Social Media &

Indian Beer Industry: A Research Report

Picture Source: http://linxonesolutions.com/blog/?p=1199

 5 Key Research Findings
Kingfisher is the most popular brand among social
media users – slide 15,17 and 19.

Maharastra state is the targeted geographic

region for all Beer Brands – slide 15.

Twitter is the most used platform – slide 16.

People associate beer and cricket – slide 22 and 23.

Indian beer buyers are price sensitive – slide 22 and 23.

Picture sourrce: http://theoandrosa.blogspot.in/, http://en.wikipedia.org/wiki/Maharashtra, http://www.ditii.com/2011/10/06/twitter-platform-issue-tracker-deprecates-google-code-

tracker/, http://www.pinelandscc.co.za/2010/09/pcc-inv-xi-vs-cuylerville-cc/, http://www.legalfutures.co.uk/latest-news/index-to-measure-success-of-legal-reforms
 Contents
Indian Beer Industry Overview

Market Overview

Industry Analysis

Why Social Media is Required ??

Insights through Social Media

Conclusions of Analysis

Recommendations
Beer Industry Overview

Picture Source: http://www.novinite.com/view_news.php?id=103896

 Indian Beer Industry

Huge growth since the liberalization and opening up of

economy in 1991.

Intolerance towards alcohol in India has decreased through

globalization and cultural influence of western countries.

Majority of Indian population falls in the age group of 18-35

years, which is the targeted segment for beer sellers.

So, India has become the ideal market for the industry.
 Market overview
Indian beer market grew by 17.1% in 2010 to reach a
value of $5,022.8 million.

Volume grew by 13.8% in 2010 to reach 1,687.4 million

liters

Standard lager is the largest segment accounting for

91.8% of the market's total value.

United Breweries Limited is the leading player having

42.4% share of the market's volume.

Indian beer market is highly concentrated, with the top

three players holding 70.6% of the total market volume.

In 2015, forecasted to have a value of $9,639 million, an

increase of 91.9% since 2010.
 Drivers and challenges
Drivers
• Beer sale in India is forecasted
to grow at a CAGR of 17.2%.
• India has an emerging middle
class-India has a healthy
urban workforce.
• 63% of the country population
is between the ages of 15-24.
• Favorable regulatory
environment.
Challenges
• Brewers must make
innovative and readily
available products to remain
competitive
• Brewers must create a sense
of brand loyalty
• Utilization of brewing capacity
– to keep manufacturing costs
low.
• Clever advertising – to induce
beer drinkers to buy a
particular brand
 Market Value and Volume
Market Value
250,000.00 30

200,000.00 25 In 2010, Indian beer market

grew by 17.1% to reach a value

% age growth
20
RS. millions

150,000.00
15 of $5,022.8 million. CAGR for
100,000.00
10 Rs. million period 2006-2010 was 21.9%.
50,000.00 5 % Growth

0.00 0

Year
Data source: Datamonitor

Market Volume
1800 18 Volumes grew by 13.8% in 2010
1600 16
1400 14 to reach a volume of 1,687.4
1200 12 million liters. CAGR for period
% Growth
Volume

1000 10 Volume (million ltrs)

800 8 % Growth
2006-2010 was 14.4%
600 6
400 4
200 2
0 0
2006 2007 2008 2009 2010(e)
Year
Data source: Datamonitor
 Market Characteristics
Market Segmentaion Market Share

Standard lager
91.8% United Breweries
Limited 42.4%
Premium lager
8.2% SABMiller 22.8%
Ales, stouts &
bitters 0.0% Mohan Meakin
Limited 5.3%
Low/no alcohol
0.0% Others 29.4%
Specialty beer
0.0%

Data source: Datamonitor Data source: Datamonitor

Standard lager is the largest United Breweries Limited is the

segment accounting for 91.8% of
the market's total value. The
premium lager segment comes
second and accounts for a
further 8.2% of the market.
leading having a 42.4% share of
the market's volume. SABMiller
comes second and accounts for
22.8% of the market.
 Environment Analysis
• Market Liberalization
• Stringent Legal Policies
Political
PEST Analysis

• Change in exchange rate (foreign players)

• Slow down of the developed economies and evolution of emerging
Economical economies

• Change in consumption pattern (adaption of western culture)

• Rise in the income levels, which has a direct positive effect on beer
consumption
Social
• Rise in middle class and increase of urbanization

• Innovation and Development of new products

Technologi • State of the art of brewery technique
cal
 Industry Analysis
Porter’s Five Forces Analysis
Buyer Power
5
• Supermarket chains are able to 4
Buyer Power negotiate very strongly on price 3
• But producers can also differentiate Degree of Supplier
Medium their products quite strongly
2
rivalry 1 Power
0
Supplier Power • Non-vertically integrated businesses
• Independent barley growers can find
Medium alternative markets New
Substitutes
Entrants

New Entrants • Barriers to entry are high.

• But new entries can happen through Data source: Datamonitor
Medium differentiated products.

Indian beer market is

Substitutes • Main substitutes are spirits and highly concentrated, with
wine.
• Switching costs are not high for the top three players
Medium retailers. holding 70.6% of the total
market volume.
• Market is highly concentrated – high
Rivalry competition. Overall attractiveness of
Medium • Purchasers have low relatively low the market is medium
switching costs.
Social Media Research
Brands Considered
Refreshing beverage represents lifestyle choice for Indians.

Tuborg is famous for easy to drink, low flavored pilsner

beer with its transparent bottle
A Danish company’s with Pilsner Beer, a pleasing mix of
bitter and sweet .
Toasted malti-ness and mild fruitiness of this pale gold
lager.
This Aussie lager is full-bodied, malty and eminently
drinkable.
Haywards 5000 is brewed with the choicest of malts and
hops lending itself to a unique flavor.

Fresh, light taste with transparent bottle

Known for great taste and innovation.

 Why Social Media?

The age group 21-30 years is the

70% of the social media users in
India accessed a social
networking site daily-Neilsen
survey
37% of the heavy social media
targeted segment for Beer
users in India fall in the age
market. They talk alot on social
group of 21-30 years
media, which can be exploited
(alootechie.com, Sept. 2010)
and used as competitive edge

• People talk a lot about their preferences and dislikes only.

• People uses the about beer daily.
• The keyword “BEER” tracked by us had about 250 daily conversations
in India.

Social Media Research has faster turn around time, has bigger sample size and is
more accurate and reliable.
Insights
through
Social Media

Picture source: http://emarketinguide.com/2010/11/few-web-updates-insights-part-2/

Audience Gender and Age Distribution

Audience Gender distribution Audience Age Distribution

45+ 0

36-45 4
23%
26-35 23
MALE
FEMALE 18-25 58

77% 13-17 15

0 20 40 60 80
Percentage

Beer brands have more male People in the age group of 18-25
patronage than female. years, which is target segment for
beer, talk more about beer
Brand Localization

•Kingfisher is present
in almost all states of
India.

• Miller Lite has

noticeable presence
only in Tamil Nadu.

• Almost all brands are

most famous in
Maharastra.
 Channel Distribution
Channel Distribution
Miller Lite
BLOGS
Budweiser VIDEOS
Haywards 5000 DISCUSSIONS
Foster's NEWS
Heineken OTHERS
FACEBOOK
Carlberg
TWITTER
Tuborg
FLICKER
Kingfisher

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Beer brands get highest coverage from Twitter and News.

Share of Voice and Brand Opinion
Brand Opinion
Share of Voice
100.0%
90.0%
Kingfisher 80.0%

Tuborg 70.0%
60.0%
Carlsberg
50.0%
Heineken
40.0%
Foster's
30.0%
Haywards 5000 20.0%
Budweiser 10.0%
Miller Lite 0.0%

Kingfisher has the maximum share of

voice among all the brands, amounting Positive Negative Neutral
to 88.3%. No doubt that it is the
market leader. Almost all the brands have equal amount
of both positive and negative opinions
with few negative once also.
 Social Buzz Benchmarking
Social Buzz Benchmarking*
100
90
80 • Kingfisher has the highest
70 Influence score, which make it the
60 most talked about brand among
50 competitors.
40
30 • Foster’s and Miller Lite have the
20 highest Opinion score, which
10 means that they have very less
0 negative opinions.

Opinion Score Influence Score

Definition of Buzz Metrics used for Benchmarking (more the better for both Scores)
Opinion Score: Opinion Score based on the sentiments of the posts towards the brand.
Influence Score: Influence Score defined by overall buzz, uniformity of the buzz over
time, and diversity of buzz across channels.

*Note : Global buzz ignored.

Platform Affinity and Buzz Score
Overall Audience Platform Buzz score*
80
Affinity 70
60
BLOGS 50
DISCUSSIONS 40
NEWS 30
TWITTER
20
10
OTHERS
0

People use twitter most to talk about Kingfisher has the maximum buzz
beer than any other platform. score, which means it gets maximum
attention among competitors.

Buzz Score: It is degree to which a brand get attention in market

*Note : Global buzz ignored.
 Why Kingfisher so Popular??
Opinion
Positive Negative Neutral

40%
47%

13%

Courtesy : www.wordle.net

• Kingfisher is famous among various beer brands due to its association with Cricket(IPL), which is
the most talked about work along with beer (slide 24).

• Kingfisher also have some negative sentiments in relation employee management issues
(salaries, boycott etc) , covered extensively by news media.
Opinion Score v/s Influence Score
100
90
80
70
60
50
40
Opinion Score
30
Influence Score
20
10
0

A regression test was run on carried on Opinion score and Influence score. The value of
regression coefficient R2 =0.2030, which proves that there is no established relationship between
Opinion score and Influence score.

This also disproves the point that when people talk they talk only negative or only positive.
What is talked about Beer? (1/2)

Courtesy : www.wordle.net

The most used words in association with beer:

IPL, People, Kingfisher, Easter, Cricket, Price, Party , Food and Tax
What is talked about Beer? (2/2)
Keyword Analysis
2%
16% IPL (Cricket)
1%
People
47%
10% Kingfisher
Easter
Price
4% 18% Party
Food
Tax
2%

Common Topic of Discussion

• People associate beer mostly with cricket. Maybe they want to drink beer while watching
cricket.
• Second most talked about keyword is “Kingfisher”. Common people
Courtesy relate beer with
: www.wordle.net

Kingfisher in India.
• People also associate beer and food.
• Price is also talked about in association with beer. This represents cost sensitive customers.
 Conclusions of Analysis
Beer brands have more male patronage than female. They should also target female
population.

Tuborg and Carlsberg do not have good brand patronage across nation. Kingfisher has the
best national coverage.

Price is also talked about in association with beer. It can serve as an input to company’s
pricing strategy.

Courtesy : www.wordle.net
Cricket and beer go together. Beer companies can create brand campaigns associated with
cricket to be more successful.
 Recommendations
People talking in social media falls in the same age group as targeted customers of Beer
companies. So it is suggested that brands make good use of Social Media.

Brand Image can be created and managed through social media by engaging existing and
potential customers.

Innovative products is the requirement to remain competitive in beer industry. What the
customers actually want can be known by tracking their online conversations.

By adding online strategy to their marketing mix, Beer companies can tie together everything
they are doing both offline and online.

Beer companies can use online crowd-sourcing for product development. People will tell you
what they want.
Courtesy : www.wordle.net

By creating online buzz, beer companies can reduce their marketing expense.
 Research Methodology
1. General characteristics of Indian beer are analyzed using the report “Beer in
India” December, 2011 by Datamonitor.

2. Analysis using social media

1. 15 Brands of Indian Beer Industry were considered.
2. Data was collected from April 1, 2012 to April 17, 2012.
3. Chosen channels are – Twitter, Facebook, Blogs, News, Flickr, Forums
and Youtube.
4. Buzz in the Social Media Space about the brands were tracked using
Simplify360.

3. Conclusions are drawn considering general Industry characteristics and insights

from the social media.
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