Finalist presentation @ IIM - Lucknow for business idea that uses agricultural produce

1. Symbiosis Institute of Management Studies
Team : Undercover Consultants
Siddhartha Sankar Banik
Bhanu Pratap Singh
V
A
L
O
R
A
C
I
O
N

2. Our Approach
What are we serving?
Who’ll buy it?
Why would they buy it?
How will they know about it?
VALORACION
Undercover Consultants

3. Our Approach
What are we serving?
Who’ll buy it?
Why would they buy it?
How will they know about it?
VALORACION
Undercover Consultants

4. Our Approach
What are we serving?
Who’ll buy it?
Why would they buy it?
How will they know about it?
VALORACION
Undercover Consultants

5. Our Approach
What are we serving?
Who’ll buy it?
Why would they buy it?
How will they know about it?
VALORACION
Undercover Consultants

6. What are we serving: Need Gap & Feasibility Analysis
N
E
E
D
G
A
P
Present Beer Market in India
• Only one kind of beer - Commercial Lager
• Supply-chain Issues
− Fluctuating Temperatures
− Poor Storage
− Transportation issues
• Bottled beer as old as 5 months before reaching customer
• Bottled Beer is chilled just before consumption
• Sulphur dioxide used as preservative
Our Offering
• Wider Choice and Better Quality beer
• Produce limited quantities of beer each day
• No bottling
• High concentrations of Vitamin B6
• Chemical and Preservatives free
Production of Raw Material in India
• Wheat
: 9.2 crore metric tonnes*
• Barley
: 17 lakh metric tonnes*
Market Size of microbrewery industry: Rs. 125 crore**
Social Considerations
• Disposable income in hand of young Indian population
• Indians mainly hard liquor consumers
Legal Considerations
• Licence from the excise department needed
• Time consuming task – separate brew and sell licences
Cost Considerations
• Rs. 6 crore on average to set up a microbrewery**
Political Considerations
• Haryana, Karnataka and Maharashtra give out licence**
Technical Considerations
• 2 years to train a student of microbiology***
• 3 schools that provide a degree in brewing technology***
* Source : Refer Appendix 2
VALORACION
Undercover Consultants
Slide 5 of 14

7. Who’ll buy it?
Age
Socio-economic Class
Professionals
25 years - 45 years
VALORACION
Leisurely
TrendSetter
Footloose
Globetrotter
Behavioral traits
Psychographics
Social
Accomplished
individuals
Variety
Seeking
Loyal
Undercover Consultants
Socially Connected
Tech savvy
Slide 6 of 14

8. Why would they buy it: Elixir Beers
About Elixir
• A great beer, simply put, is fresh and flavourful. We aim at offering freshly brewed beer of different
varieties that is handcrafted by our master brewer for the privileged few who appreciate the taste.
Over the period of your visit, let us tempt your taste buds with delicious bursts of flavour
• Shrug off the stress, slip out of the heat, leave boredom behind and free your mind to wander through
myriad avenues of pleasure. Indulge yourself in a variety of activities designed especially for your
entertainment with refreshing Elixir
Product Offering
• Elixir der Adam – Apple Cider
• Elixir der Weizen – Wheat Beer
• Elixir der Café
– Coffee Bear
Value Proposition
• Freshly brewed beer from the casks of Elixir is targeted at spirited youth in search of handcrafted, world class
and high quality beer to be enjoyed with friends
VALORACION
Undercover Consultants
Slide 7 of 14

9. Reach - Rope-in - Retain: Mar-Com for Elixir
•
•
•
•
•
•
Objective : Reach - Rope-in - Retain
Direct advertising of alcoholic beverages is prohibited in India
All marketing collateral will refer to Elixir Beer indirectly
Promo cards to be distributed through newspaper vendors and distributors
Online media would be used for advertising and promotion
Promotional activities will be below-the-line
Promo cards
VALORACION
Undercover Consultants
Slide 8 of 14

10. Reach Out: Online Media Activities
• A Foursquare app where users can promise to buy an Elixir beer for a
friend. Users then get a notification when the friend ‘checks in’ to the
microbrewery, and users can buy them a beer – the bartender
receives a notification and serves them
• The ‘JUST CHILL’ contest. Tag all best buddies in the comment box of
the Elixir Beer Page and the one with the longest list will be crowned
as the winner
• Create your Elixir. Crowd-sourced beer made through voting on
ingredients to the name of the beer
• ‘Untappd’ is a kind of Twitter for beer lovers, where users say what
and where they’re drinking. No beer marketers seem to have used it
for marketing purposes yet
• Suggest a beer - User suggests an Elixir Beer flavor for a friend. If they
like it, user gets points. Accumulated points can be redeemed for
discounts
VALORACION
Undercover Consultants
Slide 9 of 14

11. Rope-in: Beerlympics
Guzzle Relay
Teams of 4 people line-up against
each other, chugging their glasses of
Elixir beer – the next person from the
team can start drinking only once an
empty glass is placed safely on the
head. Spill beer on the napkin or
head and 10 seconds will be added to
player’s total time
Jenga
The classic 54-block tower with a
deliciously evil twist, beer Jenga tests
your physical and mental skills.
Players take turns to remove two
blocks from an increasingly unstable
tower of blocks - except, every Jenga
piece gets them progressively
inebriated
Darts
Test dart throwing skills in this version
of the favorite pub pastime. Stack up
seconds with a quick chug, collect
points based on aim
Beer Pong
Elixir Beer filled cups arranged in a
triangular shape at either end of a
table; the objective of the game is
simple: throw the ping pong balls in
beer cups and drink
VALORACION
Undercover Consultants
Slide 10 of 14

12. Retain: Below-The-Line Promotions
•
•
•
•
•
•
Organize Beer Festival and promote home brews
Margins can be boosted significantly by creating combos of Elixir beer and food
‘Happy Hour’ prices and Group offers will help normalize demand during lean hours
Special discounts to loyal customers will help retain them
Sponsor radio contests and give away coupons and passes to the microbrewery
Induce trials using sample shots at Farmer’s markets
[https://www.facebook.com/PuneFarmersMarket]
Goodies & Take-aways
Bags
VALORACION
Umbrella
Undercover Consultants
Pen drives
T-Shirts
Slide 11 of 14

13. Pros & Cons of Integrated Marketing Campaign
Media/ Activity
Pros
Cons
Promo Card
Distribution
• Wider reach through newspaper
• Targeted reach through distributors
• Goes unnoticed
• Depend on mood of the distributor
Online Media
• Create pull for the customers
• Instant feed back is received
• Campaign can be changed if negative
reviews are received
• Demand prediction based on advance
bookings
• Cost involved in development of apps is
high
• Tie ups with payment gateways is
complicated
• Competitors may hijack the campaign
(replication and negative reviews)
BTL activities
• Up selling because group of people
encouraged
• Extended hours spent by customers
• Cross selling of merchandise
• Poor event promotion may lead to poor
response, may lead to failure of campaign
• Opportunity loss because of space
constraint
• Managing huge crowd is difficult
Marketing
Campaign
• Less costly because of chosen media mix
• Future cash flows ensured
• Newer customers and wider publicity
• Drop in level of service because of huge
crowd
• Loyalists may feel left out
VALORACION
Undercover Consultants
Slide 12 of 14

14. Cost Effectiveness
Activity
Detail
Cost
(in Rs.)
News paper Vendors
5 Vendors * Rs. 100 * 6 Days
3,000
Promo Card Distributors
5 Distributors * Rs. 200 * 3 Days
3,000
Application Development
Payment Gateway tie up (PayU)
20,000
One time Setup Rs. 6000+ AMC Rs. 2400
Rent of Space for Event
Merchandise + Printing
10,000
Rs. 25000 + Rs. 10,000
Event Manager
Radio Tie Up
35,000
5,000
Barter Deal
0
Total
•
•
8,400
84,400
•
•
# - Please refer Excel sheet
All estimates based on
Qualitative interviews
Expected increase in sales (%): 85#
ROI (Increase in Sales to Marketing Investments): 2.07 #
VALORACION
Undercover Consultants
Slide 13 of 14

15. Thank You

16. Appendix 1 : The Brewing Process
VALORACION
Undercover Consultants

17. Appendix 2 : References
* http://www.mcxindia.com
** http://articles.economictimes.indiatimes.com/2013-03-16/news/37767224_1_microbrewery-craft-beer-brew-beers
*** http://businesstoday.intoday.in/story/the-story-of-the-indian-microbrewing-industry/1/190231.html
VALORACION
Undercover Consultants