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
250,000.00 200,000.00 RS. millions 150,000.00 15 30 25 % age growth 20

100,000.00
10 50,000.00 0.00 2006 2007 2008 Year 2009 2010(e) 5 0

Rs. million % Growth

In 2010, Indian beer market grew by 17.1% to reach a value of $5,022.8 million. CAGR for period 2006-2010 was 21.9%.

Data source: Datamonitor

Market Volume
1800 1600 1400 1200 Volume 1000 800 600 400 200 0 2006 2007 2008 Year 2009 2010(e) 18 16 14 % Growth 12 10 8 6 4 2 0 Volume (million ltrs) % Growth

Volumes grew by 13.8% in 2010 to reach a volume of 1,687.4 million liters. CAGR for period 2006-2010 was 14.4%

Data source: Datamonitor

Market Characteristics
Market Segmentaion
Standard lager 91.8% Premium lager 8.2% Ales, stouts & bitters 0.0% Low/no alcohol 0.0% Specialty beer 0.0%
Data source: Datamonitor Data source: Datamonitor

Market Share
United Breweries Limited 42.4% SABMiller 22.8% Mohan Meakin Limited 5.3% Others 29.4%

Standard lager is the largest 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.

United Breweries Limited is the leading having a 42.4% share of the market's volume. SABMiller comes second and accounts for 22.8% of the market.

Environment Analysis

PEST Analysis

Political

Market Liberalization Stringent Legal Policies

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 Rise in middle class and increase of urbanization

Social

Innovation and Development of new products Technologi State of the art of brewery technique cal

Industry Analysis
Porters Five Forces Analysis
Buyer Power Medium Supplier Power Medium New Entrants
Supermarket chains are able to negotiate very strongly on price But producers can also differentiate their products quite strongly

Degree of rivalry

Buyer Power 5 4 3 2 1 0

Supplier Power

Non-vertically integrated businesses Independent barley growers can find alternative markets

New Entrants

Substitutes

Medium
Substitutes Medium Rivalry

Barriers to entry are high. But new entries can happen through differentiated products.

Data source: Datamonitor

Main substitutes are spirits and wine. Switching costs are not high for retailers.
Market is highly concentrated high competition. Purchasers have low relatively low switching costs.

Medium

Indian beer market is highly concentrated, with the top three players holding 70.6% of the total market volume. Overall attractiveness of the market is medium

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 companys 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?

70% of the social media users in India accessed a social networking site daily-Neilsen survey

37% of the heavy social media users in India fall in the age group of 21-30 years (alootechie.com, Sept. 2010)

The age group 21-30 years is the targeted segment for Beer market. They talk alot on social media, which can be exploited 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
45+ 36-45 MALE FEMALE 77% 26-35 18-25 13-17 0 0 4 23 58

Audience Age Distribution

23%

15
20 40 Percentage 60 80

Beer brands have more male patronage than female.

People in the age group of 18-25 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 VIDEOS DISCUSSIONS NEWS

Budweiser
Haywards 5000 Foster's Heineken Carlberg Tuborg Kingfisher 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

OTHERS
FACEBOOK TWITTER FLICKER

Beer brands get highest coverage from Twitter and News.

Share of Voice and Brand Opinion

Share of Voice
Kingfisher Tuborg Carlsberg Heineken Foster's Haywards 5000 Budweiser Miller Lite

Brand Opinion
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0%

20.0%
10.0% 0.0%

Kingfisher has the maximum share of voice among all the brands, amounting to 88.3%. No doubt that it is the market leader.

Positive

Negative

Neutral

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 70 60 50 40 30 20 10 0

Kingfisher has the highest Influence score, which make it the most talked about brand among competitors. Fosters and Miller Lite have the highest Opinion score, which means that they have very less 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 Affinity
BLOGS DISCUSSIONS

Buzz score*
80 70 60 50 40 30 20 10 0

NEWS
TWITTER OTHERS

People use twitter most to talk about beer than any other platform.

Kingfisher has the maximum buzz 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 30 20 10 0 Opinion Score Influence Score

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% 1% 10% 16% 47% IPL (Cricket) People 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. Courtesy : www.wordle.net Second most talked about keyword is Kingfisher. Common people relate beer with 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 companys 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.

Social Media Management SAAS Infrastructure

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Prepared by Karan : Social Media Research Analyst @ simplify360
(c)2012 InRev Systems