Lagom Kitchen + Brewery

Lagom
Kitchen + Brewery
A Q U E S T F O R S U R V I V A L
G R O U P 8
Case Brief:
Covers-
Microbrewery industry in India
Focus on challenges faced by Lagom Kitchen + Brewery
.
Problem-
Lagom struggling despite a $1 million investment
Difficulty achieving desired footfall and profitability within the
envisioned 3-year timeline
Challenges emerging within just 9 months of operations
Concept-
Lagom Kitchen + Brewery (Microbrewery and restaurant)
Founded by Debjeet Banerjee in Gurugram in 2016
Brews 3 types of craft beers on-site
Offers high-quality food
Seating capacity of 140
Employs experienced staff
German style beer
Innovative presentation Newly Open
Variety menu Low Number of Loyal Customers
Positive reviews on many websites High Operating and Material Cost
Good food and drinks Craft Beer is More Expensive Than Bottle Beer
Managers who have run world class hotels Not making any profit
Large number of managers and staffs with professional attitude
The Market Was Nearly Doubling Every 5 Years Highly Taxed

Craft Beer Cultural is Growing Stringent Liquor Laws
Beer Consider a Safe Drink Among Youths, Craft Licensing Difficulties
Beer Becoming Favorite Drink at Party. High Renting Cost
Beer market was nearly doubling every five years.

India's religions discourage alcohol consumption.
Indian consumers were experiencing an increase in
Some Indian states had imposed an alcohol ban. Political
disposable income.
Highly taxed, stringent state liquor law, licensing difficulties.
High ingredient costs.
Econo-
Legal mical
There are 2 types of licensing options: one was for serving The cultural of weekend parties and eating out, as well
fresh beer in a restaurant, and the additionally allowed the as culture around craft beer are growing
PESTEL
bottling of fresh beer. Women were starting to drink beer.
By 2016, only one state had allowed the bottling license. Environ- Social
mental
Easy availability of technology from Europe and China
German manufacture means high technology for brewing
The city experiences four distinct seasons which in turn
Technical Only three schools in India provide a degree in brewing
can affect the purchasing habits of th ecustomes.
technology
Solutions:
Adjust Prices and Change Menu

Promote Private Events
Developing Loyalty Program
Develop First-Time Customer Program
Changing Target Customers - Young Professionals
Create strategies that fit for different market segments
Changing Menu -
Three menus for Brunch, Lunch and Dinner.
Remove Chinese food from menu
Learnings
Industry Analysis: Financial Planning:
Crucial to assess industry dynamics, growth Lagom's $1 million investment led to losses in 9 months,
prospects, and challenges before starting a emphasizing the importance of robust financial planning
new business. and working capital management.
Competition Analysis: Comprehensive Feasibility Studies:

Thoroughly studying competitors on product, Learning highlights the necessity of comprehensive
pricing, and marketing is essential for effective feasibility studies covering industry, market,
strategies. competition, and financial aspects before launching a
new business venture.
Location Analysis:
Despite an ideal location, Lagom faced intense
competition, underlining the need for strategic
location selection.
Application
Microbrewery Giants' Expansion:
- White Owl, Briworks, Effingut conduct extensive research before expanding
- Factors include target cities, demographics, and local policies
- Strategic approach to ensure successful establishment in new locations
Large Alcobev Companies in Craft Beer:

- United Breweries ventures into craft beer segment
- Launches products like Kingfisher Brewhouse
- Driven by research on changing consumer preferences in the beer market
Craft Beer Trend in Restaurants:

- Restaurants like Talli Tuttons Thai Gastropub (Mumbai) and Irish Village
(Gurgaon)
- Capitalize on the growing craft beer trend
- Offer freshly brewed beer to cater to evolving consumer preferences
Thank You

Lagom Kitchen + Brewery

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Lagom Kitchen + Brewery

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Lagom

The Market Was Nearly Doubling Every 5 Years Highly Taxed

Beer market was nearly doubling every five years.

Adjust Prices and Change Menu

Competition Analysis: Comprehensive Feasibility Studies:

Large Alcobev Companies in Craft Beer:

Craft Beer Trend in Restaurants:

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