Group Members Navneet Sharma Aditi Ambaskar Nikita Desai Shivam Pandey

Introduction United Breweries Limited (UBL) was founded on March 15, 1915, in Madras by Thomas Leishman, a Scotsman, also its first Managing Director.

It all began with 5 breweries in South India , sold in bullock carts.

The company was bought by late Mr. Vittal Mallya in 1947.

The Dhaka-born Mallya invested heavily in the shares of United Breweries in the late 40s with an eye on its eventual acquisition.

Vittal Mallya was elected to the Board of Directors of UBL in 1947 at the age of 22 and a year later became its Chairman.

Vittal Mallya was succeded by Dr. Vijay Mallya, was elected by shareholders as Chairman of UB in 1983, at the age of 28.

Dr.Mallya is till date the chairman of the company.

During the time of Vittal Mallya, the sight of bullock carts carrying huge barrels called “ hogsheads “ containing beer became a household sight.

These carts wheeled their way to the customers, including British troops, living in and around Madras, Bangalore and the Nilgiris.

Continued…

Mission Statement We constitute a large, global group based in India. We associate with world leaders in order to adopt technologies and processes that will enable a leadership position in a large spectrum of activities.

We are focused on assuming leadership in all our target markets. We seek to be the most preferred employer wherever we operate. We recognize that our organization is built around people who are our most valuable asset. We will always be the partner of choice for customers, suppliers and other creators of innovative concepts. We will continually increase the long-term value of our Group for the benefit of our shareholders.

Quality Statement Quality leadership is vital to the long-term success of the UB Group in an increasingly competitive marketplace.

Building quality into our workplace, products and service is essential to a successful future for our customers, employees, supplier’s communities and shareholders.

The UB Group will work to provide products and services that always meet or exceed expectations.

Management will commit resources and create an environment in which each employee can contribute skills, talents and ideas to a never-ending process of improvement and innovation in all aspects of our business.

Strategies at CorporateLevel

The Group expanded by acquisition, innovation in products and entering new markets.

Currently, it is more focused on introducing more products in the existing markets and through Globalization it entered Europe, Africa.

Started Kingfisher airlines in 2003, which became an international airline in 2008.

Strategies at DivisonLevel

Almost all acquisitions have been very successful for the Group.

Acquisitions :

Alcoholic Drinks: McDowell, Shaw-Wallace, Whyte and MacKay, etc.

Airplane: Air Deccan

They have moved into sporting events like Force India and Royal Challengers Bangalore.

Also started up with an entertainment channel NDTV GOOD TIMES

Launched the Kingfisher Calendar in 2003, which mostly acted as a promotional instrument for Kingfisher as a Brand.

Strategies at SBULevel

New Marketing Initiatives - Tetra packs(180ml) - Sachets - Miniature Bottle

New Product Initiatives - Kingfisher Draught - McDowell’s diet mate whisky - Romanov unique diet vodka

Overall industry rating: highModera

te low

Threat of new entrants. X

Bargaining power of buyers. X

Threat of substitutes. X

Bargaining power of suppliers. X

Intensity of rivalry among competitors. X

Porter’s 5 Forces Model

Threats of New Entrants Threat of new entrants is towards lower side.

Economies of scale in manufacturing, distributing, and marketing create high barriers to the national and global markets.

The capital needed to build beer manufacturing facilities and the costs associated with operating business on a national scale are extensive.

The costs associated with this highly controversial industry seek high levels of sales, thus making the industry more and more prohibitive for newcomers.

Bargaining Power of Buyers Barraging power of buyers is high.

The quantity of alcoholic beverages that a nation consumes tends to be unaffected through recession and prosperity while the quality of the products purchased is directly related to the disposable income.

A decline in disposable income shifts consumer preferences away from premium-priced brand-name products in favor of lower-priced brands i.e switching cost is low.

Threat of Substitutes

Threat of substitutes is low.

Customer loyalty through brand awareness.

The advertising restrictions placed on alcoholic beverage industry in recent years make it harder to achieve brand loyalty.

Bargaining Power of Suppliers

Supplier Power is low.

Products used to brew beer are inexpensive and suppliers are numerous.

Intensity of Rivalry amongstCompetitors

Moderate.

Rise in legal and regulatory burdens, leads many manufacturers to merge in order to lower competition. Acting as oligopolies, they ensure high profit margins, cash flows, and investment returns.

Though the competition is tough, The Kingfisher brand is the one of the largest supplier of beer, & the third largest producer of distilled spirits.

SWOT Analysis

• Strongest Worldwide Distribution System.• Huge Finances backing from UB Group.• Oldest & Largest Player In India• Worldwide known Brand

• Different Brands under Same Company• High Concentration on Strong Beer Market

• Beer consumption is increasing• Reduction in Taxes• Brand Extension Benefits

• High Taxes & Regulations• Prohibition on Advertising• Indian Culture is a Major Hindrance• Many International Player Entering In India

Strength

Weakness

Oppurtunities

Threat

BCG MATRIX

AnyQuestions ?

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Statutory warning: Consuming alcoholic drinks is injurious to health.