An Analysis Of The Ub Group United Breweries Marketing Essay

An Analysis Of The Ub root United Breweries Marketing EssayThe inception of UB assembly dates underpin in the late 19th Century in the year 1857. When beer was being distri notwithstandinged employ bullock carts in casks and the largest number of customers were the defense personnel. Positive evolution has been undertaken in the party as United Breweries is manu pointuring and delivering beer around the whole world fulfilling the customers wants across generations and continents.Today, UB Group records remark subject success over the make it 94 years of operation. UB Group is a large Holding Company that majorly owns five companies United strong drink Limited (USL), United Breweries Limited (UBL), Kingfisher Airlines, Mangalore Chemicals and Fertilizers Limited (MCF), UB Engineering that have seen the company star topology in market divide worldwide. The companies, United Spirits and United Breweries have attained landmarks with revenue shooting beyond peerless hundred mi llion. In the like line United Spirits has developed into close proximity to the planets major distiller. United Breweries also has recorded increase sales for the first moment in date that surpass half of market plow control in the exceedingly cutthroat brewing space. Other companies too have performed outstandingly well.Propel lead by the countrys endeavored growth trajectory growth in Gross Domestic Product (GDP) as well as by quantification of poverty reduction, the company is geared towards attaining high goals and objectives. The company is led through with(predicate) corporate Governance in light of transparency of high principles through substantial promoter holding constituents of the Board which include four directors. The company enjoys endowment of knowledgeable and distinguished individuals who supplement external and internal perspectives that offer great support to the Board.UB Group reserves a wealthiness of employee with specialized skills and an undeterred c ommitment to their jobs allocated. The Group is led by the chairman Mr. Vijay Malaya, who succeeded his father position. He has a wide experience and skill in perplexity having trained in several courses. He is remarkably the foremost Indian to be holder of formula one team. He is the Groups Chairman in India and USA.Consumer novelty is increasingly evolving and businesses have looked for different authoritys to identify their needs and attendantly satisfy them. Market summary techniques have intensively and extensively looked into consumer behavior and cut in the market to identify the marketing opportunities and explore them by meeting the desires of customer in a more profitable manner. UB Group has r apiece outd to amass the biggest share of the market in India and the world as well. A deep analysis of the market analysis techniques used by the company will be undertaken to piddle the opportunities that the company had realized in its various investments and enhanced ser vice delivery (Kress Snyder, 1994).Market segmentation involves three basic steps in developing a market entry strategy. Although in essence it just groups the market by common features of certain groups with a focus to demography, these steps help in citing the differences correctly. commencement ceremony the customers are grouped according to their needs and reactions to as to categorically know what type of products the market want, how much by what group of customers. This will forge the way forward in the design of the product (Nelson, 2010). UBLs market is projected to expand significantly owing to the fact that Heineken Internal is signing a shareholder agreement, simply most contributing factor is the leverage Heinekens distribution strength that will spearhead the marketing of Kingfisher Beer in the chosen International Markets.Second, after determining the wants you realize the segment which you are to deliver your products. Thirdly, you have to lie down and come up wi th a product portfolio so as to be able to aegir the trend, cost and extent of the product in terms of distribution. Demand has to be looked into in the first steps. Market segmentation gives a more precise information and analysis which to the business is significant in making projections while identifying the real opportunity in the market. There are different means however of how to achieve through a market segmentation, it is fundamentally through the company cap faculty that this can be effectively be achieved.The Group is committed in its function in corporate social responsibility. Over the years the company has been keen to endeavor in dealings in the area of Life Sciences that have led to the development of Mallya Hospital at Bangalore that has a touch to the underprivileged in the community by offering them subsidized service. The hospital has owned the reputation of use exceptional medical equipments that translated into quality medical care and the most excellent med ical consultants. The hospital has registered significant improvement and development, today, the initially 150-bed hospital has been turned into a 450-bed hospital of which an estimated of 50 beds are set aside to specifically care for seriously ill patients. The company boasts of this community extension service owing to the fact that it was the first Indian Hospital to be awarded ISO 9002 certification.Group Company has taken aggressive exporting as a market strategy for marketing its products sort of than partial exportation bearing in mind that it produces different brands, it does not wait for orders but goes to look for them. It has extensively built branches in many split of the world, other than India, so that it stores its products as it seeks or attends to the demand already identified in the market.The fancy up analysis is a useful tool for understanding markets and subsequent decision making for all sorts of available opportunities in the market. Determination of th e Strengths, Weaknesses, Opportunities and Threats are critical in getting a good review of strategy and path of a company proposition of investment in a market. However, in order to increase on the reliability of the SWOT analysis it is critical that one completes a PEST analysis first.PEST analysis is a fundamental tool in understanding the market opportunities and growths attached to it after ones investments. The acronym stand which implies a critical brainstorming review of the market Political, Economic, Social and Technological factors has proved to be fundamental in assessing organizations markets. It gives the indicators of the challenges and advantages both in political, social and economical aspects of the market.Group Company proved to have ventured in their market through critical review of this using this method as reflected in the success factors and the choice of the countries it has invested in. Its investments in USA for example, was due to their political and eco nomic stability, and an extended hand in the purchasing power of the customers which was intriguing, as reflected in the high success of USL and UBL in America. SWOT on the other hand restrained the company from backcloth up its manufacturing companies because of the fluctuating economic status of the county.Group Company were able to assess their markets using Porters five forces model that enabled them gauge the markets competitive strength and position. Bearing in mind of the stiff contender, the company innovatively increased its number of brand and ventured into aggressive exportation of its products. It got into partnership with its promoters so as to increase the sales turnover and turned threats of technology obsoleteness by engaging its UB Engineering Company in time to time plant installation and upgrading of plants.The company recognized the existing competitive challenge with its competitors, fully evaluated the threats of the new market identified and the purchasing p ower of the consumers and threats in terms of the immense range of products in the market, and associated changes in prices that cleverness plunge the company into a loss or closure.The company has the biggest market share because of its accrue single window ventures to invest in the global market. Holding Company of the Group manages stakes in UB group pencil lead companies which are United Spirits Limited (USL), United Breweries Limited (UBL), and Kingfisher Airlines (KFA). Each major investment is prevailing leader in their own market because of their spry increasing segment solvent to current emerging customer trends. Other than the three above major successful investments, other group ventures in setting up of industrial plants through its engineering company, and in the manufacture pharmaceutical and fertilizers are improving at a gradual rate. This was reflected in the analysis of the size of it of structure and success of each investment which confirmed a relative rela tionship to their respective market share. The analysis of the market share of the above investee companies was as followsThe UB Group, being one of the forefronts in terms of branded customer group as indicated above, has dominated the industry in three of its consumer driven investments alcohol and beverages which is its leading in market share with 30%, dominated in spirits associated with the different brands quality that today it controls 40% of the market shares, and the aviation which is also leading with 45% of the market share. However, UBE, MCF and AVENTIS might indicate less market shares as compared to the former three of 28%, 22% and 15%, but it is also proud to realize such market shares by the company put it among the top service and products providers in their respective markets.United Spirits Limited (USL) has been the leading and the worlds second largest spirit company with consistent domination and a market share of 40%. Offers a wide variety of brands, over 140 and has specialized in a twenty part of the brands going for multimillionaire ranging from whisky, Brandy, Rum to Vodka and Gin. In the year 2009, the company recorded a turnover of over 90 million in sales revenue. The company has been able to the global market and wins most customers that led to it being voted as the best company and attracted awards across all fields and categories. For instance, instance in June the company was able to win over 108 awards, in all the international wine and spirit contests. The company is thus associated with innovation, the best market entry strategy and market analysis and enjoys being the first single diet whisky manufacture in the whole world.Kingfisher Airline Limited is among the biggest international airline operators serving over cd flights a day in India and over 2500 flights internationally. KAF constantly dominates 45% of the market with a wide reference networks. Its services range from regional to long-haul internal destination s uiting majority of airline customers. Apart from the stylish red interiors in the aircraft that customers enjoy, they are also satisfied with the in-flight entertainment, not to mention the reliable smartly garmented crew and ground staff that meet ones needs on request. For instance, in May 2009, KAL recorded a total of one million international passengers that power saw the company realize the highest market share.UB Engineering is has been renown in the market for turning construction investments and building dreams into a reality. The company has strongly focused on, but not limited to, projects in industrial installation, power, fabrication, fire fighting, and agrochemicals. However a deep concentration on erecting plants with speed and efficiency saw its competition on flexibility realize an increased market share. The companys undeterred commitment to compete on quality made it achieve the award on ISO 90012000 certification. It has widely built its reputation for effectiv e operation covering fitting, gauging and maintenance of mechanical projects (Janssen, 2004).Today UB engineering records substantial turnovers of Rs. 150 Crore with a rapidly increasing trend, the last realized was Rs.275 Crore. One of the leading International engineering companies in the field of installation of industrial plants that is deeply focused on Trunkey Division for developments in great power generation, Fertilizer quality improvement and manufacture, Fire Fighting, sewage Treatment, Agrochemical production among others. ObstaclesThe Group Company therefore has been able to win most markets and realize aggressive growth. Its ability to change its products in line with the customers preferences was because it had mastered the market so well. In the 1950s, it expanded from single production of beer to production of spirits and even went ahead to usurp more acquire companies for production. This notwithstanding, the company in 2003, increased its brands and acquires mor e business for the production of liquor. It was at this time that the company released its most selling brand the Kingfisher.The company has the biggest market share because of its accrued single window ventures to invest in the global market. Holding Company of the Group manages stakes in UB group leading companies which are United Spirits Limited (USL), United Breweries Limited (UBL), and Kingfisher Airlines (KFA). Each major investment is prevailing leader in their own market because of their fast increasing segment response to current emerging customer trends. Other than the three above major successful investments, other group ventures in setting up of industrial plants through its engineering company, and in the manufacture pharmaceutical and fertilizers are improving at a gradual rate. This was reflected in the analysis of the size of structure and success of each investment which confirmed a relative relationship to their respective market share (Janssen, 2004).