SWOT ANALYSIS

COMPETITIVE ADVANTAGE
Management Team Professional Managed Seasoned Professionals with Significant Industry Experience Segment Market Presence Least Vulnerable to Policy Volatility due to Large Spread Local Sourcing Almost Completely Locally Sourced Manufacturing Technology Largest Manufacturing Space Maximum Capital Utilization Branding Value Chain Ownership Initiatives Planned for Integrating into Retailing Core Competency Strong brand image with continuous innovation and technology along with good marketing and distribution channel are the core strength of the company

CARLSBERG

OVERVIEW
Danish brewing company founded in 1847 by J. C. Jacobsen Entered Indian market in 2006 & operates here through a joint venture named South Asia Breweries. Positioned itself as a premium mild beer. With the launch of its flagship brand, the company is trying to create a premium, all-malt beer category. In 2009 Carlsberg is the 4th largest brewery group in the world. Products are sold in more than 150 markets. In 2008 the Group sold more than 120 million hectolitres of beer, nearly 100 million bottles of beer a day. Carlsberg India Pvt. Ltd. headquartered in Gurgaon, National Capital Region, India is a Foreign direct investment company formed to brew and market Carlsberg beer in India. Brought Tuborg and Palone brands into India. Palone is sold as a 'strong' beer with 7.5% alcohol by volume. Strong beers dominate the Indian market, estimated in 2008 to total approximately 17 million hectolitres with over a 72% share.

SEGMENTATION, TARGETING & POSITIONING

Segmentation
International beer companies have a good enough reason to tap markets like India. That their main markets, North America and Europe, are either flat or in a state of decline is no secret. Carlsberg has segmented the Indian market in following ways: a) Geographical Major consumer for alcoholic beverages is Southern India. Consciously chosen the north, east and west regions of the country to set up its breweries Strategy adopted by Carlsberg is to concentrate on to the untapped market of north and west India in the initial stage of the production. Moreover, since it has positioned itself as a premium product, it is only catering to the urban cities of India.

b)

Demographic India is becoming younger. Population of youth is high in India. With its international image as the sponsor of a football team, it has created an impression in young ones mind. Rise in disposable income of the urban middle class c) Psychographic- The culture, the lifestyle, the personality of an Indian is changing which is good for international brands like Carlsberg

Targeting
Urban cities ; It may not be called a niche marketing because of the nature of the product but yes the product is placed at a higher price because of the image of the brand it wants to cash on.

Positioning
Carlsberg has positioned itself as a premium beer in the Indian market. Most expensive beer compared with its competitors Budweiser, the UB Group's Kingfisher and Tiger beer by Asia Pacific Breweries Betting on the shift in urban consumers to spend on quality. Under the process of test-marketing its strong beer brand Okocim Palone from Poland. As its long-term strategy for the Indian market, it plans to deploy a portfolio

PESTEL ANALYSIS
Political
Different states have different rules for liquor. Some states like Gujrat are Dry states where the sales of liquor are completely banned. Some states have time limits i.e., after 9 the sales of liquor are prohibited. Even the age limit for drinking in India is under discussion. Right now it is 25, so Carlsberg has to be very specific when targeting its consumer.
As the advertisement of liquor is banned in India, Carlsberg has cashed its international image to boost its sales in the domestic market. They have targeted the public houses and discotheques for their promotion which is very apt.

Economic
Disposable income of people specially living in urban cities is also increasing rapidly. The Carlsberg group has realized this potential and thus has targeted only the urban cities of India in their early stage to penetrate the market. According to the MD of the Carlsberg Group, Mr. Gidwani, Carlsberg has aimed to grab a market share of approx. 10 % by next 2 years, once that target is achieved, they will expand their base to other cities and the rest of the country.

Social
Per capita income is rising, but at the same time the gap between the haves and have-nots is also widening. Though we hope that this gap will be narrowing in the near future, but the scenario is a bit bitter right now. There is a school of thought against the so called pub culture and then there are rest, but as they say change is inevitable thats why The Carlsberg Group is relying on the change and has targeted the new Indian who is open to change.

 Technological
Importing beer attracted heavy taxes from the government resulting in higher prices of the same. Therefore to increase the base in the Indian market, it was advisable to set up plant in India itself. Carlsberg has set up four breweries in Rajasthan, Maharashtra, Himachal Pradesh &West Bengal to reduce the cost. According to the company sources, it is using an advanced technology to ensure that the beer that gets out is of better quality and great taste.

Environmental
Environmental factors include the weather and climate change. As the climate here is generally warm, Carlsberg increases the promotions during summer time. As the company is new, we yet have to see its effect on environment and vice versa.

BRIGHT FUTURE FOR BEER INDUSTRY

a) Rising Income Levels
o India's 'very rich', 'consuming' and 'climbers' classes to grow at a CAGR of 15%, 10% & 2% respectively. Large proportion of the Indian population is in the age group of 2034 years - most appropriate target for beer marketers. As urban consumers become more exposed to western lifestyles, through overseas travel &media, their attitude towards alcohol is relaxing. Social habits are undergoing a transformation as mixed drinks are becoming more popular. More and more women are consuming beer the penetration in metropolitan areas is almost twice as high as the penetration in other large cities implying that the greater tolerance towards alcohol consumption in metropolitan areas facilitates the consumption of beer.

b) Changing Age Profile

o

c) Changing Lifestyles
o

BRIGHT FUTURE FOR BEER INDUSTRY

d) Reduction in Beer Prices
o o Indian consumer typically values an alcoholic beverage on the basis of its 'kick' factor versus its price. Most states do not have a differential tax structure based on the alcohol content. As far as the Light beer segment goes, there is no existing competition in the market. However, a number of well-established brands, especially lagers, have a significant market presence.

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

India has predominantly a warm/hot climate. 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. 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.

THANK YOU!!
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