Beruflich Dokumente
Kultur Dokumente
I hereby certify that the work which is being presented in the project entitled, “Study of
marketing strategy of USL and increasing the market share of McDowell’s No-1
Platinum” in partial fulfillment of the requirements for the award degree of MASTER OF
authentic record of my own work carried out under the supervision of Dr. Nimish Gupta.
The matter presented in the Project Report has not been submitted by me for the award of
1
Table of Contents
CHAPTER I
CHAPTER II
CHAPTER III
2
Methodology Page 76
CHAPTER IV
3
CERTIFICATE FROM FACULTY GUIDE
Certified that this report is prepared based on the summer internship project undertaken by
Kanpur from 3rd MAY, 2010 to 15th JUNE, 2010 under my guidance in partial fulfillment of
the requirement for award of degree of Master Of Business Administration from Amity
Date:
Faculty Guide
4
CERTIFICATE FROM INDUSTRY GUIDE
Certified that this report is prepared based on the summer internship project undertaken by
Kanpur from 3rd MAY, 2010 to 15th JUNE, 2010 under my guidance in partial fulfillment of
the requirement for award of degree of Master Of Business Administration from Amity
Date:
Industry Guide
5
ACKNOWLEDGEMENT
It is only when one undertakes a project, he realizes how massive an effort it really is, or
how much one must rely upon one’s self less efforts and goodwill of others. There were
Summer internship report is an integral part of MBA curriculum. It helps the student to
undergo a simulation test of what the student is going to face in his future job sphere and
a taste of practicality. It helps the student to understand how an organization works. The
competitive atmosphere, the ups and downs in the cycle of the organization, the enthusiasm
of interacting with newer people and gaining vast practical and theoretical
knowledge is what a student goes through during his work in the organization.
enhanced my managerial skills and made me opt to face all the hurdles in my future. The vast
knowledge that I have gained from this project, I have tried to put them down in
I am really thankful to Mr. Rajesh Fanda (G.M Sales), Mr. Ritesh Bhasin (Sen. T.S.E.)
and constant mentoring of Dr. Nimish Gupta (Faculty ABS) for guiding me to make this
project a success.
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CHAPTER I
7
Introduction of the topic
To study the marketing strategy and to increase the market share of McDowell’s No.-1
Platinum.
The topic is very significant, as it gives a unique chance to study and know the different
strategies adopted by the organization to increase its market share and overcome its rivals. It
also helps to understand the importance and need of marketing in corporate world.
Goods. Physical goods constitute the bulk of most countries’ production and marketing
effort. The United States produces and markets billions of physical goods, from eggs to steel
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Services. As economies advance, a growing proportion of their activities are focused on the
production of services. The U.S. economy today consists of a 70–30 services-to-goods mix.
Services include airlines, hotels, and maintenance and repair people, as well as professionals
such as accountants, lawyers, engineers, and doctors. Many market offerings consist of a
Experiences. By orchestrating several services and goods, one can create, stage, and market
experiences. Walt Disney World’s Magic Kingdom is an experience; so is the Hard Rock
Cafe.
Events. Marketers promote time-based events, such as the Olympics, trade shows, sports
events, and artistic performances.
Persons. Celebrity marketing has become a major business. Artists, musicians, CEOs,
physicians, high-profile lawyers and financiers, and other professionalsdraw help from
celebrity marketers.
Places. Cities, states, regions, and nations compete to attract tourists, factories, company
headquarters, and new residents.5 Place marketers include economic development specialists,
real estate agents, commercial banks, local business associations, and advertising and public
relations agencies.
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Properties. Properties are intangible rights of ownership of either real property (real estate)
or financial property (stocks and bonds). Properties are bought and sold, and this occasions a
marketing effort by real estate agents (for real estate) and investment companies and banks
(for securities).
Organizations. Organizations actively work to build a strong, favorable image in the mind of
their publics. Philips, the Dutch electronics company, advertises with the tag line, “Let’s
Make Things Better.” The Body Shop and Ben & Jerry’s also gain attention by promoting
social causes. Universities, museums, andperforming arts organizations boost their public
major industries.6 Among the marketers of information are schools and universities;
Ideas. Every market offering has a basic idea at its core. In essence, products and services are
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Area and period of study
The main area of study is the marketing segment of the organization. As the market area of
The period of study is of one and half months i.e. from 3rd May 2010 to 15th May 2010.
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CHAPTER II
ORGANIZATIONAL PROFILE OF
THE COMPANY
12
USL at a glance
Fig. 1 Fig. 2
In the late Nineteenth Century, Angus McDowell set out from the scenic Northern lands of
Gaelic Britannica. The purpose was to make available the products of the industrial
revolution to thousands of expatriate Britons serving the Empire in various parts of the globe.
It was this spirit of adventure that launched McDowell & Company in India.
It had its origins in a warehouse near Fort St.George in Madras (now Chennai), which in
those days were a major trading centre of the British empire. In 1951, McDowell became the
prime acquisition of the United Breweries Group. Under the able guidance of the founder of
the UB Group, Late Mr. Vitthal Mallya the company became the first to
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manufacture Indian substitutes to foreign liquor. A new term - IMFL (Indian Made Foreign
Liquor) was coined. Since then, McDowell has been the indisputable market leader as one of
The Name
The name ‘McDowell’ originally came from the Gaelic word ‘Macdougall’. ‘Dubh gall’,
meaning dark stranger, possibly to distinguish the dark haired Danes from the fair haired
Norwegians. Angus McDowell, after whose name McDowell and Company Limited came
He started a firm- McDowell, on the northern islands of Gaelic Britannica, Which was
marketing the finer products of the Industrial Revolution to the Britons staying in various
corners of the empire. In India, McDowell has its warehouses situated about a mile to the
From being one of the first names to be associated with the import of wines and spirits into
India as early as in 1898, McDowell has now grown to become the country’s undisputed
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USL CORPORATE BACKGROUND
United Spirits Limited (USL) – the INR 4000 crore (USD 1 billion) spirits arm of the UB
Group – is India’s largest and world’s third largest spirits company. USL was earlier
McDowell and Company Limited. Besides Whyte and Mackay and Bouvet Ladubay being
100 % subsidiaries of USL, the company has a portfolio of more than 104 brands, of which
16 are millionaire brands* (selling more than a million cases a year) and enjoys a strong 59%
United Spirits’ brands have won the most prestigious of awards across flavors, ranging from
The Mondial to International Wine and Spirit Competition (IWSC) to International Taste and
Quality Institute (ITQI); a total of 84 awards and certificates (as of December 2007).
The Company is known to be an innovator in the industry and has several firsts to its credit
such as the first premixed gin, the first Tetra pack in the spirits industry in India, first single
malt manufactured in Asia and the first diet versions of luxury whisky and vodka in India.
USL has a global footprint with exports to over 18 countries. It has manufacturing and
Bottling units in 67 locations across the country and in Nepal and supported by a robust
Distribution network to deliver its products to customers located anywhere in India. USL has
a committed 6000 strong workforce spread across its offices and distilleries in the country.
USL represents the merged entities of erstwhile McDowell & Co. Limited, Phipson Distillery
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MISSION STATEMENT
Fig. 3
-“To be the most admired global leader in the spirits industry by creating unique high
quality brands for consumers, driven by highly motivated employees and supported by
best-in-class processes and continued innovations. United Spirits is and will continue to
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Business interest of UB Group
Beverage Alcohol: The UB group is 2nd largest spirits marketer in the world, with overall
sales of 90 million cases. The company offers 140 brands at varying price points. Some of
the famous brands of UB group are bagpiper whisky, McDowell’s No.1 whisky, director
Pharmaceuticals: The group’s company Aventis Pharma Ltd is the second largest
and vaccines.
Media: The UB group also has a share holding in Asian Age Holdings Ltd, the company
International trading: the group’s company UB group global ltd is recognized export
house engaged in the export of beer, spirits, leather footwear and processed food the
Fertilizers: Mangalore chemicals & fertilizers ltd is under UB group management. It has a
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Research and development: Vijay Mallaya Scientific Research Foundation (VMSRF)
was established in 1987 with the objective of developing newer and novel technologies that
will have substantial application in industry and health care. The foundation is recognized by
(DPT), Council for Scientific and Industrial Research (CSIR) and the Ministry of Finance,
Govt. of India.
Aviation: UB group entered Aviation sector in 2005 with launch of Kingfisher Airlines
Ltd. Kingfisher Airline has captured an impressive Market Share and has established a
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ORGANIZATIONAL STRUCTURE
(Chairman)
Fig. 4
Dr. Vijay Mallya is the face of the $2 billion UB Group. 52 year-old Dr. Mallya took over
19
S. R. Gupta
(Vice Chairman)
Fig. 5
Mr. Subhash Raghunath Gupte , aged 68 years, is a Chartered Accountant. Mr. Gupte has
20
Mr. Vijay K. Rekhi
Fig. 6
Mr. Vijay K. Rekhi is the President and Managing Director of United Spirits Limited,
India's
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M. R. D. Iyenger
Fig. 7
Chartered
22
Our Distillers
23
Contract and Associate Units
A B Sugars Ltd
Trishul Bottlers
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BRANDS
Fig. 8
USL BRANDS
Whisky
Dalmore
Jura
Black Dog
Antiquity
Signature
Royal Challenge
McDowell’s No-1
Director’s Special
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Bagpiper
Green Lable
Vodka
Pinky
Red Romanov
Premium Romanov
White Mischief
Rum
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Whisky
Fig. 9
In 2007, United Spirits acquired Glasgow based Whyte and Mackay and ramped up its
premium scotch and single malts portfolio significantly. Whyte & Mackay is a leading
distiller of Scotch whisky owning brands including The Dalmore, Isle of Jura, Glayva,
Fettercairn, Vladivar vodka and the eponymous Whyte & Mackay blended Scotch. The
Company also owns several other Scotch whisky brands such as Mackinlays, John Barr,
Cluny and Claymore to name a few. Whyte & Mackay also owns four malt whisky
distilleries in Scotland and a state of the art bottling facility in Grangemouth with a capacity
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of producing 12 million cases per annum. At a time when global demand for Scotch whisky
is showing strong growth and prices are increasing rapidly, Whyte & Mackay’s bulk scotch
inventory of 115 million litres are not only very valuable but provide United Spirits the
Whyte & Mackay recorded sales of 9 million cases and case equivalents in the last 12
months. United Spirits recorded sales of 66 million cases for the year ended on March 31,
2007. With this acquisition, United Spirits will have consolidated sales of 75 million cases
per annum.
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2-Dalmor -
Fig. 10
For over 160 years, the distillery has produced malts of great character and
distinction. The Dalmore Single Highland Malt Whisky Collection has won numerous,
prestigious awards and is recognized as being one of the finest distilleries in the world.
The malts which make up this collection, the twenty-one years old, the twenty-one
years old and the cigar malt have been maturing under the careful eye and expertise of
Scottie and his colleagues at the Dalmore distillery. Each is matured in a wooden cask
selected from a choice which includes sherry wood and American white oak which, along
with the years and the climate, contributes to the flavor of each malt.
From Norse and Gaelic, Dalmore means “the big meadowland” referring to the rich
and fertile Black Isle, on the opposite shore of the Cromarty Fifth from the distillery. The
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pure waters of the River Alness are used to produce The Dalmore, producing some of
Scotland’s very finest single Highland Malt whiskies Chocolate and spice are just two of the
more unusual and unexpected “notes” among the multitude of flavors and aromas that can be
discovered in The Dalmore. In this superb, award winning single malt it is possible to detect
old. As it ages the aromas and tastes alter and you will detect orange, heather, spice and
subtle hints of smoke. To find more you simply have to follow your nose and taste with help
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3-Jura-A sense of inspiration, a blend of heritage
Fig. 11
There is no quick way of getting to the island of Jura. The fastest method from
London involves two planes, a ferry, and the best part of a day. Coming by car from Glasgow
takes about the same amount of time. George Orwell, who came here to write 1984,
described it as “an extremely un-getable place.” Things haven’t changed a great deal since
then .Which is partly what makes this Hebridean Island – producer of the award-winning
But for true whisky enthusiasts there is one over-riding reason to come to Jura, and
that is to visit its distillery. Established in 1810, JURA’s single malts have won numerous
awards and are distinguished for their subtle flavors which are dramatically different to the
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peaty whiskies from the neighboring island of Islay. Often the smallest of factors can affect
Although much of a whisky’s character is decided by the type of barrel it is aged in,
the finest single malts quite literally offer a taste of their location, starting with the water that
is used to the local weather and atmospheric conditions. During the ageing process, the
whisky not only absorbs the flavors of the wood, but the island’s atmosphere and sea breezes
as they pass over the porous walls of the barrels. Jura’s exceptionally mild climate and gentle
breezes, together with the local spring water, are significant factors contributing to JURA’s
Jura may be hard to get to, but as those who’ve been there will testify, it’s a place
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4- BLACK DOG - A little science, a little art, & a snifterful of magic.
Fig. 12
Black Dog is a 100% genuine Scotch whisky distilled, matured and blended in
Scotland. A blend of many elegant whiskies drawn from Highland, Speyside, Islay and
lowland regions of Scotland, Black Dog captures the essence of Scotland with its distinctive
taste and flavor. The masterful whisky is available in two enchanting blends, 12 Year Old
On the misty shores of Scotland, his exploration finally yielded an impeccable blend,
robust yet smooth, an intricate fusion of delicate tones and soft aromas. Created by James
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McKinley, of the second generations of the Leith Scotch Whisky blending family, this
exquisite blend was christened by Millard Black Dog. Thus was born a great whisky.
After more than 120 years later, Black Dog remains faithful to its original blend. Every
ingredient and every time-honored process has been retained the same way as James
Fig.13
Antiquity Premium Whisky has been created with great care to minutest detail on quality of
various ingredients. Antiquity Premium Whisky is a unique blend of exclusive Scotch, fine
Indian malts and alcohol and it do not contain any artificial flavors.
A timeless packaging that's earned global recognition, bagging prominent awards like
WordStar, Asia-star and India-star. Grown from strength to strength, Antiquity succeeds in
consolidating brand values of "exclusivity and luxury", while establishing itself as the finest
– of all. Available in two distinct blends - Antiquity Blue and Antiquity Rare, the brand is
known for its indomitable spirit and superior taste. Antiquities captured the fascination of
whisky and scotch drinkers and made its presence felt in the major metros and big cities in
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the 80s. An exceptional creation, it challenges the connoisseurs to explore its complex inner
details. Needless to say, the blend composition was arrived at after numerous experiments
and till today the composition is a closely guarded secret, known only to our Master Blender.
Quality of the product is maintained using strict quality control norms including finger-
Antiquity became a part of United Spirited Limited in 2005, when UB Group acquired Shaw
Wallace. In past two years, the popularity of Antiquity has gained new heights owing to the
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6- SIGNATURE- The genuine flavor.
Fig. 14
One of the fastest growing spirit brands in the country, Signature has always stood out for its
unique packaging, identified chiefly by its octagonal green bottle and mono carton, the
flourish with which the band name is inscribed and the green and golf color combination.
The physical identity of brand Signature has played an instrumental role in creating a
premium, aspiration and exclusive imagery for it. Considered commonly as a "Scotch like
Experience", McDowell's
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Signature is clearly young, modern, stylish and for the discerning. In the late 80s and early
90s, a Scotch/ expensive whisky connoisseur stocked his bar largely from trips abroad or the
bootlegger. With the latter, the risk of getting 'non-original' stock was ever present. Also,
To cater to this need in 1991, McDowell & Company launched a prized blend of Imported
Scotch and impeccable Indian malts and called it McDowell's Signature. It was created to be
not just a 'good Indian whisky' but the 'Best Indian Whisky.' The going was great with
But by the turn of the century a new roadmap for McDowell's Signature was unfolded as the
brand became more accessible to a larger audience by redirecting its focus towards the
premium whisky drinker who was younger, well-heeled, well-exposed and on-the-way-to-
the-top. Thus was born the New Signature - the New Sign of Success, priced at a 5-10%
premium over the leading premium whisky brand of the time Royal Challenge.
Brand Sales have been growing year on year and today it commands a healthy national
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7- ROYAL CHALLENGE- A master of excellence. A masterpiece of style
Fig. 15
Royal Challenge is the largest selling premium whisky in India. Cherished by connoisseurs
of spirits all around the world, Royal Challenge is a 24 years old blend with a rich heritage of
innovation and unsurpassable quality. A true personification of the spirit and energy of
today's achievers, this flagship brand of United Spirits Ltd. is the sole millionaire brand to
Royal Challenge was the whisky that proved to be a trailblazer from the time it was launched
in the 80s. It swept from the North and won the hearts of whisky drinkers across South India
and became so popular by the mid 80s that not many were even aware that RC stood for
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Royal Challenge. As the UB Group acquired Shaw Wallace in 2005, RC became a part of
Royal challenge exudes a vibrant and youthful image. It is a true market leader not just
because of its high market share but also because of the imagery it lends to its consumers.
An amazingly smooth whisky, the secret of its velvet-like texture lies in the use of leisurely
matured malt spirit. To create this unique blend, enormous time was spent by the Master
Blender in studying the properties of various oak wood casks. Eventually, the 'Right' casks
were chosen for maturation of the malt spirit used in Royal Challenge after extensive
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8- McDowell’s No.1- A blend – in a league of its own.
Fig. 16
McDowell's No.1 Whisky, one of the flagship brand of United Spirits Limited, is the world's
fifth largest selling whisky. Its unbroken monopoly of leadership in the Prestige
promotions. The proof of its quality and appeal is that it has not only survived the
Scotch invasion, but is on its way to becoming one of the biggest whisky brands in
Apart from the popular McDowell's No. 1 Reserve Whisky, McDowell has another variant
under its label - Diet Mate Whisky, world's first diet whisky, created specially for
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McDowell, the drink has always been positioned as the No.1 drink in its category, both
literally and laterally. The 'cheer finger' has always stood for McDowell's No.1
Whisky. In the beginning, it had the tag 'Mera No.1' attached to it. However, over
the years, it has evolved and transformed from an "icon" to a brand character. The
brand has reinvented itself in all possible ways and has looked at greater
The cheer finger has been the trademark of the brand. Quite evidently so, it has been a rage
with connoisseurs of liquor. At present, the print campaigns that conveyed the ideas, 'a
rocking one', 'a playful one', 'a wild one' etc have seen an overwhelming response from the
masses- the central concept of the advertisements being that all celebrations in life begin with
McDowell.
The brand's uncanny ability to change itself constantly and remain connected to the ever
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9- DIRECTOR’S SPECIAL
Fig. 17
With an established reputation as being the best blend in the prestige whisky segment,
DSP is aiming to re-launch itself in terms of a new pack and communication campaign. The
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black and white packaging has been changed to gold to reflect a premium and contemporary
DSP is well perched on its flight path of success – it sold 4.32 million cases in
calendar year 2005, a growth of 11% over 2004. It crossed the “half a million cases” mark in
2004-05, for the first time since its launch in 1998. The success of the brand could be
attributed to the excellent marketing initiatives of the brand in FY05, which includes “War of
the DJ’s” – the best DJ Event in the nation, Colonial Cousins Musical Night in Bangalore
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10- BAGPIPER-Keep walking, Bagpiper
Fig. 18
Bagpiper whisky has become India’s largest selling IMFL brand. Continuing its historic
success run, Bagpiper registered a 44% growth over last year. In 2004, with sales of 7.34
million cases, it was already India’s most favored whisky. It has further consolidated it
44
position this year, with a whopping sale of 10.54 million cases. Bagpipers all India market
Fig. 19
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On April 3 2010, United Spirits launched a new phase in whisky and it was McDowells
No-1 Platinum. Platinum is 100% grain whisky.Its BLEND is very smooth and AROMA is
brilliant. It was blended by world’s best blender from Scotland i.e. Mr. Robert Peterson. The
packaging of Platinum is eye-catching. It has a black coloured cover and is the only whisky
of its range whose all three sizes i.e. Nip, Pint and Quards come in packaging.
As McDowell’s No.-1 Platinum has been recently launched in kanpur i.e. on 3rd April 2010
hence a strong promotional activity was launched by USL for its promotion in the city. The
The Promotional Scheme was valid in institutions only i.e. BARS, CLUBS, MODEL
The scheme contained that with every 2 Pegs of McDowell’s No.-1 Platinum 1 free Peg
Scratch card was also given to the customers, the scratch card had a special code which
they had to SMS “PLAT” to 9215392153, the lucky ones would get a chance to have
dinner with Shahrukh Khan on Star Cruise & all kind of expenses of the customers would
be barred by UB Group, and also there were lots of other gifts like T-shirts, caps etc.
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McDowell’s No.-1 Platinum also sponsored various parties, rock bands at various hotels,
Customers enjoyed & loved the newly introduced 100% grain whisky, blend, aroma, &
RUM
Fig. 20
Popularly called "Whisky among rums", McDowell's No. 1 Celebration Rum is the 4th
largest rum in the world with sales of 6.6 million cases p.a. and a market leader in India with
51% market share. A unique blend that is widely accepted and a part of the legendary
McDowell's lineage, Celebration Rum has won numerous awards for superior taste.
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The brand has 2 variants; No.1 Celebration Rum and No.1 Celebration Rum Dry & White,
both of which are matured, distilled and blended with exceptional finesse. Regarded as the
"Connoisseurs delight," McDowell's No. 1 Celebration Rum captures the true tradition of
rum making.
Launched in 1990, Celebration Rum was created by our expert master blender, who has
carefully studied the age-old art of rum making, before creating this superb blend. Although a
hundred thousand cases was a modest beginning, 6.6 million cases reach markets across 12
countries making it the 4th largest selling rum in the world today.
Old cask's blend is a perfect combination of strength and smoothness. The blend has been
carefully created by our master blenders to ensure its appeal to the connoisseurs of fine rum.
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VODKA
Fig. 21
49
It’s pink. It’s redolent of flowers and fruit. And in its chic perfume style bottle, it
could live on a vanity table. Pinky Vodka offers a shot of sheer feminity. Created in Sweden
by champion wine tasters, Pinky owes its elegance and distinctive “pink” taste to a bouquet
of violets, rose petals, wild strawberries and other botanicals, hand blended into the vodka
Pinky comes in an oversize perfume-like bottle, with the brand name printed in
metallic silver on a black label and a mono carton accentuating its sensual appeal. The
brand’s unusual typeface adorned with rose thorns suggests its beauty while alluding to its
ingredients. Tickle your lady love pink this season with the world’s most beautiful vodka.
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2-WHITE MISCHIEF-The spirit… with a twist of mischief
Fig. 22
Distilled from the finest spirit and filtered to the highest levels of purity to ensure a high
quality vodka blend, White Mischief embodies the pure enthusiasm and flamboyant spirit of
youth – its core essence being "flirtatious mischief". The frosty and smooth look of the bottle
and the shades of royal blue and white on the vial stand for the stylish youth of today. No
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Fastest growing vodka in the country, White Mischief is the market leader today with 46%
market share.
White Mischief is triple-distilled from the finest spirit and systematically carbon filtered to
the highest levels of clarity and purity. The clean and dry Extra Neutral Alcohol is blended in
close supervision and strict quality control parameters to ensure a high quality vodka blend.
Fig. 23
Seductive and magical, Romanov is all enticing beauty with the zing. A stylish pack
that screams attitude and attractive labels make Romanov Vodka a premium offering. The
fastest growing vodka in the country, Romanov is at the forefront of innovations. Keeping in
step with the changing times, Romanov is introducing a first-of-its-kind offering - Romanov
52
Diet Mate Vodka. Besides, Romanov is also available in two peppy flavors namely Green
Romanov gets its name from the last czar of Russia and true to its calling remains
committed to the finest vodka making, the way Russians traditionally made their vodkas.
Romanov then not only delivers an international youthful imagery but also provides the
Fig.24
Romanov Red Vodka is multigrain- triple- distilled Vodka. Romanov Red is made from
carefully selected multiple grains. The fine grain alcohols are then immaculately purified
through a multi-distillation process, inspired by the traditional manner in which the Russians
53
prepared their Vodka. The high quality spirit is then put through an intensive filtration so you
Competitors Profile
SEAGRAMS INDIA
Seagram India Pvt. Ltd. engages in the spirits business in India. It offers Scotch whiskey,
wines, gin, and brandy. The company was founded in 1994 and is headquartered in Gurgaon,
India. Seagram India Pvt. Ltd. is a subsidiary of Pernod-Ricard SA. In the 2001, group
Pernod Ricard acquired part of Seagram’s worldwide, after the divestment of the spirits and
wine business by Vivendi Universal. The acquired part of the Seagram’s business catapulted
group Pernod Ricard into the top three of the global wine & spirits players. The acquisition
also brought Seagram’s India into its fold, making group Pernod Ricard, headquartered in
Paris, the biggest MNC in the spirits business in India. Seagram’s India has shown an
average growth rate of 69% per annum since 95-96 and is today the most profitable company
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The main competitor during this study to be targeted is Seagrams India, and the product to be
BRANDS OF SEAGRAMS
• FUEL VODKA
RADICO KHAITAN
Radico Khaitan is one of India's oldest and largest liquor manufacturers. Formerly known as
Rampur Distillery which was established in 1943. It was only in 1999, that Radico decided
to launch and market its own brands, thereby embarking on a period of phenomenal growth.
To further boost its production capacity of bottled and branded products, the company has
Radico Khaitan Ltd today has three millionaire brands in its portfolio. Radico's flagship
brand, 8 PM Whisky, launched in 1999, was a runaway success In the first year alone, it sold
one million cases - a record for any Indian or foreign brand operating in India. This also
made it the first brand in the liquor industry to make it to the Limca Book of Records. The
55
other millionaire brands are: Contessa Rum has won the prestigious Monde Selection award
for its overall quality for the past three executive years. It has a large market share in the
defense market.
Today, Radico Khaitan has brands that straddle almost every market segment - whisky,
rum, brandy, vodka & gin - and price category. The company has form a 50:50 joint venture
with Diageo to exploit the large and developing Indian made foreign liquor (IMFL) segment.
Diageo, the world's leading premium Drinks Company with iconic brands such as Johnnie
Walker and Smirnoff in its portfolio, and Radico Khaitan Ltd, the second largest drinks
company in India
BRANDS OF RADICO
• 8 PM WHISKY
• CONTESSA RUM
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USL Market Share
57
in the year 2008-2009
Fig. 25
Fig. 26
58
in the year 2008-2009
Fig. 27
Fig. 28
COMPANIES
59
Fig. 29
1- The benefit of display of product is that it makes the product eye catching as the
60
GLODEN LINE
While arranging shop display, the base line is just below average customer
height, therefore 20 degree below the eye level is the most convenient point
2) PROMOTION PARTIES
a) People come in the party in mass to enjoy the party and aware about the company’s
product
In all these parties only the target product is available at special prices so each
61
and every guest enjoy and have taste of it.
Companies always try to attract regular customers in bars and club members by
giving some attractive offers on the drinks example one peg free on every two
pegs of a drink or they offer some free snacks with every three pegs of drink a
customer take.
There is always a big hand in increasing the sale of a product by the salesman therefore
different companies always try to keep every retailer in their favor by offering them various
incentives regularly. And on other hand company also try to attract various customers
The first project assigned to me was the promotion of McDowell’s No-1 Platinum whisky. The
main purpose of this promotion was to make consumers aware about the new blend, its
Previously USL didn’t had a competitive whisky with Seagram’s Royal Stag Whisky hence
McDowell’s No-1 Platinum was launched. Its blend is very smooth and its 100% grain whisky.
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Strategy Adopted
The company adopted distributing gifts as a promotional strategy. These gifts included a pen,
a lighter cum torch and a wallet. Under this project I was told to visit a retail shop where I
had to do spot selling of McDowell’s No-1 Platinum whisky and give above mentioned gifts.
Gifts were given on the basis of purchase, i.e. on purchase of every Nipe a pen, on purchase
of every Pint a lighter cum torch and on purchase of every Quards of McDowell’s No-1
Record of each day’s sales of McDowell’s No-1 Platinum whisky in a specific format which
Bar promotion at GANGES Club and KANHA CONTINENTAL is a big success. There an
offer was displayed for the customers that read “BUY 2 PEGS GET 1 PEG FREE”. This
offer was displayed on the TAN-CARDS. This gave a good response and McDowell’s No-1
Platinum whisky became a success story over Seagram’s Royal Stag Whisky.
SWOT ANALYSIS
Every company SWOT analysis will differ even among the same industry. Basically, the
terms are self-explanatory with the key difference being strengths and weaknesses are
internal attributes and opportunities and threats are looking at external factors that could
STRENGTH:-
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• 100% availability of our products,
WEAKNESS:-
OPPORTUNITY:-
• Since Shaw Wallace is now a part of UB GROUP so we expect that it acquire more
liquor companies,
THREATS:-
64
• Competitive market strategies of other companies are very strong,
Impressions
• 1898, McDowell & Co. Ltd. was established. The company, with a 100-year-old history
• In 1951, late Mr. Vittal Mallya, founder of the UB Group acquired McDowell.
• In 1973, Herbertsons Ltd., a company established in 1936, was acquired by the United
Spirits Limited Herbertsons Ltd. is India’s third largest spirits company today.
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• Mr. Vijay Mallya, the current Chairman of the UB Group took over in 1983. Since then,
the Spirits Division has earned a reputation for innovation in product development,
• Carew Phipson Ltd. and Consolidated Distilleries Ltd. were merged with McDowell &
• Acquiring Shaw Wallace and Company Ltd (SWC), the second largest player in Indian
Achievements
Four of our brands, have made it to the top 100 global alcobev brands by retail value.
McDowell’s No. 1 Brandy, all under the McDowell’s No. 1 umbrella and Bagpiper
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The 3rd largest spirits group in the world* selling over 60 million cases through
McDowell, Triumph Distillers & Vintners, Herbert sons Ltd & Shaw Wallace
There are over 140 brands out of which 15 are millionaire brands.
First to sponsor and promote brands through event marketing (Grand Prix, Derby,
First to deal in international brands of Spirits, Beer, Wines, Lifestyle Products, Perfumes
and Cigars
First to launch 12 Year Old Deluxe Scotch whisky - Black Dog (1994)
(1999)
The Chairman of the organization is now the owner of the IPL’s one of the most
expensive team i.e. Royal Challenger Banglore. And it has tied up with all other teams of
IPL as a promoter.
67
Financial Prospects of USL
Price Waterhouse
Chartered Accountants
Place: Bangalore
68
[Referred to in paragraph 9(b) of the Annexure to the Auditors' report of even date to
the members of United Spirits Limited on the financial statements for the year ended
2000-01
1984-85,1985-86,1987-88,1991 -92, 1992-93, 2000-
15.756 Joint Commissioner
01, 2006-07, 2007-08
Deputy
8 848 1984-85,1992-93, 2002-03
Commissioner
Commissioner of
0.291 1999-00, 2000-01
Sales Tax
Assistant
1.995 1974-76, 1995-96,1996-97, 2002-03, 2008-09
Commissioner
7.183 Assessing Officer 1993-94,1995-96, 1997-98, 2003-04, 2004-05
Appellate and
0.892 1993-94, 2004-05, 2005-06
Revisional board
Additional
115.431 2002-03, 2004-05, 2005-06
Commissioner
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1971 -72,1972-73,1973-74,1977-78, 1978-79, 1979-
1990-91, 1991-92,1992-93,
1993-94,1995-00, 1996-97,1997-98, 1998-99, 1998-
265.885 High Court
01, 1999-00, 2000-01,2001-09,2002-03, 2003-04.
1995-96 1974-81,1980-81,1981-82,1982-83, 1983-
17,464 Appellate Tribunal
84, 1983-85,1984-85,1984-85, 1985-86, 1986-87,
1985-87,1987-88, 1987-89, 1988-89,1989-90, 1991-
2005-06.
Excise
1.593 1986-87,1992-93,1992-99,1997-98, 2001-02
Superintendent
District Magistrate
1.701 1994-95
and Collector
Chinsurah Court,
12.170 1981-84
Hooghly
Additional District
8.311 1993-94
Magistrate
0.081 Collector 1994-95
The Central Excise
6.000 Supreme Court
Act, 1944
25.635 High Court 1989-97,1996-97, 2004-05
Commissioner of
2.363 1995-96, 2003-04
Central excise
Assistant
- 1995-96
Commissioner
Table- 1
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Balance sheet
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 100.16 100.16 94.48 60.47 51.72
Share application money 7.75 - - 41.76 -
Preference share capital - - 7.75 - -
Reserves & surplus 3,001.94 1,909.16 1,239.79 793.87 235.76
Loan funds
Secured loans 1,306.48 1,106.74 948.52 1,004.73 505.67
Unsecured loans 616.37 55.34 519.26 527.47 68.27
Total 5,032.70 3,171.40 2,809.80 2,428.30 861.42
Uses of funds
Fixed assets
Gross block 787.62 653.07 586.21 563.72 282.98
Less : revaluation reserve - - - - -
Less : accumulated depreciation 194.99 160.24 132.34 103.84 67.81
Net block 592.63 492.84 453.87 459.87 215.17
Capital work-in-progress 28.26 36.12 10.61 2.60 4.29
Investments 2,051.48 657.16 662.46 702.27 380.32
Notes:
Book value of unquoted investments 2,050.71 171.62 169.34 209.54 330.79
Market value of quoted investments 4.74 482.44 179.45 282.41 101.36
Contingent liabilities 3,294.15 2,638.12 112.48 150.86 231.44
Number of equity shares outstanding 1001.63 1001.63 944.82 604.71 517.20
71
Share holding
72
Table- 3
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CHAPTER III
PRESENTATION AND DATA ANALYSIS
METHODOLOGY
The problem should be defined in a systematic manner, giving due weightage to all related points.
The technique for the purpose involves the undertaking of the steps generally one after the other:-
• Sample Size
• Collection of Data.
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• Analysis of Data
The Statement of the problem is market share, market penetration, brand image and
While analyzing the situation in the market I came across certain points that helped me
• Quality
• Low Awareness
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• Discussion with Company Guide
Collection of Data
The sources of information for my report were both primary and secondary data.
PRIMARY DATA:
Questionnaire method was chosen for fulfillment of basic objective. The primary sources
SECONDARY DATA:
• Internet
Analysis of Data
This involved converting raw data into useful information. It involved tabulation of data
and Using statistical measures on them for developing frequency distributions and
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Target of USL
Fig.30
77
The target of USL is to capture the majority of Indian Spirit market by 2015, as by 2015 the
GDP of India would be around 1400 US$ in BRIC Estimate. As the GDP will increase then the
investment capacity in the market will also increase, and this will increase the demand in the
market.
CHAPTER IV
78
FINDINGS, CONCLUSION AND
SUGGESTIONS
Findings
BENEFITS OF DISPLAY:
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Fig.31
The Main benefit of display of product is that it makes the product Eye Catching
When the customers look at the display they become curious to ask that which
Display enhances the image of the company as well as image of the product.
With the help of display Royal Challenge and McDowell got a good start-up and
Competition to its main competitor that is Blender’s Pride and Royal Stag.
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BENEFITS OF PROMOTION PARTIES:
People came in the party in mass to enjoy the party and aware about our New
We arrange a DANCE COMPTETION there and distribute lots of gifts to the winners
For the drink only McDowell’s No.-1 Platinum Whisky is available so each and
After the promotional parties we found that sale of our McDowell’s No.-1
Platinum
Whisky is increased from before and each and every customer who comes to buy the
Based on the topic “Market penetration and promotion of UB products” I have done a market
survey for our product in which I have checked the availability of our premium brands in the
retail shops. My research is based on the primary data which I have collected during my
survey.
I have checked the availability of the new product and helped in increasing the availability of
the product by making the sales person and the retailers aware of this product and by putting
some promotional schemes in Bars and Clubs and retail stores. There are 105 retail shops in
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Kanpur. Their information was taken by visiting the retail shops personally, stock availability
chart was prepared to check the availability of the products of our company.
In the first phase of my training I was asked to promote Royal Challenge Whisky on retail
shops as it was re-launched with new blend and with a new name of “McDowell’s No.-1
Platinum.” For promoting its product company launched it with a scheme of gifts through
scratch coupons on every unit the customer purchased which was a coffee mug, table clock,
salt pepper shaker and a soda bottle. The main target for the promotion were the customer
who bought Blenders Pride (Seagram’s product) to be converted in to Royal Challenge Gold,
the promotion was carried out at 23 outlets for one month which resulted in increase in sales
As McDowell’s No.-1 Platinum was facing stiff competition from the Royal Stag I tried
to find out the reasons for demand shift which were as follows:
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4) 3 D attack on McDowell i.e. its market share was taken away by Royal Stag, Imperial
Blue (both Seagram’s product) and Bagpiper its own brand (observed increase in market
share)
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Fig.32
Fig.33
Market Analysis
84
Fig.34
1) UB Group grabbed around 60% of market share among all Spirit Companies.
85
Fig.35
86
Fig.36
87
Fig.36
88
Fig.37
1) UB group are more focused on taste, appearance and other preference criteria.
2) It provides glow sign board, hoardings and well symmetric manner to its brand in each
shop.
3) Posters and danglers have played an important role for maximum awareness of their
products.
CONCLUSIONS
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To be number 1 is not a difficult task the most difficult one is to sustain at that position in
long run and UB Group is proved itself in the field of Whisky also. Its whisky products like
McDowell’s No-1; Signature is already a success story. But UB Group is just not alone in the
field there are also players like Royal Stag and Blender’s Pride which has very large market
coverage in the field. UB Group is adopting good marketing and promotional strategies these
days to encourage its new product launching. UB Group is already having a brand image in
the market and now its promotional displays are all around in the market. McDowell’s No-1
Platinum is going to be a successful brand in coming days as customers prefer this because of
Many of the Promotional programmes like Spot selling is going on in different cities. It also
organized Promotional parties that were success. Now McDowell’s No-1 Platinum is not
only the demand of some people but now it is demand of all people who like to enjoy their
precious moments with it. But after achieving all the success the company should look into
• UB Group should concentrate on those areas where the sale of liquor area is very low.
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U.B. group is enjoying the top most position in the SPIRITS market of India. As per my
survey and company’s sales report the market share of USL products is about 60%. To
increase this share my suggestions and recommendations on the basis of the findings are as
follows -:
Need to advertise more in remote areas where there are hardly any neon sign or glow sign
They should put more emphasis on displaying their product in the Retail Outlets through
Pop’s, Danglers, Sparkling Sheets, Decorative Lights etc so that their products become more
attractive.
Moreover the company should adopt three simultaneous Promotional strategies for
FOR RETAILERS:
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Give
free gifts on bulk purchases
We can also give gifts occasionally like Seagram gives at least twice a year.
UB group should try to give incentives to the salespersons in terms of money i.e. they can
offer RS. 1 on Nips, RS. 2 on Pints, RS. 5 on every unit they sell. This in return will
FOR BARS
We can also provide T-shirt or cap to bar tenders for brand promotion.
FOR CLUBS
In
clubs generally high class society people are seen, so there should be schemes like free
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Regular feedbacks should be taken from the customers in order to keep a check on the
Live shows are very much effective so the company should organize live shows
regularly.
UB group should try to sponsor Corporate parties at large because they can be good
prospects.
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Questionnaire for Customers
(a) Rum (b) Beer (c) Wine (d) Whisky (e) Vodka
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(a) Water (b) Soda (c) Cold Drink (d) Neat
(a) Platinum (b) Blender’s Pride (c) Royal Challenge (d) Royal Stag
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BIBLIOGRAPHY
5. WWW.MCDOWELL.COM
6. WWW.GOOGLE.COM
7. WWW.UNITEDSPIRITS.COM
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