The Marketing mix of United Breweries analyses the 4Ps of United Breweries, including the Product, Price, Place, and Promotions. United Breweries Holding Limited was founded in 1857 by Thomas Leishman and has stood the test of the times, emerging as a standout company within the industry. The company is well known for offering market products from various sectors.
Its headquarters is in UB City, Bangalore, Karnataka, India. Some of its subsidiaries include UB Global (trading company), United Breweries Limited, UBICS Inc., and the defunct Kingfisher Airlines. Today, the UB Group is owned by Heineken International (74%) and the UBHL.
Competitors of UB Group
- Reliance Industries LTD
- Bajaj Holdings & Investment LTD
- Mahindra & Mahindra LTD
- Radico Khaitan
- GM Breweries
About United Breweries Holding Limited (UB)
- Type: Conglomerate
- Industry: Beverages, engineering, aviation, and alcoholic beverages
- Founded: 1857
- Founder: Thomas Leishman
- Headquarters: UB City, Bangalore, Karnataka, India
- Area served: Worldwide
- Key people: Rishi Pardal (Chairman) and (CEO)
- Number of employees: 50,000
Table of Contents
UB Group Product Strategy
The UB Group, also known as United Breweries Group, is a conglomerate based in India with a diverse product portfolio. The group’s business interests range across various sectors, including alcoholic beverages, multiple products, chemicals, aviation, real estate, and engineering.
The new Product Mix of UB Group in 2023 is as follows (Source).
- Alcoholic Beverages: Beer: United Breweries is most famous for its beer, particularly the Kingfisher brand, one of India’s best-selling beers. They produce a range of beers, including Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, and more; Spirits: The UB Group, through its various subsidiaries, also produces and distributes a variety of spirits, including whisky, brandy, rum, and vodka.
- Non-Alcoholic Beverages: The group is interested in the non-alcoholic beverage sector, particularly in producing and distributing bottled water and other soft drink beverages.
- Aviation: Until its grounding, Kingfisher Airlines was a significant venture of the UB Group. It was a premium airline known for its high service levels but faced financial difficulties and ceased operations.
- Real Estate: UB City, a luxury commercial complex in Bangalore, is a significant UB Group real estate venture. This complex includes high-end retail stores, office spaces, and a luxury hotel.
- Engineering: The group is interested in engineering and manufacturing, particularly in producing fertilizers and equipment.
- Other Ventures: The group has historically had interests in various other sectors, including information technology and sports, though the extent and current status of these ventures might have evolved.
UB Group Place Strategy
The company began in India and has been able to conquer India when it comes to beer production. The UB group’s products can be found all over India, with its beer drinking in 100% of the bars in India. It is the largest beer producer in India, having about 52.5% market share in beer production by volume. With 79% bottling units and distilleries across India, the company can produce more than India can consume.
The company has spread and become a worldwide distributor of its products, especially the Kingfisher premium lager beer. Today, the company’s products can be found in many countries, with the Kingfisher Premium Larger beer being popular in at least 69 countries. It is, therefore, not only a leading beer brand when compared to Indian competitors, but the beer is giving all the international beer distributors sleepless nights.
The UB Group marketing mix strategically crafts and showcases a global market presence. Renowned for its body shopping services, it is a prominent company with large, diverse industrial projects, including a fertilizer factory in Karnataka. The Mangalore Chemicals unit excels in producing chemicals, exemplifying UB’s commitment to excellence.
The place strategy, particularly the group marketing mix of the UB Group for its flagship product, Kingfisher, and other alcoholic beverages, can be summarized as follows:
- Extensive Distribution Network: UB Group has established a widespread distribution network across India, leveraging a mix of traditional retail outlets, modern trade channels, and exclusive brand outlets, ensuring accessibility in urban and rural areas.
- Global Presence: Beyond India, the group has focused on expanding its international footprint, exporting products to over 50 countries, with a strong presence in markets like the UK, USA, and the Middle East, catering to the Indian diaspora and local consumers.
- Strategic Tie-ups and Partnerships: UB Group has engaged in strategic partnerships and tie-ups with local distributors and retail chains in various markets to enhance its reach and ensure the effective placement of its products in high-visibility and high-traffic areas.
- Utilizing Online Platforms: The group has adapted to the digital era by aligning with online retail platforms and e-commerce for sales, catering to the growing trend of online shopping and home delivery services, especially in urban areas.
- Localized Adaptation: In international markets, UB Group often adapts its product offerings and marketing strategies to suit local tastes and preferences, a move that helps enhance market penetration and acceptance in diverse cultural contexts.
UB Group Pricing Strategy
The low-price strategy is used in its marketing mix for alcoholic beverages. This is one of the main reasons the company’s beer and wines have penetrated the markets. Most alcohol drinkers would prefer the cheaper options to the expensive ones. A comparative pricing strategy is thus employed. Regarding other products, quality of service and low pricing strategy, where applicable, are used.
The pricing and marketing strategy of United Breweries Group (UB Group), especially about its flagship beer brand, Kingfisher, and other alcoholic beverages are as follows:
- Market Penetration Pricing: UB Group often employs market penetration pricing, especially in new markets or segments. This involves setting lower price points initially to attract customers, gain market share rapidly, and establish a foothold against competitors. This strategy is particularly effective in price-sensitive markets.
- Premium Pricing for Select Brands: UB Group adopts a premium pricing strategy for its high-end products, like Kingfisher Ultra. This aligns with the product’s positioning as a luxury or premium brand, catering to a segment that values quality and brand prestige over cost. This strategy helps establish brand value and align with the target audience’s lifestyle.
- Competitive Pricing: The UB Group aligns its pricing closely with critical competitors in highly competitive segments. This strategy ensures their products remain attractive to price-conscious consumers while maintaining a sustainable profit margin.
- Dynamic Pricing Based on Market Conditions: Understanding the diversity of the Indian market and varying global markets, UB Group employs dynamic pricing. This means adjusting prices in response to local economic conditions, taxation policies, and the purchasing power of consumers, ensuring relevance and competitiveness in different regions.
- Value-Based Pricing for Niche Products: The UB Group uses value-based pricing for specialized or niche products. This strategy involves setting prices based primarily on the perceived value to the customer rather than solely on production costs or market rates. It is particularly effective for unique or limited-edition products that offer a distinctive value proposition to customers.
UB Group Promotion Strategy
Innovation and aggression are the characteristics and synonyms of the UB Group. The company has reached the worldwide market through these strategies with its products. With quality and worldly competitive products, compounded with the strong network of distribution that the company has employed, there is no way that the company can go wrong as far as reaching the global market is concerned. The company’s marketing strategy encompasses an impressive spread of contract manufacturing facilities and owned manufacturing facilities all over India.
Flagship products such as the Kingfisher alcohol brand have been able to help the company consistently achieve international recognition. The Kingfisher alcohol brand has won many company awards within local and international beer festivals.
Investment in an array of sectors is also a way of maximizing the customer base. If you don’t drink alcohol, you probably will need to travel using their airlines, and if you don’t travel using planes, you want a home to live in; hence, you may need to do business with them through their real estate business sector.
Some Recent Video ads and Print ads for UB Group of companies are:
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