MohanKumarS-03114-Consumer Preference Towards Beer Brand

Consumer preference towards beer brand
MPBIRLA INSTITUTE OF MANAGEMENT 1

CONSUMER PREFERENCE TOWARDS BEER BRAND IN
BANGALORE

A DISSERTATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF MBA
DEGREE OF BANGALORE UNIVERSITY.

BY
A.MOHAN KUMAR.S
REG.NO-03XQCM6062

UNDER THE GUIDANCE OF
Prof.Sumithra Sreenath

M.P.BIRLA INSTITUTE OF MANAGEMENT

ASSOCIATE BHARATIYA VIDYA BHAVAN.
BANGALORE-560001


DECLARATION

I hereby declare that the research work embodied in this
dissertation entitled, consumer preference towards beer brand
in Bangalore under the guidance and supervision of Prof.
Sumithra Sreenath M.P.Birla Institute of Management,
Bangalore.

I also declare that this dissertation has not been submitted
to any university/ institution for the award of any Degree/
Diploma.

Place: Bangalore (Mr. Mohan Kumar.S)
Date : 15-6-2005 Reg No:03XQCM6062


CERTIFICATE

I hereby certify that the research work embodied in this dissertation
entitled Consumer Preference Towards Beer Brand in Bangalore has
been undertaken and completed by Mr. Mohan Kumar.S under the guidance
and supervision of Prof. Sumithra Sreenath, M. P. Birla Institute of
Management, Bangalore.

Place: Bangalore (Dr. N. S. Malavalli)
Date: 15-6-2005 Principal


CERTIFICATE

I hereby certify that the research work embodied in this dissertation
entitled Consumer Preference Towards Beer Brand in Bangalore has
been undertaken and completed by Mr. Mohan Kumar.S under my guidance
and supervision .

I also certify that she has fulfilled all the requirements under the covenant
governing the submission of dissertation to the Bangalore University for the
award of MBA Degree.
Prof. Sumithra Sreenath

Place: Bangalore (Prof. Sumithra Sreenath)
Date: 15-6-2005


LIST OF GRAPHS

Sl.No Title Page No.
1 Indian beer market
2 Contribution by segment
3 EBITA components of performance
4 EBITA margin by segment
5 Habit of beer drinking
6 Often preferred beer drink
7 Preference of the place to have beer
8 Awareness of brands
9 Brand awareness by different fields
10 Alcohol content
11 Ideal beer attributes
12 Basis of choice
13 Quantity of beer purchase
14 Need of the advertisement
15 Kind of the beer

16 Monthly expenditure
LIST OF TABLES

Sl.No Title Page No.
1 Habit of beer drinking
2 Often preferred beer drink
3 Preference of place to have beer
4 Awareness of brands
5 Brand awareness by different fields
6 Alcohol content
7 Ideal beer attributes
8 Basis of choice
9 Quantity of beer purchase
10 Need of the advertisement
11 Kind of the beer
12 Monthly expenditure


EXECUTIVE SUMMARY

Breweries and distilleries industry is one of the steadily growing
industries in the market and beer is a major product of any liquor industry.
Since time immemorial, beer consumption as becomes the part of human
life. Nowadays any parties and social gathering will not be complete
without the beer on the menu

The Indian beer market has been growing rapidly over the last 10
years, due to the positive impact of demographic trends and expected
changes, like: increasing income level, changing changing lifestyles, so
Many of global players are entering the Indian beer sector to get the
benefit of the profit wave of the beer sector in India.

There was only a few studies conducted in this product category
highlighting behavioral aspects and consumers preferences for the
product. Beer is unique in particular reference to its consumption because
of its wide variety of brands and high volume of consumption.
This study will be precedence for the subsequent studies,
which could be undertaken in this category. This study elicits
various opinions attitudes, views of consumer preferences towards
beer brands. A Thorough research is done for making various
observations and finally drawing the recommendation for beer
industry as a whole.


OBJECTIVES OF THE STUDY

S To understand preference of consumer towards beer brands.
S To study the awareness and usage of different beers.
S To make market based suggestions for furthering the growth of the beer
industry.

RESEARCH METHODOLOGY

Research design: descriptive and analytical in nature
Data sources: primary data and secondary data
Research approach: survey method
Research instruments: questionnaire
Contact methods: personal
Sampling methods: simple sampling
.
Findings

One of the important finding of the study is the most of the beer
drinkers are youngsters and they start alcohol drinking with the beer and
they slowly move to other drinks like whisky, rum and other alcohol
drinks.
The market for the beer is good and it is growing steadily, the increased
earning capacity of the youngsters is one of the reasons.


Design of the study

Statement of the problem

Success of the business depends upon the preferences /
attitudes/perception of the consumers of that particular product. Beer
industry is also same .in order to make a through inquiry into the attitudes
of beer drinkers this study was undertaken.

Need of the study

Consumers are the live wire for survival of any product or any
organization. Beer industry has no exception to this, there is a cut throat
competition among the producers of the beer .it is reported that the
alcoholic products are confronting lot of problems in marketing their
products with regard to consumer awareness, brand loyalty, quality price
and competition .in order to arrive at concrete remedies to all the maladies
there is an eminent need to conduct an in-depth study.

Scope of the study

The scope of the present study is confronted to understanding
preferences of consumers towards beer brands in Bangalore.

Methodology


The methodology of present study consists of data collection from
primary and as well as secondary sources.

Primary data

Primary data was collected through a structured questionnaire,
which was self administered by the researcher on beer drinkers and pubs
and wine stores.

Secondary data:

Secondary data about industry profile and other details was
collected from the different company websites and journals.

Research instruments:

The required information was collected with the help of well-
designed and structured questionnaire.

Research design:

The research design is descriptive and analytical in nature.

Population for the study:

The population for the study includes the beer drinkers bars and
wine stores.

Sampling procedure and size:

The sample size of 80 beer drinkers and around 20 bar, wine stores
are selected

Limitations

S Despite all the earnest efforts made by the investigator the required
information was not forthcoming due to the reason that some of the
respondent hesitate to give required information
S No generalization as such, to the consumers preferences towards beer as
study was only limited to only to 100 respondents.


RESEARCH METHODOLOGY

TYPE OF RESEARCH

The type of research adopted for the project is descriptive research.
Descriptive research embraces a large proportion of marketing research.
The purpose is to provide an accurate snapshot of some aspect of the
market environment. Using questionnaires and interviewing the
respondents conducted the survey. The information thus gathered
constituted primary data and secondary data.

Primary data

These are the data, which are collected by the researchers for the
first time. In this research the primary data has been collected by a study,
which is specifically designed to fulfill or find out solutions to the
problems. This data is original in character, which is obtained by a
questionnaire by keeping in view the various type of customers. A copy of
the questionnaire is enclosed in the end of the report as apart of the
annexure.

Secondary data

Data, which are already assembled, are called secondary data.
The data may Be available within the company or the firm. Secondary
data provides a starting point for the researchers and offers the advantage

of low cost and ready availability. The researcher collects the required
data from books, journal records of the organization and the Internet.

SAMPLING TECHNIQUE

In this study random sampling was used to collect data. Random
sampling Methods are those in which every item in the universe has a
known chance, or Probability of being chosen for the sample. This
implies that the selection of sample items is independent of the person
making the study, i.e. the sampling operation is controlled so objectively
that the items will be chosen strictly at random.

Random sampling does not depend upon the existence of detailed
information about the universe for its effectiveness. And it also provides
estimates, which are essentially unbiased and have measurable precision.

SAMPLE SIZE

The sample size will be drawn from a population who are likely to
be aware of the product. In this study of Market Analysis of The Ready To
Eat Packaged Foods, the sample size was taken as 60 in case of customers
and 15 for retailers. Sample size is an important determinant while
adopting a sampling technique.

SAMPLE DESCRIPTION

The study was conducted taking sample from both the customers
and the Retailers. The customer sample taken was 60,and the retailers
were 15.

The customers come under the age group of 20-60, which consists
mainly of females because they have more influence in the purchase of
this product. Majority are graduated, and fall in the monthly income group
of 5000-15000.

INSTRUMENTATION TECHNIQUE

A list of questions pertaining to the survey was prepared under this
study. The questionnaires were distributed to the retailers at the outlets and
informations were collected from customers through personal interviews.

The data collected through questionnaires are coded and tabulated.
Various diagrammatic presentations like pie chart, bar diagram, column
diagrams, graphs & tables were used to represent the information
obtained, to the reader in an understandable manner.

ACTUAL COLLECTION OF DATA

In this research data was collected by survey based on
Questionnaires Schedule & Personal Interview. The questionnaire was
based ion specific components of brand awareness, brand loyalty and
finally the different attributes of the product. The other methods used to
collect information were Magazines, Management Journals, Annual
Reports & Internet. Utmost care must be exercised in collecting data
because they form the foundation of the analysis.

TOOLS USED FOR TESTING HYPOTHESIS


By hypothesis, we mean a statement about the population
parameters. Hypothesis testing deals with a procedure, which accepts or
rejects the hypothesis. There are two types of hypothesis.

1. Null Hypothesis:- It states that there is no significant difference between
the sample value and population vale. This means that the observed
difference is due to the random fluctuations. Ho denotes the null
hypothesis.

2. Alternate Hypothesis: - In case the null hypothesis is rejected, we should
have an alternate hypothesis to accept. Alternate hypothesis is denoted by
Ha.

TYPE OF ERRORS

While testing hypothesis there are four possible combinations
between the population value and sample value. The four combinations
are:

1. Hypothesis is true and test accepts it.
2. Hypothesis is true and test rejects it. (Type 1 Error).
3. Hypothesis is false and test accepts it. (Type 2 Error).
4. Hypothesis is false and test rejects it.

LEVEL OF SIGNIFICANCE


It is nothing but the probability of rejecting a true hypothesis. It
represents the level of risk; the experiment is ready to take in rejecting a
true hypothesis and is denoted by . 1 - gives the level of confidence of
the experiment in taking the decision. It is always preferable to keep the
level of significance at low percentage. It means that we should not reject
a true hypothesis. represents the risk of accepting a false hypothesis. 1
is called the power of test.

ACCEPTANCE REGION

This represents the region within which the calculated value of the
statistics must lie to accept the null hypothesis. If calculated value lies in
this region then the null hypothesis will be rejected.

HYPOTHESIS TESTING PROCEDURE (STEPS):

1. We set up a null hypothesis denoted by Ho. This means there is
significant difference between sample value and population value. In
Case if Ho is rejected, we must have an alternate hypothesis HA. So we
set up an alternate hypothesis.
2. Select the level of significance.
3. Select an appropriate distribution for the test, which is known as test
statistics. The distribution generally used are normal distribution, student
t distribution, Fishers F distribution or Chi square 2
Distributions.
4. Calculate the necessary values from the given data for the test.

5. Make conclusions for testing. If calculated value is less than the tabulated
value, Ho is accepted; else Ha is accepted rejecting Ho.

Test for Specified proportion (infinite ppulation)

In case of attributes we can only find out the presence or
absence of a particular characteristics. The sampling of attributes
may, Therefore, be regarded as the drawing of samples from a population
whose members possess the attribute A or not A.

Large population (n>30)
Ho: p = P

HA: p P

Z cal = p-P
PQ
n

p = Sample Proportion
p = Population Proportion
n = sample size
Q = 1 - P

INTRODUCTION

INDIAN BEER INDUSTRY

The Indian beer sector has seen a hectic merger and
acquisition activity recently with 12 breweries changing hands in
the last 3 years. However, this is not the end of the consolidation
wave in the Indian industry. Rather, some of the largest beer
players across the world are still eyeing India with a view to
gaining a share of the countrys rapidly growing beer consumption.
An attractive beer market
The Indian beer market was estimated to be 6.7 million
hectoliters (hl) in 2002-03. As seen in figure 1, beer consumption
has been growing rapidly at a CAGR (Compound Annual Growth
Rate) of 7 per cent over the last 9 years, while growth in 2002-03
was 11 per cent.

Indian growth rates compare favorably with the global beer
industry, which grew by about 2.6 per cent in 2001-02 Apart from
providing strong growth, India also provides attractive profit
margins due to the consolidated nature of the industry a
comparison between China and India, for example, reveals that the
Chinese beer market is marked by intense competition, with
several players being marginalized. In China there are about 400
brewers, of which the top 10 account for only 45 per cent of the
market. This has resulted in low profit margins for the Chinese
beer players. In contrast, the top two beer players in India account
for about 75 per cent of beer sales in India and the industry stands
a chance to see more consolidation in the near future. The effect of
this consolidation can be seen in the fact that beer prices in India
rarely go down with the competitive pressures of new product or
brand launches. In the past, whenever beer prices have gone down,
it has been due to either the lowering of duties by the government
or the deregulation of distribution (leading to lower margins for the

distribution channel partners). In neither scenario have the margins
or revenues of beer manufacturers been affected.
Growth prospects for the beer industry in India
The Indian beer market has been growing rapidly over the
last 10 years, due to the positive impact of demographic trends and
expected changes, like:
Rising income levels: India is home to nearly one-sixth of the
global population and is one of the most attractive consumer
markets in the world today. Various research studies have shown
that a rise in the income levels has a direct positive effect on beer
consumption. The National Council for Applied Economic

Research (NCAER) projects Indias very rich, consuming and
climbers classes to grow at a CAGR of 15 per cent, 10 per cent
and 2 per cent respectively. With this growth in income levels,
Indian beer consumption is expected to continue growing, at the
very minimum, at the growth rates witnessed in the last decade.
Changing age profile: As a consequence of the high birth rates
prevalent until the 1990s, a large proportion of the Indian
population is in the age group of 20-34 years. This age group is the
most appropriate target for beer marketers. This population trend
will give a further boost to the growth of beer consumption in
India.
Changing lifestyles: A deep-seated traditional social aversion
to alcohol consumption has been a traditional feature of the Indian
society. However, as urban consumers become more exposed to
western lifestyles, through overseas travel and the media, their
attitude towards alcohol is relaxing. Social habits are undergoing a

transformation as mixed drinks are becoming more popular. The
greatest evidence of this trend is the increase in beer consumption
among women. More and more women are consuming beer the
penetration in metropolitan areas is almost twice as high as the
penetration in other large cities implying that the greater
tolerance towards alcohol consumption in metropolitan areas
facilitates the consumption of beer. With increasing urbanization,
this acceptance is only going to rise. Reduction in beer prices: The
Indian consumer typically values an alcoholic beverage on the
basis of its kick factor versus its price. The following two factors
therefore, affect the market for beer. Firstly, as most states do not
have a differential tax structure based on the alcohol content,
strong beer...

SURROGATE ADVERTISING

Liquor companies advertise their drinks in the form of surrogate
advertisements. In this type of advertisement, a product other than the
banned one is promoted using an already established brand name. Such
advertisements or sponsorship help in brand building and contribute to
brand recall. The product shown in the advertisement is called the
(surrogate). The surrogate either resembles the original product or could
be different product all together. But using the established brand of the
original product. The sponsorship of sports/cultural/leisure events and
activities using liquor brand name also falls in the category of surrogate
advertising.

Recent changes in surrogate advertising laws


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 of liquor brands McDowells NO.1 and Gilbeys green
label the ministry also put some other brands Smirnoff vodka,
Haywards 5000, royal challenge whiskey and kingfisher beer on a
watch list the surrogates used by these advertisements ranged from audio
cassettes, CDs and perfumes to golf accessories and mineral water.

By august 20002 the I& B ministry had banned 12 advertisements.
Leading satellite TV channels including Zee, SONY, STAR and Aaj Tak
were issued show-cause notices asking them to explain their reason for
carrying surrogate liquor advertisements. The channels were asked to
adhere strictly to the cable Television Regulation Act 1995 (Cable TV
Act, 1995). As a result, Zee and STAR stopped telecasting the
advertisements; Aaj Tak and Sony soon followed suit. In addition, the
I&B Ministry hired a private monitoring agency to keep a watch on all
advertisements for violations of the Act.

These developments led to heated debates over the issue of surrogate
advertising by liquor companies. Though the liquor companies involved
protested strongly against the I&B Ministrys decision, they had no
choice, but to comply with the regulations. Analysts remarked that the
governments policy was hypocritical. One said, On the one hand they
allow these socially bad products to be manufactured and sold (in order
to garner revenues) and then they deny the manufacturers the right to
propagate knowledge of their products in order to drive sales.

Meanwhile, the government also seemed to be in dilemma. On the
one hand, it had to encourage the sales of liquor and tobacco because they
were the highest taxed sectors of the Indian economy. On the other hand,

there were also the need to take high moral ground and reduce the
consumption of such products.

Theoretical background

Brand management

The first thing to recognize when we talk about brands is that they
are not just names, terms symbols designs or combinations of these,
although it is true say that such things differentiate certain products and
companies from others.

The strong brand apparently says more about itself than the product
lurking behind it. The brand forms an independent embodiment of the
relationship between the seller and the buyer and what they expect from
one another. That makes the brand a very important catalyzing element in
the formation of strategy.

The additional ingredient that makes successful brands is
personality the brand can project a certain personality. Marketers have
used personality variables to segment markets. They endow their products.

Brand image

A product is something that is made in a factory; a brand is
something that is brought by a customer; a product can be copied by
a competitor; a brand is unique; a product can be quickly outdated; a
successful brand is timeless.
--By Stephen king ---wppgroup,
London.

Brand image creates value principally by projecting an image.
While they may be based on an extraordinary product, these brands are
distinguished from the competitors because buyers see them as offering a
unique set of association or image. Brand image are often created in
categories where products are relatively undifferentiated or quality is
difficult to evaluate (I.e. wines, medical or consulting services) or where
under such circumstances, images attached to the brand add value in terms
of distinguishing it from other brands by serving them as a badge
informing others the one group. Membership or accomplishments in either
case it is the set of images attached to the brand that define the brands
uniqueness and create symbols that are highly valued by buyers.

Brand image may be created in many ways as

By adding product features that evoke images;

By making emotional connection with buyers;
By associating a brand with particular types of users; and/or
By clever advertising campaigns.

Brands are successful because people prefer them to ordinary
products. In addition to the psychological factors already mentioned,
brands give consumers the means whereby they can make choices and
judgments.

Based on the experiences customers can rely on chosen brands to
guarantee standards of quality and service, which reduces the risk of
failure in purchase. Smart companies now responsive to the criticisms, in
real time and of making sure the brand is consistent and is as good as it
can be wherever it shows up, and even after the sale has been made .the

tools the sales people use to sell it, public efforts and follow up customers
service all must reflect brand values impart a consistent brand image

SEGMENTATION MARKETING

The first step in developing a segmentation strategy is to select the
most appropriate base on which to segment the market.

Geographic Segmentation

In this, the market is divided by the location. The theory behind this
strategy is that people who live in the same area share some similar needs
and wants and that these needs and wants differ from those people living
in other areas.


Some regional consumption differences can be accounted for by
climate. At the same time marketers have observed divergent consumer
purchasing patterns among urban, suburban and rural areas.
For example if I consider my project case, it is seen that many urban
people beer when compared to other rural areas.

Demographic Segmentation

Demographic characteristics such as age, sex, marital status, income,
occupation and education are most often used as the basis for market
segmentation.

In my study, income, education and occupation plays a major role in
consumer preference for beer. Education, income and occupation tend to

be closely correlated in almost a cause-and-effect relationship. Insights on
media preferences tend to support the close relationship among income,
education and occupation.

Psychological / psychographics segmentation

Psychological characteristics refer to the inner or the intrinsic qualities
of the individual consumer. Consumers may be segmented in terms of
their needs and motivations, personality, perceptions, learning, level of
involvement and attitudes. Psycho graphic research focuses on the
measurement of activities, interests and opinions. On their most common
form, psycho graphic studies use a battery of statements designed to
identify relevant aspects of a consumers personality, buying motives,
interests, attitudes, beliefs and values.


Sociocultural Segmentation

Social class is a potential market segmentation variable. The concept
of social class implies a hierarchy in which individuals in the same class
generally have the same degree of status, while members of other classes
have either higher or lower status. Studies have shown that consumers in
different social classes vary in terms of values, product preferences and
buying habits.

Use related segmentation

Awareness status encompasses the notion of consumer awareness,
interest level or buyer readiness. Marketers have to determine whether
potential consumers are aware of the product, interested in the product or

need to be informed about the product. Particularly many people are not
aware of difference between granite and marble. So the marketers should
make them to understand the product and its characteristics and in what
way it is better to other ceramic products.

MOTIVATION

It is the driving force within individuals that impels them to action.
This driving force is produced by a state of uncomfortable tension, which
exists as the result of an unsatisfied need. All individuals have needs,
wants and desires. The individuals subconscious drive to reduce need
induced tension results in behavior that he or she anticipates will satisfy
needs and thus brings about a more comfortable state.

Motivation is a highly dynamic construct that is constantly changing
in reaction to life experiences.

Needs and goals are constantly changing.
Needs are never fully satisfied.
New needs emerge as old needs are satisfied.
Success and failure influence goals.
Substitute goals.

According Marlows hierarchy of needs, consumer preference for
granite will come under egoistic needs. Inwardly directed ego needs
reflect an individual needs for self-acceptance, for self esteem, for success,
for independence, for personal satisfaction. Outwardly directed ego needs
include the needs for prestige, for reputation, for status, for recognition
from others.

PERCEPTION

It is the process by which individuals select, organize and interpret
stimuli into a meaningful and coherent picture of the word; perception has
strategy implications for marketer, because consumers make decision
based on what they perceive, rather than on the basis of objective reality.

Just as individuals have a perceived self-image as a certain kind of
person, so, too, do products and brands have images (i.e. symbolic
meanings) for the consumer? The perceived image of a product or service
(i.e. positioning) is probably more important to its ultimate success than
are its actual physical characteristics.

Perceived quality


Consumers often judge the quality of a product or service on the basis
of a variety of informational cues; some are intrinsic to the product (e.g.;
color, size, flavor, aroma) while others are extrinsic (e.g. price, store
image, brand image, service environment).

In choosing the granite products consumers always use its
characteristics such as sustenance against wear and tear, hardness, colors
and patterns.

In absence of direct experience or other information consumers often
rely as an indicator of quality.

Price / Quality Relationship

Price is considered to be an indicator of quality. One of the dangers of
sales pricing for retailers is that products with lower prices may be
interpreted as reduced quality.

Consumers imaginary exte nds beyond perceived price and store
image to the producers themselves. Manufacturers who enjoy a favorable
image generally find that their new product accepted more readily than
those of manufacturers with less favorable or neutral images.

The marketers should concern with actual consumer purchasing
patterns, with consumers beliefs and opinions concerning their brands and
competing brands, and with knowing how important the product is to the
consumer. Developing a highly consistent market share of brand-loyal

consumers is the ultimate goal of marketing strategy. Discovering how
consumers learn about brands and become attached to certain brands assist
markets in achieving this goal.

Brand equity

Brand equity refers to the inherent value a brand name has in the
market place. Marketers are consolidating their brands to enhance brand
equity and to encourage brand loyalty in the face of proliferation of private
brands. For marketers, the purpose of understanding how consumers learn
is to teach them that their brand is best, and to develop brand loyalty.

The consumers search for alternatives is influenced by self-image,
interpersonal influences and attitudes.

Each individual has a perceived self-image (or multiple images)
as a certain kind of person with certain traits, habits possessions,
relationships, and ways of behaving. Consumers frequently attempt to
preserve enhance alter or extend their self-images by purchasing products
or services and shopping at stores believed to be consistent with the
relevant self-image and by avoiding products and stores that are not.

Attitude

It is a learned predisposition to behave in a consistently favorable or
unfavorable way with respect to a given object (e.g. a product category, a
brand, a service, an advertisement, a retail establishment).

The attitude towards-the-ad models examine the influence of
advertisements on the consumers attitudes towards the brand. Internal

variables like social, cultural, family, communication and persuasion are
explained below.

Social class

It is usually defined by the amount of status that the members of a
specific class posses in relation to members of other classes. Social class
membership often serves as a frame for the development of consumer
attitudes and behavior.

Research has revealed social class differences in clothing habits,
home decoration, leisure activities and savings, spending and credit habits.
Thus astute marketers tailor specific product and promotional strategies
for each class target segment.

Occupation is a widely accepted and probably the best-documented
measure of social class, it implies occupational status.

Marketers frequently think in terms of specific occupations when
defining a target market for their products.

Education is another commonly accepted approximation of social
class standing. Generally speaking, the more education a person has, the
more likely is his pay and can afford for any expensive product such as
granite flooring for his house.

Culture

Culture is defined as the sum total of learned objects, values and
customs that serve to regulate the consumer behavior of members of a

particular society. Culture is dynamic and gradually and continually
evolves to meet the needs of society. It is learned as a part of social
experience.

Family

Family is a major influence on the consumption behavior of its
members; it is also the prime target market for most of the products and
product categories. The members of a family assume specific roles and
tasks in their everyday functioning. Such roles and tasks extend to the
realm of consumer purchase decisions.

Marketers are interested in the relative amount of influence that a
husband and a wife when it comes to a family consumption choices. Most
husband-wife influence studies classify family consumption decisions as

husband dominated, wife-dominated, joint and automatic. Studies that
have examined both the extent and nature of husband-wife influence in
family decisions have found that such influence is fluid and likely to shift,
depending on the specific product or service, the family structure
orientation, and the specific stage in the decision making process.

Communication

Communication is defined as the transmission of message from a
sender to a receiver through a channel or medium of some sort. It is a
bridge between marketers and consumers and between consumers and
their socio-cultural environments.

Consumers decision to purchase or reject a product is the moment of
final truth for the marketer. It signifies whether the marketing strategy has

been wise, insightful and effective or whether it was poorly planned and
missed the mark. Thus marketers are particularly interested in the
consumers decision-making process. For a consumer to make a decision,
more than one alternative must be available.

COMPANY PROFILE

Here is the company profiles of major liquor companies in India

SHAW WALLACE

As one of India' s foremost liq uor manufacturers and exporters with a
host of brands that have captured the imagination of alcohol consumers in
the country and abroad, we believe it is superior quality that effectively
defines and underlines our primary goals.

For the last 116 years, we have carefully cultivated and abided by a
rock solid character that has been synonymous with a tradition of
excellence setting and upholding the highest standards is it in the
manufacture of our products or in our customer focus.

It is our philosophy that one can and need not settle for anything less
than the very best. To that end, our customers in India and abroad are
treated to a medley of only the finest selection of alcoholic beverages
lovingly brewed and packaged under our label.

The world is our playground. Catering to the myriad tastes of liquor
lovers in different parts of the globe forms an irresistible challenge that we
have risen to time and time again. In the years to come, we at Shaw
Wallace aim to explore and conquer potential markets across the world,
besides increasing our domestic production in keeping with the ever-
growing demand for our products within India.

One can strive for perfection -- but we know there' s a realm that
exists beyond. That' s the corne r the members of our organization are
taught to reach out for. With a doctrine that stresses on consistent
innovation and improvement, we at Shaw Wallace intend to meet and
surpass the most stringent standards of international quality in liquor
manufacture and export.

As the future dawns on us, we intend carving our very own niche in
every nook and cranny of the globe making Shaw Wallace the first name
in alcoholic beverages the world over . . .

Our Mission:

To become India' s larges t and most profitable Alcoholic Beverages

Company and become a global player by delivering the best standards of
quality and customer satisfaction

Brands

Shaw Wallace and Co, while constantly creating and unveiling new
brands to tap fresh markets, is also aware of the importance of maintaining
the impeccable quality and equity building of its existent brands.

Shaw Wallace and Company Limited is perhaps one of the few
members of the alcohol and beverages industry in India which reports a
sale of 11 liquor bottles every second. While the organization is safely
entrenched as one of the liquor giants of the country and by far one of the
most promising players in the international arena, Shaw Wallace continues
to speak the language of change and development in keeping with
changing tastes and trends.

With a view to keep up with the demands of the consumer, Shaw
Wallace has re-launched many of its old products like Antiquity, Royal
Challenge, Director' s Special (DSP), DSP Black, and Old Tav ern Whisky
sprucing them up with revolutionary new packaging. White Mischief
vodka and London Lime gin have also undergone a revamp and a re-
launch.

From the international portfolio, Shaw Wallace, in association with
Kyndal, unveiled a plethora of new products being introduced for the first
time in India. The range includes Findlaters, one of Scotland' s most well -
known Scotch brands, Vladivar vodka, Veba, UK' s fastest growing ready
to drink low strength alcohol beverage and Papillon. A range of Shaw
Wallace Bottled in Origin French Wines including red, white and

sparkling wines and Golden Mist, a range of red and port wines have also
been introduced to cater to the the budget conscious Indian consumer.

Manufacturing units

Breweries
Uran, Navi Mumbai
Sica, Pondicherry
Doburg, Satara, Maharashtra
Paradeep, Orissa
Haryana
Sangareddy, A.P.
Meerut, U.P

UNITED BREWERIES

History
It all began with 5 breweries in South India. The oldest of which,
Castle Breweries, dated back to 1857. United Breweries, as these
breweries were named in 1915 has come a very long way.
Soon afterwards, the sight of bullock carts carrying huge barrels or
' Hog' s heads' containing beer became a household sight. These carts
wheeled their way to the customers, including British troops, living in and
around Madras, Bangalore and the Nilgiris. Almost immediately, the

Brew from UB became a favorite, especially with the British troops.
So began the history of Beer in India. And the history of Beer Division of
United Breweries!
The company was bought by late Mr. Vital Mallya in 1947, and since
then has never looked back. Today each one of the 32,000 Beer outlets in
India sells one brand or the other from United Breweries.

CORPORATE PROFILE

The beginnings of what is today The UB Group are rooted in the
flagship company, United Breweries Limited, (UBL) also referred to as
the Beer Division. Led by Mr. Kalyan Ganguly, President & Managing
Director, it has a 40% market share in the country

McDowell Alcobev Pvt Ltd., (MABL), is the new Joint Venture
Company in which UB and Scottish & Newcastle of the UK have a 40%
stake each, and Mr. Ravi Jain, Managing Director of the company and his
team has a 20% stake.

United Breweries Limited, the flagship company of the UB Group,
has an association with the brewing dating back over five decades, starting
with 5 breweries in South India in 1915. From bullock cart-loaded barrels
or ' hogsheads' of frothing ale, the Beer busine ss as gone on to become the
undisputed ' king' in the Indian beer market.
Here, innovative, creative and aggressive marketing is complemented
by a strong distribution network. A management focused on building
brand equity on one hand and exploiting it to the hilt on the other. A
concerted emphasis on quality.

The Division today boasts an impressive spread of 11 own and 15
contract manufacturing facilities throughout the Country.
Quality and hygiene are the key elements of the United Breweries'
manufacturing philosophy. To this end, the Central Scientific Laboratory
(CSL), headquartered at Ban galore sets standards for all its breweries.
Quality Management Systems laid out along the lines of ISO 9000 are
strictly adhered to, controlling quality at every stage of production, from
raw materials to the end product. Also, besides controlling the production
process, the CSL analyses the Company' s beer taken off market shelves all
over the Country, the competition' s beers and beers across the wo rld.
These beers are tested as per the standards laid down by the European
Brewery Convention on 40 different parameters. By these standards,
United Breweries' beers don' t just equal, but even surpass, several Dutch
and American beers.
Its flagship brand 'Kingfisher', has achieved international recognition
consistently, and has won many awards in International Beer Festivals.
Kingfisher Premium Lager beer is currently available in 52 countries
outside India and leads the way amongst Indian beers in the International
market. It has been ranked amongst the top 10 fastest growing brands in
the UK.

In addition, UBL has also entered into mutli-faceted strategic alliance
with Scottish & Newcastle Plc (S&N), an international brewery major,
with $6 billion in revenue and a market capitalization of $5.4 billion. This
alliance, apart from having a joint venture in India, will allow S&N to
market it International brands like Kronenbourg in India, while UBL will
utilize S&N' s global network to further glob alize its Kingfisher.

UBL's leading brands


Kingfisher Premium

Kingfisher Strong
UB Export Lager
London Pilsner
UB Premium Ice Positioned for the young and trendy customers launched
in 330 ml frosted bottles in 1998, its unique refrigeration process gives
beer a clean, crisp and strong taste

Launched in 1969-70
No.2 lager beer in India
Largest selling Lager Beer brand in East India

MABL brands

Sand Piper Lager- A refreshing mild beer with a distinct look and
personality. Positioned as a brand of the youth.

Zingaro Strong Beer A strong beer that makes one lose his inhibitions

Mission Statement

To be the recognized leader in our target markets
To be the preferred employer wherever we operate
To recognize the value of our human assets
To be the partner of choice for customers, suppliers, and other creators of
innovative concepts

PRODUCTION

Quality and hygiene are the key elements of the united breweries
manufacturing philosophy. To this end, the central scientific laboratory
(CSL) at their headquarters at Bangalore is manned by highly qualified
scientists and equipped with sophisticated instrumentation. The CSL sets
standards for all its breweries. A manual has been developed laying down
quality management systems on the lines of ISO 9000. So quality is
controlled at every stage of production, from raw materials to the end
product.
Besides controlling the production process, the CSL analyses the
company' s beer taken off market shelves all over the country, the
competition' s beers and beer s across the world. These beers are tested as
per the standards laid down by the European Brewery Convention on 40
different parameters with particular attention paid to apparent extract,
bitterness, color, diacetyl, ethanol, foam stability and haze. By these
standards, United Breweries' beers don' t just equal, but surpass several
Dutch and American beers

SABmillar COMPANY

The South African Breweries Limited is a holding company invested
in and taking management responsibility for a portfolio of businesses,
principally engaged in meeting beverage consumers' needs. Beer is the
major profit contributor, but an important balance is provided by interests
in carbonated soft drinks and other complementary beverages,
supplemented by strategic investments in hotels, gaming and selected
mass consumer services


Largest South African industrial company on the Johannesburg Stock
Exchange
Over 80 000 people employed throughout the Group
Market capitalization exceeds R50 billion
Fifth largest brewer in the world
Products compete internationally in over 40 countries
R25 billion invested in total assets
Group beverage sales total 60 million hectoliters

FINANCIAL SUMMARY

During the year and the previous year, the group made a number of
acquisitions and increased its shareholdings in several subsidiaries. As
disclosed in note 29, these acquisitions, with the exception of the
acquisition of the Miller Brewing Company in July 2002, were material to
individual business segments, but they were not material to the group as a
whole. All operations are continuing.

There is no material difference between the results disclosed
above and those disclosable on an unmodified historical cost basis.

GROUP OPERATING PERFORMANCE

All of our businesses performed well over the year, and the overall
portfolio delivered excellent results. Total lager beer volumes increased
18.9% to 137.8 million hectoliters (hls), and organic lager volumes grew
by 3.7%, with growth in all the businesses. Millers performance is

noteworthy in that the decline in the early part of the year was replaced by
growth in the second half, leading to year on year organic volume growth.
Europe and Central America recorded organic lager growth of 7.5% and
5.3% respectively and Beer South Africa recorded a third consecutive year
of growth, with volumes up 3.4% to 25.3 million hls. Total group
beverage volumes of 173.9 million hls were 15% above last years 151.4
million hls (organic growth 3.3%). Turnover, including share of
associates, increased by 41% (organic growth 20%, and organic, constant
currency growth was 8%).

Earnings before interest, taxation, amortization of goodwill and
exceptional items (EBITA) increased 49% to US$1,893 million, and
organic, constant currency EBITA increased by 22%, with double digit
increases in all of our businesses. EBITA comprises profit before interest
and tax (US$1,579 million) before goodwill amortization (US$355
million) and before exceptional items (net credit US$41 million).
Information on our operating results by region is set out in the segmental
analysis of operations, and the disclosures accord with the manner in
which the group is managed. SABMiller believes that the reported profit

measures before exceptional items and amortization of goodwill
provide additional and more meaningful information on trends to
shareholders and allow for greater comparability between segments.

The groups aggregate pre -exceptional EBITA margin improved to
15.0% from the prior years 14.1%, with margin enhancement in most
businesses as volumes increased and productivity was improved. Beer
South Africa retained its EBITA margin at 26.6%, having absorbed launch
costs and higher ongoing marketing costs of the new premium brands

introduced during the year, and while Europe increased organic EBITA
margin, the reported margin was impacted by the lower current margins of
Peroni and Dojlidy. Margins improved in North America as our
turnaround programme started to deliver results, and in Central America,
reflecting management action to improve our brand portfolios and increase
operating efficiencies. Margins at OBI and Africa & Asia improved,
continuing the trend of recent years.

The reported turnover for the year ended 31 March 2003 has been
restated following the adoption of FRS 5 Reporting the substance of
transactions, application note G revenue recognition. The change
reduced each of turnover and net operating costs by US$128 million for
the year ended 31 March 2003 in respect of the following segments
US$65 million in North America and US$63 million in Europe. The
reclassifications related to freight costs and distribution costs, respectively.
Had the 2004 financial results been prepared on the previous basis, the
impact would have been to increase turnover by US$178 million (US$100
million in North America and US$78 million in Europe). There was no

impact on EBITA in either year, however the adjustment does increase the
groups reported EBITA margin by approximately 20 basis points.
The group recorded net exceptional costs within operating profit of
US$26 million, comprising Miller restructuring costs of US$13 million; a
US$5 million impairment charge in relation to FMB assets at Miller;
US$6 million of reorganization costs in Central America; and US$6

million costs associated with the closure of the water bottling plant in the
Canary Islands, partially offset by a reversal of US$4 million of the
Tumwater brewery closure costs at Miller. Exceptional profits of US$67
million were recorded after operating profit and comprised surplus on the
pension fund of a disposed operation of US$47 million; profit on the
disposal of trademarks in Appetizer of US$13 million, and the groups
share of the profit on disposal of Castels CSD business and brands in
Morocco of US$6 million and a brand in Angola of US$1 million. This
compares to prior year exceptional costs within operating profit of US$70
million, comprised within Miller of Tumwater brewery closure and
impairment costs of US$35 million and integration costs of US$23 million
and Central America reorganization costs of US$12 million. A profit of
US$4 million on partial disposal of the groups holdings in the Hotels and
Gaming group was recorded after operating profit.
Net interest costs increased to US$188 million, a 15% increase on the
prior years US$163 million. This increase is due primarily to the increase
in borrowings incurred regarding the acquisitions undertaken in the last
two years, together with the effects of the higher interest rates payable on
the fixed debt issued during the year. Interest cover, based on pre-
exceptional profit before interest and tax, has improved to 8.2 times. The
groups profit before tax increased 81% to US$1,391 million, reflecting
the constituent changes referred to above.

The effective tax rate, before goodwill amortization and exceptional
.items, is 34.3%, broadly in line with the prior year excluding the 2003
exceptional deferred tax credit. While there is virtually no change in the
rate compared to the prior year, the tax charge has increased as a result of
higher profits earned, partly offset by impacts of various tax-saving
measures introduced during the year.

Mohan Meakin
History Of Company YEAR EVENTS 1934 - The Company was
Incorporated at Simla Hills.

The Company was formed to take over the business in India of
Dyer Meakin & Co. Ltd., which went into voluntary liquidation in
September. The Company' s object is to manufacture beers, I.M.F. spirits,
abrasive products, yeast, malt extract, fruit juices, carbon-di-oxide gas etc.
Presently, the Company is engaged in the production of alcoholic
products-whiskies, rums, brandies, vodka, gins and beers and non-
alcoholic products - juice, vinegars, extracts, mineral and water and
breakfast foods.
The company exports alcoholic products, textile fabrics and made-ups,
leather garments and consumer durables.
1951 - 1,62,063 Bonus shares issued in the prop. 1:1.
1957 - The Company took over the business of the National Sand Paper
Mills (India) Ltd., at Ghaziabad, which was engaged in the manufacture of
abrasive products. Its Sword brand abrasives were popular in the market.
1958 - 81,040 Right shares issued at par in the prop. 1:4.
1959 - 1,62,066 right shares issued at a prem. of Rs.2 in prop. 2:5.
1962 - 5,67,232 bonus shares issued in the prop. 1:1.
1965 - 81,033 bonus shares issued in prop. 1:14 upto 31.3.1996, in August
1966, 12,15,497 bonus shares issued in prop. 1:1.

1966 - With effect from 1st November, the name of the Company was
changed from Dyer Meaking Breweries Ltd., to Mohan Meakin Breweries
Ltd. The name was again changed to Mohan Meakin Ltd., in 1980.
1967 - Mysore Fruit Products Ltd., a Government of Karnataka
undertaking became a subsidiary of the Company with effect from 24th
March.
1968 - In June, 24,30,994 bonus shares issued in prop. 1:1.

1970 - In August, 36,46,491 bonus shares issued in prop. 3:4.
1975 - The Company entered into a technical collaboration with Tashi
Commercial Corporation for bottling of IMFL spirits in Bhutan. This plant
was commissioned in November 1976.
The Company entered into technical and financial collaboration with
Suva Co-operative Association Ltd., for setting up a modern bottle
manufacturing glass factory in Fiji. A new company under the name
Mohan Fiji Glass Manufacturing Ltd., was registered in Fiji for this
purpose.
1978 - Negotiations were in final stages with Zupack Gesellscahft MBH,
Darmstadt, West Germany for setting up of a factory in India for the
manufacture of packing machines and packaging materials. This
packaging system would ensure hygienic and pilfer proof packaging
would replace cans and bottles for filling of juices, dairy products, oils and
lubricants etc.
Management of another distillery in Eastern Bhutan at Samdrupjongkhar
was taken over and production was started there.
A technical assistance agreement was entered into with Galot Industries
Ltd., Nairobi, Kenya for setting up a distillery and glass bottle-making
factory in that country. A new company under the name Mohan Meakin
Kenya Ltd., was registered in Nairobi. Approval of the Indian Government
was received to invest upto 20% of the equity capital amounting to Rs.8
lakhs in the Kenya Company.

The Company entered into technical collaboration agreements with
Artos Breweries Ltd., at Ramachandrapuram in Andhra Pradesh and M.P.
Beer Products (P) Ltd., at Indore for the supply of know-how to those
companies.
1979 - An agreement was signed with the West Germany collaborator. A
new company was registered under the name Mohan Zupack Ltd., and was
registered in Delhi.

The Royal Government of Bhutan took over the production of
potable liquors throughout the country. The Company was providing
technical and managerial know-how and marketing of the products. A
project report was also submitted to set up a beer-manufacturing factory.
A plant for bottling Indian Made Foreign Liquors was added in M.P. Beer
Products (P) Ltd.
1982 - Activities in the liquor field in Bhutan were expanded with the
addition of Samchi distillery. A new brand of whisky under the name
"SPECIAL COURIER" was introduced in Bhutan which was reported to
have compared with Scotch Whisky.
1983 - Mohan Breweries and Distilleries Ltd., Chennai with whom the
Company had a technical collaboration, obtained a licence for the
manufacture of beer.
Mohan Breweries & Distilleries Ltd., also set up a plant for bottling
IMFL production which was in progress.
The Company signed MOU with Macdonald & Muir Ltd. Edinburgh,
Scotland (U.K) a Separate Joint Venture company was incorporated under
the name and style of Macdonald Mohan Distillers Ltd.
The Company also entered into a Memorandum of Understanding with
Marie Brizard & Rogers International for the purpose of bottling and
marketing of various liquors. Under the proprietary brand name of Marie
Brizard. For this purpose a separate joint venture company was floated
and the company signed a MOU with Larsen' s S.A. one of the worlds top

five cognac and French Brandy Manufacturers, for the purpose of
bottling, distribution and marketing of Larsen' s cognac.
1986 - Though turnover declined only marginally, margins declined
steeply due to an increase in fuel and power costs, steep rise in U.P. export
pass fee, and high costs involved in promotional activities.
The glass containers unit of Mohan Meakin (Kenya) Ltd., was
commissioned in May.

1987 - A new company under the name of Mohan Hokke Ltd., was
promoted by the Company with Japanese collaboration.
1988 - As at 31st March, the Company held 91.9% of the equity capital
(1,29,800 No. of equity shares of Rs.10 each) of this subsidiary.
The Company finalized arrangements to dispose of the entire
shareholdings in the subsidiary company to Audikeshavulu and his
nominees.
1991 - Profitability, suffered due to the necessity of giving rebates and
incentives but for which even the turnover would have declined.
The Company issued 5,00,000 -14% secured non-convertible debentures
of Rs.100 each. These are redeemable at a prem. of 5% after the expiry of
7 years from 5th December.
1994 - New products viz. Highland Queen and 5-year-old Scotch whisky
was launched.
1995 - The profits were also lower due to higher sales production and
incentive schemes to combat the un-healthy market conditions.
Two popular brands namely Highland Queen and Grand Reserve Whisky
were launched in the Indian Market. - The Company entered into a
collaboration with Kerala State Small Industries Development &
Employment Corporation Ltd. (SIDECO), for putting up a hand tools and
fasteners complex at Athani in Trichur district of Kerala State. - A new
company under the name SIDECO MOHAN TOOLS KERALA LTD.,
was to hold 49% of the capital and Sideco was to hold 51% SIDECO

Mohan Tools Kerala Ltd., was to act as a mother unit for about 40
guaranteed engineer enterpreneurs. Work was going on as per schedule

Skol Breweries

incorporated on 25th September, at Mumbai. The company was promoted

by Shaw Wallace and Co. Ltd. The promoters also obtained licence free of
cost from SKOL in the Company' s title. The object of the company is to
manufacture beer.
1971 - Allotted 3,32,500 No. Of equity shares to promoters and 1,50,000
No. of equity shares to SICOM. 4,05,000 No. Of equity and 30,000 pref.
shares offered to the public.
1974 - The beer was marketed under the brand name ` HAYWARDS' .
1982 - 3,60,000 bonus equity shares issued in the prop. 2:5.
1983 - Pref. shares redeemed on 20th May 1984.
1984 - The Company concluded a technical agreement with Brauerel A.
Hurlimann A.G. of Switzerland and Allied Lyone PLC of U.K. for the
manufacture of non-alcoholic beverage and export quality larger beer
respectively.
1988 - 7,56,000 Bonus equity shares issued in prop. 3:5.
1989 - The Company launched Drought Beer in Mumbai city on trial
basis, which was well received in the market.
1990 - As at 31st March, the Company' s land and buildings were revalued
and the net surplus of Rs 73.17 lakhs arising out of it was credited to the
revaluation reserves.
1991 - Sales were adversely affected because of high rate of excise duty
and extended winter season in Maharashtra, which was the major market
for the company' s beer. Profits came under pressure mainly on account of
increased interest and depreciation charges.
1992 - The widespread riots during December and January 1993 and
consequent depressed market condition particularly in Mumbai and the
subsequent transporters' strike in July all affected both production and
sales.
During the year under review, sales were affected due to high rate of
excise duty and extended winter season in Maharashtra.
1993 - As at 31st March, some of the Company' s fixed assets viz., lan d,
buildings, plant and machinery and electrical installations were revalued

and the net surplus of Rs 7.78 crores arising out of it was credited to the
revaluation reserve.
1995 - 20,16,000 Bonus equity shares issued in prop. 1:1.
The Research & Development unit is having the most modern laboratory
whereby regular Research & Development is carried out in the brands,
checking the input materials and research on new brands.
The production was affected in the first quarter of the current year due to
shortage of water.
1996 - The Compay has decided to manufacture can beer by importing
automatic canning line of 200 CPM capacity.
New technology is being used to reduce the air content in the beer so that
the quality of the beer produced from the brewhouse is of the finest
quality.
1997 - Skol Breweries Ltd. (SBL) was promoted by Shaw Wallace and
Company Ltd. and started its brewing operations in February 1974 under
the brand name Haywards.
The company had a chequered relationship with its unions in the past with
a lockout being declared at its plant in 1984 which lasted for ninety-five
days.
SBL launched draught beer on a trial basis in FY 1989-90, which was
well received in the market.
The company declared 1:1 bonus issue consequent to which its equity
capital increased from Rs.2.02 crore to Rs.4.03 crore.

SBL is in the process of installing an automatic canning line at its plant
with a capacity of 200 CPM. New technologies are being introduced to
up-grade the taste of beer-quality to international standards by reducing
the air-content in its beer.
1998 - Auto blow down system has been installed for saving steam
energy.
Modernized Refrigeration Plant is being set up.

Water saving device has been installed at various points to monitor water
usage.
Lower capacity air compressors were installed wherever requirement of
the air is low.
1999 - The Company has a Superannuation Scheme for which the
contributions as provided in the scheme are paid to the trustees of the
scheme and are charged to the revenue.
2000 - The Company decided to issue 36,11,000 No. of equity shares of
Rs. 10 each at a premium of Re. 1 per share on preferential basis to
Overseas Transport Co. Ltd.
2002
Board approves to increase the authorised capital by Rs.50 mn by issuing
preferential shares to Shaw Wallace Properties.
Appoints Mr. Vidhya Manohar Chabria as the Chairperson of the
company.
Board approves for the allotment of shares to share holders of the
company and other companies.
BOD approves for the scheme of amalgamation of the company with
Morkutir Investments and Trading Co. Ltd.
Board approves for delisting of equity shares of the company from BSE.

MYSORE BREWERIES

incorporated. The company manufactures beer like ale, draught, porter &
layer.
1978 - During the year the company introduced a new brand viz "7 Star
Super Strong Lager Beer". The company also manufactures well known
and popular brands of beer viz pals, Pals Premium, Knockout, Cobra, etc.

The company is in collaboration with M/s CEREKEM of Denmark.
1981 - MBL set up Pals Distilleries to produce whiskies and other
alcoholic beverages
1991 - The company has acquired the shares of the Company "MBL
Property Developers Pvt. Ltd." and the latter became the subsidiary of the
company.
The Company exported seafoods & beer during the year under reference.
Efforts are being made to increase the export.
1993 - The Company has been granted a Letter of Intent by Ministry of
Industry, Government of India for establishing a brewery in Nalgonda
District of Andhra Pradesh.
The Directors have formed a New Company in the name and style of
MBL (AP) Breweries Ltd.
The Company' s subsidiary is M/s. Pals Distilleries Limited, M/s. Pals
Food & Beverages Limited and MBL Property Developers Ltd.
1994 - During the year, Andhra Pradesh Government has taken over the
liquor trade and formed a Corporation to market the IMFL products in the
State.
During the year under reference, the Company has issued Bonus Shares in
the ratio of 1:1 by capitalising the entire balance of Capital Reserve
Account and part of the amount from General Reserve Account
aggregating to Rs.54,03,000/-.

1996 - The MBL (AP) BREWERIES LTD, group company has received
the extension of its brewery licence in Andhra Pradesh upto November.
The KIADB had allotted about 5 acres of land at Kunigal Industrial area,
Kunigal.
The manufacture of Beer is done with in-house know-how and there is no
technology absorption involved.
Shri G.NARAYANASWAMY & Shri K.P.SANKARAN Retires by
rotation and being eligible they offer themselves for re-appointment.

MBL set up an Rs.1.0 crore mineral water-bottling plant (capacity: 20,000
bottles/days) at Koonigal Hills close to Bangalore city in March 1996.
1997 - During the year, the Company has declared Bonus Shares in the
ratio of 1:1 by capitalizing the part of the amount from General Reserve
Account aggregating to Rs.1,08,06,000/-.
The Company continues to produce the mineral water with the brand
name "STREAM" and the product is well received by the market.
The Company has come out in the month of May with a public issue of
29,75,000 No. Of equity shares of Rs.10/- each at a Premium of Rs.15/-
per share. The Paid-Up capital after the public issue is Rs.6,30,25,000/-.
Shri T. Shamanna, Chairman of the Board of Directors of the Company
passed away in the early hours of 15th August. He was one of the
Directors since the inception of the Company and was Chairman of the
Company from the year 1988.
Mysore Breweries Ltd. (MBL) sells its beer under the cobra, Pals and
Knockout brand names.
MBL operates with an installed capacity of brewing 2,50,000 hectoliters
of beer.
MBL has a distribution agreement with Maison Caurette - one of the
major importers of UK for its brands.

1999 - Mysore Breweries Ltd (MBL) has launched a strong beer under the
brand name ` Palisade' in the United States. The beer was introduced in
both northern and southern California.
The lager is being manufactured at Riva Breweries in Belgium under a
technical tie-up with MBL.
2000 - The Bangalore-based Mysore Breweries has launched its premium
brand beer -- Bengal Premium Lager -- in the UK market.

Mysore Breweries Ltd managing director KP Balasubramaniam has been
asked to step down by the new owners of the company, South African
Breweries

ANALYSIS AND INTERPRETATION

1) Table1: Table showing beer-drinking habit.

Particulars Respondents Percentage
Daily 20 20
Weekly 48 48
Monthly 16 16
Occasionally 16 16
Total 100 100

GRAPH NO.1
The habit of beer drinking
20
48
0
10
20
30
40
50
60
1
particulars
P
e
r
c
e
n
t
a
g
e

INFERENCE:

This table clearly shows that 10% of the consumers consume beer
daily, 38% of the consumers consume beer weekly, 16% of the consumer
consume beer monthly and 16% of the consumers consume beer
Occasionally

2) Table2: Table showing more often preferred beer drink

Particulars Respon
dents
Percent
age

Pint 25 25
Knockout 25 25
Kingfisher 30 30
Hay wards 10 10
Royal
Challenge
10 10
Total 100 100

GRAPH NO.2
30
1111
35
10 10
15
0
5
10
15
20
25
30
35
Percentage
1 2 3 4 5 6 7 8 9
Particulars
Awareness of brand
Pint
Knockout
Kingfisher
Haywards
Royal challenge

INFERENCE:
From the table it is clear that 25% of the consumers are aware of the
pint, 25% of the consumers are aware of knockout brand , 30% of
consumers are aware of hay wards 5000 ,and 10% of them are aware of
royal challenge .

3) Table3: Table showing preference of place to have beer


Particulars Res
pon
dent
s
Perc
enta
ge
At home 10 10
Bars/Pubs 56 56
Clubs 12 12
Social
gathering
22 22
Sporting
events
0 0
Total 100 100

GRAPH NO.3
10
56
12
0
10
20
30
40
50
60
Percentage
1 2
Perticulars
Preference of place to have beer
At home
Bars / Pubs
Clubs
Social gathering/parties
Sporting event
INFERENCE:

This table shows that 10% of them will have it in the home, 56% of them
prefer to have it in bars/pubs, 12% of them will prefer to have in clubs and
20% of them will like to have in social gathering.
4) Table4: Table showing awareness of the brands

Particulars Respondents Percenta
ge
Pint 25 25
Knockout 25 25
Kingfisher 30 30
Hay wards 10 10
Royal
Challenge
10 10
Total 100 100

GRAPH NO.4

More often prefered beer drink
25 25
30
22
23
24
25
26
27
28
29
30
31
1
Particulars
P
e
r
c
e
n
t
a
g
e
Pint
Knockout
Kingfisher
Haywards 5000
Royal challenge

INFERENCE:
From the table it is clear that 25% of the consumers are aware of the pint,
25% of the consumers are aware of knockout brand, 30% of consumers
are aware of haywards 5000 ,and 10% of them are aware of royal
challenge .

5) Table5: Table showing awareness of beer brands from different
fields

Particulars Respo
ndents
Perce
ntage
Sponsored
events
15 15
Family/frien
ds
25 25

ds
Advertising 10 10
Tried it
yourself
50 50
Total 100 100

GRAPH NO.5
15
11
25
10
50
0
5
10
15
20
25
30
35
40
45
50
Percentage
1 2 3 4 5 6 7
Particulars
Awareness of brand
Sponcered events
Family/Friends
Advertising
Tried by themselves

INFERENCE:

It can be noticed that 15% of the consumers are aware of the brands
through Sponsored events, 25% of the consumers are aware of the beer
brands through family and friends, 50% of the consumers are aware of the
beer brands through trying themselves, 10%of the consumers are aware of
the beer brands through Advertising.
6) Table6: Table showing alcohol content preferred by drinkers


PARTICUL
ARS

Respond
ents
Percenta
ge
Non
alcoholic
6 6
Less than 3% 20 20
Bet 3% to
6%
46 46
More than
6%
28 28
Total 100 100

GRAPH NO.6
6
111
20
46
28
0
5
10
15
20
25
30
35
40
45
50
Percentage
1 2 3 4 5 6
Particulars
Alcoholic content in beer
Non alcoholic
Less than 3
3% to 6%
More than 6%

INFERENCE:


From the table it is clear that 6% of the consumer will like non
alcoholic beer, 20% of the consumers will like beer with less than 3 %
alcohol, 46% of the consumer will like beer with alcohol content between
3% and 6% and only 28% of the consumers will like the beer with more
than 6%.

7) Table7: Table showing ideal beer attributes

Particulars Respon
dents
Percent
age
Flavor 65 65
Image 25 25
Price 5 5
Alcohol
content
5 5
Total 100 100

GRAPH NO.7
65
25
5 5
0
10
20
30
40
50
60
70
Percentage
1
Particulars
Ideal beer attributes
Flavour
Image
Price
Alcohol content


INFERENCE:

From the table it is clear that 65% of the consumers think that flavor
will be one of the deciding factor while choosing the beer, 25% of the
consumers think that Image will be one of the deciding factor while
choosing the beer, 5% of the consumers think that Price will be the
deciding factor while choosing the beer, 5% of the consumers think that
Alcohol content will be the deciding factor.

8) Table8: Table showing basis on which drinkers will select beer

Particulars Respon
dents
Percent
age
Taste/flavor 42 42
Price 24 24
Alcohol
percentage
34 34
Total 100 100

GRAPH NO.8

42
24
34
0
10
20
30
40
50
Percentage
1
Particulars
Basis of choice
Taste
Price
Alcohol percentage

INFERENCE:

It can be observed from the table that 42% of the consumers will buy
the beer because of the taste, 24% of the consumers will buy because of
price. And 34% of the consumers will buy on the basis of the alcohol
percentage.

9) Table9: Table showing the quantity of beer purchase from the
shop/store

Particulars Respon
dents
Percent
age

dents age
Single
can/bottle
78 78
6 pack 22 28
12 packs 0 0
24 case 0 0
Total 100 100

GRAPH NO.9
Quantity of beer purchased
78
22
0 0
0
10
20
30
40
50
60
70
80
90
1
Particulars
P
e
r
c
e
n
t
a
g
e
Single bottle/can
6 packs
12 packs
24 case

INFERENCE:
It is clear from the table that majority i.e., 78% of the consumers will
buy single bottle or can and only 22% of the consumers will buy 6packs of
beer.

10) Table10: Table showing characteristics of an ideal beer


ge
Taste 35 35
Alcohol
percentage
30 30
Calories 2 2
Carbohydrates 3 3
Price 30 30
Total 100 100

GRAPH NO.10
35
30
2
3
30
0
5
10
15
20
25
30
35
Percentage
1
Particulars
Charecteristics of beer
Taste
Alcohol percentage
Calories
Carbohydrates
Price

INFERENCE:
From the table it is clear that 35% of the consumer say that ideal beer
depends upon the taste, 30% of the consumer say the it depends on the
alcohol percentage, 2% of the consumers feel it depends on the calories of
the beer, 3% of the consumers feel that it depends on the carbohydrates
and 30% of the consumers feel that it depends on the price of the beer.

11) Table11: Table showing that whether drinkers need the
advertisement as source to know about the brands

ge
Yes 30 30
No 70 70
Total 100 100

GRAPH NO.11
70
30
0
10
20
30
40
50
60
70
Percentage
1
Particulars
Necessity of advertising
No
Yes

INFERENCE:

From the table it is clear that 70% of the customers feel that
advertising is not necessary to know about the beer brands and only 30%

of the consumers feel that advertising is necessary to know about the beer
brands.

12) Table12: Table showing kind of beer preferred

ge
Light 46 46
Domestic 30 30
Imported 24 20
Total 100 100

GRAPH NO.12
46
30
24
0
10
20
30
40
50
Percentage
1
Particulars
Kind of beer
Light
Domestic
Imported


INFERENCE:
From the above table it is clear that 46% of the consumers prefer
light beer, 30% of the customer prefer domestic and only 24% of the
consumer will prefer imported beer.

13) Table13: Table showing monthly amount spent on beer.

ge
100 to 300 62 62
300 to 600 28 28
600 to 1000 4 4
Above 1000 6 6
Total 100 100

GRAPH NO.13
Monthly expenditure on beer
62
28
6
4
0
10
20
30
40
50
60
70
1
Particulars
P
e
r
c
e
n
t
a
g
e
100 to 300
300 to 600
600 to 1000
Above 1000


INFERENCE:
From the above table it is clear that 62% of the consumers will
spend 100 to 300 monthly on beer, 28% of the consumers will spend 300
to 600 monthly on the beer, 6% of the consumers will spend 600 to 1000
and 6% of the consumers will spend above 1000 monthly on beer.

SUMMARY AND CONCLUSION

SUMMARY OF FINDINGS
This chapter consists of findings that are analyzed on the basis of data
from the previous chapter

S Majority of the beer drinkers are in the age group of 22 to 27 ages.

S It is found from the study that drinkers spend around 100 t0
300 rupees on beer monthly

S Majority of the consumers responded are from the middle class
S From the survey it is found the respondents are aware of the products by
trying it themselves.
S Brand image plays a major role in the buying decision of beer.
S It is found from the study that alcoholic drinkers start their drinking
habit from beer and slowly moves towards other alcoholic drinks.
S Majority of the respondents rate alcohol content, flavor price are the
important while making purchasing decision.
S Majority of the respondents will buy the beer in the single bottle or can
and only few prefer in 6 packs
S Majority of them feel 3% to 6% of alcohol is good for the beer.

S Majority of the respondents will usually have the beer in bar rather in
homes.
S Majority of the respondents feel that the taste will make the difference
between ideal beer and the other beer.
S Majority of the respondents will have beer once in week or twice in the
week but they do not drink they beer daily.

RECOMMENDATIONS
This project is the study of consumer preference beer brand in the
bangalore city
The main objectives of the study are
To understand preferences of consumer towards different beer brands
To understand the awareness and usage of different beer brands among
people of the Bangalore
To make market based suggestions for furthering the growth of beer
industry.

Considering the various findings arrived at in the course of the study, the
following recommendations are made to encounter the maladies.

1] In the present situation there are number of brands but the price is little
bit high so the price of the beer should be such that it is affordable.

2] As the majority of the market is young professional beer companies
should produce the beer which suits them
3] as majority of the beer drinkers are moderate low alcohol content so it
advisable to have the alcohol content in the beer between 3% to 6%.

4] as there is restriction regarding the advertising of alcohol products in
India the company has to use surrogate advertising effectively.
5] Usually beer drinkers are the beginners of alcohol drinkers and most of
the time majority of drinkers will shift to other alcohol drinks so it
advisable
To beer companies to introduce new drinks so as to retain them in same
beer segment.


MohanKumarS-03114-Consumer Preference Towards Beer Brand

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Consumer preference towards beer brand

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