A DISSERTATION REPORT

ON

“TO DETERMINE THE FUTURE OF PREMIUM SEGMENT OF WHISKY IN ORISSA: A

COMPARATIVE STUDY ON ROYAL CHALLENGE & BLENDERS PRIDE”

BY

BISWARANJAN BHOI (MBA 2008-10)

ACADEMY OF MANAGEMENT STUDIES,
BHUBANESWAR

Submitted for partial fulfillment of the requirement of MBA

Programme

Under the guidance

Of
Rajesh Kumar Satpathy
Asst. Prof. Marketing
 Academy of Management Studies
(ISO 9001: 2000 Certified Institution)
Approved by AICTE, New Delhi and Affiliated to BPUT, Orissa) Accredited by NAAC
Prasanti vihar, pubasasan, kausalya Ganga, Bhubaneswar – 751 002
Ph: (0674) 2465128/2465570, Fax: (0674) 2465701, E-mail: ams_principal@india.com/visit us: www.amskrupajal.org

Date:

CERTIFICATE

This is to certify that this report work entitled “To Determine the Future of Premium
Segment of Whisky in Orissa: A Comparative Study on Royal Challenge &

Blenders Pride” is submitted by Mr. Biswaranjan Bhoi bearing Reg.No.0806272091 under my

guidance. The report has reached the standard of fulfilling the requirement for the award of Master in
Business Administration. I also certify that the matter embodied in this project is original and has not
been submitted before for the award of any other degree.

I wish his all success in future endeavor.

Prof. Rajesh Satpathy

Faculty-cum-guide
(Marketing)
 DECLARATION

I hereby declare that this Report “To determine the Future of USL in Premium Segment of
whisky in Orissa: A comparative Study on Royal Challenge & Blenders Pride.” Is an original
work carried out by me under the direct supervision and guidance of Prof. Rajesh Satpathy
faculty at Academy of Management studies, Bhubaneswar.

This Dissertation report has been submitted to Biju Patnaik University of Technology as a
part of partial fulfillment for the award of the degree of Master of Business Administration.

I also declare that no part of this presentation had ever been published or submitted as a
project representation for any degree of Academy of Management Studies.

BISWARANJAN BHOI
MBA, 2ND YEAR, 6TH TRIMESTER
REGD. NO-0806272110
ACADEMY OF MANAGEMNT STUDIES.
 ACKNOWLEGEMENT

First of all I would like to express my gratitude to all those who gave me the possibilities to

complete the report.

I would like to thank United Spirits ltd., which provided me a great opportunity of to have the

exposure from such a prestigious organization. Then I would like to Thank Mr. P.K Panigrahi

(General Manager) United Spirits Ltd, Orissa. I would also like to thank Mr. Gora Mukherjee

(Regional Manager) EAST ZONE.

I would also like to thank Mr. Lawrence Daniel Michael & Mr. Kunal Patnaik (Territory sales

Executive) for their constant Guide & support.

I would also like to thank Mr. Rajesh Satpathy (Asst. Prof. Marketing) for his guidance &

support.

BISWARANJAN BHOI
 PREFACE

Indian Liquor and spirits industries are common characteristics arising form a similar policy

framework. Country liquor, Indian made Foreign Liquor (IMFL) and beer are state subject, with each

state controlling the duty structure and distribution. Incidence of import and export duties result in

high cost of interstate movements which has resulted in each state having attributes of a separate

market..

This Market research has been done for United Spirits Ltd. For the study” To determine the Future

of USL In Premium Segment of whisky in Orissa: A comparative Study on Royal Challenge &

Blenders Pride.” For this purpose market of Bhubaneswar, Cuttack & Puri has been covered. For

differentiating the behavior of consumers in this market a survey has been conducted through

questionnaires and responses of consumers and retailers have been recorded. The results may not be in

accordance to the actual situation in the market because of small sample size and the limitation of area,

but serious efforts have been put into get the best results.
 EXECUTIVE SUMMARY

Perhaps the most distinctive skill of professional marketers is their ability to create, maintain, protect,

and enhance brands. Branding is the art and cornerstone of marketing. The American Marketing

Association defines a brand as: a name, term, sign, symbol, or design, or a combination of them,

intended to identify the goods or services of one seller or group of sellers and to differentiate them

from those of competitors. Thus a brand denitrifies the seller or maker. “What distinguished a brand

from its unbranded commodity counterparts is the consumer’s perceptions and feelings about the

product’s commodity counterparts is the consumer’s perceptions and feelings about the product’s

attributed and how they perform. Ultimately, a brand resides in the minds of consumers. A brand can

be better positioned by a associating its name with desirable benefits. A brand is much more than a

name, logo, colors, a tagline, or symbol. These are marketing tools tactics. A brand is essentially a

marketer’s promise to deliver a specific set of feature, benefits and services consistently to the buyers.

The marketer must establish a mission for the brand and a vision of what the brand must be and do.

Brand nodding occurs when customers experience the company as delivering on its benefit promise.

The fact is that brands are not built by advertising but by the brand experience. Brands vary in the

amount of power and value they have in the marketplace. At one extreme are brands that are not

known buy must buyers then there are brands for which buyers have a fairly high degree of brand

awareness. Beyond this are brands with a high degree of brand acceptability. We define brand equity

as the positive differential effect that knowing the brand name has on customer response to the product

or service. Brand equity results in customers showing a preference for one product over another when

they are basically identical. The extent to which customers are willing to pay more for the particular

brand is measure of brand equity.

A brand needs to be carefully managed a so that its equity does not depreciate. This requires

maintaining or improving brand awareness, perceived quality and functionality, and positive

associations. These tasks require continuous R and D investment, skillful advertising, excellent trade

and consumer service.

 INTRODUCTION

This modern era of liberalization and globalization has opened a broad scope for conducting
marketing of products in business. To -day; marketing management has become more
challenging and exciting than ever before. Generally a group customer who heavily shares a
common a group of customers who heavily share a common need constitute the market.
Now days, market has turned from seller’s market to buyer’s market.

Every market plan depends upon the nature and size of the market. The word
marketing means the act of selling and buying in the market. Marketing involves meeting
traders, merchants, dealer’s retailers and many a time the consumers directly through media.
But it all depends upon the factors, conditions, characteristic of the producer’s product,
middlemen and the consumers. Hence, the marketing manager and sales executives are
also required to be more and more consumer oriented. Today, profit rather than sales
volume is given priority. To achieve goal the proper marketing strategy is needed. A
successful strategy man oeuvre for obtaining specific goals can be possible ply by building a
high committed and motivated sales team of area managers, sales officers, dealers and
officers.

Strategy of marketing depends upon the nature of products, quantity of

production, consumers, views and awareness overall demand, capacity of product circulation
and existence of middleman.

A new product may have to be promoted by door to door selling, selling shops and through
media like T.V. or through advertisements. If a product is to be exported, the marketing has
to be done within the framework of policies and procedures set up by the govt. The
middlemen under strict price and control policy of the Ministry of Home Affairs especially
Food and Civil Supply Department.
 For successful marketing of its products, a company may have sales
persons, area sales manager, regional sales manager, zonal sales manager marketing
professionals, depot communication manager, product manager media assistant, public
relation officer and managing director depending upon the size of the company. For the
successful career in marketing a person must have certain basic skills like a degree in an
area of thrust related to the type of company, ability to formulate and implement sales,
distributional sales, distributional and promotional strategies and exceptional skills to
motivate and effectively manage the sales force. In addition, the attitude and talent for
innovation, good knowledge of designing and preparing various inputs including visual aid
folder is needed. Besides this, involvement in marketing research for launching new products
and in training sales force is must for a successful marketing manager. The above
qualifications are must because the role of marketing manager in the organization has also
changed with requirement of the hour.

Today, marketing manager has become the integral part of business and
involves all the activities that take place in an enterprise. As a good marketing manager one
has to train the staff. Therefore the sound knowledge of marketing activities, marketing
strategies and legal aspects is needed. Not only this, there many other things which pave the
way for promoting sales. Good contacts in corporate sectors, knowledge of controlling
activities up to grass-root level, interacting with concerned departments and sales regulatory
authorities are also required for a successful marketing manager. Four Ps namely product,
price, place and promotion are the most vital areas of marketing management. Fifth P added
is pace. Without these the marketing objectives of organization cannot be fulfilled.
Channel distribution system may get affected by the product
factor, market factor and institutional or organizational factors and the vital decisions has to
be taken with regard to internal sales promotion in the light of channels of distribution.

The marketing division should see that brand identification is must for the producers to
exercise maximum control over the demand for its products. Branding of products is
necessary for administration of warranty, guarantee and service policies. The branding is
also necessary from companies share point of view and for export purpose.

Overall marketing manager must use management science and decisions making technology to
the fullest while understanding the limitations of these tools. He should also provide guidelines,
stimulations and encouragement for the fullest and rich use of inspiration talents, inventiveness and
judgment.

CURRENT SCENARIO & EVALUATION OF SPIRITS MARKET

Worldwide markets for Alcoholic Beverages (Distilled Spirits) both in Value (Millions of US$)
and Volume (Thousands of Liters). The major product segments analyzed are Brown Spirits
(Whisky, Rum, & Brandy), White Spirits (Vodka, Gin, & Rum), Liqueurs & Other Specialties,
and Others. The report provides separate comprehensive analytics for the US, Canada,
Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Annual forecasts are
provided for each region for the period of 2000 through 2015. The report profiles 611
companies including many key and niche players worldwide such as Asahi Breweries Ltd.,
Bacardi & Co. Ltd., Brown-Forman Corp., Campari Group, Companhia Muller de Bebidas
Ltd.Diageo PLC, Fortune Brands, Inc., Foster's Group Limited, Jinro Ltd., OST Alko OOO,
Pernod Ricard Group, Remy-Cointreau, San Miguel Corporation, Sang Som Co. Ltd.,
Suntory Ltd., Takara Shuzo Co. Ltd., Tanduay Distillers, Inc., UB Group, United Winery &
Distillery Co., Ltd, and William Grant & Sons Ltd.

So the following outcomes are coming into the picture as we studied the current Indian spirit
market:
 The per capita consumption in India only 0.07/person/year as against 60-70 liters in
France & Italy, 25 liters in US and 20 liters in Australia.
  About half of the Indian population meets the minimum drinking age of 21 years: how
ever the number is greatly increasing as the Indian population matures.
 The gross national income of India has risen.
 Those 24 million who have attained college level degrees making up.

OBJECTIVE

 To determine the future of USL in premium segment in Orissa market.

 To find out the market leader in semi premium range of whisky
 To understand the actual market size of the industry specially in the particular
segment and growth factor
 To know the major marketing efforts including the operation along with 4p’s strategy
i.e Product, price, place and promotion.

Now as the objective of the study is clear now, let us talk about the finding and conclusion of
the project. But first go through the whole study and understand different products in liquor
and the industry type in that particular segment.
INTRODUCTION TO LIQUOR INDUSTRY

THE LIQUOR INDUSTRY IN INDIA

In India, ‘drinking’ has remained a bad word, clubbed with the other vices. While the beer and
liquor market continues to grow at an impressive rate even against an economic recession,
the social stigma remains in place, which manifests itself in anti-growth state policies.

Domestic Industry

However, the Rs. 60.0 Billion organized beer and liquor industry has been growing at an
impressive rate. In sharp contrast to the trend the world over, beer is losing ground to hard
liquor in India. Amidst beers, the current trend is that lager beer is giving way to strong beer.
Even as the liquor manufacturers could hope to garner the people who are shifting from beer
to liquor, there is a vast country liquor market and a sizable grey market to contend with.

United Breweries (UB), Shaw Wallace and McDowell (part of the UB Group) presently
dominate the liquor and beer market. The market on its part is set to undergo a sea change
with the arrival of MNCs. The removal of quantitative restrictions (QRs) on the import of
bottled alcoholic beverages only makes the competition tougher.

The MNCs looked forward to good business after the removal of QRs but the Government
nullified it by slapping new taxes. The foreign bottle, therefore, remains as costly as ever.

Latest Trends

To survive in the highly competitive environment, the MNCs as well as the domestic majors
are coming up with various strategies. Acquisitions and alliances appear to be the order of
the day. Several such deals are already underway while more are in the offing. The domestic
majors are also reorganizing their operations so that they can forge a deal with an MNC if the
need arises. For instance, UB, which recently took up a major revamp, has said it is willing to
offer a 25.0 percent stake to multinational liquor major.

Another trend that seem to be catching up is the consumption of “Coolers” by the discerning
connoisseurs. “Coolers” is typically a cold drink (or cocktail), which is often a mixture of white
wine and fruit juice. As of now there is no definitive data available on the consumption front
for “coolers” either globally or locally. But the fact that this finds mention in most of the wine
and recipe related sites helps us to arrive at the conclusion that the trend of consuming
“coolers” in its various combinations is indeed catching up.

Problem Areas

What plagues the industry most is a very complicated set of laws and taxes. Each state has a
different excise duty structure, import and export levies and other regulations regarding
licensing fees and sales of new brands. This puts tremendous pressure on the industry
players. They cannot transport their products from a market that has excess capacity to one
where there is a short supply. The taxes on alcoholic beverages are some of the highest in
the world. In some states it works out to as high as 200%. The brewers argue that subjecting
beer to the same level of taxing, as hard liquor is uncalled for, since the alcohol content in
beer is very low. They are lobbying to have beer delinked from IMFL so that the taxes will fall,
prices will plunge and consumption rise.

Whisky History - The beginning of Whisky

What a lot of people do not know is probably that alcohol was first invented in the 10th
Century by Arab alchemists. This technique was found when trying to make cosmetics and
perfume as Arabs do not really have the need to drink alcohol. But soon the techniques
where taken to Spain and then spread throughout Europe. Two Century later farmers, monks
and university scholars where making alcohol from grape and grain or really any produced
that were available to them with ease. Over in Ireland at this time monks really became the
first to distil what we know as whisky when they used fermented barley. The timing of this
was very vague and is believed to be around the middle of the 11th Century.
Over this time with the travelers going between Ireland and Scotland this process spread
quickly and whisky was starting to be produced by all the local farmers. This is when I would
say whisky finally came to Scotland.
Other facts regarding the history of whisky.
People will always argue about where whisky was invented. Scotland or Ireland ? Well
distilling was brought to Ireland by St. Patrick in 432AD, but the first written recording of it
being sold was in Scotland 1494 and it soon became widespread as knowledge spread on
how to distil whisky and soon afterwards nearly every farmer in Scotland became a maker of
whisky. As you can see there is a lot of time between the two dates. The Celts could be the
first to produced whisky as they named their liquid usquebaugh which means ‘water of life’
and the word whisky also comes from the Gaelic word 'Uisga'.
In the early years of whisky there was no period of ageing and after the whisky was distilled it
was consumed. So the whisky had a raw taste. It was then discovered by accident when a
cask was forgotten about in the mid 18th century and when the owner of the cask tasted the
whisky he found that the whisky mellowed after ageing thus the process of ageing began and
why we have whisky maturing now for years just to have the correct taste that we all love.
At the start of the 17th Century whisky distilling in the Scottish Highlands was massive with
nearly every farmer joining in with the making of whisky. This was because the crop was
easy to produce (barley and oats). This was when whisky became massive in Scotland, but
really were only sold to local people in each of the farming communities. But then came the
Act of Union.
In 1707 and the Act of Union, Scotland and England join parliaments and soon after taxes
were introduced on distilleries and malts. Of course this did not go down well and a lot of
illegal whisky was beginning to be produced. But more penalties were brought in to reduce
this illegal trade and smuggling of whisky. The penalties where very steep and in a very short
space of time this practice nearly disappeared.
It was not until the late 1700’s when whisky became very profitable because of the improving
farming methods. So with all the distilleries at this time present in the Highlands of Scotland
and the main population in Scotland being in the Glasgow and Edinburgh area, distilleries
began to be built within this area. This would help get the whisky to the marker quicker as the
transport network was very poor in these days. But with taxes very high still and so many
costs involved it was hard to keep this as a profitable business.
So illegal distilling was still happening and with the government really cracking down on this
production the ‘smugglers’ tended to move all there distilling production to small islands
around Scotland where they were very unlikely to be discovered. It was not until excise act of
1823 when taxes fell with the reducing of duty was reduced by 50%. This cut down massively
the operations by smugglers and the whisky industry became legal once again.
Generally whisky was really only sold within Britain, but as time when on it spread around the
world and is sold in most countries. Also with it being sold worldwide other countries
producing there own whisky. Hence why this website is about all the whiskies in the world
and not just relating to whisky in Scotland and Ireland.
With the history of whisky very vague it really has been adopted by Scotland and is one of
Scotland biggest export with it being consumed in nearly every country in the world. Over the
coming years the whisky industry will keep growing and the making of this site all help the
process.
With regards to Irish whisky they have some amazing brands and deserve so much credit.
There exports are always growing, and the merging of certain distilleries this will keep
growing also. There is such a large market place for whisky that there is enough room for
everyone to take a slice of the action. My own thoughts are Scotland and Ireland are both
massive within the whisky industry and both have to keep growing

Indian whisky and Scotch whisky

The drinking of Scotch whisky was introduced into India during the nineteenth century, during
the period of the British Raj. Scotch style whisky is the most popular sort of distilled alcoholic
beverage in India, though India has traditionally been thought to lack a domestic drinking
culture. Whisky, however, has become fashionable for wealthier Indians, and as such the
market for whisky among affluent Indians is one of the largest in the world.
90% of the "whisky" consumed in India is molasses based, although India has begun to distil
whisky from malt and other grains. Brand names of Indian molasses whisky, including
"Bagpiper", "McDowell's No. 1", and the partially malt based "Mc intosh" suggest that the
inspiration behind the Indian whiskies is Scotch whisky, despite these products being chiefly
made from molasses.
Indian Whisky Brands
McDowell’s No.1
Signature
Bagpiper
Seagram’s Blender's Pride
Royal Stag
Imperial Blue
Royal Challenge
Director's special
Colonel's Special
Officer's Choice
Solan No. 1
Black Knight
Red Knight
Aristocrat
Bennie’s Fine Whisky
Green Label
Senate
Diplomat
Delight Fine Whisky
Malabar Malt Whisky
Cosmopolitan

THE INDUSTRY STRUCTURE

With a size of over 159million cases in fiscal year 2009(each case has 12 bottles, each
containing 750 ml of liquor), the IMFL industry can be broadly classified into products based
on Extra Neutral Alcohol (ENA) and Rectified Spirit (RS). ENA-based products, which are of
better quality and have a longer shelf life, are the focus of main players like the UB Group
and Shaw Wallace. The low-priced RS segment is quite price-sensitive and characterized by
the presence of a number of small players.
The IMFL market is categorized primarily into whisky, brandy, rum, vodka and gin, with
market share heavily skewed towards whisky.
DIFFERENT LIQUOR PERCENTAGE%
WHISKY 58
BRANDY 17
RUM 20
WHITE SPIRIT 5

As we can see the industry has been witnessing an annual growth rate of around 10-12%
over the past five years. Last year (2009), the market grew at the rate of 10-12%.

PERCENTAGE

WHISKY
BRANDY
RUM
WHITE SPIRIT
 KEY DRIVERS FOR THE GROWTH OF LIQUOR INDUTRY IN INDIA

INCOME GROWTH

 India is one of the fastest growing economies in the world with GDP growth of 9% &
6.8% over the last two years.
 Per capita income has increased from US$ 450 in FY01 to an estimated US$ 781 in
FY09
 Growth in per capita income to drive discretionary income growth at much higher
pace than the GDP growth, boosting demand for lifestyle products including alcoholic
beverages
 Rural economy is likely to see big upsurge in income levels due to various government
initiatives

120

100

80

low (<$1000)
60
lower middle (#1000)

40 Middle High (>$2000)

20

0
1989-90 2001-02 2009-10

INCOME DISTRIBUTION MILLION HOUSEHOLD

YOUNG DEMOGRAPHICS

 More than 60% of India’s population is in the age group of 15-64

 Nearly 485 million people in the drinking age
 Another 150 million are likely to be added to this target population in the next 5 years
 Following these favorable demographics, demand for alcoholic beverages is set to rise
UNDERPENETRATED MARKET SPELLING HUGE GROWTH POTENTIAL

 India’s per capita consumption of alcoholic beverages is among the lowest in the world
 A small increase in per capita consumption to significantly alter industry growth, given
the large population base
REGION WISE CAGR ALCOHOL SALES GROWTH FOR LAST 10 YEARS

India is the fastest growing liquor consuming market in the world and offers
tremendous growth potential in future
GROWTH IN IMFL CATEGORIES

PERCENTAGEGROWTH

WHISKY
BRANDY
RUM
GIN
VODKA
The whisky market is further classified into categories like medium (cheap), regular, prestige,
premium, super deluxe whiskies, and Scotch whisky. The regular segment is the largest,
constituting nearly half the volume of the total whisky market.

SUBCATEGORIES GROWTH RATE KEY BRAND

WITHIN WHISKY
MEDIUM 46 HAYWARDS WHISKY
REGULAR -3 DIRECTOR’S
SPECIAL,GILBEYS
GREEN/WHITE,BAGPIPER
PRESTIGE 11 McDowell No.1,ROYAL
STAG WHISKY,BAGPIPER
GOLD WHISKY
PREMIUM 18 PETER SCOT, ROYAL
CHALLENGE
DELUX 65 ANTIQUITY,SINGLE MALT
SCOTCH -15 BLACK DOG, 100 PIPERS,
LONG JOHN, JOHNIEE
WALKER

The Scotch segment consists of two categories - Bottled in India (BI) and Bottled in place of
Origin (BO). Bottled imports of Scotch are still not permitted, but bulk imports are allowed, at
import duties of approximately 240%. The official figure of the number of BO Scotch sold is
85,000 cases per annum. While estimates for the BO Scotch sold through legal channels
stood at 110,000, smuggled imports have been estimated at between 300,000 and 500,000
cases per annum. Having signed the WTO agreement, India will have to allow bottled imports
of Scotch and reduce duties to around 150%, in a couple of years.
United Spirits Now World's 2nd Largest Spirits Company

Vijay Mallya-owned United Spirits Ltd (USL), the largest spirits company in India, is now the second
largest spirits company in the world in volume terms. It is coming under UB group.

The flagship company of The UB Group announced that it has crossed the milestone of clocking sales
volume of 100 million cases (each case consists of 9 liters) for the fiscal year ended March 31, 2010,
marching ahead of Paris-headquartered Pernod Ricard, which had sold 96 million cases last year.
U.K.'s Diageo is the world's largest spirits company with annual sales of 111 million cases.
United Sprits have created a new history in the world of beverage alcohol by selling 740 million cases
in about a quarter of a century. The Indian spirits industry today is pegged at 236 million cases and
USL has a 59%market share in India in the segments it operates in. We are certain that our additional
sales in the next financial year will take us to the No. 1 position globally," Dr. Vijay Mallya,
Chairman, The UB Group, pointed out.

Mallya also proposes to unveil a new vision on the company's plan to sell 200 million cases in future.
The retail sales value of the spirits portfolio of USL for the 100 million cases sold was Rs. 30,000
crores and the group's beer division - United Breweries (UBL) contributed Rs.8,200 crore in sales, he
said. USL alone contributed about Rs. 18,000 crore to government revenue by way of excise and other
levies.
USL is aggressively moving up the value chain for premium spirits and is upbeat about the economy
and increase in consumer demand over the next few years. To exploit growth opportunities, USL has
undertaken a massive capacity augmentation through a robust capital investment plan of over Rs 650
crore. The company recently acquired Tern Distilleries in Andhra Pradesh and set up a Greenfield malt
spirit plant in Nasik in Maharashtra.

MISSION & QUALITY STATEMENT

We constitute a large, global group based in India. We associate with world leaders in order to adopt
technologies and processes that will enable a leadership position in a large spectrum of activities. We
are focused on assuming leadership in all our target markets. We seek to be the most preferred
employer wherever we operate. We recognize that our organization is built around people who are our
most valuable asset. We will always be the partner of choice for customers, suppliers and other
creators of innovative concepts. We will continually increase the long-term value of our Group for the
benefit of our shareholders.
We will operate as a decentralized organization and allow each business to develop within our stated
values. We will be a major contributor to our National Economy and take full advantage of our strong
resource base. We commit ourselves to the ongoing mission of achieving Scientific Excellence.

QUALITY STATEMENT

Quality leadership is vital to the long-term success of the UB Group in an increasingly competitive
marketplace. Building quality into our workplace, products and service is essential to a successful
future for our customers, employees, supplier’s communities and shareholders.

The UB Group will work to provide products and services that always meet or exceed expectations

Management will commit resources and create an environment in which each employee can contribute
skills, talents and ideas to a never-ending process of improvement and innovation in all aspects of our
business.

CORPORATE SOCIAL RESPONSIBILITY

The UB Group is known as a large USD 2.2 billion corporate conglomerate with business interests
ranging from spirits, beer, engineering, fertilizers and civil aviation to pharmaceuticals. Few, however,
are aware that UB is a silent crusader in the field of community services in its own committed way.
The Group has over the years emerged as a socially responsible corporate citizen. Its keen pursuit of
activities in the field of Life Sciences has led to the setting up of a super specialty hospital - Mallya
Hospital at Bangalore. In June 1991, the Mallya Hospital was inaugurated in the central business
district of Bangalore in a multi-storied complex with excellent medical equipment and best medical
consultants. It was initially a 150-bed hospital, which has grown into a 450-bed hospital of which
approximately 50 beds are for critical care. The hospital boasts of multi-specialty disciplines and is the
first such hospital in India to be awarded the ISO 9002 certification. Subsidized health care is given to
the under privileged class of society by providing a general ward which is reserved for them.

PLAYERS IN THE LIQUOR MARKET

The UB group, operating through McDowell & Co. and Herbertsons, are the leaders in the
IMFL market, followed by SEAGRAM. Mohan Meakin and Jagatjit Industries (both located in
the North) are the other important domestic companies, though both are considered to be
relatively passive.

COMPANY MARKET SIZE (MN BRANDS

CASES)
USL 34 BLACK DOG,
ANTIQUITY,ROYAL
CHALLENGE,
MCDOWELL,BAG PIPER
ETC.
UDV 3 GREEN LABEL,
SMRINOFF
BACARDI 0.8 BACARDI RUM
SEAGRAM 4 BLENDRS
PRIDE,ROYAL STAG
AWARDS & RECOGNITION

• UB Group wins US patent to market diet whisky and vodka

• UB Group awarded the prestigious Asia Star award for excellence in packaging & design.

SWOT ANALYSIS

STRENGTHS OPPOURTUNITIES

Well established consumer market  Collaboration with foreign companies

Widely recognized market  R&D since the company has strong

capital
Consolidating growth
 WEAKNESS THREATS

 Diversification  Stiff competition by the foreign

Breweries entering into India.
 Heavy taxation & Government control of
product Distribution

Premium Segment Introduction-

To day’s world is the competition. In every field there is competition and the success of any company
or product largely depends upon competition. Competition provides a good quality of product to the
customer. If a company has to survive in the market, then it has to face throughout competition. In
liquor industry too the competition is there. The increasing awareness and exposure to beer among
customers and the removal of new companies like future wine and spirits brand (P) Ltd (FWSB), set
up recently by two Non-resident Indians from USA. WHISKY consumption in the country increased
12-14% per year.

Product of United spirits Ltd. in premium segment:

Generally the spirits product in the premium segment are the perfect blend of aged scotch whiskies.
These are popular among its customers for there finest Blend of rare scotches and selected grains.
The products which are floating in the premium segment spirits are as follows:

 Antiquity Blue
 Antiquity Rare
 Royal Challenge
 Signature Rare
 Black & White
  Blenders pride
 DYC Rare crafted whisky
 Haig Gold label Blended Scotch whisky.
 Peter Scot malt whisky.

Among these above products Antiquity is the value scotch & Royal Challenge, Signature rare are
the scotch whiskies of United Spirits Ltd. Here Blenders pride is the product of Seagram’s and the
keen competition is in between Seagram and USL. The Blenders pride of Seagram is the only product
which fetches the market and gives strong competition to USL product in this segment.

MAJOR COMPETITOR PROFILE

SEAGRAMS

The Seagram Company Ltd. was a large corporation headquartered in Montreal Quebec, Canada that was the
largest distiller of alcoholic beverages in the world. Toward the end of its independent existence it also
controlled various entertainment and other business ventures. The Seagram assets have since been acquired
by other companies, notably PepsiCo, Diageo, and Pernod Ricard.

The Seagram Building, the company's American headquarters office tower at 375 Park Avenue in New York
City, was designed by architect Ludwig Mies van der Rohe with Philip Johnson. The former Seagram
headquarters in Montreal now belongs to McGill University, under the name Martlet House.

n 1857, a distillery was founded in Waterloo, Ontario. Joseph E. Seagram became a partner in 1869 and sole
owner in 1883, and the company became known as Joseph E. Seagram & Sons. Many decades later, Samuel
Bronfman founded Distillers Corporation Limited, in Montreal, which enjoyed substantial growth in the 1920s, in
part due to Prohibition in the United States.

In 1928, a few years after the death of Joseph E. Seagram (1919), the Distillers Corporation acquired Joseph E.
Seagram & Sons, and took over the Seagram name. The company was well prepared for the end of Prohibition
in 1933 with an ample stock of aged whiskeys ready to sell to the newly opened American market, and it
prospered accordingly. Thus despite its earlier Waterloo history, the Seagram name is most closely associated
with the Bronfman family. However, it is not correct to say, as is often done, that Samuel Bronfman founded
Seagram, since the Seagram name itself pre-dated the company he founded.
After the death of Samuel Bronfman in 1971, Edgar M. Bronfman was Chairman and Chief Executive Officer
(CEO) until June 1994 when his son, Edgar Bronfman, Jr., was appointed CEO.

In 1981, cash rich and wanting to diversify, Seagram Company Ltd. engineered a takeover of Conoco Inc., a
major American oil and gas producing company. Although Seagram acquired a 32.2% stake in
Conoco, DuPont was brought in as a white knight by the oil company and entered the bidding war. In the end,
Seagram lost out in the Conoco bidding war. But in exchange for its stake in Conoco Inc, it became a 24.3%
owner of DuPont. By 1995 Seagram was DuPont's largest single shareholder with four seats on the board of
directors.

In 1986, the company started a memorable TV commercial campaign advertising its Golden Wine Cooler
products. With rising star Bruce Willis as pitchman, Seagram rose from fifth place among distillers to first in just
two years.

In 1987, Seagrams engineered a $1.2 billion takeover of important French cognac maker Martell & Cie.

On April 6, 1995, after being approached by Edgar Bronfman, Jr., DuPont announced a deal whereby the
company would buy back its shares from the Seagram company for the amount of $9 billion. Seagram's was
heavily criticized by the investment community—the 24.3% stake in DuPont accounted for 70% of Seagram's
earnings. Standard & Poor took the unusual step of stating that the sale of the DuPont interest could result in a
downgrade of Seagram's more than $4.2 billion of long-term debt.

The rationale for this divestiture was that Edgar Bronfman, Jr., grandson of Samuel Bronfman, wanted Seagram
to branch out into the entertainment business. Bronfman, Jr., used the proceeds of the sale to help
acquire Universal Studios, MCA, PolyGram, and Deutsche Gramophone. Seagram also gained control of a
number of Universal theme pars.

In 1997, the Seagram Museum, formerly the original Seagram distillery in Waterloo, was forced to close due to
lack of funds. The building is now the home of the Centre for International Governance Innovation. The two
original barrel houses are now the Seagram’s Lofts condominiums. There are also almost 5 acres (2.0 ha) of
land that will be the home of the future Balsillie School of International Affairs

In 2000, controlling interest in Seagram's entertainment division was acquired by the Vivendi Group, and the
beverage division by Pernod Ricard. By the time Vivendi auctioned off Seagram's drink business, beyond its
original high-profile brand names the once renowned operation consisted of around two hundred and fifty drinks
brands and brand extensions.

In 2001, The Coca-Cola Company acquired the line of Seagram's mixers (ginger ale, tonic water, club soda and
seltzer water) from Pernod Ricard and Diageo, as well as signing a long term agreement to use the Seagram's
name from Pernod Ricard. Seagram's Ginger Ale was named the winner at the 2009 World Cup of Ginger Ale in
Chicago.
On April 19, 2006, Pernod Ricard announced that they would be closing the Seagram Lawrenceburg
Distillery located in Lawrenceburg, Indiana.

The Marketing MIX: ingredients for success

The marketing mix, earlier known as the 4’ps is a vital part of any marketing strategy. This is a tool
whereby the marketer takes decisions on what and how a product should be, where it can be sold, how
it should be priced , how it will be promoted, how to equip the people who are responsible for selling
the product…..and so on. Getting the marketing mix right is equally important for the large
corporation and the small business owner. One of the most critical marketing management decisions is
that decision of setting the marketing mix value, and selecting and employing strategy that periodically
change that marketing mixes in response to changing business environment.

Study of 4p’s of the product:

PRODUCT
As we discussed above we take the product Royal challenge of USL and selecting Blenders pride from
the Seagram’s.

Product Notes:

Royal Challenge Premium Whisky is a blend of rare Scotch and matured Indian malt whiskies. The
Scotch that goes into Royal Challenge is imported from Scotland, where distilling of this spirit has a
tradition of over 500 years. This rare Scotch and matured Indian malt whiskies are then crafted by the
Master Blender to give Royal Challenge its inimitable taste and distinctive character. Varying
proportion of selected Indian Malt Spirit, Clean Extra Neutral Alcohol and Plain Caramel and FDA
and State Exercise approved flavors and essences are blended under close supervision and strict
quality control so as to get overall roundness and typical organoleptic characteristics to the blend
About Estate:

Royal Challenge is the biggest and the best selling premium whisky in the country today. Currently it
enjoys more than 58% of the market share. From the beginning the brand has been known for its
consistent quality and best blend. Last year the brand rejuvenated itself with a new, unique and truly
international packaging, which is square at the bottom and round at top. Aiming to attract a newer
audience to the brand, the team is confident of taking their flagship brand to newer heights. Royal
Challenge is the pioneer and sole sponsor for Strategy summits conducted in the country today û
inviting great names like Philip Kotler, Edward Debono, Deepak Chopra, Michael Porter and Don
Peppers in course of the last two years. RC is a prime sponsor of Golf in the nation, and, in view of the
fact that the brand enjoys a 62% market share in CSD; RC also conducted a tournament for the Armed
forces with the participation of 900 plus players. Royal Challenge is on a steady growth path. In 2005,
the premium brand sold 98 lac cases, registering a growth of

Royal challenge
“Game for Life”
AWARDS WON BY ROYAL CHALLENGE:

INTERNATIONAL TEST AND QUALITY AWARD WORLD BEVERAGE COMPETITION

BRUSSELS 2006 USA 2006

INTERNATIONAL SPIRITS CHALLENGE MONDE SELECTION

UK 2006 BRUSSELS 2006

Royal challenge is available in three different sizes in market i.e 180ml pack which is called as NIP,
375ml pack which is called as PINE & 750ml pack which is called as QUART. The premium clubs,
Bars, pubs and hotels are procuring only in QUART sizes which is the pack of 750ml. other general
outlets are procuring all the pack sizes(QUART, PINE, NIP) of this brand.
 BLENDERS PRIDE
Seagram's Blenders Pride Rare Premium Whisky is a result of over 140 years of Seagram's great
tradition of blending fine whisky. An inspired piece of thinking led to the creation of this classic
mellow blend.

On a hunch, Master Blenders Patrick Joseph Loots and Abby Stephen decided to roll out
one particular whisky from the cool cellars of the distillery and expose it to the warmth of the setting
sun at regular intervals. The delicate sweetness and aromatic flavor of the blend is testimony to the
spectacular success of their experiment, which led them to call the spirit Blenders Pride
First is of course, the smoothness. Whisky should be easy to pass through your body. Secondly,
whisky should be relaxing. It should shake off all the fatigue of the day. Lastly, whisky should be
refreshing. For people who agree with me, let me introduce you to the pleasure of taste and finesse -
Blender’s Pride! True to its name, this whisky is really a matter of pride for its makers - Seagram’s.
The Indian blend I could find closest to the traditional Scotch, I believe that Blender’s Pride is a
whisky that is most aptly suited for the Indian connoisseur. Priced between Rs.450-Rs.500(Premium
Whisky Range), this bliss in a bottle is the perfect thing to enjoy after a hectic day at work. I have
always believed that whisky is a drink that tells you about its quality with its first sip. For scotch buffs
who believe that Scotch whiskies are the only worthy drinks in the world of whisky, this is one whisky
you should not miss!

The biggest plus point of this whisky is the relaxed feeling it gives you. Right from the first sip, it is
pure joy. The tingling taste, the exhilarating feeling, the smoothness...its everything that a shot of
whisky should have. But this whisky is strictly meant for people who believe that whisky is a
’’gentleman’s drink’’. In other words, for people who know when to stop. I honestly feel that getting
drunk is an insult of the drink. You should be elated, not drunk! Once you master this art of drinking,
you learn to enjoy the whisky....and others learn to enjoy your company. As for a review, as I said
earlier, whisky tells you about its quality right from the first sip. And I assure you that the very first sip
of Blender’s Pride is the best review for this whisky. It is bound to convince you that you have at last
found the ’’perfect’’ blended whisky.

It is also available in three different sizes in market i.e 180ml pack which is called as NIP, 375ml pack
which is called as PINE & 750ml pack which is called as QUART. The premium clubs, Bars, pubs and
hotels are procuring only in QUART sizes which is the pack of 750ml. other general outlets are
procuring all the pack sizes(QUART, PINE, NIP) of this brand.

PLACE:

Place is regarded as an important factor when marketing mix coming into picture. But in the trade of
liquor the distribution of it is controlled in many states, except in Maharashtra, West Bengal and
Assam. Where companies can sell their products freely in the open market. Distribution controls take
various forms like auctions, open market system, government-controlled markets and the army’s
canteen stores department. Under the auction system the government fixes a floor price for the shops
and the bidders have to quote the prices. The license would go to the highest bidder, and the bid price
would have to be paid in equated monthly installments. This system operates in Punjab, Rajasthan,
Bihar, Orissa, Uttar Pradesh and Madhya Pradesh.

States following the open market mode gives substantial leverage to the IMFL marketing company
choose its distributor and to determine pricing and discounts. In the case of distribution through
government channels and distribution rights through the auction mechanism, strong distributors exert
influence on the margins of the IMFL manufacture. In the government controlled system, the
distribution of liquor is done through state agencies such as TASMAC in Tamilnadu. BEVCO in
Kerala. The Andhra Pradesh beverage corporation in AP, the DSDIC in Delhi and so on. since these
agencies are sole whole sellers, they also have the ultimate say in deciding on the entry of a brand into
the state. More over to say they operated into an oligopolistic market. So these restrictions seriously
limit the free availability and marketability of a company’s product.

OPEN MARKET:

Maharashtra, West Bengal, Jammu & Kashmir, Goa, Assam, Meghalaya, Tripura, Arunachal Pradesh.

AUCTION MARKET

UP, Rajasthan, MP, Bihar, Punjab, Chandigarh, Haryana.

GOVERNMENT CONTROL

Tamil Nadu, delhi, Kerala, Andhara Pradesh.

PROHIBITION STATES

Gujarat, Manipur, Mizoram, Nagaland

 Distribution Channel:

Distribution channels those systems of economic institutions though which a producer of goods
delivers them into the hands of their users. As society shifted from producing things in the home to
buying goods manufactured in centralized locations, there arose a need for some means to distribute
the products from the central points of production to the dispersed populace.Channels of distribution
producer and the consumer.

Tremendous amount of time and money would be expended in just acquiring the minimum
amount of goods one would need for survival. Marketing channels funnels the goods demanded by the
consumer to the place where he wishes to purchase them, and create three basic utilities, viz.

 Place
 Ownership
 Time

Marketing institutions must move the goods from point of production to the point of purchase i.e.
consumption. This creates place utility, because goods will have no value to the buyer if they are still
in hands of manufacturer marketing channels arrange for the transfer title of the goods from the
manufacturer to the buyer. This creates ownership utility. So by summarizing the things we can
conclude that the company can place its products in following points.

 It is available in many states.

 Company location
 Transportation facility
 Availability of raw material

PRICE:
Again pricing is the most tactful strategy which is given due consideration while deciding the
marketing mix strategy. Pricing strategy should be of such type, that it gives strong competition to the
existing leader in the market. Pricing should be favorable for the consumer. Pricing plays an important
role in promoting a new product in the market. In the initial stage price should be low and as the
product gains reputation in the market the price should be hike a little. Pricing always should attract
the customer and customer should never feel cheated by the price, customer should feel happy for the
price he have paid for the product.

As we have taken the two products of two different rival companies in the same premium segment
whiskies. Viz.- The Royal Challenger of the United spirits Ltd. And The Blenders Pride of Seagram’s
the product & price listings are given below. The findings and data analysis are given in the chapter of
findings & data analysis.

N.B- All the liquor items of all companies are available in three different sizes i.e 180ml pack which is
called as NIP, 375ml pack which is called as PINE & 750ml pack which is called as QUART.

So from the table which is given below we can see that the prices of the Seagram’s Blenders pride
brand is little high than the prices of Royal challenge of United Spirits.

Product Issue Landing Retail MRP/Bottle MRP/Case MRP/Bottle

price Price Margin
(rupees) (rupees) (Rounded)
(rupees) (rupees) (rupees)
(rupees)
Royal 4008.50 4858.30 20.00 121.46 5829.96 121.00
Challenge(180)
Royal 4020.00 4872.24 20.00 243.61 5846.69 244.00
Challenge(375)
Royal 3989.50 4835.27 20.00 483.53 5802.33 484.00
Challenge(750)
Blenders 4300.50 5212.21 20.00 130.31 6254.65 130.00
Pride(180)
Blenders 4319.50 5235.23 20.00 261.76 6282.28 262.00
pride(375)
Blenders 4273.00 5178.88 20.00 517.89 6214.65 518.00
pride(750)
PROMOTION:

Promotion is also an important sector to look upon. Because it is the thing which directly affects to the
sales of a company & we all know that sales is the only source through which one company gets
revenue & profit as well for its operation. Promotion includes advertising and other forms of sales
presentations, designed to encourage fast consumer or trade up-take of a product or service. The form
of any promotion depends on the product, the marketing plan and its objectives, and on the
imagination of the product management team. It can vary from a simple in-store demonstration, or
sampling, or a tie-in with on premises. A range of promotional tools, techniques and activities are
mixed and matched to meet the needs of the individual marketing campaigns.

Alcohol is subjectively evaluated & hence branding is essential. Branding by enforced Innovations is
the another restraint for the promotion of the liquor products. These can be stated by these following
points.
  Highly regulated environment: ban on advertisements
 Brand extension
 In promotional aspects the communication should meet the standards and conditions of the
CIABC(Confederations of Indian Alcoholic Beverages Companies)

In following lines we discussed the promotional activities of the both the product we undertake for our
survey i.e. for Royal Challenge of united Spirits & blenders Pride of Seagram’s.

Royal Challenge

United Spirits Ltd. has done many promotional activities for the sales up-
take of this brand. As the name speaks the brand lovers are denoting to
those personalities who ready to take the challenges of life-“Game For
Life.”
Brand image highlighted through association with relevant events and sponsorships, has been specified
as the most important factor in influencing consumer’s demand. Surrogate advertisements are banned
in India but the IPL Bangalore team- Royal challengers Bangalore or RCB is a classic example of
surrogate marketing. Royal Challenge also partners with Force India Formula One team& other T20
teams like Delhi Daredevils and Kings XI Punjab. The barnd echos the values of wining, rising upto
overcome all challeneges in life.Thois aids in highest brand recall as many cricket enthusiast go to
sports bar and pubs for watching matches. So it is present as aspiration values.

Promotion Techniques:

Sponshorship of events-
 -Royal challenge golf tournament-

Royal challenge golf tournament shows the association with golf helps impart an aura of sophistication
and premium ness. It is the attributes the brand stands for. As you can see in the picture beside that the
famous Indian cricketer Kapil dev had been taken part n this golf championship. It is regarded as the
first ever Indian sponsored Asian golf championship.

Again in February 2007 and Mumbai rocked to the sound of one of the greatest rock legends of all
times -Roger Waters, co-founder and creative genius behind Pink Floyd. The Roger Waters Dark Side
of the Moon concert tour was in India sponsored by Royal Challenge & DNA Networks. The iconic
rock star performed live at the MMRDA Grounds in Mumbai on Sunday, February 18th! This was
Waters’ second performance in the country. He was here last in 2002, when he enthralled more than
30,000 fans in Bangalore.
There is a lot of awareness among today’s youth regarding the environmental issues, but people don’t
know how to contribute. RCB is there for its fans in their endeavor to Go Green.
Start using eco-friendly articles like organic clothes and eco-friendly bags like jute, cotton bags rather
than plastic bags.
Here is some insights on organic clothing:
we know organic clothes would give you images of clothes that are not stylish & fashionable. But
these imaginations were probably true a decade ago, today organic & alternative fibers have come a
long way and some of the biggest fashion labels across the globe are going organic. In fact entire
fashion shows across fashion capitals of the world are going green.
Though agreed an organic range appears a little more expensive than the usual, but after all the extra
pay will go a long way in keeping our environment clean, green & healthy.

INTERNET ADVERTISING:

Web sites are launched to focus on brand’s association with different activities. Communication
through internet is very important- royal challenge all 4 golf contest by joining hands with the leading
contesting website- “contest 2 win” this attributes stands for the sophistication and premium ness.

PRINT AD’S COMMUNICATION:

Ad’s featuring some of the biggest heroes in

European dynasty-Alexander great, Napoleon
Bonaparte, Julius ceaser. It helps the consumer to
recall the great heroes by their great personality. It
helps in creating stronger bond between the
customers and the brand.
OFFERS & CONTESTS:

Royal challenge also provides offers to its customers like on some special occasion if you take 2 pegs
of it then you got another peg absolutely free. During the time of IPL also it has a scratch card contest
in which the lucky winner got a golden bat which is worth Rs. 5 lakh. Again for other consolation
prizes the winners got a chance to meet the royal challenger’s players.

COMMUNICATION:

Royal Challenge is the flagship brand of United Spirits Ltd. It's also the largest selling brand in the
premium whiskey segment in the country. Royal Challenge, known for its consistent quality and
blend, has won millions of hearts over the years and continues to do so. Today, Royal Challenge is a
millionaire brand with a commanding market share!

Royal Challenge communication strategy is built around the brand’s philosophy – REAL WINNERS
LOVE REAL CHALLENGES – and is inspired by the real winners of today.
These are young, ambitious and successful people with adrenaline-pumping interests in life, and who
play for the big stakes in their chosen profession or business. They thrive on bigger challenges, and are
looked up to because of their energy, drive, achievements and zest for life.

It's all about winning by overcoming challenges, no matter how big and daunting, which makes an RC
consumer 'Game for Life'. Because only a big-time player can take on big challenges. Truly, Royal
Challenge offers its consumers a sense of unsurpassed privilege of being a real winner.

In a first of its kind, Royal Challenge has picked 12 DLF IPL stars who embody the winning spirit.
Watch videos on their inspiring stories on this site, or catch them on TV.

The lighter side of challenge

Since the winners of today are high-spirited, fun-loving people, It has created a lovable, joke-a-minute
character called Rapid Challenge Ravi Chandran - RC for short. He's got some lighthearted, cricket-
related challenges for you - and some really wacky answers.

So more over to say with the help of various events and public relation initiatives it helps in create its
distinct brand image in the eyes of its customers so it able not only to win the mind share but the heart
share as well of the people.

BLENDERS PRIDE

As like as Royal Challenge, Blenders pride also

do a lot of things for its brand building and
brand promotion. It has associated with many
super models, actress and other renowned
personalities.

Recently Seagram’s presented a one of its kind

glitzy fashion show showcasing an eclectic
collection by renowned designer Abhishek
Dutta at Roxy, The Park in Kolkata on Friday.
The best of the National models showcased the
ornate collection on the ramp while an enthralled audience watched with rapt attention. The
showstopper for the show was Bollywood actress and former beauty queen from Sri Lanka Jacqueline
Fernandez, who is presently riding high on the success of her. It is also going to organize the
Bangalore fashion week in the month of July, 2010.

Again it has organized one magical tour party on the month of September, 2009. In which the famous
model-actress Neha Dhupia walks on the ramp. Previously Bipasha Basu walked the ramp for
designer friend Rocky S on October 29th 2005 at the Seagram's Blender Pride Fashion Tour.

Now the blenders pride has a contest in which if you take two pegs of it then you will get a scratch
card from which the lucky winner will get a chance to meet the famous actress Jacqueline Fernandez
on a musical night.
Research – Research is common parlance refers to a search for knowledge. The Advanced Learner’s

Dictionary of Current English lays down the meaning of research as “A careful investigation or

inquiry specially through search for new facts in any branch of knowledge” According to Redman

& Mory “A systematized effort to gain new knowledge.”

Research Methodology- It is the way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the various steps

that are generally adopted by a researcher in studying his research problem along with the logic behind

them.

Types of research Design:-

1. Descriptive Research Design – Descriptive research studies are those studies which are

concerned with describing the characteristics of a particular individual, or of a group.

2. Hypothesis Research Design – Hypothesis testing research studies (generally known as

experimental studies) are those where researcher tests the hypotheses of causal relationship

between variables.

3. Exploratory Research Design - Exploratory research studies are also termed as formulative

Research studies. The main purpose of such studies is that of formulating a problem for more

precise investigation or of developing the working hypothesis from and operational point of

view. The major emphasis in such studies is on the discovery of idea and insights. As such the

research design appropriate for such studies must be flexible enough to provide opportunity for

considering different aspects of problem under studies.

Sampling- Sampling may be defined as the selection of some part of an aggregate or totality on

the basis of which a judgment about the aggregate is made. In other words, process of obtaining

information about an entire population by examining only a part of it. In most of the research.

Types of sampling:-

1. Systematic Sampling- The most practical way of sampling is to select every ith item on a list.

This kind of sampling known as systematic sampling.

2. Stratified Sampling- If a population from which a sample is to be drawn does not constitute a

homogeneous group, stratified sampling technique is applied in order to obtain representative

sample.

3. Cluster Sampling- If the total area of interest happens to be big one, a convenient way in which

is sample can be taken is to be divided into smaller non-overlapping areas called cluster known

as cluster sampling.

4. Non probability sampling- In case of non probability sampling it is considered appropriate to

use a random selection process where the probability of each cluster being included in the

sample is proportional to size of the cluster.

 VARIOUS PARAMETER USED IN RESEARCH

 Research Design - Descriptive

 Data Source - Primary & Secondary data

 Research Instrument - Questionnaire

 Types of Questionnaire - Structure and non-disguised

 Sample Plan - Bhubaneswar, Cuttack , Puri

 Sample Size - 84

 Sampling Procedure - Non Probability sampling

(Judgment sampling)

 Sampling method- personal survey method through questionnaire.

SOURCES OF DATA

PRIMARY DATA
The primary data consists of original information for the specific purpose at hand. It is first
hand information for the direct users of respondents. The tool used to collect the data may
vary and was collected through various methods like questionnaire, personal interview etc.
The sources from where and from whom I have collected my primary data are:-
• Direct interview of retailers and distributors
 • Direct interview of consumer of alcohol
• Through questionnaire
• Through observation

SECONDARY DATA
Secondary data is the data which has already been collected and assembled. This data was
available with the companies or firms and it was collected from news papers, periodicals,
magazines, websites etc
There are various sources from where I have collected the secondary data are:-
• Website
• Liquor journals like AMBROSIA
• Newspaper
• Articles
• From company data warehouse
 DATA ANALYSIS & FINDINGS

RELATIVE MARKET SHARE OF ROYAL CHALLENGE & BLENDERS PRIDE IN PREMIUM

SEGMENT:

M/S M/S M/S

2007-08 (2007-08) 2008-09 (2008-09) 2009-10 (2009-10)

RCW 178 25.46 234 26.68 321 33.19

BP 333 47.63 391 44.58 451 46.63

OTHERS 138 19.02 152 17.33 195 20.16

TOTAL 699 877 967

RCW-ROYAL CHALLENGE WHISKY (USL), BP-BLENDERS PRIDE (SEAGRAM).

21% 27%
RCW
BP
OTHERS

52%

Here in the above analysis we got the Relative market share of the whiskies with special reference to
Royal Challenge of USL and Blenders pride of Seagram’s.
 PRICE RANGE LOW MEDIUM HIGH

NO. OF CUSTOMERS 12 58 14

IS THE PRICE OF THE PREMIUM SEGMENT AFFORDABLE OR NOT

NO. OF CUSTOMERS

70
58
60
50
40 NO. OF
30 CUSTOMERS
20 12 14
10
0
LOW MEDIUM HIGH

From the above table we can see the reaction of the customers to the pricings of the premium segment
whiskies out of 84 customers 58 customers are saying it is neither in higher nor in lower side. 12 & 14
customers are saying the prices are quite low and high respectively.
 WHAT INFLUENCE A CUSTOMER TO DRINK A PARTICULAR BRAND

INFLUENCING STATUS
FACTORS FRIENDS ADVERTISMENT TASTE SYMBOL PRICE

NO. OF CUSTOMERS 9 16 36 6 17

NO. OF CUSTOMERS

40 36
35
30
25
20 16 17 NO. OF CUSTOMERS
15
9
10 6
5
0
T

L
S

E
N

O
D

ST

IC
E

B
N

R
YM
TA
IE

P
S
FR

TI

S
ER

S
TU
V
D

TA
A

From the above table we can see that which factors are influencing mostly to the customers to have
drink. From which we got that it is taste of the product which influences most out of other factors like
friend’s companion, advertisements, status symbol & price.
 REASONABLE PURCHASING
FACTOR ENVIRONMENT OCCASION POWER ENJOYMENT

NO. OF CUSTOMERS 46 12 7 19

NO. OF CUSTOMERS

50
45
40
35
30
25 NO. OF CUSTOMERS
20
15
10
5
0
T

T
ER
EN

EN
O

W
SI
NM

YM
PO
CA
O

JO
C

G
R

EN
IN
VI
EN

S
HA
RC
PU

From the above analysis we got that what makes a customer to go the Bars, premium hotels & pubs.
Because these are the premises in which the premium segments products are sold out heavily. So these
factors should be encountered.
 CONSUMPTION 3 TO 4 TIMES IN A
FRQUENCY ONCE A WEEK WEEK EVERYDAY/FREQUENTLY

NO. OF CUSTOMERS 9 63 12

NO. OF CUSTOMERS

12 9 ONCE A WEEK

3 TO 4 TIMES/ WEEK

EVERYDAY/FREQUE
63 NTLY

From the above analysis we got the consumption frequency of the customer to the whiskies. So we can
target those masses accordingly. Here we have the most no. of buyers who takes whisky 3to4 times in
a week. They are 63 in number out of 84.
 AD PROGRAMME CONVENTION YES NO

NO.OF CUSTOMER 65 19

NO.OF CUSTOMER

16%

YES
NO

84%

The above analysis is based on the question “whether they agree with advertising programme and
promotion affects the sale or not?” among which 84% say yes it affects and 16%say no it is not so.
QUALITY FACTORS TASTE AROMA BLEND PRICE STATUS
NO.OF CUSTOMERS 25 3 3 21 32

NO.OF CUSTOMERS

35 32

30
25
25
21 TASTE
20 AROMA
BLEND
15 PRICE
STATUS
10

5 3 3

0
TASTE AROMA BLEND PRICE STATUS

QUALITY FACTORS TASTE AROMA BLEND PRICE STATUS

NO.OF CUSTOMERS 44 3 15 2 20

NO.OF CUSTOMERS

50
44
45
40
35 TASTE
30 AROMA
25 BLEND
20
20 PRICE
15
15 STATUS

10
5 3 2
0
TASTE AROMA BLEND PRICE STATUS
The charts which given in the previous page are the comparative analysis of the quality factors which
affect the customer’s preference towards them. The first chart shows the analysis of Royal Challenge
whisky and the quality which affects the customers. It is the Status & taste which affects the customers
towards it. Again in the second chart it is the taste, status & blend of the Blenders Pride which affect
the customer.

SWITCH ANSWERS YES NO

NO.OF CUSTOMERS 53 31

NO.OF CUSTOMERS

37%

YES
NO

63%

Here from the above analysis we can see that about 63% of customers are coming under the category
of switch user. While 37% remain to stay with their brand to whom we call brand loyal category of
consumers.
LIMITATIONS:

During the process of a research a person comes across certain restrictions certain limitations. Some of
these limitations are overcome while come have to be overlooked for the smooth conducting of the
research. Some of those restrictions are:

 Liquor is such a product that the wholesaler, retailers and consumer’s fear to come out with
information.

 Due to the wide area of the markets, it was impossible to cover each and every retail shop.

 The report has to be completed with in a small specific time, which is not enough time to cover
the market. So time was the major constraints in conducting the study.

 In this study it is not possible to collect the opinion of all customers owing to personal
constraints. So the assumptions are drawn on the basis of the information given by the respondents.

 The study needs to complete within a specified time and in restricted areas. So the findings
cannot be generalized as a whole.
 RECOMMENDATIONS

From the survey of retailer and wholesaler it is clear that not only brand positioning , brand image and
consumer demands are not only controlling factors of the sale of the company but the wholesaler, the
retailer and the Bar Attendants also play a major role. United Spirits Limited should thus focus on the
following points.

 AVAILABILITY

It is necessary for the company to maintain a regular supply of its products and brands. They should
fulfill the wholesaler so that product can be available in the retail market. The consumer should get the
brand he demands otherwise he shifts to other brands and frequent shifting affect the sales of company
and the consumer could even change the preference of his brand.

 PROFITABILITY

As we have seen from the wholesalers and retailers view that they sell those products which earn them
greater profit margins. There fore the company should give the wholesaler greater profit. Margins so that
has more profit and in turn retailer also gets a greater profit margin.

 BUILDING RELATIONSHIP WITH CUSTOMERS & RETAILERS

Today the most important function of any business is maintaining a healthy customer relationship with
customers, customers should be addressed and addressed at the right time and also the communication
must be two way communications. Again the retailers who sale the company’s products to the end
customers or who acts like a medium between the consumers and company should be given due
importance.

 EXTRA BENEFITS

Since there are many firms operate in the market it is essential for the company to give extra benefits
and gift to the whole seller and sales person at retail outlets to maintain good relation with them. The
company can offer them free gift like playing cards, key-rings, wine, glasses and T-shirts. In return the
salesman at the retail outlet creates the demand of the company brand.

 INVESTMENT IN R&D AND QUALITY IMPROVIZATION

The company should invested lot of funds in the activities like research & development. The company
should send its marketing team to the market regularly so that the performance of the company in
different brand can be evaluated and the ground truth can be evaluated like the real taste & preference of
the customers etc.
 QUESTIONNAIRE FOR CONSUMER

Q.1- Do you drink liquor?

a) Yes b) No

Q. 2- You take liquor in form of...

a) Beer b) Whisky c) Rum

Q. 3- Your age is………

a) 15-25 yrs. b) 25-35yrs.

c) 35-45yrs. d) 45 & above

Q. 4- Who introduced you to drink Whisky?

a) Friends b) Advertising

Q. 5- You consume Whisky…….

a) Once a week b) 3-4 times in a week

c) Every day /frequently.

Q. 6- Do you think the price of the Royal Challenge whisky or Blenders pride Whisky is
affordable?

a) Low b) Medium c) High

Q. 7- Which type of Whisky does you prefer?

a) Cheap b) Semi premium c) Deluxe d) Scotch

Q. 8- How much quantity of Whisky is consumed by you at one time?

a) 1 quarter b) 2 quarter c) 90ml d) 60ml

Q. 9- You drink usually at?

a) Home b) Restaurant c) Bar d) Open space

Q. 10- What are the key factors that affect your purchasing decision?

a) Price b) Brand c) Taste d) Status e) Aroma

 Q. 11- What influence a customer to go to Bars or other premium places, as compared to
other existing brands?

a) Friends b) Occasion c) Purchasing Power d) Enjoyment

Q. 12- You feel after drink………

a) Relaxed b) Happy c) Tensed d) Angry

Q. 13- Your preference for packaging?

a) Glass Bottle b) Plastic Bottle c) Tetra packing

Q. 14- Are you brand loyal?

a) Loyal b) Switcher

Q. 15- Any suggestions for USL?

………………………………………………………………………
………………………………………………………………………
Personal information
Name-…………………………….
Address-...…………………………………………………………..
………………………………………………………………………
………………………………………………………………………
Gender-………………………………
Age-…………………………………..

This questionnaire has given an insight about the taste and preferences of the customer
ranging from high class to low working class. It helps me to understand the market size of
various whiskies and other alcoholic drink. I sincerely thank the entire person who helps me by
filling up the questionnaire. The conclusions of the questionnaire are given above in the
chapter data & analysis chapter.
 QUESTIONNAIRE FOR RETAILERS

Q.1- What different types of liquor are sold by you?

a) Beer b) Whisky c) Rum d) Other

Q.2- Which type of Whisky is mostly demanded?

a) Regular b) Semi premium c) Deluxe

Q.3- In premium range Whisky, what are the different brands available with you?

a) Royal challenge b) signature c) Blenders pride

d) Black & white e) any other………………

Q.4- Which brand of USL is mostly demanded?

a) Mc Dowell’s no.1 b) Black dog c) signature d) antiquity e) other

Ques.5- How much quantity of USL whisky is sold daily?

a) 10 Cases b) 10-20 Cases c) > 20 Cases

Ques.6- Do you agree with advertising program of Whisky?

a) Yes b) No

Ques.7-Are you satisfied with the distribution system of USL?

a) Yes b) No

Ques.8- Do you think that sale can be increased by providing scheme to retailer and
consumers?

a) Yes b) No

Ques.9- Who is the biggest competitor of USL in the market?

…………………………………………………………
Ques.10- Would you like to give some suggestions to USL for improvement?
………………………………………………………………………
………………………………………………………………………
 BIBILIOGRAPHY

The readings which rendered all possible help and guidance in finalizing the marketing are:-

Marketing Concept : Philip Kotler

Data From : Internet Sites

www.google.com
www.vikipedia.com
www.economicwatch.com
www.reportliker.com
www.scribd.com
www.usl.com
www.segramsindia.com

News Papers : The Economic Times

&

Times of India

Magazine : Business Week

Research Methodology : C.R. Kothari