plc (S&N), an

international brewery major, with $6 billion in revenue and a

market capitalization of $5.4 billion.

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Fosters

Foster's Lager is an internationally distributed

Australian brand of filtered beer based in Melbourne,

Australia and listed on the Australian Stock Exchange, It is

also brewed under licence in many countries, including the

USA, Canada and the People's Republic of China. The

European rights to the beer are owned by Scottish &

Newcastle, who brew and distribute Foster's in most

European countries including; the UK, Greece, France,

Belgium, Portugal, Finland, Germany, Spain, Sweden,

Ukraine and the Republic of Ireland. In the U.S and India,

rights to the brand are owned by SABMiller. SABMiller

acquired Foster's India on 04 August 2006.

SABMiller

SABMiller plc is one of the world’s largest brewers with

brewing interests or distribution agreements in over 60

countries across five continents. The group’s brands include

premium international beers such as Miller Genuine Draft,

Peroni Nastro Azzurro and Pilsner Urquell, as well as an

exceptional range of market leading local brands. Outside

the USA, SABMiller plc is also one of the largest bottlers of

Coca-Cola products in the world.

In the year ended 31 March 2006, the group reported

US$2,626 million adjusted pre-tax profit and a turnover of

US$15,307 million. SABMiller plc is listed on the London

and Johannesburg stock exchanges.

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Health effects

The moderate consumption of alcohol, including

beer, is associated with a decreased risk of cardiac disease,

stroke and cognitive decline.

Brewer's yeast is known to be a rich source of

nutrients; therefore, as expected, beer can contain significant

amounts of nutrients, including magnesium, selenium,

potassium, phosphorus, biotin, and B vitamins. In fact, beer

is sometimes referred to as "liquid bread". Some sources

maintain that filtered beer loses much of its nutrition.

A 2005 Japanese study found that low alcohol beer

may possess strong anti-cancer properties. Another study

found nonalcoholic beer to mirror the cardiovascular

benefits associated with moderate consumption of alcoholic

beverages. However, much research suggests that the

primary health benefit from alcoholic beverages comes from

the alcohol they contain.

It is considered that overeating and lack of muscle

tone is the main cause of a beer belly, rather than beer

consumption. A recent study, however, found a link between

binge drinking and a beer belly. But with most

overconsumption it is more a problem of improper exercise

and overconsumption of carbohydrates than the product

itself.

There is conclusive evidence that heavy and

prolonged consumption of alcohol leads to liver disease

including cirrhosis and malignancy. Heavy alcohol

consumption has also been linked to pancreatitis and gout.

Several diet books quote beer as having the same

glycemic index as maltose, a very high (and therefore

92



undesirable) 110. Critics rejoin that beer consists mostly of

water, hop oils and only trace amounts of sugars, including

maltose.

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Community & Environment

A Responsible Beer Company

As a responsible beer company, APB believes in

contributing to the communities in which its breweries

operate. While the Asia Pacific Breweries Foundation has

been fulfilling APB's philanthropic commitment to society,

APB's breweries have also demonstrated their dedication to

the society in which they are based. The breweries have

each in their own ways, supported causes in education,

community welfare and the advocacy of Responsible

Alcohol Consumption.

The commitment of APB to environmental

protection and worker safety extends throughout the

organization. Apart from seeking to continually improve its

environmental performance by operating more efficiently

and reducing waste, APB also takes the responsibility of

providing a safe workplace very seriously. Our

Environment and Safety Report provides an overview of

our activities, including how our performances measure up

to the targets set.

Asia Pacific Breweries Foundation

Instituted in June 1994, the Asia Pacific Breweries

Foundation (APB Foundation) has been fulfilling APB's

philanthropic commitment to society. Its philanthropic intent

spans three areas namely Creativity Development, Human

Excellence and Humanitarian Causes.

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Since its inception, the Foundation has provided

grants and other forms of support to over 150 initiatives,

benefiting disadvantaged homes and charitable

organizations, medical research bodies, theatre and musicgroups and scholarships programs amongst others.

The APB Foundation Board of Trustees, assisted by

its Advisory Committee, envision the Foundation to play a

constructive and developmental role in the community, and

working with partners who share common altruistic goals to

better serve societal needs both in Singapore and the Asia

Pacific region.

Responsible Alcohol Consumption

As responsible corporate citizens, APB and its

breweries advocate responsible alcohol consumption and are

pro-active in company stance against alcohol abuse, in

particular underage drinking and drink driving.

Mindful of social responsibilities, APB has alwaysensured responsible marketing and promotion of our beers

and support responsible and sensible drinking campaigns

which promote public awareness and educate consumers on

responsible and moderate drinking.

Amongst the many initiatives APB has participated

in are Get Your Sexy Back , a campaign that promoted

drinking in moderation amongst youths in Singapore; theKnow When campaign held in collaboration with the

National Traffic Safety Committee of Vietnam to educate

the public on drinking responsibly; the annual Responsible

Drinking campaign by the Singapore Traffic Police;

Responsible and Ethical Alcohol Consumption in Thailand;

and the Social Alcohol Model program in Papua New

Guinea.

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Every bottle label of Tiger bottle quotes “Enjoy

Tiger Responsibly” this shows commitment of company

towards responsible alcohol consumption.

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SWOT Analysis of APBI

Strength

• Production capacity

• Premium Quality Product

• Experience Management team

Weakness

• Low Advertising & Promotion Spends

• Less Manpower

• Products not available in Cans

• Low Market Share

• Inefficient Distributors

• Less Market Visibility

Opportunities• Regional Expansions

• Production Volumes

• Higher Profits

• Increased Market share

Threats

• Competitors High Spends

• International Players

• Government Laws

• Taxes & Tariffs

97



98



Why Beer better than Milk

There is more protein in beer than in milk. What's

more, beer has fewer calories than apple juice, milk or cola

and contains neither fat nor cholesterol. These claims have

been made by the All India Brewer's Association.

The apex body representing 42 beer manufacturers,

has urged the food processing ministry to delink beer from

the status of liquor and whisky, so that it can be advertised

and marketed like any other product. They have argued that

liquor has an alcoholic content of 42.8% while beer has onlyup to 7%.

Beer is battling to get the status of milk. The all

India Brewer's Association (AIBA) have argued in a

memorandum to the government that a glass of beer

contains more protein than does the same quantity of milk.

Not just that. They have said that the calorie content in beer

is lesser than that of a bottle of apple juice, milk or any cola.So do not club beer with hard liquor in computing tax,

argues the industry.

"It has been given the status of a fast moving

consumer good (FMCG) that can be traded over the counter

at any departmental store", says the Vice-President and

President of Shaw Wallace. "Beer distribution has to be

made open as in Singapore."

The industry's representation for removing beer

restrictions are straight and simple: Beer is only an agri-

food. Arguing that it has neither fat nor cholesterol, the beer

manufacturers' body has told the government that an average

bottle of beer gives four vital minerals and five important

constituents of vitamin B and proteins. Raw material for

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beer is malt, the same as for health drinks Maltova and

Horlicks.

In their representation titled 'Indian Beer Industry -

Needs Policy Support'. AIBA has pitched beer as a "mild

and healthy beverage", conforming to the tenets of

"responsible" drinking.

"Beer has to be taxed on the basis of alcoholic

strength keeping levels on alcohol content as bench mark",

say many of the top manufacturer's. Duties and tax account

for 40% of the beer cost in India while it is of the order of

20% in US, France and Germany. They have said that the

cost of one litre of beer taken as percentage of daily income

in the high selling states of Andhra, Karnataka and

Maharashtra is close to 28%.

The comparable figures for US, France and Germany

are less than 3%. And if India attains this level of even 15%

then the beer should cost around Rs. 30 per litre

(Rs. 20 per bottle).

"It is a highly capital intensive business. It is not

feasible for the brewers to sustain the current market

pressure", says the top shots. "Brewing companies are

increasingly being declared sick", they add.

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Top 10 Reasons Beer is Good for your

Health

Everyone is looking for a reason to drink beer.

Right? It turns out that a lot of people are. So here are 10

great reasons to drink more beer. Not only that, but they're

all true. Beer really is good for your health, so drink up!

Beer Reduces Stress

Alcohol in general has been shown to reduce stress.This one is obvious, and may be the best reason beer is good

for your health.

Beer is Good for the Heart

A study was conducted from 1982 - 1996 on the

elderly. It was found that those who drank at least 1.5 per

day had a 20-50 percent less chance of having heart failure.

Beer Improves Blood Circulation

Beer increases your "good" cholesterol, or HDL (high-

density lipoprotein) cholesterol. Its basically a kind of blood

fat, so it reduces blood's tendency to clot.

Beer is Chock Full o' Fiber

The fiber comes from the cell walls of the malted

barley. A liter of beer can have as much as 60% of your

daily recommended fiber. The extra fiber will keep you

regular and can also lower the risk of heart disease.

Beer as a Multi-vitamin

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Beer is a significant source of magnesium, selenium,

potassium, phosphorus, biotin, folate, vitamin B6 and

vitamin B12

Beer can Prevent Strokes

A study published in Stroke magazine in 2001 showed

that alcohol drinkers have fewer strokes. Because it thins the

blood, it increases the circulation in the brain, thereby

protecting from silent strokes which are cause by tiny blood

clots.

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Beer keeps your Brain Young

A large study, published in the December 2001 issue of

Alcoholism: Clinical & Experimental Research, was

conducted on elderly italian men and women. It showed thatmoderate drinkers had a 40% lower risk of mental

impairment.

Beer is Good for your Liver

Alcohol expands the small blood vessels in the liver.

This speeds up metabolism so it can help clean all the toxins

out of the liver. This is from Beer Net Publication, April2001 Biological Institute.

Beer Cures Insomnia

Lactoflavin and nicotinic acid, both present in beer, can

promote sleep. Also hops are a natural sedative.

Beer Fends off Gallstones

According to Professor Oliver James at the University

of Newcastle, beer protects against gallstones and kidney

stones.

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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.

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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

106



& discernment needs which he would like to

communicate through his brand choices

107



Questionnaire

1. List the company's product line(s) and the amountand percentage of total sales represented by each.

2. What is Company’s USP?

3. How is the company's product or service distributedto its primary market?

4. List the company's major competitors.

5. What is the company's market share? Attach marketstudy or survey, if available.

6. Describe the nature of the regulatory environment inwhich the company operates.

7. List the company's distributors for Mumbai location.

8. What are the factors which should be kept in mindwhile marketing beer in India?

Offering

9. What need is your offering designed to fill?

10. What improvements can we make to our offering to better meet customer needs?

Messages

11. What does each of our identified target audiencesknow and believe about us today?

12. What is the single most important message that we

must communicate to ALL of our target audiences?

13. What kind of personality do we want to portray inour communications? What tone? What flavor?

Target Audience

14. How can the market be segmented into logicalcustomer groupings?

15. What market segments are we targeting (list segmentname and characteristics)?

108



16. What segments are we not targeting?

17. What is our customer’s primary reason for buying or wanting to use our product or service?

109



Marketing Strategy - Sales & Pricing

18. 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

19. 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

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

21. What is our current pricing structure, including

discounts, product options, rebates, and so on?

22. Which of our competitors is considered the priceleader? What does the price leader charge for itsoffering?

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

24. What is the perceived value of our offering ascompared to its price?

Competition

25. Which companies pose the greatest threat, and howdo they differentiate themselves?

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

27. Which competitors have the largest market sharewithin our target market segments?

110



28. Which competitors have the greatest visibility withour target audience?

29. How will we differentiate ourselves to best combatcompetition?

111



Bibliography & Webliography

• Datamonitor, Beer in India, Industry profile,

Publication December 2006

• The Business Line (Internet Edition)

• Maharashtra state excise basic statistics 2005

Compiled by commissionerate of state excise.

• International Dictionary of Marketing - Daniel Yadin

• Marketing Management Millennium Edition by

Philip Kotler

1. http://en.wikipedia.org/wiki/Portal:Beer

2. http://www.indiadiets.com/Health_flash/News/Beer_

better_than_milk.htm

3. www.tigerbeer.com

4. www.apb.com.sg

5. http://www.drinks-business-review.com/

6. www.ratebeer.com

7 d i ki b

http://en.wikipedia.org/wiki/Portal:Beer

http://www.tigerbeer.com/

http://www.apb.com.sg/

http://www.drinks-business-review.com/

http://www.ratebeer.com/

http://www.drinkingbeer.net/

http://en.wikipedia.org/wiki/Portal:Beer

http://www.tigerbeer.com/

http://www.apb.com.sg/

http://www.drinks-business-review.com/

http://www.ratebeer.com/

http://www.drinkingbeer.net/

18045229 marketing of beer in mumbai

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