The reason: Kingfisher is being repositioned as a beer of international standards. Says Kalyan Ganguly, CEO, breweries division: "We want Kingfisher to be one of the top beer brands in the world. It is a truly Indian brand which is going global." Targets are high: over the next five years, Kingfisher will be the platform through which UB's international market will double the Indian business.
Some would say that Kingfisher is already close to achieving that target. Sold in 17 countries, the brand, which accounts for nearly 21 per cent of India's beer consumption, is the leading Indian beer both in the US and the UK. "UB already has 42 per cent of India's beer market. Now we are looking at new thrust regions—in eastern Europe, South Africa and neighbouring countries," says Ganguly.
Going global is not easy, as UB is only too well aware. The company has had to take a good look at the brand which accounts for nearly 60 per cent of its beer business and fetches revenue worth Rs 140 crore. It was decided that Kingfisher's core brand values—youth, trendiness, lifestyle—would have to be spruced up and given a new image. "The world over, the West Indies team stands for all the things we wanted the brand to convey. That is why we chose the West Indian team for our sponsorship. From now on, Brian Lara and his teammates are going to be the face of the brand," says Ganguly, reaffirming that the sponsorship of the West Indies team will continue and not end with the World Cup.
Cricket and the West Indian team may well be the right peg for Kingfisher, but UB is hedging its bets by launching a two-pronged attack. Next on its agenda is Formula 1 racing which Ganguly claimshas enough viewer ship and glamour to provide a useful launch pad for Kingfisher. UB has already shown its willingness to spend. World Cup viewers have been bombarded with Kingfisher ads and a new campaign is slotted for release over the next couple of weeks. Says K.K. Batra, vice-president, coordination and projects, breweries division: "Marketing costs are going to rise further." Last year, UB spent 6 per cent of its net sales revenue on advertising and sales promotion. This year the figure is 8 per cent, and is expected to rise to 11 per cent in the next few years.
As important as the brand image itself, are the logistics of selling a beer in new markets. UB is looking as far as Australia, New Zealand, African and European countries and at the same time, markets closer home like Sri Lanka, Myanmar and Nepal. They are all open markets, and their consumers are familiar with all the top brands. "These are growing markets. At the same time, our entry costs will not be so high that we will be killed before we can make an impact," says Ganguly optimistically.
Getting distribution rights is half the battle. UB executives are busy tying up deals across the world. Two joint ventures are being planned in Lusaka and Colombo. The Lusaka project will be a joint venture between Lonrho of UK and UB, each picking up a 35 per cent stake in a local brewery (capacity: 750,000 hecta litres). Ganguly is targeting a 7 to 10 per cent market-share within the next few years. Sri Lanka will be an equally important project. According to Batra, UB has tied up with one of Colombo's key distributors. The Sri Lanka market is growing at a healthy 10 to 11 per cent every year and Kingfisher is hoping to gain an 18 to 25 per cent mar-ketshare over the next five years.
Apart from these tie-ups, UB is looking at licensing arrangements in the US and Australia. Meanwhile, it has brought in Brian Little, who has 25 years experience in Guinness, as executive vice-president (technical) to oversee the brewery process. Ed Clark has come in from General Motors as group vice-president, HRD. Recently, UB sent its vice-president, marketing to Harvard for a training programme.
It is obviously no-holds-barred for the UB. But will Kingfisher do what its makers hope it will do? It just might, with the world's best batsman on its side.
