UB GROUP - UNITED BREWERIES LIMITED UB GROUP - UNITED BREWERIES LIMITED (Kingfisher beer)(Kingfisher beer)

Mayur PatelUmesh GajraAjay Rathi

ContentContent

• Introduction

• Industry and markets

• Organization and products

• Promotional strategies

• Challenges

• Learning from the project

Industry OverviewIndustry Overview

• Globally, over 133 billion litres of beer is sold each year.

• In comparison, the Indian beer Industry contributes a meagre 2% of the global sales.

Market share in IndiaMarket share in India

FY 08-09 Q1 FY 08-09 Q2 FY 08-09 Q3Industry growth 3% 9% 14%

Firm growth 48% 49% 50%

BCG Model of beer industryBCG Model of beer industry

UB GroupUB Group

• The UB GROUP was founded by Scottish gentleman Thomas Leishman in 1915.

• The group started manufacturing beer from south Indian based British breweries and elected its first Indian Director, Mr. Vittal Mallya in 1947.

• Kingfisher the most visible and modest brand made its entry in 1960.

• Later on Mr. Vijay Mallya became the chairman of UB GROUP.

Mission & Quality StatementMission & Quality Statement

• We are focused on assuming leadership in all our target markets.

• We seek to be the most preferred employer wherever we operate.

• We recognize that our org. is built around people who are most valuable asset.

• We will always be the partner of choice for customers, suppliers and other creators of innovative concepts.

• We will operate as decentralized org. and allow each business within our stated values.

• We will be major contributor to our national economy and take full advantage of our strong resource base.

Share holding pattern - Kingfisher BeerShare holding pattern - Kingfisher Beer

Capacity and Sales TurnoverCapacity and Sales Turnover

Capacity: 60,25,000 hecto litre/annum.

Produce: 31,33,684 hecto litre/annum.

Sales revenue increased: Rs.452 million to Rs.17,475 million (from 2004-2009).

Net profit grew from Rs.2.77 crore to Rs.62.47 crore (from 2004-2009).

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

1,747.50 1,370.47 1,046.24 679.72 515.76

Last Five year’s performance (Rupees In million)

Major Products of Kingfisher BeerMajor Products of Kingfisher Beer

Kingfisher Premium Lager beer. Pack size: 650ml; Load ability: 24*650 ml

Kingfisher Strong beer. Pack size: 650 ml; Load ability: 24*650 ml

Kingfisher Taj mahal beer. Pack size: 330ml; Load ability: 12*330 ml

Maharaja Premium Pilsner beer. Pack size: 330ml; Load ability: 12*330 ml

Kingfisher Horse Royal Lager beer. Pack size: 650ml; Load ability: 12*650ml.

Kalyani Black Label Strong Premium beer. Pack size: 650ml; Load ability: 12*650ml.

SWOT analysis of Kingfisher BeerSWOT analysis of Kingfisher Beer

Strengths Weaknesses

Strong brand image.Global presenceAggressive advertising.Market leader.Quality & innovation.

Expensive brand.Maintenance.Relatively static market.Long development.

Demographic changes.Changing societal behavior.Attitude.Consumer brand.

New competitors.Economic downturn.Growth in substitutes.Increasing buyer power.

Opportunities Threats

Porter’s 5 Force model – Kingfisher Beer Porter’s 5 Force model – Kingfisher Beer

Industry competitors -Strong image, brand loyalty,

Innovation & R&D.

Barriers to entry -High set up cost,Customer loyalty.

Supplier - GlobalEconomies of scale keep supplier price

Low.

Buyers -Retailers power

increasing.

Substitutes -Other emerging brands.

Promotional StrategiesPromotional Strategies

Online facility.

IPL as a good time partner.

Force India formula one team.

Sports bar at New Delhi & Bangalore airport.

Efficient & friendly services.

Social awareness programs.

Strengthening its core business.

ChallengesChallenges

Taxes & Levies

Government control

Advertising & licensing

Learning from the ProjectLearning from the Project

Question for the audience:

Suppose you and your friend are stuck on a windy island. There are few sticks, ropes and tin sheets around you.

Then what would you do?

BibliographyBibliography

*Thank You*

Annual Report 08-09 of UB GroupPress releasesFinancial Express

Websites:• www.theubgroup.com• www.wikipedia.com