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The study on the sales promotion
policies adopted by Mount Shivalik
Breweries Limited.
The study on the sales promotion policies adopted
by
Mount Shivalik Breweries Limited.
Mohangram,P.O. Bhankarpur, Distt Mohali,Punjab,India
BY
Shiv sachdeva
Session- 2008-09
Prepared under the guidance
Of
Shri D.P Khetar pal
Manager coordination
M.S.B Limited
Submitted to
training. At the end I would like to thank Mr.V.K Ohri, (R.M) & all
Shiv sachdeva
Thanking You,
Place:
Date:
Sh
iv sachdeva
Co
urse – MBA
SHIV SACHDEVA MBA,
SESSION-2008-10
Sessi
on -2008-10
CERTIFICATE
Signature
(Internal Examiner)
(External Examiner)
CONTENTS
Sr.No Topic
Page No.
1. General Introduction
6
2. THE LIQUOR INDUSTRY IN INDIA
9
3. About company
12
4. Competitors
21
5. Sale promotion
33
6. Objectives of sales promotion
56
SHIV SACHDEVA MBA,
SESSION-2008-10
7. Research Methodology
70
8. Limitation
73
9. Conclusion
74
10. Questionnaire for consumer
75
11. Questionnaire for retailer
79
12. Bibliography
81
GENERAL INTRODUCTION
Anew product may have to be promoted by door to door selling, selling shops and
through media like T.V. or through advertisements. If a product is to be exported,
the marketing has to be done within the framework of policies and procedures set
up by the govt. The middlemen under strict price and control policy of the Ministry
of Home Affairs especially Food and Civil Supply Department.
For successful marketing of its products, a company may have
sales persons, area sales manager, regional sales manager, zonal sales manager
marketing professionals, depot communication manager, product manager media
assistant, public relation officer and managing director depending upon the size of
the company. For the successful career in marketing a person must have certain
basic skills like a degree in an area of thrust related to the type of company, ability
SHIV SACHDEVA MBA,
SESSION-2008-10
to formulate and implement sales, distributional sales, distributional and
promotional strategies and exceptional skills to motivate and effectively manage
the sales force. In addition, the attitude and talent for innovation, good knowledge
of designing and preparing various inputs including visual aid folder is needed.
Besides this, involvement in marketing research for launching new products and in
training sales force is must for a successful marketing manager. The above
qualifications are must because the role of marketing manager in the organization
has also changed with requirement of the hour. Today, marketing manager has
become the integral part of business and involves all the activities that take place in
an enterprise.
As a good marketing manager one has to train the staff.
Therefore the sound knowledge of marketing activities, marketing strategies and
legal aspects is needed. Not only this, there many other things which pave the way
for promoting sales. Good contacts in corporate sectors, knowledge of controlling
activities up to grass-root level, interacting with concerned departments and sales
regulatory authorities are also required for a successful marketing manager. Four
Ps namely product, price, place and promotion are the most vital areas of
marketing management. Fifth P added is pace. Without these the marketing
objectives of organization cannot be fulfilled.
7
The marketing division should see that brand identification is must for the
producers to exercise maximum control over the demand for its products. Branding
of products is necessary for administration of warranty, guarantee and service
estimated Rs. 16,000 crore per annum in spite of the fact that the per capita
consumption of liquor in India is the lowest in the world. The total liquor industry
is worth Rs. 2,000 crore. IMFL accounts for only a third of the total liquor
consumption in India. Most IMFLs are cheap and are priced below Rs. 200 per
SHIV SACHDEVA MBA,
SESSION-2008-10
bottle. Alcohol sales proceeds account for 45% of the total revenue collection in
the country. Whiskey accounts for 60% of the liquor sales while rum; brandy any
vodka account for 17% 18% and 6% respectively. MNC’s share is only 10% and
they have been successful only in the premium and super premium ranges. Post
WTO the government may have opened India to foreign distilleries, but the duty
has been increased from 222% to 464-706%. This is due to the fact that there is a
100% customs duty, 150% contravening duty, local taxes, distributor’s margin,
retailer’s margin and publicity charges. The cost is finally borne by the consumer
Though the government claims that this is being done to protect the domestic
liquor industry, the domestic industry accounts for 99% of the market share. This
of now, only 45% of the sales are through legal channels and only 25% of this is
to state. While some states like Maharashtra. Uttar Pradesh, and Tamil-Nadu have a
liberal policy, come states like Haryana and Andhra Pradesh have had very bitter
experience in trying to make these states dry and have eventually had to withdraw
the policy.
10
PRODUCT PROFILE
This research focuses the study of alcoholic product of MSBL. Thus it is important
for us to known what Alcoholic drinks are. Alcoholic drinks are a mixture of
alcohol or spirit water and minor ingredients knows as cogeneries. The organic
alcohol has no flavor, only careful section of congeneries which is added during
world over are blended to provide uniform blends, bouquets and palatability.
11
ABOUT COMPANY
A saga that began over a century and a half ago continues on its path of service to
Over the years the Company has embraced modernity and adapted to changing
Tradition. From mount shivalik brewery Ltd where the sanctity of ancient culture,
technological development and craving for quality are artfully blended into the
products.
shivailk give the idea to open brewery at bankerpur.after that foundations stone
12
bottling plant”.
shivalik kineme(P)Ltd. Established in the year 1983.In the year 1984,country’s first
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country by achieving sales of 1.5 million doz. The brand become benchmark for
other super strong beer in the country by setting higher standards of quality and
mild and strong segments by the name of:-GOLDEN PEACOCK & TORPEDO
SUPER STORNG.
country in the country in the year 1997.as part of diversification plans, the group
has decided to set up resorts having facilities of 30 room’s motels, a pub, beer
14
In the year 2000 as part of expansion plans for IMFL, the company has received a
: 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
Stroh Brewery Co, USA. MSBL--which had struck an agreement with Stroh USA
Diet, Mild and Strong category for all the markets in the country, except South
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COMPETITORS
industry too the competition is there. The increasing awareness and exposure to
beer among consumers and the removal of quantitative restrictions gives big boost
to the beer industry. It saw the emergence of new companies like future wine and
spirit brand (P) Ltd (FWSB), set up recently by two Non-Resident Indians (NRI’s)
from USA. ‘BEER’ consumption in the country increased 7-9 % per year.
21
1. SABMiller India
SABMiller India sojourn began in 2000 and in just a few years, its has cornered
nearly on third of the India beer market with brands such as Haywards 5000.
Haywards 2000, Haywards Black, Knock Out, Royal Challenge. Castle Lager and
Fosters.
Based on consumer insights, SABMiller India has taken innovative measures to fill
up the packaging, pricing, occasion and product gaps. Expertise on a global level
has come in use to create many firsts in India including the use of one-way bottles,
well positioned to easily access and efficiently service the beer markets.
22
The Company’s to India and ethos of quality reflected in the fact that it
invested over Rs. 125 crore in the last two years to upgrade breweries in line with
global standards.
refreshes itself in pursuit of its mission of owning and nurturing local and
international beer brands which are the first choice of the consumer.
The company invests in bottles, which are returnable in nature are accounted for as
fixed assets in its books. The company pays to its customers/agents for returning
the empty bottles at the prevailing market prices. The company urges its
customer/agents to return the empty bottles to the company for which the company
The UB group commenced its brewing operations as early as the 19th century
(1857) with fire small breweries in South India. In 1951, a Scotsman named
23
The company was taken over by Vijay Malaya in 1947. In 1952 the
company shifted its registered office Madras to Bangalore. In 1958 the name of the
In 1992, 11 different breweries were and amalgamated with the parent company. In
1994 the company launched its ‘Kalyani Premier Strong’ and started exporting
‘Kalyani Export Special’ to U.K The company presently has 21 breweries under its
restructuring excise unless which it has dedicated to split its business into two-the
core beer business and the group invertment business. The company has dedicated
The United Breweries Ltd. And its subsidiary Millennium Alcoveb Ltd. Have
entered into a contract agreement with Mohan Meakins to brew beer at the later’s
24
subsidiaries and making seven companies its fully owned aims apart from
Relawant of San Mighel and London Lilsnex, the new beer brands in it portfolio
UB group has signed reseller and license agreement to market steel first faster
UB Ltd. The largest beer manufacturer and marketing company, has launched two
more premium brands-London pilsner Premium beer and London No. 1 Strong
beer in Hyderabad
25
3. COBRA BEER
India (now Bengaluru), for export to the United Kingdom, the company now has
Netherlands and India. Cobra Beer was founded in 1989 by Arjun Reddy and
Karan Bilimoria, then aged 27 and £20,000 in debt. A Cambridge law graduate and
gap in the market for a less gassy lager. The beer was originally planned to be
named 'Panther', but the name 'Panther' did not portray the picture of India and
hence a more suitable and iconic name i.e. 'Cobra' was chosen.
By way of introduction by Arjun's uncle Keshow Reddy the two founders were
introduced to Mysore Breweries in India, who were the original brewers of Cobra
beer.
26
and imported to the UK for seven years. In 1997 Cobra commenced brewing under
licence with Charles Wells in the UK. A 125 year old, family run brewery and the
largest independent brewery in the UK, Charles Wells brew leading international
SHIV SACHDEVA MBA,
SESSION-2008-10
beer brands including Kirin from Japan and Red Stripe from Jamaica. The business
recently stopped brewing in Poland for cost saving reasons and returned brewing to
contract breweries in the UK Cobra Beer has also partnered with Mount Shivalik
Group, the largest independent brewing company in India, to brew Cobra under
• Cobra Zero %
• Cobra Light
• King Cobra
• Cobra Bite
27
28
NOTE-
BEER
Beer is not a distillate like the drinks mentioned above but it is a beverage made by
fermentation of malt obtained from carbohydrate rich material barley. Hops are
1. Pilsner or Lager
2. Draught
shops in the country. This Beer is served chilled and is of two types.
30
31
Sales Promotion :
Definition:
It covers marketing activities other then advertising, publicity and
personal selling that stimulate consumer purchasing and dealer effectiveness. Such
activities are displays, shows, exhibitions, demonstrations and many other non-
routine selling efforts like spot selling. Sales promotion tries to complement the
other means of promotion given above.
All kinds of promotion plays the role of communication channels
between the marketer and the consumer. Promotion as on element of marketing
mix has three broad objectives:
(a) Information, (b) persuasion, (c) reminding.
The overall objective of promotion is, of course, influencing the
buyer behavior and his predispositions (needs, attitudes, goals, beliefs, values
and preferences).
According to the American Marketing Association, the sales
promotion can be defined as “Those marketing activities other then personnel
SHIV SACHDEVA MBA,
SESSION-2008-10
selling advertising and publicity, that stimulate consumer purchasing and dealer
effectiveness, such as displays, show and exhibition, demonstration and various
non-current efforts not in the ordinary routine”.
33
Product
1. No.1 selling product in its segment.
2. Good quality raw material is used to maintain the quality standards.
3. Consistency of product quality is high.
4. Always tastes fresh due to good quality and well developed distribution
network.
Place-
1. it is available in many states Punjab, Haryana in other states
34
Distribution Network
APBDistributors
On / OffEnd
Premise
Consumer
Breweries Locations
Price-
In both mild and strong beer segments thunderbolt beer uses competitive price
strategy
650ml
.RS 65
35
Promotion
Promotion includes advertising and other forms of sales presentations,
designed to encourage fast consumer or trade up-take of a product or service. The
form of any promotion depends on the product, the marketing plan and its
objectives, and on the imagination of the product management team. It can vary
from a simple in-store demonstration, or sampling, or a tie-in with on premises. A
range of promotional tools, techniques and activities are mixed and matched to
meet the needs of individual marketing campaigns.
36
• Brand Advertising
• Experiential marketing
• Consumer planning
• Relationship marketing
• Consumer PR
• Packaging
37
38
Relationship between PLC & Marketing Strategies
Like human beings, products also have life cycles. That is, they're born, and then—
over time—their sales grow, mature, and finally decline. The strategies with which
Objectives
Product Low sales, high cost per Create product Offer a basic product,
Introduction customer, no profits, few awareness and trial Use heavy promotions
competitors to entice trial
Product Rising sales and profits, more Maximize market Offer product
Product Peaking sales and profits, stable Maximize profit while Diversify brands
Product Declining sales, profits, and Reduce expenditure Phase out weak
Cut price;
Reduce promotion
39
Packaging
41
Thunderbolt bottle
42
Beer Advertising
43
Strength
• Production capacity
Weakness
• Less Manpower
• Inefficient Distributors
44
Opportunities
• Regional Expansions
• Production Volumes
• Higher Profits
Threats
• International Players
• Government Laws
the ad spend
Why?
SHIV SACHDEVA MBA,
SESSION-2008-10
• Internal
• External
46
47
Consumer promotion
SHIV SACHDEVA MBA,
SESSION-2008-10
• Stimulate purchase
• Induce trial
• Create new users
• Increase repurchase from occasional
customers
• Reward loyal customers
Forms of trade promotion
• Bulk discounts
• Free materials
• Display windows
• Shelf hiring
• Lucky draws
• ‘Mystery’ customer
• Redistribution incentives
49
• Free samples
• Free gifts
• Coupons
• In-packs
• Price packs
• Price-offs
• Sweepstakes
• Bundling offers
50
PERSONAL ADVERTISING
SELLING
PUBLICITY SALES
PROMO
TION
51
Sales Promotion
SHIV SACHDEVA MBA,
SESSION-2008-10
Product sampling, demonstration
Coupons, refunds
Rebates, cents-off-
Contests, games & sweepstakes
Premiums
Multiple purchase offers,
Frequent-user incentives
P-O-P material
Product placements/tie-ins
52
53
Market Segmentation I
Sales of standard lager form the most lucrative sector of the Indian beer
market, with an 87% share of the market's value. In addition, sales of premium
lager generate a further 6.2% of the market's revenues.
Total 100.0%
54
Market Segmentation II
Japan 45.50%
China 36.40%
India 1.30%
Total 100.0%
55
56
Marketing Activities :
Sales :
a) Making personal calls to concerned agents.
b) Generating orders for products.
c) Reporting on product movements or problems.
Personal selling:
Personal selling is a broader concepts and invoices oral
presentation in conversation with one or more prospective buyers for making sales.
The main purpose of personal selling is to bring the product and the company in
the knowledge of the prospective buyers and to convince them about the quantity
of product of products and make certain that ownership transfer will take place.
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Tremendous amount of time
and money would be expended in just acquiring the minimum amount of goods
one would need for survival. Marketing channels funnels the goods demanded by
the consumer to the place where he wishes to purchase them, and create three basic
utilities, viz.
1. Place
2. Ownership, and
3. Time
SHIV SACHDEVA MBA,
SESSION-2008-10
Marketing institutions must move the goods from point of production to the point
of purchase i.e. consumption. this creates place utility, because goods will have
no value to the buyer If they are still in hands of manufacturer
Marketing channels arrange for the transfer of title of the goods
from the manufacturer to the buyer. This creates ownership utility.
Marketing channels must have arranged goods available to the user when he
wants them, this creates time utility. In great part of US bathing suits gave little
value to the consumer in the month of January, in fact, the manufacturer
Of swimming apparel must make them during the
winter because a substantial amount of lead time is necessary to ensure that
ample merchandise is on hand at that time is demanded. Channels of
distribution frequently absorb much of this difference in time between
production and consumption. This statement does not imply that all marketing
activities do not have a bearing on the creation of these utilities. Although
advertising may stimulate ownership utility by making a person want
something, the actual ownership utility is created on the transfer of title from
the retailer to the individual
The title does not always automatically follow the actual trail of
the merchandise.
60
Channel Arrangement:
Four major alternative channel arrangement have been
described below which differ significantly in their capability for creating sales,
in their costs of operation and their susceptibility to control. Once they are
choose, the firm must adhere to them for a substantial period of time.
1. The first channel consist of direct sales of goods by producer to ultimate
2. The seconds marketing channel shows one selling intermediates between the
producer and the ultimate consumer. If the middlemen is retailer, his
function is to purchase the producer’s goods and resale them at a profit.
SHIV SACHDEVA MBA,
SESSION-2008-10
They deal with many producers. P-R-C
3. The third marketing channel shows two different selling intermediaries. The
most common example consists of wholesaler and retailer. This is known as
the linkage. P-W-R-C
The last channel consists of three selling intermediaries where a jobber usually
intervenes between the wholesalers and the retailers. The linkage is P-W-J-R-C.
The jobber buys from wholesalers and sells to small retailers, who generally are
not serviced by the large wholesalers
P = PRODUCER, W=WHOLESALER, J=JOBBER, R=RETAILER,
C=CUSTOMER
Sales promotion is a tool used to achieve most of the five major promotional
objectives discussed in the Promotion Decisions tutorial:
Building Product Awareness – Several sales promotion techniques are highly
effective in exposing customers to products for the first time and can serve as key
promotional components in the early stages of new product introduction.
Additionally, as part of the effort to build product awareness, several sales
promotion techniques possess the added advantage of capturing customer
information at the time of exposure to the promotion.
62
methods. During most of the situations two or more promotional methods are to be
used for each campaign. Generally with the help of a single method it is not
increase the sales. Sometimes even the personal selling alone cannot be successful
An ideal promotion mix is that situation where the total expenditure incurred for
Promotion mix means finding out the proper ratio of usage of different methods of
promotion. The management must find out, how much amount should be spent on
64
65
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Beer as a Multi-vitamin
Beer is a significant source of magnesium, selenium, potassium, phosphorus,
biotin, folate, vitamin B6 and vitamin B12
927,979,682
2008 Sales Employees: 140
(Year Ending Jan 2009).
69
RESEARCH METHDOLOGY
Research – Research is common parlance refers to a search for knowledge. The
researcher in studying his research problem along with the logic behind them.
individual, or of a group.
working hypothesis from and operational point of view. The major emphasis
in such studies is on the discovery of idea and insights. As such the research
71
SHIV SACHDEVA MBA,
SESSION-2008-10
Sampling- Sampling may be defined as the selection of some part of an
Types of sampling:-
72
overlooked for the smooth conducting of the research. Some of these restrictions
are:
➢ Liquor is such a product that the wholesaler, retailers and consumer fear to
➢ Due to the wide area of the markets, it was impossible to cover each and
➢ The such had to be completed in 8-10 weeks, which is not enough time to
cover the market. So time was the major constraints in conducting the study.
73
Beer Segment specially thunderbolt super strong beer is performing well. The
demand of thunderbolt super strong beer in the market is good but not easily
available every where Company has got good image among the general public.
As far as Mount shivalik brewery ltd is concerned the major position of its
turnover through thunderbolt lite and strong these are the largest selling brands in
the beer industry after thunderbolt super strong but the company badly needs to
promote other brands because neither of them has hot good presence at the national
level.
74
a) Yes b) No
a) friends b) Advertising
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Mild………………. Strong…………….
Ques. 10- What are the key factor that affect your purchasing decision?
76
a) Bottle b) Cane
a) Loyal b) Switcher
………………………………………………………………………
………………………………………………………………………
77
Name-…………………………….
Address-...…………………………………………………………..
………………………………………………………………………
………………………………………………………………………
Gender-………………………………
Age-…………………………………..
Occupation-…………………………………………………………
78
Ques.3- In beer, what are the different brands available with you ?
79
a) Yes b) No
a) Yes b) No
…………………………………………………………
Ques.10- Would you like to give some suggestions to MML for improvement ?
………………………………………………………………………
………………………………………………………………………
80
The readings which rendered all possible help and guidance in finalizing the
marketing are:-
Times of India
81