2. • 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
3. 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.
4. 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
5. • 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?
6. 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-
7. 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 0.2
SABMiller 25.6 Haywards 15
Knockout 8.7
Foster's 1.3
Royal Challenge Premium Lager 0.6
Carlsberg 7.6 Okocim 5.1
Tuborg 1.3
Carlsberg 1.2
Mohan Meakin 3.1 Golden Eagle 1.7
Black Knight 1.1
Vorion 0.2
Anheuser-Busch 2.1 Budweiser 2
Molson Coors 0.2 Cobra 0.2
Source - http://articles.economictimes.indiatimes.com
8. 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.
9. • 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
10. 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”
11. SALES STRATEGY
Corporate-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.
16. 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
17. 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
