Consumer Behaviour On Kingfisher Beer

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Consumer Behaviour on Kingfisher Beer

INTRODUCTION OF BEER

Beer making dates back to ancient Egyptian times. There are five main types of beer: lager,

stout, ale, porter and bock. The process of making all five is primarily the same. The

difference in color comes from the amount of roasting that takes place. Beer is an alcoholic

beverage made by brewing a fermenting malted barley and sometimes other cereals with hops

added to flavor and stabilize it.

Barley is germinated and then is called malt. Malt is dried in a kin, the duration of which

determines the darkness and sweetness of the Beer. The longer the roasting the darker and

sweeter the beer. The roasting malt is mixed with other cereals and specific water then

cooked. After it is cooked, a liquid called 'wort' from the pre-alcoholic porridge is drained off.

The liquid is mixed with hops which adds the flavor. After a few more hours of cooking the

hops are strained off, the wort is cooled and yeast is added which causes fermentation. Yeast

converts wort to beer.

Beer is an alcoholic beverage produce by the fermentation of malted barely. Although the
preparation of fermented beverages has been practiced in India since early times, the art of

brewing of Europeans.There were 26 beer breweries in across India when the government

called the game over in the early 70s by freezing the industries production capacity. Nobody

was permitted to either expand existing units or build new ones. In swift reaction, the cash

rich Banglore based u. b group began buying up all the breweries if it possible could bring its

tally up to 10. Many of these were small, sick units going cheap. Given the government new

anti-alcohol pasture. U.B was amongst the few willing act on the future of the beer business.

Rather than cost U.B.s actual consideration was that they were located in the north and east

markets it wanted to gain access to (beer being perishable product and transportation being a

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Consumer Behaviour on Kingfisher Beer

costly proposition, sales are usually combined to a radius to few hundred KM around the

brewery). Although the south and west accounted for an over whelning majority of sale.

U.B. was confident other part would grow, some U.B.s brewing capacity was on par with

that of its arch rival, muhan meakin.

HISTORY OF BEER

Beer is an old as the science of agronomy. As soon as man learned to fit them in to his diet,

bread and beer were two of the earliest utilization. Both baking and brewing followed similar

processes up to a certain point during early civilization. Processes show that in Mesopotamia

6000 years ago, beer was made with barley malt and allowed to ferment. Beer also was used

in ancient Egypt, Greece and Rome. Translation of uniform writings on a clay tablet found in

ancient ninevch describe Noahs alleged preparations for the food and indicate that beer was

among the provisions that were loaded on the ark.

Respite its antiquity and general use, beer attained little commercial standing until about the

10th c. until then brewing was largely followed as a domestic function like many as baking

and cooking. In the middle ages brewing like many other arts was concentrated in the hands

of churchmen. Almost every monastery had its beerhouse and some of the monks were as

famous for their beer as are traipses for their cheese and Benedictines for their liquors. Beer,

in that period also was closely identified with many religious and social festivals. Such as

church asses for raising church funds.During the era exploration of American continent beer

was deemed an essential in the provisioning of ships. Water stagnated quickly on a longtime.

While beer remained comparatively whole some and palatable. Moreover its diet properties

although unidentified in those days helped ward off many of the diet deficiency ills to which

passengers and crews on long voyages were subject. The dwindling supply of beer on the

may. Flower was a factor in the pilgrims decision to seek harbor ahead of schedule.

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ECONOMICS ASPECTS

Country 1965 1975 1985


U.S.A 89783 108024 157863
W. Germany 2619 57471 7962

7 8
Great Britain 33960 41282 5505

6
USSR 15740 27006 51131
Japan 3453 7093 3348

2
France 10665 1686 1901

9 7
Australia 8588 1065 1648

0 1
Canada 5605 11546 18117
Mexico 5615 8732 1650

9
Spain 1434 8389 1416

2
Poland 4406 6592 1095

2
Brazil 6077 5629 1477

5
Czechoslovaki 8939 16022 1906

a 6

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Consumer Behaviour on Kingfisher Beer

The output has been divided among approximately 100 breweries. The amount paid each

year in federal state and local taxes has been $9 per barrel. State taxes vary widely. The

brewing industry also has expenditures totaling well oversee and packing goods and for

transportation , advertising and promotion.

Although more beer is produced in U.S.A, than in any other country. The U.S.A. ranks well

below west Germany, Luxembourg and other leading consumer nation in per capital

consumption. In 1975 per capital consumption in the U.S.A. were about 31 gallons(1117

liters) annually. Patterns of consumption vary greatly within the U.S.A. and tend to be

prohibition remain in effect through local option laws.

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Consumer Behaviour on Kingfisher Beer

MANUFACTURING PROCESS OF BEER

Beer is manufactured usually form barley, hops, yeast and sugar. The barley corn consist

largely of starch, which will not ferment and so it must first be converted into sugar, which

ferments readily. This brought about by malting the barely. During the malting process the

barely is soaked and then kept in a warm atmosphere so that it begins to germinate. As the

barley germinate, it produces an enzyme called diastase which will convert the starch into

malt sugar. Which in turn are then converted to alcohol by the yeast enzymes during the

brewing. After malting the barely is milled and then washed together with hot water and

sugar. The resulting liquidate , known as wrote is pumped into large copper vessels where it

is boiled with hops and sugar. The hops act as a flavoring and as preservative. Next, the

spent hops are separated from the boiled wort, which is cooled and put into the fermenting

vessels. The yeast is now added, and fermentation begins. British beer begins fermentation at

a temperature of about 15.6 degree c (60) degree and fermentation takes form five to seven

days. These beers are top fermented, that is the type of used floats on the top of the liquid.

The beer after fermentation, is drawknife into setting tanks where any residual yeast is

removed and then stored for a time ( from a few days to a few weeks, depending on the type

of beer) at around o degree c (32 degree) to allow it mature before it ils rocked (filled) into

bottles or cans. Lager beers are bottom fermented, the yeast used setting at the bottom of the

vessels during fermentation, which begins at a temperature of from 6 degree c to 10 degree c

and takes about 8 days. Lager bears are matured for up to 3 months at 0 degree c before

rocking ( the same lager is the word for store). During the maturation period a second

fermentation takes which clears the beer and improves its flavor and strength.

The term ale originally applied to UN-hoped beers, but it is now widely used as a general

name for top fermented beer. The amount of hops used depends upon the type of beer being

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Consumer Behaviour on Kingfisher Beer

produced. A strong to p-times the amount of hops used in malting a light lager. Another

factor which varies according to the type of beer being produced in the malting process. For

example, the barely for a top fermented beer may be germinated for 11 days and then dried at

107 degree c for 3 or 4 days, but barley for lager may only be for 7 or 8 days and then dried

at a temperatures of bout 55 degree c. When dark beer such as brown ales and stouts are to

be made, The barley is also high roasted. The root lets sprout form the barely during

germination shrivel and drop off when it is dried, and they are usually collected and sold for

use in animal foods.

1. Trends

Since the realization of beer in U.S. in 1933 there has been a complete switch form dark to

light beers form drought to bottled and canned beer. Drought beer accounted for more than

2/3 of all beer sold in draught beer most of the increase in packaged beers has been in canned

beer.

2. Types of beer:

In the U.S. the name Beer is generally given to a bright, pale Golden, light boiled , crispy

fresh beverage that is drunks, chilled some where between 44 degree f and 48 degree f (6.6

degree c and 9 degree c ).

Bock beer

It is a special, full bodied brew, some what darker and sweeter than regular beer. It is brewed

in winter for use in the spring. Bock beer day, the day on which it is first sold is planned to

herald the arrival of spring. The bock beer season lasts about six weeks.

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Malt liquor

It is a special kind of beer that varies considerably among brands. Some malk liquors are

quite pale, others are rather dark. Some are quite happy , others are only mildly so, their

essential characteristics is a higher alcoholic content than in other beers.

Lager

It is generally understood to be a light bright and sparking beer, but today all malt beverages

in the U.S. are laggard.

Pilsner

It is a term after seen on beer labels around the world. The original and the pilner beer is the

pilsner urquell which has been brewed at platen in bohemia. Czechoslovakia, for some 800

years and has never been equaled.

Ale:

It is an aromatic, golden, fuller-bodied and bitter malt beverage with a slightly higher

alcoholic contents than beer , all ales top fermentation brews.

Stout

It is darker, fuller bodied ale yielding a rich, ceremony foam, strongly rousted most is used to

give a richer body. It is sweeter and less happy than regular ale.

Sake

A Japanese brew made form rice, is given a high alcoholic content by refermentation.

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Consumer Behaviour on Kingfisher Beer

United Breweries Group

United Breweries Group or UB Group, based in Bangalore, is a conglomerate of different

companies with a major focus on the brewery (beer) and alcoholic beverages industry.

The company markets beer under the Kingfisher brand and has also launched Kingfisher

Airlines, an airline service in India, with international flights operating recently. United

Breweries is India's largest producer of beer with a market share of around 48% by volume.

It is owned by Vijay Mallya who had been a member of the Indian Parliament.

United Breweries now has greater than a 40% share of the Indian brewing market with 79

distilleries and bottling units across the world. Recently UB financed a takeover of the spirits

business of the rival Shaw-Wallace company giving it a majority share of India's spirits

business. The group owns the Mendocino Brewing Company in the United States.

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Consumer Behaviour on Kingfisher Beer

History:-

The UB Group was founded by a Scotsman, Thomas Leishman in 1857. The Group took its

initial lessons in manufacturing beer from South Indian based British breweries. At the age of

29, Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he

replaced R G N Price as the chairman of the company. United Breweries made its initial

impact by manufacturing bulk beer for the British troops, which was transported in huge

barrels or "Hogsheads". Kingfisher, the Group's most visible and profitable brand, made a

modest entry in the sixties. During the 1950's and 60's, the company expanded greatly by

acquiring other breweries. First was the addition of McDowell as one of the Group

subsidiaries, a move which helped United Breweries to extend its portfolio to wines and

spirits business. Strategically, the Group moved into agro-based industries and medicines

when Mallya acquired Kissan Products and formed a long-term relationship with Hoechst AG

of Germany to create the Indian pharmaceutical company now known as Aventis Pharma, the

Indian subsidiary of the global Pharma major Sanofi-Aventis.

The Logo:-

The Pegasus, which is the symbol of the United Breweries, first found its place as the Group

logo in 1940. Then, the Helladic horse associated with beer and nectar in Greek mythology

carried a beer cask between the wings, ostensibly because beer formed the core operations of

the Group. Later, the beer cask was removed to represent the Groups multifaceted

operations. Now, it is just the Pegasus.

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Consumer Behaviour on Kingfisher Beer

Present History

Sales of the United Spirits Ltd. are expected to exceed 60 million cases during the fiscal year

2005-06 making the Group the third largest manufacturer of Spirits products in the world. In

addition, USL is one of only three in the world to own seven millionaire brands and at least

five brands rated by Drinks International, UK, to be amongst the ten fastest growing brands

in the world in their respective categories. The market share of the Spirits Division in India is

currently 60% and exports to the Middle East, Africa and Asian countries are growing

rapidly. The UB Groups Brewing Entity - called United Breweries Limited (UBL) - has also

assumed undisputed market leadership with a national market share in excess of 50%.

Through a process of aggressive acquisition and market penetration, The UB Group today

controls 60% of the total manufacturing capacity for Beer in India. The flagship brand,

Kingfisher is now sold in over 52 countries worldwide having received many accolades for

its quality. With plans to becoming a global player United Spirits Ltd. (USL), the flagship of

the UB group, purchased the Scottish distiller Whyte and Mackay in May 2007 for 595

million (Rs. 4,800 crore).This would bring the brands of W&M like The Dalmore, Isle of

Jura, Glayva, Fetter cairn, Vladivar Vodka, and Whyte & Mackay Scotch under its portfolio.

The UB group is also into manufacture of Fertilizers. The group company Mangalore

Chemicals and Fertilizers Limited (MCF) has factory at Panambur in Dakshina Kannada

district of Karnataka.

Kingfisher beer is an Indian beer brewed by United Breweries Group. With a market share

of over 36%, it is India's largest selling beer, with 1 out of every 3 bottles of beer sold in

India being a Kingfisher brand. It is currently available in 52 countries outside India.

Heineken Group, holds 37.5% equity shares in United Breweries Ltd.

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Consumer Behaviour on Kingfisher Beer

Slogan

Kingfisher Beer is sometimes promoted as The King of Good Times.

Types of kingfisher beer

Kingfisher comes in the following varieties

Kingfisher Premium

Kingfisher Strong: The brand was launched in 1999 to cater to the growing strong beer

segment in the country. Today, Kingfisher Strong is Indias largest selling beer brand. It is

available in 4 SKUs- 650ml & 330ml bottles and 500ml & 330 ml cans.

Kingfisher Strong Fresh: Kingfisher Strong Fresh is the first ever strong draught beer

available in the Indian market. It is packaged in a 500 ml cans.

Kingfisher Draught: It is packaged in a 500 ml cans.

Kingfisher Ultra: It was launched in Mumbai on 18th September, 2009. It is an entry in the

premium beer segment in the country to compete with international players like Carlsberg,

Heineken and Budweiser. Kingfisher ULTRA is available in Thane, Pune and Bangalore and

will be extended to other cities of the country soon. Currently, Kingfisher ULTRA is available

in two SKUs: 650ml and 330ml bottles.

Kingfisher Blue: The brands core target group is the young male population. Kingfisher

Blue tries to occupy an imagery of adventure sports. It contains fewer than 6% alcohol.

Kingfisher Blue is packaged in metallized blue colour labels and cans. It is available in 4

SKUs- 650ml & 330ml bottles and 500ml & 330 ml cans. The brand has been launched in

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Consumer Behaviour on Kingfisher Beer

key markets like Karnataka, Pondicherry, Maharashtra, Delhi, Rajasthan, Haryana, Kolkatta

and will soon be a national brand.

Kingfisher Red: It is marketed as Indias 1st ALL SEASON beer.

Kingfisher Bohemia: Unlike the above, Kingfisher Bohemia is a brand of wine. It is the

result of a partnership between Kingfisher and The Company of Wine People (COWP), a key

player in the South African wine industry, both locally and abroad. The wine is produced in

Cape Floral Kingdom, South Africa. Kingfisher Bohemia is available in three varieties - red,

white and ros. It is packaged in 750ml bottles and a case of wine contains 12 bottles.

Kingfisher Bohemia is available in Mumbai, Pune, Delhi, Bangalore, Goa, Chennai,

Hyderabad, Pondicherry, Kerala and Kolkatta.

The World's No.1 Selling Indian Beer!

Kingfisher is enjoyed in over 55 countries world wide. From the USA

in the West, to Japan in the East. And from Norway in the North to New Zealand way

down under!

Kingfisher Premium Lager is brewed using only the finest malted barley and hops.

And this makes it the thrilling international taste sensation that is loved by millions the

world over.

Kingfisher Light Lager shares the honours with Kingfisher Premium, while being low

in carbs and low in calories it still is a unique drinking experience that does credit to this

rich heritage.

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Consumer Behaviour on Kingfisher Beer

The Brand

A Heritage of Excellence!

The inspiration for the choice of the brand name was certainly influenced by the great

numbers of these beautiful and strikingly colored birds which abound in India where over 70

different varieties/species of kingfisher can be found - more than in any other country or

continent in the world. Kingfishers are particularly prevalent in Bangalore, the garden city of

India, which is also headquarters to The United Breweries Group, brand owners of Kingfisher

Premium Lager.

Kingfisher, the bird is known for its keen instinct, and perfect aim. It zeros on its target with

unfaltering focus. It is a very vibrantly coloured bird. All of its colours represent energy,

youthfulness, enthusiasm, freedom with a touch of formality and discipline. No wonder, that

this bird with an eye for right focus and an aim for succeeding in its attempt became the

mascot for The Kingfisher brand of Beer from the stables of the UB group.

Kingfisher's award winning flavour and consistent excellence of quality has made Kingfisher

one of the largest selling beer brands in the world today.

The new look designed by the UK based packaging specialists, Claessens, is representative of

the brand in full flight, in a supportive environment. It reflects the energy, youthfullness and

freedom that are characteristic of the brand's target consumer and reiterates its contemporary

positioning.

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Consumer Behaviour on Kingfisher Beer

Kingfisher stands for excitement, youth and camaraderie! "It's flying" and the mood is upbeat

both within the Company and among consumers !

Heritage

Celebrating over 150 Years of Brewing Excellence!

Kingfisher's heritage started with five small breweries in South India, the oldest of which,

Castle Breweries dated back to 1857. Then in 1915, Thomas Leishman, a Scotsman,

combined these breweries to form United Breweries Ltd.

The popularity of their beers soon spread and within a short time, bullock carts carrying huge

'hogsheads' of Kingfisher became a familiar sight in Madras, the Nilgiris and Bangalore, the

headquarters of United Breweries Ltd. Almost immediately, the brew from UB became a

favourite, especially with the British troops.

So began the history of Beer in India...

Kingfisher, the flagship brand of United Breweries and the best-selling Indian Lager

worldwide, is now available in over 55 countries and is exported from the UK to 19

Continental European Markets and Canada and from India to major markets in the Middle

East, South East Asia, the Far East and Australasia, and it is also served on board 10

international airlines.

Kingfisher was first imported to the UK and USA markets in the years 1982 and 1983

respectively in the traditional large 650ml bottles.

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Consumer Behaviour on Kingfisher Beer

SWOT ANALYSIS:

Strengths Weakness

Market Leader Long Developmental Cycle

Strong Brand Image Relative Static Market

Global Presence Expensive Brand

Aggressive Advertising

Quality & Innovation

Opportunity Threats

Demographic Changes New Competitors

Changes Societal Cloning of Successful Brands

Attitudes Increasing Buyer Power

Consumer Brand Growth in Substitutes

Preference Economic Downturn

Demand for High Quality

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Consumer Behaviour on Kingfisher Beer

Target markets

Kingfisher has two different products for different market segments.

Kingfisher Mild (Alcohol<4%) Kingfisher Mild (Alcohol<4%)

Youth who drink for fun

Those who want to light beer to something

First-time drinkers who drink for experience stronger

Urban women who prefer to drink light Regular drinkers who prefer stronger flavour

Product

No. 1 selling product in its segment.

Good quality raw material is used to maintain the quality standards.

Consistency of product quality is high.

Always tastes fresh due to good quality and well developed distribution network.

Hangover due to heavy consumption is very mild.

Place

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Consumer Behaviour on Kingfisher Beer

It is available throughout India, and is dominant particularly in South and West India.

UB has 16 company-owned breweries apart from nine contract breweries in 20

different locations across the country.

Kingfisher also has a presence in 60 countries.

Kingfisher also has an online marketing system. Any consumer can go to

www.Kingfishernetshop.com and get their beer- a mini mum of six bottles home

delivered. This move has been a big draw with info tech professionals and district

women drinkers.

It also has some sixteen hundred shops apart from pubs and bars. Better retailing

outlets are also to be opened under the Kingfisher Brand.

Kingfisher also has tie-ups with large department stores like Food world for retailing

its Beers.

Kingfisher also has association with number of Very Classy, Up-market & Stylish bars

& lounges which goes hand in hand with its brand image.

Price

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Consumer Behaviour on Kingfisher Beer

In both mild and strong beer segment Kingfisher uses competitive pricing strategy. i.e.

650ml at Rs 85/- and 330ml Rs 45/-

Promotion

Kingfisher tagline King of good times is one of the most popular and most

successful tagline in India.

Since advertising of liquor is banned in India, Kingfisher uses surrogate advertising

methods like using mineral water and sodas.

Aggressive advertising at Outlets & Pubs.

Recently it also started merchandizing sports goods and trendy clothing and

accessories under Kingfisher brand name.

Each year Kingfisher brings out new calendars featuring top models in swimwear.

Kingfisher also promotes itself by sponsoring events like fashion shows,

sportspersons like Narain Karthikeyan, East Bengal soccer team. UB promoter also

acquired a Formula- One team (Force India).

Kingfisher also deals in sports merchandising starting with an ad featuring Sourav

Ganguly and Ajay Jadeja in 1997.

With the launch of Kingfisher airlines combined promotion is possible which helps

the brand promotion a lot. Kingfisher also ventured into other businesses with same

brand name making the brand more visible and publicity easier.

Kingfisher recently tied up with NDTV for their new lifestyle channel NDTV Good

Times for five years And finally the Sultan himself, Dr. Vijay Mallya, the Big Daddy

of all brands, the flamboyant Czar of the liquor industry who is the youth icon of a

million hearts. His sole presence outweighs all other competitors taken together.

Brand repositioning of Indian brand in presence of international brand:

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Consumer Behaviour on Kingfisher Beer

The term positioning is widely used within the marketing and advertising communities

today. Positioning is often used nowadays as a broad synonym for marketing strategy.

Positioning should be thought of as an element of strategy, a component of strategy, not as the

strategy itself. The term positioning is, and should be, intimately connected to the concept

of target market. That is, a brands positioning defines the target audience. The correct

positioning of a brand is basic and fundamental to its success; an incorrect or suboptimal

positioning can doom a brand to underperformance or failure. Kingfisher, since its origin

proved to be the marketing savvy brand. Even though it was the largest selling beer brand,

but when Fosters entered the Indian market, Kingfisher sniffed possible competition and

invested heavily in brand visibility and positioning. During 2003-04 Kingfisher again

repositioned itself by changing the logo.

PREVIOUS LOGO CURRENT LOGO

Instead of the sitting kingfisher bird, the picture of a flying kingfisher was used during

creation of new logo because the company wanted to promote itself as an aspirational brand

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Consumer Behaviour on Kingfisher Beer

which always wants to go high. This change was made mainly to maintain the distinctive

positioning and to create a stronger emotional bond with the aspiring Indian youth. This

repositioning was so successful that even today Kingfisher uses this logo. After the entry of

international brand Fosters, Kingfisher repositioned itself into a lifestyle brand adopting

jingles like Oola la le lo and tagline King of good times. Kingfisher tried to position itself

as a brand for the successful and professional individuals who are always ready to take a

break, have a party or just chill out. This positioning was promoted using Indian cricketers

such as Ajay Jadeja and Sourav Ganguly, West Indies cricket team (At that time Kingfisher

was the official sponsor of WI cricket team) and various other means. The notable thing

during this repositioning process is that during this process Kingfisher kept the original

message of the brand intact while adopting strategies (including advertising, logo designing,

etc.) to communicate better with the consumers and to create a stronger emotional bond with

them. The strategies of Kingfisher paid off well and as a result Kingfisher maintained the

leadership position and added more dimensions into the brand making it stronger than before.

Brand Extension:

Kingfisher is one of the most recognized brand in India and SAB Millers fosters has also

positioned itself as a unique brand so extension of both brands is possible without much

hassle. Kingfisher:

Kingfisher is widely known among large number of consumers and its brand presence

increased after diversification into airlines business. Kingfisher brand can be extended in

following ways-

Kingfishers overseas promotion drives -

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Consumer Behaviour on Kingfisher Beer

1. Abu-Dhabi to Goa: A promotion at all the six stores of Spinneys, Abu Dhabi took place

where customers were entitled to a raffle coupon to win an all expense paid holiday to Goa on

purchase of any case of Kingfisher or Kingfisher Strong. Two lucky winners were to fly to

Goa, for an exclusive Taj resort, sightseeing and excursion including visit to the production

unit and lots of complimentary Kingfisher to ensure that happy times stay with our valued

customers forever.

2. Tie up with Sony: Kingfisher had an exclusive deal with Sony consumer electronics raffle

and instant scratch and win promotion wherein the customers on purchase of any case of

Kingfisher Lager or Kingfisher Strong stood a chance to win by way of instant scratch and

win rewards free Kingfisher Lager / Kingfisher Strong goodies like T-shirts, Caps, Desktop

Calendars, free bottles.

3. Alliance with Bollywood: Keeping in mind the popularity of Hindi movies outside India

Kingfisher was a part of the souvenir programme for the Shah Rukh Khan show in Hong

Kong on 1 December 2004 as a part of Diwali celebrations in Hong Kong. With other high

profile stars like Preity Zinta, Saif Ali Khan, Zaid Khan, etc for the event.

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Consumer Behaviour on Kingfisher Beer

4. Test market in South Africa : It received very positive test market results for Kingfisher

Premium Lager Beer and Kingfisher Strong Premium Beer in 330 ml cans for the African

markets.

5. Launching new products in the market: A trial for 2 cases of Taj Mahal 330 ml bottles in

June 2004 for Australia generated a lot of interest and enthusiasm for the country of the origin

brand, which spoke of eternal love and passion. With successive orders for the past 3 months,

Taj Mahal Premium Lager Beer is now available in 6 packs: the most preferred pack size

down under. 6. New merchandizing schemes started: Keeping in tune with the times and

constantly updating our merchandise portfolio, Kingfisher offered its customers practical and

useful merchandise, which are of very high quality and designed to meet the high

expectations, which include premium travel bags, sling bags, waist pouches and foldable

shopping bags, windcheaters and luggage tags, premium embroidered aprons and Polo T-

Shirts.

3.9 Surrogate Marketing in India

Surrogate Marketing is a requirement of all alcohol/cigarette brands in countries where it is

prohibited by law to directly advertise addictive products such as alcoholic beverages and

cigarettes in mass media. It is a strategy which refers to the indirect way in which companies

advertise their products, and use minor loopholes in the law to still achieve the basic

marketing objectives of building brands, creating customer associations and promoting

brands. They do this by associating the same brand names to other acceptable products,

ranging from sodas to music CDs !!

India too falls under the category of countries who have prohibited advertising of alcoholic

beverages, but still companies and brands make their own efforts to do the same

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UB Group

United Breweries is the group which has really exploded the restrictions, expanding surrogate

methods of branding in all directions imaginable. Lets list down where all they are present:

a) Kingfisher

Kingfisher has the most diverse set of surrogates floating around: a) Kingfisher Airlines (even

though it is a full fledged business with a monetary interest); b) Kingfisher Calender; c)

Kingfisher bird as a part of the logo of NDTV Good Times (co-branding) d) shows on

making of the calendar on NDTV Good Times etc. Vijay Mallya himself is a popular

brand ambassador now for the company.

b) Bagpiper

A host of ads on Bagpiper soda, featuring Akshay Kumar and a few others, with the now-

famous tagline: khoob jamega rang jab mil baithenge 3 yaar aap, main aur bagpiper

again, promoting Bagpiper soda.

c) Royal Challenge:

A major property in the form of Royal Challengers Bangalore playing in IPL.

d) Whyte and Mackay: nothing notable apart from being present on the RCB IPL jerseys

e) White Mischief: an indirect promotion through the White Mischief holidays, and also

through the RCB cheerleaders So the above was a snapshot on what all the liquor companies

are doing in India, trying to spread awareness about their brands through indirect means and

mechanisms. Of these, some are full fledged business interests, such as Kingfisher airlines.

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REVIEW OF LITERATURE:

A paper entitled Beer Drinking Nations The Determinants of Global Beer


Consumption by Liesbeth Colen and Johan F.M. Swinnen.

In this paper the respected authors study the evolution of beer consumption between countries

and over time.

An overview of the historic evolution of beer consumption in the world indicates that

consumption of beer has changed importantly over time. Also over the past 50 years

consumption patterns in beer have changed strongly, with decreasing consumption in the

traditional beer drinking nations and strong growth in emerging economies.

They analyzed the determinants for beer consumption and estimate an empirical model

toexplain what makes a country a beer drinking nation. Our first empirical result is that the

relationship between income and beer consumption is non-linear. Beer consumption initially

increases with rising incomes, but at higher levels of income beer consumption falls with

further income growth. Second, we find that in countries that were originally beer drinking,

the share of beer in total alcohol consumption reduces with opening of trade and increasing

globalization, while this is not the case in the non-beer drinking nations. These findings are

partially consistent with the idea that there is convergence in the consumption patterns of

alcoholic beverages, as suggested in the literature.

Finally, other factors that can explain the different levels of beer consumption between

countries are the climatic conditions, the importance of different religions in the country and

the relative price of beer to other alcoholic drinks.

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Consumer Behaviour on Kingfisher Beer

A paper entitled Advertising Alcohol and Youth by John P Nelson.

According to the author, advertising has an effect on alcohol consumption, rather than brand

equity, has proven to be elusive. A report to Congress in 2000 by the National Institute on

Alcohol Abuse and Alcoholism concluded that the results of research on the effects of

alcohol advertising are mixed and not conclusive. A recent report by the National Research

Councils Institute of Medicine, which was conducted at the behest of Congress, reached

much the same conclusion. Nevertheless, the Council recommended heightened regulation of

alcohol advertising.

Beer and spirits producers tend to advertise in magazines withmore young adult readers (ages

2024), men, and blacks. Wine advertisers tend to favor older readers (age 25+) and higher

income readers. Adolescent readers are not important statistically for any beverage, including

spirits, the alcohol beverage that emphasizes magazine advertising.

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Consumer Behaviour on Kingfisher Beer

A paper Entitled Modeling the demand for alcoholic beverages and advertising

specifications

The authors

1. ric Larivire
2. Bruno Larue
3. Jim chalfant

In this paper, the demand for beer, wine, spirits and soft drinks in Ontario is modeled in two

parts: an equation is specifiec to endogenize group expenditures and a demand system is set

up to allocate budgeted group expenditures across types o beverages. Advertising is allowed

to influence both the level of group expenditures and its allocation. Three popula advertising

specifications are compared using theJ-test and the likelihood dominance criterion. Even

though all threi specifications fitted well according to standard criteria, the calculated

expenditure, price and advertising elasticities wen sensitive to the manner with which

advertising is specified. This clearly highlights the need to rely on a sound criterion t<

identify a dominant specification. From the identified dominant specification, we found that

advertising has very subtle effect on expenditures on alcoholic beverages (group and

individual beverages). Thus, advertising is not effective in enlarginj markets and this suggests

that firms (especially breweries) use advertising to compete in zero-sum market share games.

From i public policy perspective, our results are comforting but future research should

investigate whether the neutral effect o advertising on aggregated expenditures hide

substantial offsetting changes in the drinking habits of individuals.

A paper entitled The Demand for Beer, Wine and Spirits by by James J. Fogarty
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Consumer Behaviour on Kingfisher Beer

According to the author the demand for alcohol literature is vast and much conflicting

information about the nature of the demand for alcoholic beverages has been

published. This paper presents a survey of the literature, and then uses the

technique of meta-regression analysis to establish insights into the nature of the

demand for beer, wine and spirits. Unlike previous meta-studies of the demand for

alcoholic beverages this study adjusts for the precision of each elasticity estimate.

The analysis presented suggests reported elasticity estimates will be influenced by

such factors as estimation technique, data frequency and time period under

consideration. With respect to time, the findings suggest that the demand for

alcoholic beverages has become less inelastic since the mid-1950s and that the

income elasticity has been falling since the mid-1960s. The analysis also found

support for the idea that alcohol as a commodity group is a necessity, and that

consumers respond to price discounting with inventory behaviour rather than true

substitution behaviour. Little support is found for the idea that the demand for

alcoholic beverages varies fundamentally across most countries, although wine may

be an exception.

Area of Study
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Consumer Behaviour on Kingfisher Beer

Ulhasnagar a small town somewhere in thane district. A PLACE which is nowhere left

behind. A Place full of crowd with mostly SINDHI COMMUNITY and other communities

too. A Place where doing business is in the Blood of people living here. Ulhasnagar being

called as Business Hub, divided in five camps , nearby ambernath and kalyan.

Ulhasnagar, which is once a military camp area for Sindhi refugees migrated from Pakistan,

is now heavily populated with this community people. The city is also known as Sindhunagar

and it is very famous from economic aspect. Ulhasnagar is a very good business centre not

only in Thane district, but also in Maharashtra State. It is a city located on the coast of West

India, which is nearly 60 kilometres northeast of the city of Mumbai.

Birla temple, furniture market, gajanand market, jeans market, Century

rayon factory, shiv mandir etc are the important places in Ulhasnagar.

Brief description:

Ulhasnagar-1 (W): It is also known as Ulhasnagar camp-1 and it is located on the west side

of railway stations. The main center here is a market with famous landmarks like Goal

maindan where many people visit from nearby areas like kalyan, ambernath, badalpur,

dombivili, thane, titvala etc for shopping.

Ulhasnagar-2 (W): The other name of this place is Ulhasnagar Camp-2. It is a market with

popular landmarks like Gajanand market and it is famous for clothing, electrical and

electronics etc. Nehru Chowk is the main centre here.

Ulhasnagar-3 (W): it has another name as Ulhasnagar Camp-3. It is mainly a market and it is

located on the west side of railway stations. The famous landmarks here are furniture bazaar,

RKT College, Sapna theatre, Ashok-Anil Multiplex etc. it is mainly a furniture and

electronics market.

Ulhasnagar 5 (E): This locality, which is also known as Ulhasnagar Camp-5, is located on

the eastern side of railway stations and it is mainly a residential area. You can see several jean

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Consumer Behaviour on Kingfisher Beer

making small scale industries here. Jhulelal Mandir, Swami Sarvanand School, Swami

Shantiprakash Chowk, Nethaji Garden, etc are the famous landmarks here. This locality is

heavily populated with Sindhi community people. Originally, known as Kalyan Military

transit camp (or Kalyan Camp), Ulhasnagar was set up especially to accommodate 6,000

soldiers and 30,000 others during World War II. Sindhis, in particular, began life anew in the

new land. The area was converted into a township in 1949, and named Ulhasnagar by the

then Governor-general of India, C. Rajagopalachari (literally 'city of joy'; ulhas = joy; nagar

= city). On August 8, 1949 the first and last Governor-General of India, C. Rajagopalachari,

laid the foundation stone.

As said earlier, Ulhasnagar is a place which is nowhere left behind because each and

everything is available here, as it is good in providing services like EDUCATION,

HOSPITALITY, BANKING AND INSURANCE SECTOR, TOURS AND TRAVELS,

BEING IMPROVED IN INFRASTUCTURE ALSO , ETC.

Education:

The city has colleges and an industrial-training institute like institute of technology, Holy

family Convent High School, New English (at camp no.5), SST College of Arts and

Commerce etc. Smt. Chandibai Himatmal Mansukhani college and R. K. Talreja are two

major colleges.

Growth:

Ulhasnagar, one of the busiest business centers in Maharashtra, has several jewellery

showrooms. Some of the popular jewellery showrooms in the city are listed here.

We can watch the gradual development of Ulhasnagar to a shopping hub and business centre

from a military camp area in the pre-independence era only with wonder. Sindhis, who

migrated to this land from Pakistan, has significant role in the growth of Ulhasnagar in the

business field. Even though they came to the city with minimal resources, now most of the

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Consumer Behaviour on Kingfisher Beer

small and big shops in Ulhasnagar are under owned by them. It is nothing else but their hard

work and talent that made them able to develop this city to a mini-Japan during the last five

decades.

Specialities:

Ulhasnagar, which is the most popular industrial and commercial township

of Thane district, is famous for shops of wedding costumes, jeans and other readymade

garments. Sindhi people, who live other parts of India such as Gujarat, Goa and Madhya

Pradesh, visit Ulhasnagar to do their wedding purchase. There are many shops, which are

exclusively aimed for wedding costumes

The city is also famous for jeans manufacturing. Jeans and ready made garments

manufactures at Ulhasnagar 5 are sold in all markets of the country. Many popular jeans

brand have factories in Ulhasnagar.

The most busy commercial and shopping center here are Ulhasnagar 2 & 3.

Tourist Attractions in Ulhasnagar:

There are several tourist attractions in Ulhasnagar including beautiful locations, religious

places and historical monuments etc. Some of the famous temples in Ulhasnagar including

Chaliho Sahib, Birla Mandir, haji Malang, Jhulelal Temple, Saint Satram Dham and Swami

Shanti Prakash Temple etc.

Facts and Findings:

1. Age group

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Consumer Behaviour on Kingfisher Beer

Age group
6.00%

12.00%
18-21
30.00%
21-25
25-35
12.00% 35-50
50& above

40.00%

In the survey of 100 there are Respondents under different age group:-
Age No. Of
Respondents
18-21 yrs 30%
21-25 yrs 40%
25-35 yrs 12%
35-50 yrs 12%
50 yrs and 6%
above

2. Occupation:

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Consumer Behaviour on Kingfisher Beer

Occupation

16.00%

Service
Business
46.00% Student

38.00%

occupation No of Respondents in (%)


Service 46%
Business 38%
Student 16%

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Consumer Behaviour on Kingfisher Beer

3. How often do you consume beer ?

Consumption of beer

10.00%

Daily
once in week
20.00% 40.00% twice in week
once in month
once in six months

20.00%
10.00%

From the survey of 100 respondents 40 % respondents consume beer daily, 10 %

respondents consume beer once in week, 20% respondents consume beer twice in week, 20 %

respondents consume beer once in month and 10 % respondents consume beer once in six

months.

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Consumer Behaviour on Kingfisher Beer

4.

Preferred Brand
6.00%

10.00%
Kingfisher
fosters
8.00% Carlsberg
Budweiser
Hayward
8.00% others
60.00%

8.00%

Which is the preferred brand in BEER?

From the survey of 100 respondents 60 % respondents Prefer Kingfisher, 8 % respondents

Prefer Fosters, 8 % respondents Prefer Carlsberg, 8 % respondents Prefer Budweiser, 10 %

respondents Prefer Hayward and , 6 % respondents Prefer other brands.

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Consumer Behaviour on Kingfisher Beer

5. What do you look at while selecting beer?

factors for selecting beer

10.00%

Brand name
10.00% 30.00%
Quantity
Taste
Satisfaction
10.00% Value for money
influenced by friends

10.00%

30.00%

From the survey of 100 respondents 30 % respondents look at Brand name while Selecting

beer , 10 % respondents look at Quantity while selecting beer, 30 % respondents look at taste

while selecting beer, 10 % respondents look at satisfaction while selecting beer, 10 %

respondents look at value for money while selecting beer, 10 % respondents look at influence

of friends while selecting beer.

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Consumer Behaviour on Kingfisher Beer

6. How much do you spend on a one time purchase?

Amount spent on one time purchase of beer

10.00%
20.00%

200-250 RS
150-200 RS
100-150 RS
50-100 RS

20.00%

50.00%

From the survey of 100 respondents 20 % respondents spend 200-250 RS on one time

purchase of beer, 20 % respondents spend 150-200 RS on one time purchase of beer,

50% respondents spend 100-150 RS on one time purchase of beer and 10 %

respondents spend 50-100 RS on one time purchase of beer.

7. Would you switch to another brand if the price of Kingfisher increases?

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Consumer Behaviour on Kingfisher Beer

switching to another brand if the price of Kingfisher increases


80%

70%

60%

50%

40%

30%

20%

10%

0%
YES NO
From the survey of 100 respondents 30 % respondents will switch to another brand if

the price of Kingfisher increases while 70 % respondents will remain loyal to

Kingfisher instead of increase in prices.

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Consumer Behaviour on Kingfisher Beer

8.

Place of Purchase
70%

60%

50%

40%

30%

20%

10%

0%
Wine stores Club Bar Pub

From where you purchase the beer?

From the survey of 100 respondents 60 % respondents Purchase beer from wine stores, 10 %

respondents Purchase beer from club, 20 % respondents Purchase beer from Bar, 10 %

respondents Purchase beer from Pub.

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Consumer Behaviour on Kingfisher Beer

9. When do you usually consume beer and how often?

Time of consumption of beer

10.00%

In party
Social occasions
40.00% when in mood at home
with friends
30.00%
formal party

10.00% 10.00%

From the survey of 100 respondents 40 % respondents consume beer in party, 10 %

respondents consume beer in social occasions, 10 % respondents consume beer when in

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Consumer Behaviour on Kingfisher Beer

mood at home, 30 % respondents consume beer with friends and 10 % respondents consume

beer in formal party.

10. Kingfisher as a brand, how would you rate it?

Rating of Kingfisher beer


70%

60%

50%

40%

30%

20%

10%

0%
Excellent good satisfactory non satisfactory
From the survey of 100 respondents 60 % respondents rate Excellent, 20 %

respondents rate good, 15 % rate Satisfactory and 5 % rate non satisfactory to

kingfisher beer.

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Consumer Behaviour on Kingfisher Beer

Analysis and Interpretations:

1. Age group of the respondents:

In the survey of 100 there are Respondents under different age group 30 %

respondents are in the age group of 18-21 years, 40 % respondents are in the age

group of 21-25 years, 12 % respondents are in the age group of 25-35 years, 12 %

respondents are in the age group of 35-50 years, 6 % respondents are in the age group

of 50 years and above.


2. Occupation of respondents:
In the survey of 100 there are Respondents under different Occupation, 46 %

respondents are under service, 38 % respondents are under Business and 16 %

respondents are Students.


3. Consumption of beer:
From the survey of 100 respondents 40 % respondents consume beer daily, 10 %

respondents consume beer once in week, 20% respondents consume beer twice in

week, 20 % respondents consume beer once in month and 10 % respondents consume

beer once in six months.


4. Prefered Brand:

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Consumer Behaviour on Kingfisher Beer

From the survey of 100 respondents 60 % respondents Prefer Kingfisher, 8 %

respondents Prefer Fosters, 8 % respondents Prefer Carlsberg, 8 % respondents Prefer

Budweiser, 10 % respondents Prefer Hayward and , 6 % respondents Prefer other brands.

5. Factors for Selecting Beer:


From the survey of 100 respondents 30 % respondents look at Brand name while

Selecting beer , 10 % respondents look at Quantity while selecting beer, 30 %

respondents look at taste while selecting beer, 10 % respondents look at satisfaction

while selecting beer, 10 % respondents look at value for money while selecting beer,

10 % respondents look at influence of friends while selecting beer.


6. Amount spent on one time purchase of beer:
From the survey of 100 respondents 20 % respondents spend 200-250 RS on one time

purchase of beer, 20 % respondents spend 150-200 RS on one time purchase of beer,

50% respondents spend 100-150 RS on one time purchase of beer and 10 %

respondents spend 50-100 RS on one time purchase of beer.


7. switching to another brand if the price of Kingfisher increases:
From the survey of 100 respondents 30 % respondents will switch to another brand if

the price of Kingfisher increases while 70 % respondents will remain loyal to

Kingfisher instead of increase in prices.


8. Place of Purchase:
From the survey of 100 respondents 60 % respondents Purchase beer from wine

stores, 10 % respondents Purchase beer from club, 20 % respondents Purchase beer

from Bar, 10 % respondents Purchase beer from Pub.


9. Time of consumption of beer :
From the survey of 100 respondents 40 % respondents consume beer in party, 10 %

respondents consume beer in social occasions, 10 % respondents consume beer when

in mood at home, 30 % respondents consume beer with friends and 10 % respondents

consume beer in formal party.


10. Rating of Kingfisher beer:
From the survey of 100 respondents 60 % respondents rate Excellent, 20 %

respondents rate good, 15 % rate Satisfactory and 5 % rate non satisfactory to

kingfisher beer.

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Consumer Behaviour on Kingfisher Beer

SUGGESTIONS

Tying up with more number of large restaurants , hypermarkets for retailing Kingfisher

beer. As of now Kingfisher Ultra, blue is not available widely. It should be made available

in more number of outlets

More promotional activities, in order to increase the awareness.

Since Kingfisher Ultra is a mild beer it can be targeted at the women consumer.

Indian market is price sensitive, Kingfisher Ultra, kingfisher premium would benefit from

reducing the price.

UBL should not introduce any new brand of beer. They should concentrate on the existing

brand and should also work on building its image.

Company can improve sales by selling it in more number of restaurants, it is a strategy

which is used by the soft drinks manufacturers. People will probably buy beer with food.

They should start selling Kingfisher in 330ml or 500ml cans.

The consumption of Super Premium beer is higher in night club, so it should be made

available in more number of night club.

They can come up with a low calorie beer and can call it Kingfisher Ultra Lite.

CONCLUSION:

India as a nation is making economic progress. There are lots of people who are indulging in

luxurious life, they prefer to buy branded products and do not mind paying a premium for

quality. But for the majority price is a constraint, especially for the middle class population.

They would only purchase items that they feel is value for money. So if they feel that they

dont get enough benefit from the product then they avoid buying it.

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Consumer Behaviour on Kingfisher Beer

As far as buying behavior of people with respect to beer is also the same. The highest selling

beer in India is kingfisher strong and premium which is priced at Rs70 for 650ml bottle. The

sales of Super Premium beer like kingfisher Ultra is relatively low, which is priced at Rs100

for 650ml bottle. Even though the Super premium beer is of high quality and has been

appreciated by the consumer, it has not resulted in as high sales as compared to the premium

category beer.

This just shows that it will still take some time for the Indian mindset to change where more

number of people will be willing to spend on quality without thinking much about the cost.

But we can already see a reasonable change in the consumer mindset, from say 10 years back.

What I feel is that even though price is a barrier at present, but things will get better in the

future and super premium beer would take over the market from the current 5% to about 25%

in the near future. Even though there is stiff competition from the foreign brands like

Carlsberg and tuborg , Budweiser , corona. there would not be any major threat to the

kingfisher brand. The brand is still the favorite among the Indian consumer and it will grow

from strength to strength.

References

1. A paper entitled Beer Drinking Nations The Determinants of Global Beer

Consumption by Liesbeth Colen and Johan F.M. Swinnen

2. A paper entitled Advertising Alcohol and Youth by John P Nelson.

3. A paper Entitled Modeling the demand for alcoholic beverages and advertising

specifications The authors ric Larivire,Bruno Larue &Jim chalfant.

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Consumer Behaviour on Kingfisher Beer

4. A paper entitled The Demand for Beer, Wine and Spirits by by James J.

Fogarty.

5. Tremblay, V. J. and C.H. Tremblay (2005). The US brewing industry: Data and

economic analysis,.

6. Poelmans, E. and J. F. M. Swinnen (2011). A Brief Economic History of Beer,

in: Swinnen, J. F.M. (ed.), The Economics of Beer, Oxford: Oxford University

Press.

Annexure

(This questionnaire will be used purely or academic research only. Information provided

will be kept confidential.)

Name_____________ Age__________

sex male / female __________ Occupation- services/ buisness/students /others

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Consumer Behaviour on Kingfisher Beer

1. Do you consume beer ?

Yes No

2. How often do you consume beer?

Daily Once in a week

Twice in a week Once in month Once in six months

3. Which is the preferred brand in BEER?

Kingfisher Fosters Carlsberg

Budwieser Hayward Others

4. What do you look at while selecting beer?

Brand name Quantity Taste and flavor

Satisfaction Value for money influenced by friends

Any other

5. How much do you spend on a one time purchase?

200/- to 250/- 150/- to 200/-

100/- to 150/- 50/- to 100/-

6. Would you switch to another brand if the price of Kingfisher increases?

Yes No

7. From where you purchase the beer?

Wine Stores Club

Bar Pub

8. When do you usually consume beer and how often?

In a party Social Occasions

When in mood at home With friends

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Consumer Behaviour on Kingfisher Beer

Formal party

9. What would you prefer having beer in? And why?

Bottle Can A designer glass

Any other suggestion

10. If you are consuming kingfisher, what is the reason for consuming it?

a. Quality. b. Price. c. Flavour

d. Taste. e. Packing. f. Other

11. You associate kingfisher with which of the following?

12. Kingfisher as a brand, how would you rate it?

Excellent Good

Satisfactory Not Satisfactory

13. Would you recommend Kingfisher beer for a tea-totler?

Yes No

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