Product Strategy By Kingfisher
Kingfisher analyzed the Indian market since the launch of its beer line in 1980. The major factors that Kingfisher capitalized on are:
• Rising income levels of consumers: Indian population counts for 1/6th of the global population making it one of the most attractive markets for any firm. In the last 2 decades the working class of India has grown by 12% and the income growth of the aforementioned class is 21.5%. The growth of living standards has enabled kingfisher to approach a bigger customer base.
• Changing age profile: The high birth rates of India in the 1990’s is the reason why since the dawn of this century, almost 65% of the Indian population is between the ages of 18-35. This age group has been the most appropriate target for kingfisher as this is also the group which has been setting trends and changing the lifestyle of Indian for the past 20 years.
• The climate of India: India is predominantly a warm country and chilled beverages have been a preference for Indians especially during summers. Kingfisher has capitalised on this factor and promoted its beers as “Refreshing”. Indians prefer beer for the “Kick” it gives and kingfisher has made their beers with the maximum alcohol v/v% as compared to other brands.
Product development :
Kingfisher has developed its products keeping in mind the needs of the consumer. In each country kingfisher has ensured it releases products that are apt to the consumer market. Introducing specific beers in specific countries has enabled kingfisher to become market leaders in countries like India, Thailand etc.
• Idea generation: Kingfisher worked on its beer line for 7 years trying to standardize the taste of its products.
• Idea evaluation: Different variants of beer were evaluated and the consumer preferences were analysed by kingfisher in order to ensure that their beers appeal to various consumer segments
• Concept definition: The specifications and style of brewing were decided by the firm. Kingfisher faced its biggest challenge when it had to standardize the taste of its beers and accordingly manage the costs that were incurred.
• Strategic analysis: Kingfisher did extensive market research to determine the demand and estimated the costs that would be incurred in marketing the product.
• Commercialisation: Kingfisher commercialised its brand through an extensive marketing campaign that included promoting its beer line through its other products and services since India has a ban on promoting alcoholic beverages. The taglines like “Divided by teams, United by Kingfisher” have promoted the brand and boosted the sales of its beer line.
• Product launch: Kingfisher successfully launched its beer(Kingfisher Strong) in 1978 and currently holds a market share of 44.7% as of 2017.