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Cadbury launches beer

Date post: 11-Apr-2017
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Introduces BEERCULES!
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Page 1: Cadbury launches beer

IntroducesBEERCULES!

Page 2: Cadbury launches beer

• Started by John Cadbury • Factory in Bourneville in 1861- largest chocolate production in U.K • 1897- Manufactured 1st milk chocolate. • 1950- First overseas factory near Hobart, Tasmania. • 1960’s- Larger factory with his brother selling 16 type of drinking

chocolates. • Today the largest confectionery company in the world;70,000+

employees.• In India, Cadbury began its operations in 1948 by importing chocolates. • It today has 5 company-owned manufacturing facilities & 5 sales offices

in 5 metros. The corporate office is in Mumbai.• Cadbury enjoys a value market share of over 70% - the highest Cadbury

brand share in the world! The brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India.

HISTORY

Page 3: Cadbury launches beer

BeerCules!• Prominent in Beverage Industry with presence in

liqueur and other mixers, Cadbury wants to diversify in Alcohol Industry.

• Beer is the world's most widely consumed and probably the oldest alcoholic beverage; it is the third most popular drink overall, after water and tea.

• Alcohol presence - 5- 6% in mild and upto 10% in strong.

• Beercules would have a choice from Draught, Lager, Ale and Stout in various packaging from 5 ltr keg to 330ml Bottles & cans as per demand.

• Pricing Strategy would be Market penetration and priced similar to competitors , Starting at 80 INR.

Page 4: Cadbury launches beer

What to change?

What to Stick to?

Brand Association – With the confectionary to

Brewery, therefore focus on Beercules rather than

Cadbury.

Marketing Strategy adhering to the countries norms.

Shift of target segment from all ages to age sensitive.

Guilty Pleasures product

range (Chocolates and Beer)

Major Retail partners and

Distributors.

The company reliability

Customer service

Page 5: Cadbury launches beer

• In 2014-15 financial year, the beer market in India grew by 6% to 22.3

million hectolitres (or to 286 million cases)

• The beer market in India was estimated to be more than ₹200 billion in

2012. It is expected to be ₹430 billion by 2017.

• In worldwide share of throat, the spirits to beer ratio is 1:7. In India the

spirits to beer ratio, taking both the organized and unorganized sector

together is in the vicinity of 7:1. Which means we're talking of a 50

times differential between the two. We have reached this stage

because brewing is a more capital-intensive business than distilling and

therefore there are greater entry barriers.

Source- http://journal.beer/2015/10/01/analysis-of-beer-market-in-india-journal-beer-3-2015/

Why India?

Page 6: Cadbury launches beer

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. Increasing exposure to beer and wine drinking, mainly due to media and consumer mobility.

All these factors combined make the scenario very promising for Beercules and are 'in sync' with our strategy for India.

We are very optimistic about our future in India because-

Page 7: Cadbury launches beer

Popular beer brands by market share (2014)

Company Market share (%) Beer brand Market share (%)United Breweries 51.1 Kingfisher 41.2    Kalyani Black Label 2.7    UB Export 2    Sandpiper 1.5    Bullet Super Strong 1    Zingaro 0.9    London Pilsner 0.2SABMiller 25.6 Haywards 15    Knockout 8.7    Foster's 1.3    Royal Challenge Premium Lager 0.6Carlsberg 7.6 Okocim 5.1    Tuborg 1.3    Carlsberg 1.2Mohan Meakin 3.1 Golden Eagle 1.7    Black Knight 1.1    Vorion 0.2Anheuser-Busch 2.1 Budweiser 2Molson Coors 0.2 Cobra 0.2

Source - http://articles.economictimes.indiatimes.com

Page 8: Cadbury launches beer

MARKETING STRATEGIES• Differentiated strategy - Multiple niches: focus efforts on 2 or

more, tightly defined targets

• Initial Year target - Geo-demographic – (A1,A2,B1,B2,C SEC)• Following years – Behavioral segmentation in all SEC categories.

• Brand Personification – A get going Attitude with never ending Fun

• Stay off the surrogate-advertising route

• Concentrate on sponsorships and other promotional activities

• Organizing Fests – Beer-up! Enter Exhibitions and other beverage showcasing platforms and award shows.

Page 9: Cadbury launches beer

• The Cable Television Network Rules, 1994, the Advertising Codes of Doordarshan, and the All India Radio and Norms for Journalist Conduct issued by the Press Council of India prohibit any advertisement directly or indirectly promoting the production, sale, or consumption of cigarettes, tobacco products, wine, liquor, or other intoxicants. However, some states allow advertising through billboards, signboards etc. but subject to many restrictions. Also, the ASCI Code prohibits use of minors for advertising alcohol products

• Beer like all spirituous beverages is a state subject and governed by the state governments. Thus there are as many Tax/Duty slabs as the number of states. They also have interstate levies on stock movements.

CHALLENGE

Source- http://www.mondaq.com/india/x/192384/advertising+marketing+branding/Advertising+Law+in+India

Page 10: Cadbury launches beer

Market Presence• HOTELS Blind tasting Sampling Offers Offer Valuable Incentives to Motivate Distributor

Sales-Reps and Retailers to promote your New Beverage

• CONSUMERS Blind tasting Fests Offers for initial try and try to convert in loyal

consumers with Feedback. Alternate Use Talk with the “influencers”

Page 11: Cadbury launches beer

SALES STRATEGYCorporate-level strategy –

Expanding in the New Market by introducing BeerCules in India.

It aims to capture atleast 10% of the Indian beer marketshare at the end of first year of Launch.

Business unit-level strategy –

The operation will be looked after by Cadbury India with all sales and distribution done by the existing distributors in various ways.

Market-level strategy –

Market Penetration and introducing new forms of beer would be preferred.

Geographical expansion will also be looked into in the near future.

Page 12: Cadbury launches beer

Sales Organization

Page 13: Cadbury launches beer

Sales Channel

PUSH Strategy

Page 14: Cadbury launches beer

Sales Process

Page 15: Cadbury launches beer

State/UT BeerAndaman & Nicobar Island 532Andhra Pradesh 104Arunachal Pradesh 346Assam 19Bihar 17Chandigarh 42Chhattisgarh 27Dadra & Nagar Haveli 498Daman & Diu 1,079Delhi 86Goa 108Gujarat 3Haryana 43Himachal Pradesh 73Jammu & Kashmir 7Jharkhand 14Karnakata 102

Kerala 102Lakshadweep 0

Madhya Pradesh 12Maharashtra 19Manipur 6Meghalaya 49Mizoram 2Nagaland 23Odisha 20Puducherry 144Punjab 50Rajasthan 43Sikkim 307Tamil Nadu 85Tripura 2Uttar Pradesh 5Uttarakhand 43West Bengal 12

State-wise Alcohol Consumption

Source - http://www.mapsofindia.com/my-india/india/alcohol-consumption-in-india

Page 16: Cadbury launches beer

Sales Territories

Focus on major Beer Revenue Generating states as priority

Andaman & Nicobar Island Andhra Pradesh Arunachal Pradesh Dadra & Nagar Haveli Daman & Diu Delhi Goa Karnataka Pondicherry Punjab Maharashtra

Page 17: Cadbury launches beer

Sales Quota Particulars Competitors BeerCules

Sales % commission for Distributors

10-12% per bottle 1 bottle free of every pack of 6

Sales Commission for connoisseur and sales men

Page 18: Cadbury launches beer

Presented by –Krutika PanariPritam KarNeha SharmaMohit Maheshwari


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