Carlsberg

CARLSBERG
INDIAN BEER MARKET IS EXPANDING LIKE NEVER BEFORE. WHILE THE

WORLD MARKET HAS ALMOST STAGNATED, BEER CONSUMPTION IN
INDIA IS GROWING AT A RATE OF ALMOST 12%.
MAJOR INTERNATIONAL PLAYERS HAVE VENTURED INTO THE INDIAN
SCENARIO. CARLSBERG IS ONE OF THEM. WE HAVE TRIED TO
UNDERSTAND THE STRATEGY ADOPTED BY THE CARLSBERG GROUP BY
4PS, STP AND PESTEL ANALYSIS.
Summary
Danish brewer Carlsberg entered into the Indianmarket in 2006

and operates here through ajoint venture named South Asia
Breweries.
Carlsberg has positioned itself as a premium mild-beer. With the

launch of itsflagship brand, the company is trying tocreate a
premium, all-malt beer category.They have positioned their
product in all the metros and the major cities ofIndia.
About the Company: "Probably

the best beer in the world"
The company was formed in 1847 by J.C. Jacobsen outside

Copenhagen, Denmark, and named after his son Carl.
Exportation of Carlsberg Beer began in 1868; foreign brewing

began in 1968 with the opening of a Carlsberg brewery. The
company's main brand is Carlsberg Beer, but it also brews Tuborg
as well as local beers.
Aftermergingwiththebreweryassets of Norwegian
conglomerateOrklaASAinJanuary2001 Carlsberg became the
5thlargest brewery group in the world.
In 2009 Carlsberg is the 4th largest brewery group in the world

employing around 45,000 people.
Carlsberg India Pvt. Ltd. headquartered in Gurgaon, National

Capital Region and India is a foreign direct investment company
formed to brew and market Carlsberg beer in India.
Carlsberg operates in Indiathrough a joint venture named South

Asia Breweries, in whichit has a 45 per cent stake.
Carlsberg Group has ventured into the Indian market with its
three brands Okocim Palone, a strong beer, Tuborg and Carlsberg,
in the mild-beer section.
4Ps
Products: Three product have been launched in India. i.e.

Carlsberg, Okocim Palone and Tuborg.
Price: Different variants have different price, Carlsberg Pint

(330ml) costs Rs.40, Tuborg Rs.30, whereas the bottle (650ml) of
Okocim Palone willcost us Rs.50.
Place: All the metros and major cities especially north and
westIndia.
Promotion: Targeting the youth with their mild section, have a

variantfor strong section, free-sample, social networking.
STP
Segmentation: Carlsberg group has tried to segment the market on thebasis of

urban and rural population moreover they have also tried to segment on the
basisof geography concentrating more to the northern and the western region of
the country.
Target Market:The Carlsberg group has majorly tried to cater to the younger
consumer and with its product Okocim Palone it hastargeted the section who likes
tohave a stronger beer.
Positioning: It haspositioned itself as a premium mild beer. Carlsberg as compared

to its counter-partis costlier and with the launch of its flagshipbrand, the company
is trying to create a premium, all-malt beer category.
Moreover STP and 4Ps analysis show that Indian breweries market is open
forinternational players and they can very well cash-in ontheir international brand
recognition.
PESTEL Analysis ofCarlsberg

Political :
The scenario of India is very different from rest ofthe world. Any
company venturing into the Indian market will have to study the
politicalenvironmenthere.
Different states have different rules for liquor. Some states like
Gujratare Dry states where the sales of liquor are completely
banned. Some states have time limits i.e., after 9 the salesof
liquor are prohibited. Even theage limitfor drinking inIndia is
under discussion. Rightnow itis 25, so Carlsberg has to be very
specific when targeting its consumer.
Economic
The economy of India is changing. There is a rise in per capita

income and as a result the disposable income of people specially
living in urban cities isalso increasing rapidly.
The Carlsberg group has realized this potential and thus has
targeted only the urban cities of India in their early stage
topenetrate the market.
According to the MD of the Carlsberg Group, Mr. Gidwani,

Carlsberg has aimedto grab a market share of approx. 10 %
bynext 2 years, oncethattarget is achieved, they will expand
theirbase to other cities and rest of the country.
Social
As India is said to be the land of diverse culture, we cant

categorize India under one segment.
The northern part is completely different from the southern part.

Per capita income is rising, but at the same time the gap
between the haves and have-nots is alsowidening. Though we
hope that this gap will be narrowing in the near future, but the
scenario is a bit bitter rightnow.
There is a school of thought against the so calledpub 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 thenew Indian who is open to change.
Technological
Importing beer attracted heavy taxes from the government

resulting in higher prices of the same. Therefore to increasethe
base in the Indian market, it was advisable to set up plant in
India itself.
With the joint venture with South Asia Breweries Carlsberg has
set up four breweries in Rajasthan, Maharashtra, Himachal
Pradesh and 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 summertime.
As the company is new, we yet have to see its effect on

environment and vice versa.
Legal
Again The Carlsberg Group is very carefulabout the steps it takes

because ofthe political environment which could land it in
trouble.
As the laws are different for different states, Carlsberg India has
played smart in making a social networking website so that its
purpose of marketing is also solved and it didnt cross the line of
the law as well.

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CARLSBERG

INDIAN BEER MARKET IS EXPANDING LIKE NEVER BEFORE. WHILE THE

Danish brewer Carlsberg entered into the Indianmarket in 2006

Carlsberg has positioned itself as a premium mild-beer. With the

About the Company: "Probably

The company was formed in 1847 by J.C. Jacobsen outside

Exportation of Carlsberg Beer began in 1868; foreign brewing

In 2009 Carlsberg is the 4th largest brewery group in the world

Carlsberg India Pvt. Ltd. headquartered in Gurgaon, National

Carlsberg operates in Indiathrough a joint venture named South

Products: Three product have been launched in India. i.e.

Price: Different variants have different price, Carlsberg Pint

Promotion: Targeting the youth with their mild section, have a

Segmentation: Carlsberg group has tried to segment the market on thebasis of

Positioning: It haspositioned itself as a premium mild beer. Carlsberg as compared

PESTEL Analysis ofCarlsberg

The economy of India is changing. There is a rise in per capita

According to the MD of the Carlsberg Group, Mr. Gidwani,

As India is said to be the land of diverse culture, we cant

The northern part is completely different from the southern part.

There is a school of thought against the so calledpub culture and

Importing beer attracted heavy taxes from the government

According to the company sources, it is using an advanced

Environmental factors include the weather and climate change.

As the company is new, we yet have to see its effect on

Again The Carlsberg Group is very carefulabout the steps it takes

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