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Friday, June 4, 1999
Stroh readies a bubbling cocktail of marketing strategies
Kumarkaushalam
New Delhi, June 3: Mount Shivalik Breweries Ltd (MSBL), the makers of Golden Peacock and Thunderbolt beer brands, is now brewing a multi-pronged marketing strategy to re-introduce the American beer brand Stroh in the Rs 1,500-crore domestic beer market.The Stroh brand was previously canned in India by Rajasthan Breweries, which stopped production in February 1999 following differences with the $ 1 billion Stroh Brewery Co, USA. MSBL--which had struck an agreement with Stroh USA in 1998 for bottled beer--will now produce and distribute bottled Stroh beer in Diet, Mild and Strong category for all the markets in the country, except South India (Tamil Nadu, Kerala, Pondicherry, Karnataka and Andhra Pradesh). A study conducted by the Delhi-based market research agency M&M in March 1999 in the markets of North-East, North and West India, revealed that 78 per cent of the 4,000 respondents were aware of the Stroh brand and regarded it as a premium beer. The findings have now spurred MSBL into quickly activatingthe Stroh brand--with an integrated marketing plan. Says MSBL director marketing, Monish Bali: ``Had we given a longer gap the brand would have suffered.'' MSBL now plans to launch Mild and Strong Stroh beer between mid-June and September 1999 in a phased manner: beginning with Rajasthan and progressing to the markets of Chandigarh, Punjab, West Bengal, and Harayana. Later, in the second phase, it will roll out the beer in Delhi, Bihar, Daman, Orissa, Madhya Pradesh and the North-East. Old beer in new bottles In its new avtaar, Stroh would be made available not in cans but in amber-coloured 650 ml and 330 ml bottles. While the 650 ml bottle will have the conventional shape popular in the Indian beer industry, it's the 330 ml packaging which will flaunt the `long neck' design used by Stroh in America. The 650 ml bottle will also have a golden champagne capsule top to enhance its shelf and eye appeal, while the unique feature of the 330 ml bottle will be a colour-coded neck label. In terms ofcolours, the blue label will represent mild beer as distinct from the red label for strong beer. Moreover, a special offset printed master carton has been developed for packing these two sizes. MSBL is also considering options like supplying Stroh in kegs to pubs, but this will depend on the prevailing excise laws of the respective states. Pegging the price Aiming to position the beer as a super premium brand, Stroh would be offered at a price that is higher by Rs 3 to Rs 5 a bottle, against the top-selling domestic brand in each state. MSBL believes that despite the more expensive price, the consumer would view Stroh as ``an international quality beer at an affordable price.'' While the can option was earlier available at Rs 60 per 500 ml and Rs 40 per 300 ml can, the new pricing for Stroh in Rajasthan is expected to be around Rs 35-40 (strong beer) and Rs 30-35 (mild) per 330 ml bottle; and Rs 50-55 (strong) and Rs 40-45 (mild) per 650 ml bottle. Currently, cans account for around two per centof overall beer sales in India. MSBL hopes that apart from catering to the upper elite and foreign tourists, Stroh in bottle form would also appeal to the price-sensitive middle class. ``With bottles we are giving Stroh consumers more value than they were getting from the can,'' says Bali adding: ``We are keeping open the option for cans in future both in terms of setting up our own facilities or having arrangements with other existing breweries.'' Raising the bar Taking cognisance of the fact that the Stroh consumer expects international quality, taste, packaging and consistency, Stroh would be positioned as `The Great American Beer'. A distinct marketing strategy is being evolved to promote the beer at, what Stroh calls, `on-shops' (institutional sales via hotels, bars, clubs, restaurants) and `off-shops' (retail outlets). Determined to gulp over 50 per cent of the international beer market in India, Stroh is planning some bubbly bursts:
A 30-second television commercial (TVC), createdin the US, will unfold by late June '99 on the Star channels. With an advertising and promotion budget of over Rs 5 crore, MSBL will also take positions in other international channels as `The Great American Beer'.The earlier TVC for Stroh cans by Rajasthan Breweries was an Indianised one: it showed a person returning from the US and feeling thrilled on discovering Stroh in India. However, this time, MSBL will reinforce Stroh's American-ness in its advertising -- just as Foster's is positioned as an Australian beer. To build a one-on-one relationship with potential consumers, a direct mailer highlighting the brand's USP--`Fire Brewed Beer'--is being sent to all its distributors, retailers, bars and clubs, as well as high networth consumers.In the first phase MSBL is focusing on selective marketing in six markets (Rajasthan, West Bengal, Haryana, Chandigarh, Punjab and Delhi) to cover over 2,000 retail outlets and over 500 bars/restaurants from its existing network of over 165 dealerships, 6,000retail outlets and 1,300 bars and restaurants in 18 states. Says Bali, ``Efforts would be made to convert some of the major outlets in metros into exclusive outlets under tie-up arrangements.'' In association with event management company Crayons, MSBL will organise at least one mega event a month, from July 1999, in towns like Chandigarh, Jaipur, Calcutta, Delhi, Jamshedpur and Guwahati. The events would include fashion shows, polo matches, rock concerts, rain dances, spot events and theatre. Says Bali, ``We are also considering celebrity endorsements by sports and cine stars.'' Moreover, Stroh would also sponsor various `happening events' and carnivals in other towns. Special promotions on the concept of `The Great American Beer' will be held at places which are associated with hanging out and having fun and symbolic of American culture: pool parlours, bowling alleys, Go-Kart circuits and other recreation centres.MSBL's field force of 85--all wearing branded Stroh T-shirts, caps andunique electronic badges--will aggressively promote the campaign `Let's Stroh a Party' with the help of POS materials like posters, banners, bunting, danglers, stickers, dispensers, glow signs etc at institutions and retail outlets. Also, special promotions like the Best-Decorated Stroh shop and Demand-A-Stroh will be conducted through the retail counters to ensure that the product reaches the targeted consumer. At the institutional level, Stroh would be promoted via Happy Hours on Saturdays/Sundays as well as special offers during regular hours. Ninety per cent of MSBL's sales come from retail outlets and the remaining 10 per cent from institutions. MSBL also plans to communicate messages like `Drink Smart or Don't Start' via its POS materials. To project a caring image it is also planning to associate with organisations dealing in environment-related issues. MSBL has also identified sports like golf, cricket, bowling, pool, polo, football and tennis for the promotion of Stroh indifferent markets. Stroh has already tapped the mood of the World Cup revellers by distributing a 42-page pocket Stroh World Cup diary giving the entire schedule of matches, at the institution and retail level.With the Stroh initiatives ready to pour, MSBL expects a 20 per cent increase in its turnover next year, from an estimated Rs 100 crore in 1998-99. That's reason enough to cheer. Golden Peacock raises a toast to India XI Do beer and cricket go together? Mount Shivalik Breweries Ltd (MSBL) certainly thinks so--especially given the initiatives undertaken by the hospitality industry to woo consumers to watch World Cup matches in restaurants. To benefit from the special packages offered by hotels, restaurants and bars, MSBL is currently running a promotion for Golden Peacock (GP), its premium lager beer brand. Called `Go for India, Go for GP', the promotion targets institutional sales and offers consumers a one pint bottle (330 ml) free on the purchase of one bottle of 650 ml GP; and one 650ml bottle free on the purchase of two 650 ml bottles of GP. The promotion will run for the entire duration of the World Cup -- irrespective of India's participation -- in the cities of Jaipur, Delhi and Chandigarh. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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