Brand and Marketing
Commercial due diligence on a leading premium beer brand for a global PE firm
13 May 2020
Context
- Client Description: A global PE firm
- Opportunity: The client was considering investment in a leading premium beer brand in India
Further, the client specifically wanted to understand:
- Brand strength compared to other leading Indian brands in terms of NPS, recall and preferences
- Marketing channels used, differences in ATL vs. BTL and its effectiveness benchmarked with other leading brands
Our Approach
- In-depth interviews of 30+ consumers across leading Indian cities to understand consumer preferences and perception of various brands
- Conducted 50+ in-depth trade interviews of retailers, HoReCa managers & area sales manager to understand how target company is benchmarked against its competitors in terms of retail & HoReCa presence, trade incentives, branding, consumer perception, etc.
- Survey of beer consumers across India (N=600) to understand consumer behaviour and brand awareness and NPS
- Secondary research and financial filings analysis to evaluate marketing spend and channels
- Case studies on key Indian and Global new-age alcoholic beverages players to benchmark best practices, economics, ATL / BTL branding activities and levers of value creation
- In-depth analysis of key Indian states to understand state level nuances and levers of value creation
Key Insights / Outcomes
Target spent ~5% (of net revenue) more on marketing initiatives compared to established players but significantly lesser than other new-age brands
Target had good brand recall compared to other new-age players despite more focus on BTL activities and limited ATL spending
Praxis Value Delivered
- Client was able to evaluate the strength of the brand and get detailed insights into consumer preferences which aided them in their investment decision
- A brand strength and unaided recall map for key brands across key Indian states was created to identify focus regions for expansion
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