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Marketing of Beer

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					                                                       Table of Content

Industry Basics ................................................................................................................... 4
  Alcohol Market ................................................................................................................ 4
  Location of consumption & Sale ..................................................................................... 4
  Business 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 ................................................................................................... 14
  Market 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 ................................................................................................. 21
  Breweries in Maharashtra .............................................................................................. 21
Brewing Process ........................................................................................................... 22
Stages in Beer Making ................................................................................................. 24
  Mashing.......................................................................................................................... 24
  Sparging ......................................................................................................................... 24
  Boiling............................................................................................................................ 24
  Fermentation .................................................................................................................. 25
  Pasteurisation ................................................................................................................. 25
  Packaging ....................................................................................................................... 25
Ingredients of Beer........................................................................................................... 26
  Water .............................................................................................................................. 26
  Malt ................................................................................................................................ 26
  Hops ............................................................................................................................... 26
  Yeast .............................................................................................................................. 27
  Clarifying agent ............................................................................................................. 27
Categorizing beer by ........................................................................................................ 28
  Yeast .............................................................................................................................. 28
  Ale .................................................................................................................................. 28
  Lager .............................................................................................................................. 28
  Lambic beers .................................................................................................................. 29



                                                                                                                                          1
  Pale and dark beer .......................................................................................................... 29
Serving .............................................................................................................................. 30
  Draught and keg ............................................................................................................. 30
  Cask-conditioned ales .................................................................................................... 30
  Bottles ............................................................................................................................ 30
  Cans................................................................................................................................ 30
  Vessels ........................................................................................................................... 31
Serving temperature ........................................................................................................ 31
By-products / Waste......................................................................................................... 32
Taxation Policies .............................................................................................................. 33
  Excise Duties ................................................................................................................. 33
  Octroi ............................................................................................................................. 33
About APB ........................................................................................................................ 34
  Corporate Profile ............................................................................................................ 34
  Fraser & Neave, Limited................................................................................................ 35
  Heineken ........................................................................................................................ 35
Members of the Asia Pacific Breweries Group ............................................................. 36
Senior Management of APB ............................................................................................ 37
APB - INDIA .................................................................................................................... 38
  Core Values .................................................................................................................... 38
  Locations of Operation .................................................................................................. 39
Organization Structure ................................................................................................... 40
Brand Portfolio ................................................................................................................ 41
  Tiger Beer ...................................................................................................................... 41
  Baron's Strong Brew ...................................................................................................... 42
  Cannon 10000 Super Strong Beer.................................................................................. 42
APB International Brands .............................................................................................. 44
    Heineken .................................................................................................................... 44
    ABC Extra Stout ........................................................................................................ 44
    Anchor........................................................................................................................ 44
Marketing Mix of Tiger Beer .......................................................................................... 45
  Product ........................................................................................................................... 46
  Price ............................................................................................................................... 49
    Factors affecting pricing decisions ............................................................................ 49
    Primary considerations in price setting ...................................................................... 49
    Pricing in Mumbai ..................................................................................................... 50
  Place ............................................................................................................................... 52
    Distribution Network ................................................................................................. 53
    Distributors of APBI .................................................................................................. 54
Promotion ......................................................................................................................... 55
    Major Tools in Marketing Beer ................................................................................. 55
    Marketing Activities at APBI .................................................................................... 55
  Sales Promotion ............................................................................................................. 59



                                                                                                                                        2
     Various sales promotions techniques adopted at APBI ............................................. 61
     Permit Room Activation ............................................................................................ 62
  Tracking Effectiveness of sales promotion .................................................................... 63
     Designing a Powerful Sales Promotion ..................................................................... 63
Packaging .......................................................................................................................... 64
Beer Advertising .............................................................................................................. 66
  Surrogate Advertising in liquor industry ....................................................................... 67
  Surrogate for Tiger Beer - Tiger Translate .................................................................... 68
     Why Tiger Translate in India ..................................................................................... 68
Competitors of Tiger Beer in Mumbai .......................................................................... 70
  Carlsberg ........................................................................................................................ 70
  Budweiser ...................................................................................................................... 71
  Kingfisher Mild .............................................................................................................. 72
  Fosters ............................................................................................................................ 73
Health effects .................................................................................................................... 74
Community & Environment ........................................................................................... 75
  A Responsible Beer Company ....................................................................................... 75
  Asia Pacific Breweries Foundation ................................................................................ 75
  Responsible Alcohol Consumption................................................................................ 76
SWOT Analysis of APBI ................................................................................................. 77
Why Beer better than Milk ............................................................................................. 78
Top 10 Reasons Beer is Good for your Health .............................................................. 80
The Future ........................................................................................................................ 82
Conclusion ........................................................................................................................ 83
Questionnaire ................................................................................................................... 84
Bibliography & Webliography ....................................................................................... 86




                                                                                                                                       3
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




                                                                                4
Business hours prescribed in Maharashtra
Business hours for                 Policy

FL-III                             11.30 a.m. to 1.30 am in Mumbai & Thane
(Permit Room)                      11.30 a.m. to 11.00 p.m. elsewhere

FL-II                              10.00 a.m. to 10.30 p.m. in Mumbai & Thane
(IMFL Retail Shops)                10.00 a.m. to 9.30 p.m. elsewhere

CL-III                             10.00 a.m. to 12.00 Midnight in Municipal Area
(CL Retail shops & Permit room)    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




                                                                                    5
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.




                                                                                         6
Different Strokes of Beer

LAGER                Brewed using bottom-fermenting yeast that ferments slowly at a low
                     temperature to create a smoother, mellow beer


ALE                  Uses top-fermenting yeast, is a more aromatic and fruity product


STOUT                Dark and heavy, with roasted unmalted barley and, often, caramel
                     malt or sugar


MILD BEER            Developed as a sweeter and cheaper alternative to dark ales


BITTER               Highly hopped for a more dry and aromatic beer. It is pale in colour
                     but strong


DARK BEER            Barley is kilned for a longer period of time which creates richer
                     flavours


FRUIT BEER           Fruit , usually berries, is added either during primary fermentation or
                     later


WHEAT BEER           Malted wheat and barley are used for this German style beer
(WEIZEN)



       A great many beers are brewed across the globe. Local traditions will give beers
different names, giving the impression of a multitude of different styles. However, the
basics of brewing beer are shared across national and cultural boundaries.




                                                                                            7
Alcoholic strength of Beer
        While we all love the taste of beer, it's the alcohol content thats responsible for
beers standing in most societies. Its the alcohol content of beer that makes it the number
one social lubricant. The alcohol content of beer is generally denoted by the "percent
alcohol by volume", or % ABV. "Percent alcohol by wieght", % ABW, could also be
used. It's easy to convert between them. ABW = 0.8 × ABV.

        Beer ranges from less than 3% alcohol by volume (ABV) to almost 30% ABV.
The alcohol content of beer varies by local practice or beer style. The pale lagers that
most consumers are familiar with fall in the range of 4–6%, with a typical abv of 5%.
"Low alcohol beer", also known as "non-alcoholic beer" contains less than 1% ABV. The
strongest beer ever made was the Hair of the Dog Brewing Company's barley wine named
"Dave", which was 29% ABV.

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

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




                                                                                          8
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




                                         9
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.




                                                                                         10
History of Beer in India
          Modern beer brewing began for India in the early days of the British Empire —
the mid-1700s. The demand for beer in the hot climate of many parts of India by the
British administrators and the troops was so great that it led to the creation of a
completely new style of beer by George Hodgson in his London brewery — India Pale
Ale also known as IPA. IPA is strong, highly hopped ale designed to survive the five
month ocean voyage to India without spoiling. India Pale Ale was shipped with every
voyage for over a century and became very popular in Britain and North America.

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

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

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


                                                                                        11
       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."




                                                                                          12
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




                                                                                        13
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%




                                                                                      14
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%




                                                                                    15
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 annum. Per capita
consumption is directly related to the taxation, according to an industry observer.




                                                                                        16
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.




                                                                                        17
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
Reduction in beer prices:
        The Indian consumer typically values an alcoholic beverage on the basis of its
'kick' factor versus its price. The following two factors therefore, affect the market for
beer. Firstly, as most states do not have a differential tax structure based on the alcohol
content, strong beer.


In India the future of beer industry is very much optimistic because:

    1. India has predominantly a warm/hot climate

    2. The beer-drinkers in the country are much younger than the average beer-drinker
        elsewhere in the world. This makes them more likely to carry the brand with them
        for a lifetime.

    3. Also, as the target audience becomes younger, a light beer is expected 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.




                                                                                           19
       Beer mix today is approximately 60 percent lager beer and 40 percent strong beer.
This ratio was very different 4 years ago. Over the last four years strong beer has been the
fastest growing segment. This was completely usurped by Shaw Wallace. As of today
while Shaw Wallace has approximately 28 to 30 percent of the strong beer market, UB
already has achieved 14 to 15 percent of that strong beer market and is growing very fast.
It launched Kingfisher Strong only in May of 2001. And once it is able to take Kingfisher
Strong national, it will try to match Shaw Wallace's market share over the next few years.

       Apart from Kingfisher, and Foster's Beer, the other brands in the Indian market
are Carling Black Label, Carlsberg, Tiger, Baron‘s, Heinekin, Budweiser, Corona,
Dansberg, Golden Eagle, Guru, Maharaja Premium Lager, Haake Beck, Haywards 2000
Beer, Haywards 5000, Haywards skol, Flying Horse Royal Lager, Taj Mahal, Hi-Five,
Ice, Kingfisher Diet, Kingfisher Strong, Kirin, KnockOut, Legend, London Diet, London
Draft, London Pilsner, Royal Challenge, San Miguel Lager, Sand Piper, Strohs and
Zingaro.

       The major brands which belong to large groups in the industry (apart from UB)
are – Shaw Wallace - Royal Challenge Premium Lager, Haywards 2000 Premium Lager,
Haywards 5000 Super Strong, Hi-Five and Lal Toofan.

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

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

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




                                                                                         20
Indian Brewing industry
       Today, the brewing industry is a huge global business, consisting of several
dominant multinational companies and many thousands of smaller producers ranging
from brewpubs to regional breweries. More than 133 billion liters (35 billion gallons) are
sold per year—producing total global revenues of $294.5 billion in 2006.

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

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

1     Associated Breweries      Thane          Plot D103, Trans            022-27671939
      & Distilleries                           Thane creek ind area,
                                               Sion- Panvel Rd,
                                               A/P Shirwane

2     Hindustan Breweries &     Thane          C/23-24, Wagle
      Bottling Ltd.                            Industrial Estate

3     Bombay Breweries          Raigad         Plot M-1, MIDC,             022-27410632
                                               Industrial Area

4     Mohan Rocky Spring        Raigad         Mohan Wadi, Khopoli,        02192-262461
      Water Breweries Ltd.

5     Skol Breweries            Raigad         Kegaon, Tal Uran            022-27222139

6     Skol Breweries Ltd        Satara         E-1, MIDC Industrial
      (Unit of Doburg Ltd.)                    Estate

7     Arlem (Aurangabad         Aurangabad     Plot No H-9, 10,11,&        0240-2564172
      Breweries/Asia Pacific                   13, MIDC Industrial
      Breweries-Heineken)                      Area, Walunj

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

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

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

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



                                                                                       21
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.




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




                                                                                       22
                            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




                                                      23
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 the wort 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 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



                                                                                        24
extract bitterness, flavour and aroma from them. Hops may be added at more than one
point during the boil. As hops are boiled longer, 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 them during
packaging. This causes a short period of fermentation which produces carbon dioxide.




                                                                                         25
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 bitterness that balances the
sweetness of the malt; hops also contribute floral, citrus, and herbal aromas and flavours
to beer.




                                                                                           26
       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 examples of
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.




                                                                                        27
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 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.




                                                                                       28
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.




                                                                                         29
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 associated with less-expensive,
mass-produced beers, even though the quality of storage in cans is much like bottles.




                                                                                        30
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.




                                                                                           31
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.




                                                                                       32
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%.




                                                                                       33
About APB

Corporate Profile
       Listed 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.

       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




                                                                                     34
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.




                                                                                         35
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.
       Vietnam Brewery Ltd.




                                                            36
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




                                                                       37
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
                                            Registration No:
second investment in South Asia by          B.S.T. NO. 431136-S-17 DT. 01-04-96
expanding its brewery network to            CST NO.      431136-C-10 DT. 01-04-96
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 Private Limited.
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.
      Maintain business confidentiality.
    Have fun at work and strike balance between work and personal life.


                                                                                      38
Locations of Operation


     Mumbai & Navi Mumbai

     Thane & Raigarh

     Delhi

     Goa

     Hyderabad

     Aurangabad

     Bangalore




                             39
Organization Structure




                         40
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




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



                                                                                          41
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.




                                                                                        42
43
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.




                                                                                            44
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.




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




                                                                                               45
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




                                                                                         46
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.




                                                                                           47
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
       reaffirmed that apart from industry medals, Tiger Beer is also gaining greater
       popularity with its growing number of fans.




                                                                                    48
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




                                                                                       49
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
Name of Brand            Type                   M.R.P.              E.C.P.

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




                                                                                  50
LILA SONS
Name of Brand          Type                   M.R.P.            E.C.P.

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

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




                                                                         51
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 and
distribution 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.




                                                                                       52
Distribution Network




                             APB
                           Breweries

                         Distributors




                       On / Off Premise
                          Locations




                       End Consumer




                                          53
Distributors of APBI
             Area                 Number of distributor

             Ahmed Nagar          1

             Akola                1

             Aurangabad           1

             Dhule                1

             Jalgaon              1

             Jalna                1

             Kolhapur             1

             Mumbai               2

             Nagpur               2

             Nashik               1

             Prabhani             1

             Pune                 1

             Solapur              1

             Thane & Ulhasnagar   1

             Total                16



Distributors in Mumbai

Surya Sales & Marketing
     Ph. 2850 4349
     Ray Road (Godown)
     Girgaon (Office)


Mansha Agencies
     Ph. 2370 0720
     Sakinaka




                                                          54
Promotion
       Promotion 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
      Packaging




                                                                                      55
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.




                                                                                    56
       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 marketing
      Advertising 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                         Point-of-Purchase Ads
      Billboards & Hoardings                            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                                       70 Media
      Load Star                                         Weber Shandwick

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, and free
samples are regarded as below-the-line advertising. POPs - Ads at Consumer touch points

      Wobblers                                          Bar (on-premise) Merchandise
      Shelf Talkers                                     Coaster
      Posters                                           Tent Cards



                                                                                           57
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
      Regularly follows up with media on press releases related to beer
      Ensures Event Collateral
      maintaining journalists & publications profiles




                                                                                  58
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 trade shows. Advertising offers a reason to buy; sales
promotion offers an incentive to buy.



Objective of Sales Promotion
      Sales-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 to increase
the repurchase rates of occasional users.
        Awareness
        Trials


Tools of Sales Promotion

Sales promotion includes        Trade promotion               Business and sales force
tools for consumer              Includes:                     promotion includes:
promotion:

   Samples,                       Prices off,                  Trade shows and
   Coupons,                       Advertising and display       conventions,
   Cash Refund Offers,             allowances,                  Contests for sales reps,
   Prices Off,                    Free goods                   Specialty advertising
   Prizes,
   Free Trials,
   Tie-In Promotions,
   Cross-Promotions,
   Point-Of-Purchase
    Displays,
   Demonstrations




                                                                                          59
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:


PLC           Characteristics                 Marketing             Market
Stage                                         Objectives            Strategies

Product       Low sales, high cost per        Create product        Offer a basic product,
Introduction customer, no profits, few        awareness and trial   Use heavy promotions
              competitors                                           to entice trial
Product       Rising sales and profits,       Maximize market       Offer product
Growth        more and more competitors       share                 Extensions
Product       Peaking sales and profits,      Maximize profit       Diversify brands
Maturity      stable or declining number      while defending
              of competitors                  market share          Intensify promotion to
                                                                    encourage switching
                                                                    to new brands
Product       Declining sales, profits, and   Reduce expenditure Phase out weak
Decline       number of competitors           and "milk" the        Products,
                                              brand                 Cut price;
                                                                    Reduce promotion




                                                                                        60
Various sales promotions techniques adopted at APBI

  1. PRODUCT LAUNCH OFFERS FOR DEALERS FOR 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 25 cases  2 case free
             o 50 cases  5 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
  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 promotions
  11. Mall Activation
  12. Permit room activations
  13. Various promotional offers in institutions
        Meal Combo                                      Exclusive tiger beer tie-ups
        Sunday Brunch                                   Bar night
        Tiger Bucket                                    Food Festivals
         (grab 4 pints at price of 3)                    Karaoke Nite




                                                                                         61
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

   12. Evaluation of reports submitted by agency

   13. Performance evaluation / Tracking of reorders

   14. Process complete




                                                                                        62
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.
      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 sure your 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.


                                                                                       63
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.

       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".

       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




                                                                                           64
   Primary Pack – 330 ml Pint Bottle        Primary Pack – 650 ml Quart Bottle




Secondary Pack - 4 X 330 ml Bottle Pack   Secondary Pack - 6 X 330 ml Bottle Pack
         Imported (etch-out)                       Imported (etch-out)




                                                                                    65
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 can strategically 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)




                                                                                        66
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.




                                                                                           67
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.

       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 single roof, 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



                                                                                        68
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




Events under tiger translate                    Judges on the panel
Graffiti Art                                    Brinda chudasama miller
Photography                                     Tino Francorsi
World Music                                     Munir Kabani
Visual Animation                                Pravina & jamal macklia



                                                                                     69
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
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.



                                                                                       70
Budweiser


         Budweiser      (Anheuser-Busch),        from
Anheuser-Busch in the United States. Marketed as
"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.

         Crown Beers is planning massive below-the-line activities to make its presence
felt in the market.



                                                                                    71
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 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 the
UK.

       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.



                                                                                      72
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.




                                                                                     73
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 undesirable) 110. Critics rejoin that beer consists mostly of
water, hop oils and only trace amounts of sugars, including maltose.




                                                                                        74
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.

          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 music groups 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.



                                                                                         75
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 always ensured 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; the Know
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.

       Every bottle label of Tiger bottle quotes ―Enjoy Tiger Responsibly‖ this shows
commitment of company towards responsible alcohol consumption.




                                                                                    76
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




                                            77
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 only up 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
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%.




                                                                                            78
       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.




                                                                                     79
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
     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.




                                                                                          80
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 that
moderate 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, April
2001 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.




                                                                                         81
The Future

       Recently, concern among citizens' groups over the excessive consumption of
alcoholic beverages by some individuals has initiated additional government regulation of
beer. New warnings have been added to labels, warning of impaired driving, hazards to
pregnant women, and other health ailments associated with alcohol consumption.
Reduced tolerance for drunk driving, for example, encouraged many brewing companies
to advocate responsible consumption. As a result, certain states have established laws to
control the alcoholic content of beer for sale within their jurisdiction. The beer industry
will continue to contend with these large social issues.



       Much research is currently conducted in the area of plant engineering. Brewery
researchers are manipulating the genes of barley and other common grains to increase
their resistance to disease and to encourage helpful mutations. This genetic research also
extends to improving the yeast. Current research is aimed at producing yeast strains that
resist contamination and to making new varieties of yeast that can ferment carbohydrates,
which common yeasts cannot process.



       The brewing industry is also making advances in the area of rapid testing for
contaminants. New technology such as DNA probes and protein and chromosome finger-
printing is being developed by brewers to detect microorganisms that can adversely affect
the brewing process. Some of this technology is already in use in medical science for drug
screening, AIDS testing, and pregnancy testing. Brewers are eager to adapt this cutting
edge research to the beer industry.




                                                                                        82
Conclusion


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

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

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

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

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

     Focus should be on the upwardly mobile beer drinker who enjoys drinking beer
      but still has status & discernment needs which he would like to communicate
      through his brand choices




                                                                                        83
Questionnaire

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

   2. What is Company‘s USP?

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

   4. List the company's major competitors.

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

   6. Describe the nature of the regulatory environment in which the company operates.

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

   8. What are the factors which should be kept in mind while 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 audiences know 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 in our communications? What
       tone? What flavor?

Target Audience

   14. How can the market be segmented into logical customer groupings?

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

   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?




                                                                                        84
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 price leader? What does the price
       leader charge for its offering?

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

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

Competition

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

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

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

   28. Which competitors have the greatest visibility with our target audience?

   29. How will we differentiate ourselves to best combat competition?




                                                                                          85
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. www.drinkingbeer.net

  8. http://www.indianmba.com/Faculty_Column/

  9. http://indiabrew.blogspot.com/

  10. http://www.thehindubusinessline.com




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