1) Introduction:United Breweries Limited (UBL)The United Breweries Group or UB Group (BSE: 507458) is a conglomerate of different companies with a major

focus on the brewery (beer) and alcoholic beverages industry. The company markets beer under the Kingfisher brand and has also launched Kingfisher Airlines, an airline service in India, with international flights operating recently. United Breweries is India's largest producer of beer with a market share of around 48% by volume.It is owned by Vijay Mallya who had been a member of the Indian Parliament. United Breweries now has greater than a 40% share of the Indian brewing market with 79 distilleries and bottling units across the world. Recently UB financed a takeover of the spirits business of the rival Shaw-Wallace company giving it a majority share of India's spirits business. The group owns the Mendocino Brewing Company in the United States.

Management teamDr. Vijay Mallya (group chairman)Dr. Vijay Mallya is Chairman of The UB Group, one of Indias largest conglomerates with diverse interests in brewing, distilling, real estate, engineering, fertilizers, biotechnology, information technology and aviation. Dr. Mallya, was elected by shareholders as Chairman of The UB Group in 1983, at the age of 28. United Breweries Ltd (UBL), the flagship company of The UB Group, is the largest brewing company in India with a

national market share of 50 per cent. Kingfisher beer is currently available in 52 countries outside India and leads the way amongst Indian beers in the international market. United Spirits Limited, the flagship of The UB Group comprises a basket of 145 brands including 19 millionaire brands. United Spirits recently acquired a hundred percent of premium scotch distillers Whyte & Mackay. The UB Groups Kingfisher Airlines is today the undisputed market leader in Indias booming aviation market. In the short span of just under three years since it was launched, Kingfisher Airlines has redefined the whole experience of flying and has raised the bar by unleashing a host of product and service innovations. It has received numerous awards since its inception. With the merger of Air Deccan and Kingfisher Airlines, the airline covers all segments of air travel from low fares to premium fares and offers the maximum number of flights offered by any single airline network in India. Dr. Vijay Mallya is the Chairman of public companies both in India as well as in the USA. He has been the Chairman of Aventis Pharma. India (previously Hoechst) as well as the Chairman of Bayer Crop Science in India for over 20 years, in addition to being the Chairman of several other corporations.Dr. Vijay Mallya has received several professional awards both in India and overseas. He was conferred a Doctorate of Philosophy in Business Administration, by the Southern California University, Irvine. He has also been nominated as a Global Leader for Tomorrow by the World Economic Forum. He was conferred Frances highest civilian honour Officier de la legion d Honneur for his exceptional career as businessman heading a multinational with diversified

interests. Dr. Mallya is the first Indian ever to become the owner of a Formula One Team. The Netherlands-based Mol Family and Dr. Mallya have formed a consortium that is now the joint owner of Force India Formula One, which is also Indias firstever Formula One Team and represents Indias first, truly global sports foray. He is a keen sportsman and is an ardent aviator and yachtsman of distinction. He not only participates in various sporting events but also supports various sporting activities worldwide. Mr. S R Gupte (executive vice chairman) Mr. Ashok Capoor (President and Director of United Spirits Limited) Managing

Mr. Kalyan Ganguly (president Breweries Division) Mr. Sammy D Lalla (joint president spirit division) Mr. P A Murali (deputy president finance- USL)

2)HistoryThe UB Group was founded by a Scotsman, Thomas Leishman, in 1857. The Group took its initial lessons in manufacturing beer from South India based British breweries. At the age of 22, Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he replaced R G N Price as the chairman of the company. Rangarajan took-over from R G N Price. United Breweries made its initial impact by manufacturing bulk beer for the British troops, which was transported in huge barrels or "Hogsheads". Kingfisher, the group's most

visible and profitable brand, made a modest entry in the sixties. During the 1950s and 60s, the company expanded greatly by acquiring other breweries. First was the addition of McDowell as one of the Group subsidiaries, a move which helped United Breweries to extend its portfolio to wines and spirits business. Strategically, the Group moved into agrobased industries and medicines when Mallya acquired Kissan Products and formed a long-term relationship with Hoechst AG of Germany to create the Indian pharmaceutical company now known as Aventis Pharma, the Indian subsidiary of the global pharma major Sanofi-Aventis.

3) The logoThe Pegasus, which is the symbol of the United Breweries, first found its place as the Group logo in 1940. Then, the Helladic horse associated with beer and nectar in Greek mythology carried a beer cask between the wings, ostensibly because beer formed the core operations of the Group. Later, the beer cask was removed to represent the Group's multifaceted operations. Now, it is just the horse.

4) Present historySales of United Spirits Ltd products are expected to exceed 60 million cases during the fiscal year 200506, making the Group the third-largest manufacturer of spirits products in the world, only after Diageo PLC and Pernod Ricard. In addition, USL is one of only three in the world to own seven millionaire brands and at least five brands rated by Drinks International, UK, to be amongst the ten fastest growing brands in the world in their respective categories. The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly.The UB Group's brewing entity called

United Breweries Limited (UBL) - has also assumed undisputed market leadership with a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for beer in India. The flagship brand, Kingfisher, is now sold in over 52 countries worldwide, having received many accolades for its quality.With plans to become a global player, United Spirits Ltd. (USL), the flagship of the UB group, purchased the Scottish distiller Whyte and Mackay in May 2007 for 595 million (Rs. 4,800 crore).This would bring the brands of W&M like The Dalmore, Isle of Jura, Glayva, Fettercairn, Vladivar Vodka, and Whyte & Mackay Scotch under its portfolio.

5) FinancialsIn July 2007, United Breweries Limited reported volume growth of 16.3% compared to the previous year.

WINE KINGFISHER BOHEMIAA taste nurtured in Cape Floral Kingdom, South Africa, one of the worlds oldest, most eco-friendly wine growing regions, Kingfisher Bohemia is enriched by a 500-million year old soil and the unique climate typical of that area. The resulting flavour is fruity, delectable and goes well with any food or occasion. Kingfisher Bohemia is the result of a partnership between Kingfisher and The Company of Wine People (COWP), a key player in the South African wine industry, both locally and abroad. New Flavours, New Good Times

Kingfisher Bohemia can be enjoyed in three fine varieties red, white and ros. Pinotage An uncomplicated, easy drinking Pinotage, filled with ripe berry fruit, ending with a soft sweet finish. Chenin Blanc ChardonnayThis masterfully blended white wine has lovely pineapple and ripe melon flavours on the nose, which follows through to a limy, full middle-palate and finishes in crisp freshness. Pinotage Ros Live strawberry and violet aromas combine with the fresh fruity taste to yield a light easy drinking wine. Bouvet LadubayWith the acquisition of BOUVET-LADUBAY in July 2006, the UB Group has made a strategic entry into the wines category. BOUVET-LADUBAY based in Saumur in the Loire Valley region in France, has a heritage of over 160 years. BOUVET-LADUBAY has won many International Awards and Recognition for the longstanding quality of its fine Sparkling Wines. ( 360 Medals, 100 Gold Medals until today).BOUVETLADUBAY considers Wine as Lifestyle Art the French Art de Vivre & has always been partnering with Arts : Contemporary Art through its Art Center, Theatre through its 19th Century Theatre, Cinema through numerous events during each year Cannes Film Festival for instance for over 15 years.The Company currently produces 5.5 Million bottles per annum and has a 8 Million bottles production capacity through its new Winery BOUVET-LADUBAY Full Metal inaugurated in December 2008 by Dr Vijay Mallya, Mr Ravi Nedungadi and his Excellency Ranjan Mathai, Indian

Ambassador to France. Four seasonsSavour the delight of Four Seasons. Whether it is the sprightliness of a fresh spring morning, the joyous warmth of a glorious summer afternoon, the tingling nip of a crisp autumn twilight or the biting chill of an icy winter night, to everything there is a season. And to every season, there is an experience. An experience captured by Four Seasons selection of the finest Indian wines. The UB Group has varied business interests, the core being alcoholic beverage (spirits & beers) and aviation. At a time when wine consumption in India is growing at a rapid pace and is fast approaching international levels, the Groups Spirits Company USL has already made a fresh entry into this business. USLs Wine Business in India operates through two companies United Vintners Limited and Four Seasons Wines Limited. Today, under the guidance of Mr. Abhay Kewadkar, Business Head and Chief Winemaker, the Group plans to take the Indian wine industry to new heights.UVL imports wines from all over the world to offer a portfolio of wines of different origin, varietals, styles and price points. This is to ensure a wide choice for the consumer and to initiate interest and awareness in the existing consumer base. The current portfolio comprises a selection of some exquisite New world & Old world wines from New Zealand, Australia, Portugal, South Africa and France. Four Seasons Wines Limited produces wines from grapes grown around Sahyadri valley in Maharashtra, India and at its state-of-the-art Four Seasons winery near Baramati, around 65 kms from Pune. The company aims to drive interest in wines and wine consumption by offering good

quality wines at reasonable price points and packaging options; and, through education and engagement. The wines are marketed under the brand names ZINZI & FOUR SEASONS. Four Seasons Wines Limited is in the process of planting 300 hundred acres of its own vineyards around the winery. For its annual production requirement, the company has already entered into long term contractual agreement with local farmers for 500 acres and will enter into contractual agreements for a further 2000 acres of vineyards. Besides, the company will also share its technical expertise with the local farmers of Baramati and help in their viticulture. This project will act as a catalyst in the socioeconomic development of the local community by generating approximately 2000 direct and indirect job opportunities to the people of Baramati. Simultaneously, it will also promote wine tourism at its winery & vineyards. SPIRITS United Spirits Limited (USL) is the largest spirits company in the world by volume, selling 114 million cases for the fiscal ending March 21, 2011. Besides Whyte & Mackay and Bouvet Ladubay being 100% subsidiaries of USL, the company has 21 millionaire brands (selling more than a million cases a year) in its portfolio and enjoys a strong 59% market share for its first line brands in India. United Spirits' brands have won the most prestigious awards for flavors, ranging from Mondial to International Wine and Spirit Competition (IWSC) to International Taste & Quality Institute (ITQI); more than 115 awards & certificates. The Company is known to be an innovator in the industry and has several firsts to its credit like the first pre-mixed gin,

the first Tetrapack in the spirits industry in India, first single malt manufactured in Asia and the first diet versions of whisky and vodka in India. USL has a global footprint with exports to over 37 countries. It has a sizeable presence in India with distilleries and sales offices all across the country, and a committed team of over 7500 people dedicated to the fulfillment of the company's mission. It has established manufacturing and bottling plants in every state of India. In addition, to deliver its products to customers located anywhere in India, USL has established a robust distribution network covering the whole country. United Spirits represents the merged entities of the erstwhile McDowell & Co. Limited, Phipson Distillery Limited, United Spirits Limited, Herbertsons Limited, Triumph Distillers and Vintners Private Limited, Baramati Grape Industries Limited, United Distillers India Limited, McDowell International Brands Limited and Shaw Wallace Distilleries Limited. The erstwhile McDowell & Co. Limited was first established as a proprietary business in 1826. USL acquired Balaji Distilleries Limited in 2008. This acquisition gave the company the strategic advantage to consolidate the Groups leadership position in a critical, large and growing State like Tamil Nadu. Currently, the procedural formalities are underway for the acquisition which will take retrospective effect from April 1, 2009.United Spirits acquired Andhra Pradesh (AP)based, Tern Distilleries, in 2009, in a bid to augment its primary distillation capacity. This is the third manufacturing unit in the region given that one fifth of USLs sales volumes come from AP. The current capacity of Tern is 40 Kilo Litres which will be enhanced to 120 Kilo Litres in 24-36 months, subject to Government approvals.

Particulars Comments

Total Number

Brands 140 19 of these are millionaier brand & there are about 151 brand variants SKUs 2992 Distillery-State-BrandPack combinations Distilleries / Bottling Units 79 30 Owned Manufacturing facilities;49 contract manufacturing units Depots finished goods distribution Retail Outlets and off premise outlets 48 64000 Break-bulk points for Inclusive of both on

*USL Millionaire Brands (Those that sell more than a million cases per annum)

6) Brands:Whisky Bagpiper McDowells No.1 Directors Special Old Tavern Haywards McDowells Green Label Gold Riband

 Royal Challenge DSP Black Signature Brandy McDowells No.1 Honey Bee John Ex-Shaw RUM Celebration Rum Old Cask Rum Old Adventurer Rum Vodka & Gin White Mischief Romanov Blue Riband

About Whyte and MackayIn 2007, United Spirits acquired the 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 of 12 million cases per annum. At a time when global demand for Scotch Whisky is showing strong growth and prices are increasing rapidly, Whyte & Mackays bulk scotch inventory is not only valuable but provides United Spirits the opportunity to meet their own growing requirements in India. Whyte & Mackay recorded sales of 1.68 million cases of W&M brands and 1.56 million cases of third party owned labels (Tescos, Label 5), for the fiscal ending March 31, 2009. About Bouvet Ladubay (Wines Foray)With the acquisition of Bouvet Ladubay in 2006, the UB Group has made a strategic entry into of the wines category. Bouvet-Ladubay, located in the the Loire valley of the Saumur region in France, has a heritage of over 156 years. Bouvet-Ladubay has won many international awards and has also been associated with Art and Theatre, sponsoring the Festival dAnjou, the Premiers Plans festival (Debut films festival) in Angers, Arcachon, Biarritz, Brest and Mont Dor and the Company has been present at The Cannes film festival for the past five years. The company currently has a capacity of 8 million bottles per annum, with further scope for expansion when required. After setting celebrations alight across the world in over 38 countries, these fine sparkling wines are now in India becoming both the reason and the means for an unprecedented celebration USLs Wine Business in India operates through two companies United Vintners Limited and Four Seasons Wines Limited. UVL imports wines from all over the world to offer a portfolio of wines of different origin,

varietals, styles and price points. The current portfolio comprises a selection of some exquisite New world & Old world wines from New Zealand, Australia, Portugal, South Africa and France. The company has also commissioned a green field project, coming up in Baramati, which will be Indias best and biggest winery. 6 different ranges will be produced during the first year of operation and 8 more brands will be added over the next 3 years, including manufacturing of premium wines that will go through French oak barrels. Plans to manufacture sparkling wines using traditional French method (methode champagnoise) and under the technical guidance of BouvetLadubay are also in the pipeline. The wines are marketed under the brand names - ZINZI & FOUR SEASONS. For its annual production requirement, the company has already entered into long term contractual agreement with local farmers for 500 acres and will enter into contractual agreements for a further 2000 acres of vineyards. Besides, the company will also share its technical expertise with the local farmers of Baramati and help in viticulture. This project will act as a catalyst to the socio-economic development of the local community by generating approximately 2000 direct and indirect job opportunities for the people of Baramati. Simultaneously, it will also promote wine tourism at its winery & vineyards

7) Liquid Gold : The 10 Most Expensive Whiskies in the WorldGrain, water, a wooden barrel and a little time. Whisky is a colorful character with an ever-changing spirit. The subject of literature, culture and folklore throughout the world, finicky booze-hounds have long paid a pretty penny for bottles of the most coveted casks. Pour a finger or two and

hit the jump to drink in 10 bottles of whisky that truly break the bank 10. Ladybank Single Malt: $4,700 Rounding out the top of the list is the Ladybank Distillery in Edinburgh, Scotland. Only 300 bottles of the rare Single Malt Scotch are bottled each year, and to obtain one you have to become a member of the club. The price of admission? about $4,700 a year. 9. The Macallan 1947 Fine Rare Collectiand on: $6,800 This sherry cask Speyside scotch was bottled for Italy in 1962 before it was repackaged for Macallans Fine and Rare line of whiskies. The distillery used peat in its kilns because of the scarcity and high price of coal during WWII, the 1947 bottle, so this 15 year old has an earthy quality not present in modern Macallans. 8. Chivas Regal Royal Salute 50 year old: $10,000 A swill special enough to be packaged for the 1953 coronation of Queen Elizabeth II, the Chivas Regal Royal Salute is a 50 year old Scotch with smoky anise and raisin flavors. Only 255 bottles were made, 10 of which were destined for America, where collectors eagerly poured out $10,000 each. 7. The Macallan 1939 40 year old Fine and Rare Collection: $10,125 Peaty and powerful, with overtones of sweet toffee and dried fruits, Macallans 1939 is a 40 year old first bottled in 1979. In 2002, it was added to the distillerys Fine and Rare line and re-bottled. It can be found today for around $10,125.

6. Glenfarclas 1955 50 year old: $10,878 Wealthy tasters are warned to overlook this richly scented 50 year old Speyside at their own peril. Spicy and silky with a sweet start, this is the oldest batch ever bottled by the Glenfarclas distillery. 5. Dalmore 50 Year Old Decanter: $11,000 Only 60 crystal-cut bottles of this Highland single malt were produced. Filled in 1978, this dark sherry-aged Dalmore has a reputation for being intense and deeply flavored and is considered by many aficionados among the best 50 year olds in the world. 4. Macallan 55 Year old Lalique Crystal Decanter: $12,500 The eye-catching crystal bottle of Macallans 55 year old Lalique was based on a 1910 perfume bottle designed by Rene Lalique . Exotic, with hints of peat smoke, the taste is smooth with lingering citrus overtones. 3. Glenfiddich 1937 Rare Collection: $20,000 Rare doesnt describe it. Only one bottle of Glenfiddichs 1937 Rare Collection was ever produced, and it just might be the oldest bottle of whisky in the world. It was snatched up at a 2006 auction for a bargain $20,000. 2. Dalmore 62 Single Highland Malt Scotch: $58,000 Only a dozen bottles of Dalmore 62 single malt were corked in 1942. One night in 2005, a man bought a bottle for $58,000, and downed it with five of his buddies. 1. The Macallan 1926 Fine and Rare: $75,000 Dry and concentrated what else would you expect from

one of the most expensive whiskies in the world? Help yourself to a little licorice aftertaste. In 2005, a South Korean businessman paid $70,000 for a bottle of Macallans 1926, the finest and rarest of the Fine and Rare.

8) Branding & Marketing :Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like alcohol which are injurious to heath are prohibited by law in several countries as well as in India and hence these companies have to come lip with several other products that might have the same brand name and indirectly remind people of the whisky or beer bottles of the same brand. Common examples include Hayward's and Kingfisher beer brands, McDowells No. 01 Whisky which is often seen to promote their brand with the help of surrogate advertisings. Surrogate advertising is advertising which embeds a brand or product message inside an advertisement which is ostensibly for another brand or product. There are a number of reasons for companies to use surrogate advertising. One of the most common reasons is to circumvent a ban on direct advertisements of particular products. Many nations have laws restricting alcohol and tobacco advertising, for example, so companies' surrogate advertising to market their products. Techniques used might include advertising another product with the same brand name, sponsoring community events, issuing public service announcements, or sponsoring sports teams. All of these activities technically do not violate the ban on direct advertising, but they still get consumers familiar with the company's branding.

Objectives: 1. To know the effectiveness of surrogate advertisements. 2. To know whether the products shown in advertisement are sold or not. 3. To know customers advertisements. awareness about surrogate

Hypothesis: 1. Customers have adequate information about surrogate products. 2. A surrogate advertisement impacts the consumers buying decision. 3. Respondent customers know which the leading whisky products are.

Research Methodology: The surrogate advertisements of liquor products are generally given on TV. So, such advertisements were observed on various Hindi TV channels for collecting information of original and surrogate products. For testing effectiveness of these advertisements and to know knowledge of people about surrogate products, 50 respondents were interviewed. Gender Marketing Strategy: Creating a branding strategy to target gender as a means of generating interest in a liquor company's products can shape the brand's entire marketing strategy. Targeting gender

doesn't necessarily make a branding strategy sexist. Marketers simply look to capitalize on long held societal views to create interest in products. For example, a liquor company selling a brand of Scotch -- a liquor traditionally marketed to men -- may look to emphasize the brand's long tradition, dedication to recipe craft, and simplicity of style. Conversely, a company marketing a brand of sparkling liqueur to women may highlight the brand's fruit flavors and ease of consumption.

Observed Surrogate Advertisements for the purpose of Study: When we are watching TV for two or three hours, we can observe that the following advertisements are shown, but whisky or alcoholic products are not advertised directly. Surrogate products like Soda, Mineral Water, Music CD having same brand name of whisky are shown to spread message about alcoholic products. Following are the various surrogate advertisements which are used by manufacturers of whisky and liquor products.

1. Bagpiper: It is a famous brand of whisky. In advertisement actually Bagpiper Club Soda is shown at the place of whisky.

2. Royal Stag: It is well known as 'RS'. Instead of advertising whisky, manufacturer had shown Music CD and Mega Cricket in the advertisement with theme "Make it Large". But people never

try to purchase these products. They always know that Royal Stag means whisky.

3. McDowell's No.l Platinum: This whisky brand is advertised with surrogate product Soda. Indian Cricket Team skipper MS Dhoni' tells that, "The No. 1 Spirit of Leadership". Through soda company is advertising their whisky products.

4. Hayward's 5000: This brand is also advertised with the help of soda and packaged drinking water, but many people know very well that Haywards 5000 & 10000 are whisky, beer brands.

5. Black Dog: Advertisement of this whisky is different than all of others. In first scene, few youth girls and boys are moving somewhere rapidly. In next scene they are going show & see "Aath ke Thaat" in a disco club. Means indirectly, enjoy after drinking Black Dog Whisky.

6. Director's Special: This whisky is popularized by showing music cd's in the advertising. i.e. Director's Special Music CD's.

7. Royal Challenge: Some cricketers are shown in this advertisement, at the same time music is played. At the end of advertisement brand name 'Royal Challenge' is displayed in bold letters with very small 'Music CDs'. It was also advertised with the help of mineral water.

8. Green Label : Green Label is the leading and well-known brand in whisky market. Actually this brand is advertised by showing mineral water and soda, but all people can know what intention of that advertisement is. It shown that Green Label is the brand of officers and dynamic people.

9) Discussion:
When researchers had seen all of these advertisements, they found following facts. Few whisky brands are powerful in market like R.S. / Bagpiper / McDowell's. So, their advertisements are more creative and powerful. Hayward's and Bagpiper are also stable brands in whisky market. So, their advertisement gives proper information about their original products. The brands like Royal Challenge and Director's Special are not well known. The people can't understand the meaning of advertisement of these advertisements. For checking the effectiveness of all these surrogate advertisement, we had interviewed 50 people and collected information about their knowledge of such advertisements

and products. Following are the results of these interviews. We had made an attempt to know about awareness in people for surrogate advertisement. When question is asked to people, that whether they know or not which product is actually advertised and which is shown in advertisement, then they replied like: 42 people can tell which product is shown indirectly in advertisement. Means they know that only whisky products are shown. Only 8 people told that they can't understand the product is already shown i.e. soda or music cds. And which is actually advertised i.e. whisky. The questions are asked to all people about their buying decision for whisky is changed or not after watching the advertisement. They responded as: 19 people told that they didn't consume whisky, so such advertisement can't impact them. 27 people replied that, they had changed their brand due the advertisement, because these ads shows that particular whisky is different that others. 4 people told that, they didn't like to change their brand. Finally, we asked about whisky brands to people, 35 people told that they know McDowell's Platinum. 47 people know about Royal Stag. Officer's Choice is known to 39 people. 42 people are familiar to Bagpiper. 23 respondents know the Hayward's whisky. The Very few people know about other products. Maximum number of respondent can identify or tell about which product is shown in advertisement and why? Only 8 people don't know about these ads. It means Hypothesis No. 1 is correct. Purchase decision of maximum people i.e. 27 is influenced by surrogate advertisements. Means hypothesis no. 2 is found to be correct.

As maximum respondents reported that, they can easily understand which the whisky and liquor products are. So, hypothesis no. 3 is proved to be correct. All this create an impact on the way liquor is being marketed in India. Lets have a look at some of the reasons, which I believe needs to be considered while creating a marketing strategies: Traditional Barrier: Strong cultural ties and joint family cultural impacts a lot on consumers buying habits. Except some of the modern families influenced by western culture, our parents still do not bring drinks to the home, they avoid smoking in front of kids or avoid buying such stuffs when they are doing shopping with families. Furthermore Liquor is never being considered as a thing to appreciate, its always been associated with the bad habits. No retail channel: European countries liquor is sold through a retail channel, whereas in India companies are not allowed to sell it without consent to appropriate authorities. We used to have beer in our college canteen in Bulgaria, whereas here in India, we cannot even have it with some of the largest retailers. Only places where we can have it is in Bars, pubs, clubs or some restaurants. So the impulse buying do not holds true in Indian context. Government Policies (Advertisement Restrictions): We still have stringent norms about advertising the liquor or related products on Cable or Satellite driven channels. In June 2002, the Information and Broadcasting (I&B;) Ministry of India ordered leading television (TV) broadcasters to ban the telecast of two surrogate ads[1] of liquor brands, McDowells No. 1 and Gilbeys Green Label. The Ministry also put some other brands Romanov Vodka, Haywards 5000, Royal Challenge Whiskey and Kingfisher beer on a watch

list. The governments guidelines stated that advertisements which lead to sale, consumption and promotion of liquor should not be allowed. Buying decision: Let me ask a straight question to all the readers (off-course the drinkers only); what actually impact your buying decision? Is it Advertisements, Retail presence (Impulse buying), percentage Level of Alcohol, Friends referral of a brand or the brand recall (even though you do not remember any advertisement pertaining to that liquor brand?) When I discussed the same with some of my other friends, I found that either the reference or the brand recall was most influencing in buying decision. Whereas no one bothers to see the bottle to decide whether it has more or less concentration of alcohol.

Lets Discuss for a while on Advertising :

Attributes to be related: Liquor brands are being attached to attributes like glamour, success, achievement, performance and bravery (royal stag). So the message going out is that drinking quietly equals bravery, success etc. Degree of Influence: I believe that advertising helps a person switch brands or introduce a new category. It does not convert a non-drinker to a drinker. Bagpier, Romanov, Signature, Haywards 5000 and Kingfisher are among those some of the brands which are built by advertising in India. Yet, there are iconic brands like Old Adventure Rum that do not seem to be advertised at all. Ways of Advertising: Since the impulse consumption (i.e. the opportunity to buy) is low in India, so its a different ball game for Indian advertisers. They have to focus on advertising channel which are out of bounds of stringent

regulation of airing such ads on TV channels or even on print media. So, Except very few brands, most of the liquor brands use the medium of Surrogate Advertising. If we ask someone What is Wills Lifestyle? What is Royal Challenge Golf? What is Kingfisher? Answers might be an apparel brand or an airlines name etc. This is the way, these companies are building a brand. It creates a brand recall. Further more most of the companies have entered into mineral water category which can be highly marketed or promoted, which in-turn helps in creating a strong brand recall for the liquor brands. I will soon write an extension of this blog to define Surrogate Advertising with some more refreshing examples from Liquor brands.

What are the marketing challenges that a liquor company faces (with specific reference to India - constraints on mass advertising, social responsibility and consumer preferences)? How is UB group dealing with these challenges?
A highly regulated environment and poor shopping infrastructure in the alco-bev industry is unfortunately diametrically opposite to the direction India is heading. Consumer today is demanding more and more information on products and services and in absence of a communication platform the industry faces a major handicap. The industry body CIABC has proposed a Self Regulation Code, which has been drafted after a careful study of similar platforms across the globe, and being followed both in the western and the eastern economies. We are hopeful that one day such a code will become a reality. We are a firm believer in investing in social-awareness programmes and have in past run campaigns on

Responsible Drinking. As a policy, we do not sponsor or organise events at college level. In addition, we take all necessary precautions to ensure that we do not hurt anybodys social or religious sentiments.

What, according to you are the key performance metrics against which a firm must excel in order to be the leader in your industry? How does a firm set benchmark against each of these performance metrics? The Indian consumers have come of age today. The entry of international players has increased the consumer expectations. As the leader, UBSPD remains aligned with the evolving consumer expectations and the market realities. 1. Marketers today need to look at the industry with new lenses and break away from the traditional price-value equation and start creating value for which the consumer will happily pay the right price; this will considerably enhance profitability also. 2. Focus on brand building, create unique and relevant proposition to command a larger market share. This will reduce dependence on the highly regulated trade and bring down the cost of sales. 3. Balance the short-term with the long-term; while one must focus on today, it is imperative for the marketer to plan for tomorrow, especially in view of the opening of the market, as duty trade barriers will slowly disappear. 4. Adopt and customise global benchmarks, both for products and the overall product experience. To sum it up, the company that aligns its thinking to global levels but connects with the consumer at a local level will thrive.

What are the value propositions that a firm in this industry can draw on, to create a distinctive positioning in the minds of the target customer groups? How does possession of a number of power brands help in building market share and obtain price premium? Business model and strategy are not independent of the social and economic milieu we operate in. Value proposition would obviously depend on the target consumer group. One thing is however sure: generic positioning platforms will not work any more; proposition will have to be based on consumer insight and marketers that commit themselves to this process are more likely to succeed. Though McDowells Signature is positioned on the platform of Success the communication strategy is based on the consumer insight that in todays context, success goes beyond material wealth and its apparent symbols and trappings. Success today is all about new rules - it is about new ideas - and this forms the backbone of the The new sign of Success campaign in which real life individuals, who stand for such success, have been showcased as Signature success icons. The campaign inspires and produces an emotional connect and more importantly, is relevant to the target consumer leading to brand adoption and loyalty and, to some extent, even word-of-mouth. Given the market realities, UBSPD has consciously followed a strategy of being present at different price points across different flavours. Our focus on building brands has given us an enviable portfolio of as many as eight millionaire brands, the fourth biggest basket of brands in the world. We have identified a set of Power brands to provide a range of

solutions to meet the mood, occasion, expectation and retain the consumer. Another significant advantage is trapping higher value as the consumer moves up the economic ladder. UBSPD is the leader and trendsetter in India, and we have no intention of reducing ourselves to a niche player. "Finally, what are the core value propositions of the UB Group and how are they different from competitors?" Our core value is to continuously adapt to the changing consumer and therefore to stay relevant, in a unique way, in the fast changing socio economic and cultural context. We believe in offering a wide range of products to be able to meet the demands of all types of consumer groups. Innovation has always been our thrust area and as market leaders we are focused on challenging the paradigm. This allows us to stay in the lead all the time. As of now, we are close to being the fourth largest liquor marketer in the world. Quality delivery has always been recognised as the most important imperative. Efficient and friendly servicing of the market ensures that we have the nest support of the retail and the on-premise network.

10) Suggestions:Frequency of surrogate advertisement is very less. So, companies may increase frequency for more effectiveness. Advertisements of Green Label, Black Dog, Royal Challenge are not creative & considerable as compared to Bagpiper, Royal Stag. So, they have to improve quality of their advertisements.

 Manufacturers should use all TV channels for advertising. Because some people doesnt watch cricket or sports and news channels. So, variation in use of TV channel may help to reach up to all people.