Summer

Training
Project Report

On

“Perceptual mapping of different liquor

brands”

Submitted
to:
LOVELY PROFESSIONAL UNIVERSITY

In partial fulfillment of the

requirements
For the degree of

Master of Business Administration

(Session 2009-
2011)
Of

Lovely Professional University,

Jalandhar

Submitted
by:
Shailesh Kumar
Tiwari
MBA 2 nd year (3rd semester)

Lovely Professional University,

Jalandhar

1
Preface

Doing training was really an opportunity before me and when I could convert my theoretical
knowledge into practical and of real world type. Fortunately, the company I got is a true follower
of the various principles of management and also is the one of the good company in its segment
of the industry. The working environment that I was being provided was extraordinary and
helped me a lot in delivering my work properly and with full potency of mine.

I did my summer training in the United Spirits Ltd, where I found all the professionals are very
much committed to their work as well as they were all professionals enough. This helped me a
lot in getting a good deal of exposure. As I had to consult the Manager and Supervisors, I felt
myself, in the beginning, in a bit problem. But the cooperation of my superiors at the work
induced confidence in me to deal with my problems. But the cooperation of my superiors at the
work induced confidence in me to deal with my problems whenever they came.

Since I had to complete my project within a limited time frame, this made me experience the
actual stress of the workplace. The way the boss supported me and his other subordinates was a
good example of coordination and good manager. This shows that in the corporate world the
superior officer should not only take care of the target fulfilled but also the behavioral aspect of
the subordinates.

Working with the colleagues was a great experience as I came to know that how a person can
work as a team in a multifarious industry to achieve the organizational goal. Many a times, while
working, I had to sacrifice my personal feelings and inspirations just to keep the organizational
interests in my mind by giving it the top most priority. Indeed, I always tried to do justice with
my duties even at the cost of my personal life for the time being. But this could be a success, as I
got continuous support from my guide as well as other officers & colleagues.

So, at last I would like to thank my institution for providing me with the opportunity to do
summer training, I am also grateful to the United Sprits Ltd for providing me all the assistance in
completing my project.

2
Contents

1. Acknowledgement………………………………………………
4
2. Declaration………………………………………………………
5
3. Executive
Summary…………………………………………….6
4. USL at a
glance………………………………………………….7
5. Government Policies of Liquor
Sector………………………..14
6. Introduction to Liquor
Industry……………………………….15
7. Market Analysis…………………………………………………
16
8. Brand Management In Liquor
Industry……………………….18
9. Wines In India……………………………………………………
21
10. Market Analysis Of Wines………………………………………
22
11. Product and Brand Management For
Wines…………………..26
12. Brand Equity
Pyramid…………………………………………..28
13. Marketing Mix……………………………………………………
30
14. Literature
Review………………………………………………...33
15. Objective of the Study……………………………………………
38
16. Research Methodology……………………………………………
38
17. Data analysis and interpretation…………………………………
40
18. Findings ……………………………………………………………
65
19. Limitations of the Study And
Recommendation………………...66
20. Bibliography……………………………………………………….6
7
3
ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of competition and success, training is like a bridge between
theoretical and practical working; willingly I prepared this particular Project. First of all I
like
wouldto thank to thank Mr. Rrjesh Phanda (GM) for granting me permission to undertake the
training in their esteemed organization.

I express my sincere thanks to Mr Ajay Chandel (Project Guide) & others faculty members, for
their valuable suggestion and making this project a real success.

I also thank to Mr Rajesh Phanda(GM). Mr Sandeep Kalra (Sr Branch Manager),Mr Vvek
Jain(head of Marketing) Mr Sanjay Manchanda (ASM) MR Shailendra (ASM) and other staff of
who devoted their valuable time by helping me to complete my project.

Last but not least, my sincere thanks to my parents and friends dir ectly or indirectly who helped
me to bring this project into the final shape.

Shailesh Tiwari

DATE:-

4
DECLARATION

I, "Shailesh Tiwari”, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere f or the requirement
a degree programme. Any literature, data or works done by others and cited within this
of
dissertation has been given due acknowledgement and listed in the reference
section.

Shailesh Tiwari

(Student's name &

Signature)

R1901A20

(Roll. No.)

5
Executive
Summary
Perceptual mapping has been used as a strategic management tool for about thirty years.
It offers a unique ability to communicate the complex relationships between marketplace
competitors and the criteria used by buyers in making purchase decisions and
recommendations. Its powerful graphic simplicity appeals to senior management and can
stimulate discussion and strategic thinking at all levels of all types of organizations.
Perceptual maps may be used for market segmentation, concept development and
evaluation, and tracking changes in marketplace perceptions among other uses. In the late
Nineteenth Centur y, Angus McDowell set out from the scenic Northern lands of Gaelic
Britannica. The purpose was to make available the products of the industrial revolution to
thousands of expatriate Britons serving the Empire in various parts of the globe. It was
this spirit of adventure that launched McDowell & Company in India. Perceptual
mapping of different liquor brands have been taken for the study because it is very
essential for ever y company to know that what the customer think about the brand and
what are the attributes that attracts customer attention. For this I have taken various
factors for purchase intention on five point Likert scale and also analyzed socio economic
status of the respondents and correlated with the kind of liquor they take and how
frequently they drink. The sample size was 200 and data was collected through one to one
interaction. The data analysis was done by using Microsoft Excel. Findings have
suggested that The factor influencing purchase decision were packaging, price, taste,
availability, brand image, manufacturing process, manufacturing place, manufacture
reputation and promotional scheme. Out of these factor price, taste, brand image and
promotional schemes were found to be most important factor for purchasing liquor
brands. However other factor like manufacturing place and manufacturing process was
not very much known by consumer Out of 5 companies which were taken into
consideration for the rating of the best company in for, taste, quality and promotional
schemes most of the respondents were in favor of United Spirit and Seagram s. The best
company for these variable was united spirit. The best company Scotch and premium
whisky was United Spirits and the second best company was Seagram s. United Spirits
and Seagram s were found to be the best value provider companies .

6
USL AT A GLANCE

In the late Nineteenth Century, Angus McDowell set out from the scenic Northern lands of
Gaelic Britannica. The purpose was to make available the products of the industrial revolution to
thousands of expatriate Britons serving the Empire in various parts of the globe. It was this spirit
of adventure that launched McDowell & Company in India.

It had its origins in a warehouse near Fort St.George in Madras (now Chennai), which in those
days was a major trading centre of the British Empire.

In 1951, McDowell became the prime acquisition of the United Breweries Group. Under the able
guidance of the founder of the UB Group, Late Mr. Vittal Mallya the company became the first
to manufacture Indian substitutes to foreign liquor .A new term - IMFL (Indian Made Foreign
Liquor) was coined. Since then, McDowell has been the indisputable market leader asone of the
largest fast moving consumer goods companies in the countr y.

The Name

The name „McDowell originally came from the Gaelic word „Macdougall . „Dubh gall means
dark stranger, possibly to distinguish the dark haired Danes from the fair-haired Norwegians.
Angus McDowell, after whose name McDowell & Company Limited came into being, was a
squire of the Dougall ancestry.
He started a firm - McDowell, in the northern islands of Gaelic Britannica, which was marketing
the finer products of the Industrial Revolution to the Britons staying in various corners of the
empire.
In India, McDowell had its warehouses situated about a mile to the north of Fort St.George in
Madras.
From being one of the first names to be associated with the import of wines and spirits into India
as early as in 1898, McDowell has now grown to become the countr y s undisputed leader in the
spirits market.

7
USL CORPORATE
BACKGROUND
United Spirits Limited (USL) – the INR 4000 crore (USD 1 billion) spirits arm of the
Group – is India s largest and world s third largest spirits company. USL was earlier
UB
McDowell and Company Limited. Besides Whyte and Mackay and Bouvet Ladubay being 100
% subsidiaries of USL, the company has a portfolio of more than 104 brands, of which 16 are
millionaire brands* (selling more than a million cases a year) and enjoys a strong 59% market
share for its first line brands in India.
United Spirits brands have won the most prestigious of awards across flavors, ranging from The
Mondial to International Wine and Spirit Competition (IWSC) to International Taste and
Institute (ITQI); a total of 84 awards and certificates (as of December 2007).
Quality
The Company is known to be an innovator in the industry and has several firsts to its credit such
as the first premixed gin, the first Tetra pack in the spirits industry in India, first single malt
manufactured in Asia and the first diet versions of luxur y whisky and vodka in India. USL has a
global footprint with exports to over 18 countries. It has manufacturing and Bottling units in 67
locations across the country and in Nepal and supported by a robust Distribution network to
deliver its products to customers located anywhere in India. USL has a committed 6000 strong
workforce spread across its offices and distilleries in the country.
USL represents the merged entities of erstwhile McDowell & Co. Limited, Phipson D istillery
Limited, United Spirits Limited, Herbertsons
Limited.

8
CHAIRMAN’S NOTE

It has been another extraordinary year for McDowell – a year which will be remembered not
only for the significant organic growth in the market but also for various bold initiatives that
have led to a number of acquisitions taking the combined UB Group s Spirits Division to the
second place among the world s largest spirits companies.
It is with particular pride that I am able to share the historic moment on June 14th, 2005, when
finally, McDowell was able to complete its acquisition of majority shares in Shaw Wallace &
Company which has, for long, been our traditional rival in the market place. The coming together
of these two spirits companies heralds a new era for the industry and for the consuming public as
we prepare to offer consumers greater choice than ever before while everaging the combined
strengths of marketing, distribution and manufacturing to produce and sell our products more
efficiently than ever before.
While the acquisition of Shaw Wallace stands out, particularly given the hard fought battles that
went on behind the scenes, a number of other strategic moves were initiated, all of which will
contribute to your Company s pre-eminence in the days to come.
This acquisition clears the way for a complete integration of Herbertsons operations with that of
McDowell and other companies of UB s spirits business. It has long been our dream to build up
a consolidated United Spirits entity. In pursuance of this goal, McDowell also exercised its Call
Option on the balance 15% shares in Triumph Distillers & Vintners Pvt. Ltd. You will recall that
TDV comprised the Indian business of Diageo, the world s largest spirits company.
I have mandated leading Merchant Bankers and other Advisors to take forward the integration of
the various spirits companies so that value to all stakeholders can be maximized.

India is going through an unprecedented period of business confidence on the back of sustained
growth across all sectors. With nearly 100 million people to reach legal drinking age in the next
decade and the opening up of job opportunities, particularly in the services and export sectors, I
believe that our industr y is set to see vigorous gr owth. The young citizens of India are plugged
into a virtual global economy and share many of the attitudes of their age profile in the
developed world.

9
Economies of scale and economies of purchase will work towards a structural upward shift in the
profitability of our business. Similarly, increased negotiation strength vis-à-vis our often
monopolistic customers will also be helpful in this regard.

All the momentous events of the year cannot eclipse the sterling performance of your Company s
brands in the market place. Three of our brands, all under the McDowell s No. 1 umbrella, have
made it to the top 100 global alcobev brands by retail value. McDowell s No.1 Whisky sold 5.5
million cases, McDowell s No.1 Celebration Rum achieved 5.04 million cases and McDowell s
No. 1 Brandy reached 4.8 million cases. Additionally, Bagpiper Whisky – a brand of our
Subsidiary.
Herbertsons sold a historic volume of 7.9 million cases making it 1st among the 4 UB Group
brands in the list.
However, I cannot underplay the challenges associated with the integration of two entities that
have fought against each other for so many years and have evolved under different cultures.
In conclusion, I wish to thank the Board of Directors, Employees, Suppliers, Customers, Bankers
and of course, you Shareholders for your consistent support to our Company.

Dr Vijay Mallya
Chairman

10
MISSION STATEMENT

“To be the most admired global leader in the spirits industry by creating unique high quality
brands for consumers, driven by highly motivated employees and supported by best-in-class
processes and continued innovations. United Spirits is and will continue to be responsible
towards its stakeholders and the society.”

11
BUSINESS INTERESTOF UB GROUP

Beverage Alcohol: The UB group is 2nd largest spirits marketer in the world, with overall sales
of 90 million cases. The company offers 140 brands at varying price points. Some of the famous
brands of UB group arebagpiper whisky, McDowell’s No.1 whisky, director special whisky,
McDowell’s No.1 Brandy and McDowell’s celebration rum.

Pharmaceuticals The group s company Aventis Pharma Ltd is the second largest
:pharmaceutical multinational in India. It develops and markets branded prescription drugs and
vaccines.

Media: The UB group also has a shareholding in Asian Age Holdings Ltd, the company that
owns and manages daily newspapers, the Asian Age.

International the group s company UB group global ltd is recognized export house
engaged
trading: in the export of beer, spirits, leather footwear and processed food the company also
exports pharmaceutical products and customize perfumeries.

Fertilizers: Mangalore chemicals & fertilizers ltd is under UB group management. It has a
manufacturing capacity of 2, 17,800 MT of ammonia and 3, 80,000 MT of urea.

Research and development:Vijay Mallaya Scientific Research Foundation (VMSRF) was

established in 1987 with the objective of developing newer and novel technologies that will have
substantial application in industry and health care. The foundation is recognize by the
departments of Scientific & Industrial Research (DSIR) Department of Biotechnology (DPT),
Council for Scientific and Industrial Research (CSIR) and the Ministry of Finance, Govt. of
India.
Aviation UB group entered Aviation sector in 2005 with launch of Kingfisher Airlines Ltd.
Kingfisher
: Airline has captured an impressive Market Share and has established a Niche identity
for itself.

12
ORGANIZATIONAL STRUCTURE

BOARD OF DIRECTORS

Dr Vijay Mallya, Chairman

Dr. Vijay Mallya is the face of the $2 billion UB Group. 52 year-old Dr. Mallya took over the
Reins of the United Breweries Group in 1983.....

S.R. Gupta, Vice Chairman

Mr. Subhash Raghunath Gupte , aged 68 years, is a Chartered Accountant. Mr. Gupte has
worked with Caltex India Limited for 5 ½ years.

Mr. Vijay K. Rekhi, President and Managing Director

Mr. Vijay K. Rekhi is the President and Managing Director of United Spirits Limited, India's
Largest and the world's third largest alcohol beverage company.

M.R.D Iyengar.

Mr. M. R. Doraiswamy Iyengar. aged 66 Years is a Graduate in Commerce and a Chartered

Accountant. He is also a post Graduate in Law, holding a B.L. degree.

13
The Industry

The distillery industry today consists broadly of two parts, one potable liquor and industrial
liquor. The potable distillery producing Indian made foreign liquor and countr y liquor has a
steady but limited demand with a growth rate of about 8% per annum. The industrial alcohol
distilleries are showing a declining trend because of high prices ofMolasseswhich is used as
substrate for production alcohol. The alcohol produced is being used in the ratio of
approximately 52% for potable and the balance 48% for the industrial use. Over the year the
potable liquor industry has shown remarkable results in the production of quality spirits.

Sales promotion is key ingredients in market campaigns. It consists of diverse collection of

incentive tools, mostly short term design to stimulate quicker and greater purchase of particular
products or services by consumers or the trade.

The advertising offers a reason to buy; sales promotion offers an incentive to buy.

GOVERNMENT POLICY IN LIQUOR SECTOR

Liquor industry body has welcomed the government s plans to cut import duties on wines and
spirits while allaying apprehensions that the move would hurt domestic manufacturers.

This will bring imported and domestic products on equal footing. “At present around 97% of
Indian made foreign liquor (IMFL) comes in the range of Rs 240 per bottle of 750 ML and it is
the remaining three per cent of the market which would be under competition from imported
wines and spirits,”

A NEW APPROACH TO LIQUOR POLICY

The proposed new liquor policy marks a decisive break with the past. It addresses two broad
concerns: regulation of the production, distribution and sale of liquor (in part as a tool for
correcting market imperfections); and controlling the economic and social costs of Excessive
alcohol consumption.

14
The regulation of liquor production, distribution and
sales
New liquor regulation entails two key aspects: firstly, a change in legislation which will facilitate
easy entry into the liquor trade; and secondly, harsh penalties for those who contravene the
legislation.
The legislation which flows from this policy will seek to be fair and just; to redress the Inequities
and discrimination of the past; and to effectively regulate the liquor trade insofar as the social,
economic, health, welfare and other needs of society are concerned.
New liquor laws must normalize the operation of this sector of the economy by Pro-actively
restructuring the sale and distribution of liquor to achieve economic Empowerment of
historically disadvantaged sectors of our society. In particular, new laws must seek to empower
informal liquor traders - those individuals who earn their living by trading in liquor - but
whom the strictures of past and current legislation discriminate unfairly.
against
Normalization of this sector must also ensure the participation of public r epresentatives and of
the public itself in the registration process.

Introduction to liquor
industry
1. Alcoholic Beverage In India

Alcohol consumption is generally frowned upon in India even though we find reference to
intoxicating substances like “somarasa” in the ancient religious texts. Over the past years
there has been a significant change in alcohol consumption trends. Alcohol has become one
of the commonly consumed intoxicating substances in India. It has won increasing social
acceptance among other groups, urban males being the prime example. It is easily available
and widely used, especially at festivals such as Deepawali and Holi. At the moment the use
of alcohol is infrequent among women who also tend to resist the habit among male family
members. Between 15 and 20 per cent of Indian people consume alcohol. The past decade
has seen a significant increase in the consumption of alcohol. The number of drinkers has
increased from one in 300 to one in 20. Annual sales of alcoholic beverages are growing by
about 20 percent annually. Indian liquor brands have register ed significant growth in recent.
The varieties of alcohol manufactured for consumption in India are:

15
 1. Beer

2. Country Liquor

3. Indian Made Foreign Liquor

(IMFL)
4. Wines

2. MARKET ANALYSIS

India can boast of an upwardly mobile young population with a propensity to spend. The
country has one of the youngest population, with around 50% citizens below 25 years. With a
free media and increasing exposure to western influences India has become part of the
Globalized economy

.The Indian alcoholic beverage market has been growing rapidly over the last 10 years.
Consumption of beer has jumped 51% from 70 million cases in 2002 to 105 million cases in
2006 while consumption of Indian made foreign liquor (IMFL) grew 53% to 115 million
cases during the period. This increase is due to the positive impact of demographic trends and
expected changes, like:

1. RISING INCOME LEVELS

Because of the economic reforms since 1991 there has been a significant increase in the income
levels. Rising income levels have been seen as generally favorable to the alcoholic beverage
industry.
2. CHANGING AGE PROFILE

A large proportion of the Indian population is in the age group of 25-34 years. This age group is
the most appropriate target for alcoholic beverage marketers. Many global players are planning
to enter the Indian beer sector and they realize that a partnership with a local player is important
to establish a successful presence in India in a short time frame

.3. 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,

16
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.

All these factors combined make the scenario very promising for beer industry and are 'in sync'
with their strategy for India.

India is a big and growing market with a weakness for spirits, especially whisky. This is not
surprising considering that in the wake of the reforms, as the social transformation gathered
momentum and global consumption patterns get increasingly assimilated, the country's moral
fabric is loosening. Drinking liquor has rapidly gained acceptance and is no more taboo -- even
among the conservative middle-class but whose attitudes have changed with improved standard
of living has improved. Liquor companies have been quick to latch on to this trend. In fact, the
youth, women and middle-class overlapping segments – are being targeted by the liquor
companies looking for growth.

Strong beer (alcohol content in excess of 5 per cent), a categor y non-existent in developed
countries, has been growing at about 15 per cent in India for t he last two years, and already
accounts for 55 per cent of beer consumption. This trend is slated to continue. Thus, there is
significant latent demand and vast scope for growth in liquor consumption, both in the urban and
prosperous rural areas, once the e regulatory environment is relaxed. A little noticed factor
pertains to the gradual, but pronounced, shift of liquor consumers to the organized sector. The
Indian market has traditionally been inclined towards the unorganized sector, which accounts for
two-thirds of the liquor consumption in India. However, maturing tastes and preferences are
making the Indian liquor market more brand-led. This should promote growth in the
sector.
organized

17
3. BRAND MANAGEMENT IN LIQUOR INDUSTRY

Building a strong brand for alcoholic beverage products has had a significant impact on sales and
profitability. Alcohol is a product which is not evaluated on functional features, it is a product
that is subjectively evaluated and hence branding is essential. For companies to differentiate
building a strong brand is a must.

In India, creating a strong lasting umbrella brand for the various products is crucial as there is a
restriction on promotion of alcoholic beverages. For example: Vijay Malya s King Fisher
products cannot be advertised however through other promotional activities, the King fisher
brand is promoted as the “king of good times”. SABMiller, for instance, sells a mineral water
called Royal Challenge, not coincidentally the name of one of its lagers.
3.1. Surrogate Advertisements

Advertisements have a strong influence in our life. We like them because they provide
information and create awareness about the mar ket. But many times, some advertisements are
accused of misleading people. When such accusations are proved, some advertisements are
scrapped off from media. Such instances have been reported in the advertisements endorsing
alcoholic drinks and cigarettes. Hence the Government had imposed a ban on advertisements of
these products in the media in the year 2002.

As a reaction to the directive of Government, the liquor & tobacco majors sought other ways of
endorsing their products. They have found an alternative path of advertising through which they
can keep on reminding their liquor brands to their customers. They have introduced various other
products with the same brand name. Launching new products with common brand name is
known as brand extension, which can be carried out for related products (eg: Kingfisher Airlines
and Kingfisher Beer). In this case, the companies launch other products with the same brand
name for the purpose of reminding their old customers. Heavy advertising is done so that the
customers do not forget their liquor & tobacco brands, for which advertisements are banned. The
advertisements for such new products are placed under the category of "Surrogate
Advertisements". Their only objective is to compensate the losses arising out of the ban on
advertisements of one particular product (i.e. liquor). This is a loophole challenging the
Government's action.

18
The liquor industry is a prominent player in this game. Few surrogate advertisements shown in
print, electronic and outdoor media are - Bagpiper soda and cassettes & CDs, Hayward s soda,
Derby special soda, Gilbey green aqua, Royal Challenge golf accessories and mineral water,
Kingfisher mineral water, White Mischief holidays, Smirnoff cassettes & CDs, Imperial Blue
cassettes & CDs, Teacher's achievement awards etc. These products bear exactly the same brand
name and logo, which we had seen earlier in liquor advertisements. It was little surprising to
know that liquor giants like McDowell's and Seagram's have entered into new segments like
cassettes & CDs, mineral water, sports accessories etc. Later it was found that the basic aim of
these surrogate advertisements was to promote their liquor brands like beer, wine, vodka etc.
This brand extension is an act of bypassing the advertisement ban. Between April and June this
year, three liquor ads which were termed as 'surrogate' by the consumer complaints council
(CCC) of ASCI, have been withdrawn. In case of a few other advertisements which ASCI felt
were surrogate, assurance of compliance is awaited from the advertiser.
Among the ads which were withdrawn, is United Breweries' Kingfisher Premium ad which
showed a visual depiction of a dancing couple with "packaged drinking water" written in fine
print. ASCI felt that the visual and the headline ("the night rocks") did not bear any relevance to
the product advertised - packaged drinking water. In the absence of specific information, ASCI
felt the advertisement appeared to be a surrogate advertisement for a liquor brand. Another ad
which was withdrawn after being declared surrogate was from Diageo India. The complaint
against this ad was that while it mentioned the brand name 'Johnnie Walker', it talked about CDs
and cassettes, which bears no relation to the product or service being promoted. ASCI upheld the
complaint against the advertisement, which was subsequently withdrawn. Similar was the
outcome of United Spirits' Antiquity advertisement. Though the ad stated "indulge in Blue
Antiquity", it mentioned CDs and cassettes without showing any visual depiction of the same.
After ASCI's decision that it was indeed a surrogate advertisement, the advertiser informed the
watchdog about the temporar y suspension of the campaign as regards new ads. The existing
advertisements of Blue Antiquity have been withdrawn. Complaints against Seagram India's
Royal Stag ("Make it large") and Chivas Regal (which mentioned CDs and cassettes in fine
print) were also upheld by ASCI. The complaint against Seagram's Royal Stag ad was that it
showed photographs of sports personalities, though the line "make it large" has a connection

19
with alcoholic drinks. In absence of any visual depiction of cricket gear, and the mention of the
brand name 'Royal Stag', the complainant felt that the advertisement was a surrogate ad for a
liquor brand. One of the Chivas Life ads mentioned "ice fishing in Alaska". The complaint
against the ad was that while it mentioned CDs and cassettes in the fine print, there was no visual
depiction of the same.

The industr y segment has its own standpoint in defense. The liquor lobby claims that everything
is in accordance to the Government regulations. They clarify that they have stopped showing
liquor advertisements and they are free to use the brand name for any other products. Even the
Confederation of Indian Alcoholic Beverages Companies (CIABC) advertising code maintains
that advertisement of products (real brand extensions) by the liquor industry must be allowed
3.2. Positioning Strategy of the Market
Leader
UNITED BEVERAGES Group owned by Mr. Vijay Malya uses different strategies to position
its product in market. It has 60 % market share in Indian wine market. Its brand Kingfisher has
itself 25% share in market.

- Wine a Part of food

We can see in this ad it is written that, „food tastes better with KINGFISHER . So, if you want
add taste to your food you have to take Kingfisher. They have positioned the product as a part of
dinner or lunch as we take water after food, take wine.

- Taste of an International Brand

Kingfisher has been positioned as international brand in the mind of customers, so if they drink it
they should feel that it is not any local liquor, it is an international wine, taken by all across the
world.
- Positioning by Packaging

Kingfisher it is available in the packs, in which cold drinks are available, so it can be positioned
as substitute for cold drinks, when a person is tired, or want drink some for energy, he can take
the beer.

20
* KINGFISHER a Synonym of
Style

As we can see in this ad also, it is written that, „drink your KINGFISHER in style . So if a
person is stylish, he will definitely go for this brand.

* Brand Positioning by Mr. Vijay Malya

Vijay Malya, it owner also does different kind of advertisement and publicity shows to promote
and position its brand as a different one in compar ison with other brands. In one Ad, he is shown
with some young girls, so it gives a message, if a person wants same fun he should take that
brand. He also represents his generation which over 45, so, don t let at that stage also Take
Kingfisher and Keep on Batting on front foot in life with enjoy and style.
4. WINES IN INDIA

Wine is an alcoholic beverage made by fermentation of grapes or grape juice. Global market for
wine is estimated at 25 billion liters. Compared to other countries, wine manufacture and
consumption in India is insignificant. This is attributed to earlier period of prohibition in the
country and higher price compared to spirits like whisky and brandy manufactured in the
country, referred to as Indian Made Foreign Liquors (IMFL). However, over the last few years
Indian wine industry has been steadily growing over the last ten years. Wine is gradually
becoming a part of urban Indian life style. Rising incomes of Indian population, changing
demography and exposure to new culture is adding to the higher consumption. The market for
wine is expected to grow at over 20 % per annum. The wine industry is both competitive and
challenging. It exhibits the characteristics of the consumer packaged goods (CPG) industry –
aggressive brand building supported by large advertising and event budgets, combined with high
manufacturing costs. But a key differentiation in the wine industr y is the relatively higher
packaging costs– glass bottles, labels, foils etc. So a key challenge for industry is maintaining
lower costs was to control the cost of expensive packaging inputs. Another challenge for the
company was to manage the distribution of the finished goods. Eighty percent of wine
consumption in the country is confined in major cities such as Mumbai (39%), Delhi (23%),
Bangalore (9%) and Goa (9%).

21
There are new players entering the Wine playing field and India can now boast 3-4 large Wine
manufacturers with capacity of about a million cases per year. 2008 has been great year for
Indian Wine manufacturers as Indian Wines have won awards and acclaim in Europe and U.S.
Indian Wines however still are not very well accepted and there is still a resistance to “Made in
India” label. The real challenge for winemakers in India is to develop a domestic market.
Consumption of Wine when we compare it with the other alcoholic beverages is very small. The
younger segments are not drinking nearly as much wine – those aged 18-24 represent only 6% of
wine consumed. They are spoilt for choice –a proliferation in alternative purchase decision.
There has been an explosion in the RTD (Ready to Drink) market and the options available for
many varied markets. The young customers are very focused on „brand – they are „brand
savvy. They are open to brand promises, indeed look for Brands as a way of making the choices
they make all the time. Focusing on brand strengthening within these key markets of tomorrow
will be vital. While it is likely that young people of today will gradually grow their wine
consumption, it is by no means assured. Ensuring that a smooth transition into wine consumption
is possible will involve making wine easily accessible to the average alcohol consumer, who may
generally find making alternative selections such as beer or RTDs easier.

5. MARKET ANALYSIS OF WINES

Both the Indian wine market and the indigenous wine industry are in their nascent stages, but
growing by leaps and bounds. Fifteen years ago there was no locally made wine that was
drinkable. Now there are three significant wine makers, all family-owned businesses, the
Chougules, the Grovers and the Samants. There is also great interest in wine makers from
France, Italy, Australia, South Africa, America, and Chile to enter the Indian market.
The per capita consumption of wine in India is only 9 ml, compared with 400 ml in China. Since
the two countries are often placed in the same economic bracket, this is being interpreted as a
huge latent demand in India.

22
During the year 2007-08, the total annual production of wine in India was 6.214 million litres,
out of this 5.4 million litres was produced in Maharashtra alone. This is a very small fraction as
compared to world s annual production of 32,000 million litres. The country also imports 72,000
wine cases (9 litres/case) in a year where 32,000 cases are bottled in origin and remaining 0.36
million litres are imported in bulk flexi bags and subsequently bottled by Indian wineries.
The biggest consumption up to 80% is however confined to major cities like Mumbai (39%),
Delhi(23%), Bangalore (9%) and the foreign tourist dominated state of Goa (9%), where as Rest
of India has only 20% consumption. Some Indian wine makers have also started importing
foreign made wine and bottling and selling it here in India. Among the importers; ITDC
Tourism Development Corporation), Sansula, Brindco and E&J Gallo predominate.
(Indian
There is a huge potential in Indian market itself. For export market, the increasing popularity of
Indian cuisine is an automatic opening. With more and more professionals visiting India on
regular basis, and the fact that Indian wine exports are going up every year, word is getting
spread very fast creating awareness of Indian wines in International market.
5.1. MARKET POTENTIAL

The per capita consumption in India is only 0.07 litre/person/year as against 60-70 litres in
France and Italy, 25 litres in US and 20 litres in Australia and even China has 0.4 litre. The
Indian market is way behind major wine drinking countries. Consumption for Wine in India is
also very low when we compare it with the consumption of other alcoholic beverages like Beer,
Whiskey, and Rum etc. Given the healthy status and growth of alcohol beverage industry on the
whole there is tremendous potential for Wine. There has been much debate about the precise
number of potential consumers in India s wine market. About half of the Indian population meets
the minimum drinking age of 25 years; however, that number is greatly increasing as the Indian
population matures. This maturity creates an opportunity for younger generations to acquire a
taste for wine, breaking from a tradition of hard liquor. Although many Indian religions
encourage abstinence from alcohol, few have formally banned its use. Three Indian states
maintain prohibition laws and others have set strict regulatory measures on alcohol sales. On the
conservative side there are about 24 million potential Wine consumers, on the more realistic side
the number goes upto 74 million.

23
5.1.1. TRENDS FACILITATING WINE GROWTH IN INDIA

- Increasing disposable incomes in the „shining Indian economy.

- Changing life styles

- An increasing number of professionals coming back to work in India

- A growing awareness of the health benefits of wine Perception of wines as being up-market and
sophisticated
- Low alcohol: entry into corporate
boardrooms
- Wine is in fashion and probably the latest beverage that is “IN .

- Wine has started enjoying the patronage of hi-flyers and top notch in society.

- More acceptable to women

- Wine Clubs in Key cities

5.2. Market
Segmentation
The Indian Market largely can be classified into two Segments

- Domestic

- Foreign
Tourists
In the domestic market it is important to note that the majority of India s population is rural.
Most of India s poor reside outside of developed areas. Large, densely populated cities; however,
account for most of India s middle and upper classes and therefore for the majority of wine
consumption in India.

24
5.2.1. AGE SEGMENTATION

The median age in India is about 25 years old, this demonstrates the fact that half of the Indian
population is not yet old enough to drink, and one quarter of the population is under 10 years old.
In the coming years, 10 percent of the current population comes of legal drinking age, bringing
with them new views of wine which could influence them away from hard liquors. The strength
of India is in its youth who are familiarizing themselves with the world beyond their borders.

5.2.2. Other Demographics – Income and Education

Income
The gross national income (GNI) for India has risen to $800 per capita as r ecorded in 2006. This
number, however, is greatly skewed because of the outliers in both extreme wealth and poverty.
Educatio
The education levels in India correlate with estimates for potential consumers. Those 24 million
n
who have attained college level degrees make up the majority of potential wine consumers. The
remaining 160 million or so who have finished secondary school complete the bulk of the rising
middle class of India.

Tastes, Preferences, and Presentation

The tastes and preferences of the Indian population err towards still wines, and more specifically,
table wines. Though a market exists for champagne and sparkling wines, these varieties sell at a
much lesser rate than the still wines. In general, slightly sweet wines and the varietals of
Sauvignon Blanc and Chenin Blanc are fairly popular and also pair well with typical Indian
dishes. Similarly, rose and blush have been projected as good fits for the Indian market;
however, the majority of sales have stayed on traditional still red and white wines. In regards to
presentation, wine producers have two different demographics in the Indian market upon which
to focus: the upper class and the general consumer. While the upper class prefers the classic
presentation, i.e. real cork, full bottle size, and dry red and white wines, the growing consumer
class in India gravitates towards approachable wine packaging, i.e. screw caps, half bottle sizes,
and sweet wines.

25
5.2.3. CURRENT CONSUMERS

- Senior executives, successful business people, high ranking officials, politicians.

- People with rich traditional background, i.e. “old money”.

- People who have had International Exposure and have travelled the world.

- Wine collectors, purchase from wine merchants (London, Tokyo, Singapore, HK)

- Can own some of the best wine collections in the world.

- Consume wines at fine dining restaurants, at home.

6. Product And Brand Management In

Wine
6.1. Product

There are basically three types of wine:

- Table Wines (Still wines)

Table wines, also known as still or natural wines, are produced in many different styles and make
up the majority of wines on the market. Traditionally consumed as part of a meal, table wines
contain between 10 and 14 percent alcohol and are further classified by their color, sugar
content, and the variety and origin of the gr apes that were used. Most table wines are fermented
until they are dry i.e, all the grape sugar has been turned to alcohol by the yeast. Slightly sweet or
off-dry wines are made by stopping the fermentation before all the sugar is gone or by adding
grape juice back to the wine afterwards.

- Sparkling Wines

- Fortified wines

Depending on the grape variety and wine-making technique, wines can be white, red, or pink in
color.
In the Still wine or table wine categor y the Indian market is divided mainly into two major

26
categories:
- White wines

- Red wines

Further all the wines available in the above categories is divided in following three categories:
- Domestic Indian Wine

This is the wine, which is produced from Indian grapes and bottled in India by the domestic
wineries.
- Foreign Bulk Wine Bottled in India

Few large domestic producers import bulk wine and bottle it in India.

- Foreign Wine Bottled in origin

More than 200 brands are currently available in this category that are Imported by Domestic
players, Importers and Foreign players.

Wines are categorized using a number of different methods. Sometimes they are grouped into
different categories by grape variety, region of origin, by color, by the name of the wine maker
or viticulturalist, or by production technique.

Product Life Cycle f or Wine in India

Thus the real challenge for winemakers in India is to develop a domestic market, and that is
where the problem arises. There are a lot of myths associated with Wine
- People believe wine and curry do not go well.

- Traditionally wine lovers around the world have some kind of a mental block against Indian
wines. They are just not comfortable with the Made in India tag."
- Confusion about storage and usage.

7. A New Brand

As part of this project we have studied macro, micro aspects of the Wine industry and market.
We have also studied the brands that exist currently. From our study the following facts come to

27
light:
- Huge potential of Wine market in India

- One or Two recognizable brands.

- Lack of clear brand positioning.

- None of the brands is targeting the young Wine consumers.

Brand Equity
Pyramid
7.1. Target Segment

Consumers belonging to Generation X

- Aged 25 – 40

- Young professionals

- More open to western culture, while remaining true to their heritage

- Ready to experiment

- Spend on credit

7.2. Positioning

There no single sentence that defines our positioning statement. However, this matrix defines our
positioning perfectly.

Confident Stylish Creative

Original Innovative
Challenging
Exciting Different
Independent

28
7.3. Branding Activity

- Presence in Hotels

India is the home of some of the finest hotels and resorts in the world. Every major hotel group is
present in Asia and has an aggressive growth plan in the region. Indian groups are now
expanding in Europe and the US as well (Peninsula, Shangri-La, Mandarin, Oberoi, Taj). Hotels
and resort are a key channel to develop the wine culture as windows of the western way of
living. Hotels will purchase wine from all origins and from all price points: from house wines to
sommelier list.

- Presence in Trendy Bars

Trendy bars offer similar type of entertainment experience as in Europe. These are places to see
and be seen, where trends are made, where east meets west. It is a key channel for
communicating with younger consumers. Good opportunity for new world wines.
- Press Activities

Improve awareness through well documented press articles. Inviting wine maker to the market or
the journalist to the winery.

- Merchandising

- Improve awareness through visibility at the point of sales.

- Especially relevant of f trade: mass and specialized retail.

- More efficient if coupled with tasting or brochure

distribution.
-Wine Displays at Point of Sale

- Wine exhibitions

29
7.4. Marketing Mix

One of the primary reasons for the low consumption of wine is consumer awareness. It is one of
the primary purpose of a marketer to spread awareness about their products as well as educate
the consumers about their products. Unfortunately promotion of alcoholic bever ages has been
prohibited by the Government of India, so the marketer has to look to innovative ways of
promoting their brands using surrogate
marketing.
According to Theodore Levitt, a marketer is a “mixer of ingredients”. Based on the target
market and positioning, marketing mix is presented here:

7.5. Product

If you haven t got the product right all your branding effort will be in vain. When it comes to
Wine, the product is not just about the intensity of flavor, complexity, balance, texture and length
of flavor, it also includes the bottle, the label, the closure, and cases. Following are some of the
aspect of product that are planned:

- Caters to both Red wine & White wine drinkers

- High Quality

-Designer style bottle

- Packaging…..attractive capsules…the way it had been bottled…

- Wine Name will be aspiration & lifestyle based

7.6. Pricing

Quality Strategy: High quality with medium

Price
Price Objective: Product Quality
Leadership
Demand: Limited at beginning stage. So there is Inelastic demand

Estimating Cost: Major costs will be grapes plantation, Sales Promotion & Advertising

30
Pricing
Strategy
Pricing Method: In the beginning pricing method will be Going Rate Pricing so it shall be a
medium priced product and will help in Rapid Penetration. Pricing strategy will be partially
influenced by the prevailing prices in the market as ours is a new launch and our tar get segment
are young professionals who are new entrants to this category. So this kind of pricing strategy
will help our product to gain penetration.

7.7. Place

Key Point of Sales are

- Hotels

-Restaurants
- Retail stores & super markets.

-Duty free shops

- Wine shops

Taking the logistics and transport activities slowly in our own hands. (Part of Forward
Integration strategy). It will help us in reducing the transportation time & cost. We will also have
better control of the quality of the product as norms for storage and transportation can be
followed.
7.8. Promotion

Direct advertisement and promotion in print and electronic media is not permitted in India so we
have to look for other methods of promotion. As wine is a asprational product that is often linked
to a lifestyle of individuals. The following methods will help us in promoting our product:
-Celebrity Endorsement/Surrogate
advertisement
- Wine tasting sessions at Page 3 parties.

- Sponsor a Social Evening.

- Offer an occasional WINE TOUR

31
- Freebies

- Wine exhibitions

- Improve awareness through visibility at the point of sales

- Especially relevant of f trade: mass and specialized retail

- More efficient if coupled with tasting or brochure

distribution
- By-the-glass promotion: the essential tool to develop the consumption of premium wines in
India
- Can be supported by promoters in some restaurants/clubs

- Food Pairing: still nascent but very promising

- Improve awareness through well documented press articles

- Inviting wine maker to the market or the journalist to the winery

Activities like wine tours, sponsoring social evening etc will help us in positioning our Brand as
an lifestyle product. It will also generate awareness and induce curiosity among the target
segment to try wine over other alcoholic products.

32
Review of literature

Hooley, G. J(Jan. 1979) has studied perceptual mapping for product positioning in his article
“Perceptual Mapping for Product Positioning: A Comparison of Two Approaches” and has stated
that Multivariate techniques for market segmentation and product positioning can be used by
applying one of 2 approaches to the formulation of a perceptual map. The first approach uses
individuals' judgments of brand attributes which have been obtained through earlier, qualitative
research. The judgments are analyzed by using multiple discriminant analysis to distinguish
attributes between brands. The perceptual map's dimensions are suggested by the attributes. The
second approach is based on direct judgments of similarity between brands which have been
measured by ranking or rating pairs of brands. If the model is to be of practical value to
management, perceptions must be related to behavior or intended behavior. This can be achieved
by superimposing individuals' ideal points on the brand map. Using brand attributes alone for
mapping purposes may not lead to an operationally useful model of consumer perceptions
because of the existing possibilities of omitting important attributes and including irrelevant
attributes. Choosing the appropriate type of multiple discriminant analysis is important if the
model is to be of any use. The multidimensional scaling method offers an alternative approach. It
is the most costly and cumbersome but does not have the inherent drawbacks.

Fassino and Michael J(.Jan 6, 1984) have given New Approach Eliminates Inherent
Shortcomings of Perceptual Maps and have stated that Perceptual maps illustrate market
segmentation by representing positions of a group of competing products relative to the basic
criteria consumers use when evaluating these products. The usefulness of conventional
perceptual mapping is limited by: 1. a special/geometric representation of data that is not always
the best way to communicate a relationship, 2. inability to show trends, and 3. the possibility of
overstating similarities/differ ences or representing relationships ambiguously. A new approach to
perceptual mapping, was developed to overcome these inherent shortcomings. Similarity trees
(SIMITREE) represents the distance between products in terms of paths or trees. The more
similar the products are judged, the shorter the paths are that connect them. Initially, all products
are equidistant from each other, but are pulled apart or pushed closer together by their
differential association with the various product features. SIMITREE provides new insights
relative strengths and weaknesses of products in the marketplace.
into

33
Michel J. ( Apr 1987)has studied that what people think about the products in his article “Find
Out How Your Product Is Viewed” and has stated that Before customer can make choices, they
must first perceive that: 1. alternatives exist, 2. products ar e somehow different, and 3. the ways
in which products differ are important. There are a set of powerful techniques for modeling this
primary and important phase of the choice/preference process. The procedures, known as
perceptual mapping, share 2 allied goals: 1. to determine the basic attitudinal dimensions
physicians or consumers use in differentiating products, and 2. to locate precisely the relative
position a set of branded or potential products occupies on these basic dimensions.

Hauser, John R., and Koppelman, Frank S.( Nov 1979) have given Alternative Perceptual
Mapping Techniques in their article “Alternative Perceptual Mapping Techniques: Relative
Accuracy and Usefulness” and have stated that Perceptual mapping has been widely used in
marketing to: 1. analyze market structure, 2. design new products, and 3. develop advertising
strategies. However, theoretical arguments have developed and empirical evidence has emerged
which indicate that factor analysis is superior to discriminant analysis and similarity scaling,
which are the current techniques used. Factor analysis provides more accurate predictive ability.
It also facilitates managerial interpretability and ease of use.Factor analysis is likely to be
superior in developing measures of consumer perceptions in categories where: 1. the number of
products in the average consumer's evoked set is relatively small, 2. there is variation in the way
consumers perceive products in the categor y, and 3. qualitative research has identified a set of
attributes likely to represent the product category. The results of a single theoretical and
empirical comparison may spur the need for continued research to identify whether factor
analysis is always superior or, if not, under what conditions the alternative mapping techniques
should be used.

Johnson, and Rick. (march 1988) have analysed Perceptual Mapping in their article “Adaptive
Perceptual Mapping” and have concluded that In marketing, most perceptual mapping studies
have the following objectives: 1. to learn how products in a class are perceived with respect to
strengths, weaknesses, and similarities with each other, 2. to find out what potential buyers want,
and 3. to learn how to produce or modify a product to maximize its appeal to the target
population of potential buyers. The Adaptive Perceptual Mapping (APM) System from
Sawtooth
34
Software can provide researchers with a useful interview tool divided into several distinct
sections. APM allows a market simulation using factor analysis to create a product space for
each separ ate respondent, containing product perceptions and ideal point. Respondents' distances
are changed to shares of preference, which in turn are aggregated over respondents to produce
the "base case" in which products are currently perceived. A series of simulations in which
products are repositioned in various ways then can be performed to achieve useful marketing
estimates.

Zaichowsky et al (july 2010) have studied the ways of Managing industrial brand equity in their
article “Managing industrial brand equity: Developing tangible benefits for intangible assets”
and have stated that Young and Rubicam's (Y&R) BrandAsset Valuator® (BAV), commonly
used to assess brand equity in consumer markets, was applied to assess the brand health of an
industrial B2B supplier. Customers were asked questions about perceived esteem, relevance,
knowledge and differentiation of the company to find its strengths and weaknesses. The r esults
were then plotted to reveal the overall customer perception of the company and also its
competitors. Through this plot, the strategic direction how to improve the brand equity of the
company became clear. Evidence suggests that the BAV can be used in industrial markets to
assess the brand equity of the firm.

Ashton A. S. et al.(July 2010) have stated “The relationship between perceived value and
intention to purchase” in their article Hotel restaurant dining: The relationship between perceived
value and intention to purchase” and have concluded that Restaurants af filiated with the hotel
industry play an important role in increasing revenue and responding effectively to customer
expectations. This paper examines how perceived value relates to intention to purchase (ITP) in
the context of hotel restaurant dining using a quantitative approach involving multiple
analysis. In addition, the findings indicate that there are three significant key variables that
regression
positively contribute to ITP: perceived brand image, perceived quality and perceived sacrifice
(both monetary and non-monetary
price)
Ziqi Liao and Xinping Shi. (2009) have explored consumer perceptions of Internet-based e-
retailing in a highly concentrated retail market environment in their article “ Consumer
perceptions of internet-based e-retailing: an empirical research in Hong Kong” and have

35
incorporated market and social factors to examine consumer attitude and behavioral intention to
use Internet-based e-retailing based on the survey data collected from individuals in Hong Kong.
The empirical results suggest that perceived usefulness and perceived ease of use have positive
impact on consumer attitude towards e-retail business. The easily accessible local retail market
and the concern about risk in the virtual environment significantly affect consumer attitude and
behavioral intention to use e-retailing. However, consumers may consider using e-retailing if
they are influenced by particular social groups. Future research can be carried out along similar
contextual dimensions to explore consumer behavior and critical success factors of e-retail
business in different geographical environments and social contexts. The present findings have
theoretical and practical implications for managing and developing e-retail business.

Nan Kwon K et al (2008) have investigated the effect of perceived product characteristics on
private brand purchases and have stated that the effects of perceived product characteristics (i.e.
involvement, product type, and switching cost) and consumer value consciousness on private
brand purchase intent. A college student sample was surveyed to measure product characteristic
perceptions for six product categories and to evaluate private brand purchase intent. Analysis of
covariance was conducted for hypothesis testing. Support existed for the significant ef fects of all
three product characteristics on the intent to purchase private brands. A moderating effect by
value consciousness on the product type (search versus experience) emerged. It is critical that
retailers identify appropriate product categories as they develop private brands. Private brand
marketing strategies should be designed to reduce the level of product involvement and
switching cost, and to increase consumer perception of search properties. The research is one of
the few studies to test the effects of product characteristics extensively and to provide related
marketing
Yang, Xiaojing (2006) has investigated the impact of perceived advertising creativity in his
implications
article “The impact of perceived advertising creativity on ad processing and response” and have
stated that For the cognitive route, perceived advertising creativity activates an open-minded
approach of information processing (heightened desire to postpone closure), which in turn leads
to fewer negative statements and more curiosity statements about the brand. Accordingly
consumers' brand attitude is more favorable and their intentions to view the ad again and
purchase are enhanced. For the affective route, the positive affect engendered upon viewing

36
creative ads affects downstream ad processing and response variables by (1) indirectly affecting
consumers' desire to postpone closure (2) directly transferring to brand attitude and intention to
view the ad again.

37
Objective of the study

1. To study the customer perception of different liquor

2. To find out the factors influencing the purchase of liquor products.
companies.
3. To analyze the relationship between age group, monthly income and kind of liquor
product consumption.
4. To find out that which company provides the best quality premium and Scotch whisky
and value for money.

Research methodology

Research Methodology Used:

Secondary data Sources

The information has been gathered from authentic and reliable sources like Government
agencies, Trade associations, Trade journals, Industry portals Newspapers, White papers and
Books. Company websites .

Primary data source

Primary data was collected by one to one interaction with the customers in Golf Club, SR Bar
and Awadh Gymkhana Club At Lucknow.

Sampling
Method
Simple random sampling for primary data
collection.
Sample Size

The sample size of 200 respondents have been taken for the study

38
Analysis Method

The methods of Historical Trend Analysis, and industry Analysis and Microsoft Excel analysis
have been used.

Prospective Target Customers:

-- Members of different Clubs and their friends coming along with them.

-- Non members customers coming to the bar.

Scope of the Report:

-- The report covers a brief overview of the liquor Industry in India. It will focus in detail
the dynamics of the Industr y, the market size and growth rate, the segmentation of wine by price
about
and consumers. The report also covers the market landscape covering the major players of liquor
industry in India

-- On the competitive landscape, the report lays out the major market players within the Indian
liquor industry especially in Lucknow and what qualities these companies are having to captur e
the major chunk of the market share. This will be followed by the industry regulations covering
the tax and duty structure along with the initiatives taken by the Indian government to promote
the industry.

-- The concluding part of the report covers the factors which are most important for the purchase
intention of the customers.

39
S

FINDINGS

1. The age group of most frequent liquor consumer was 35 to 40. However other frequent
consumer fall in the age group of 25 to 30, 30 to 35and above 4 . The least number of consumers
were from below 25 year s. The reason behind that was the membership of the club that was with
consumer higher age.

2. The customer having educational qualification of graduation and monthly income of more
than 20000 were the most frequent visitor of club and bar because the price of each peg in the
bar was more than the retail price of liquor brand.

3. Private sector employees were most frequent visitors of bar and clubs because the dynamic life
style of private firms. The people from public sector and self employed business men having
their monthly income more than 30000 were also the frequent visitor of clubs and bars for
drinking.

4. Maximum number of people was who drink only in once in a month and the daily visitor were
also significant in number.

5. Beer was the most preferred drink of the youth. However premium and scotch whisky was the
first choice of the people having age group of 30 above, regular whisky was also the choice of
people having age group between 25 to 35 having monthly income less than 30000, other drinks
like rum ,gin , red wine were the least preferred drinks.

6. The best medium for product information was point of sale at wine shop and second best
source of information was friends and relative.

7.. The factor influencing purchase decision were packaging, price, taste, availability, brand
image, manufacturing process, manufacturing place, manufacture reputation and promotional
scheme. Out of these factor price, taste, brand image and promotional schemes were found to be
most important factor for purchasing liquor brands. However other factor like manufacturing
place and manufacturing process was not very much known by consumer

65
8. Out of 5 companies which were taken into consideration for the rating of the best company in
for, taste, quality and promotional schemes most of the respondents were in favor of united spirit
and Seagram s. The best company for these variable was united spirit.

9. The best company Scotch and premium whisky was United Spirits and the second best
company was Seagram s.

10. United Spirits and Seagram s were found to be the best value provider companies

Limitations of the study

1. Target respondents were mainly from clubs where only member and their relatives were
allowed.
2. The fully drunken respondents were not able to answer the question honestly.
3. Customers of model shops and retail outlets were left because they were not willing to
answer the questions

Recommendation

1. The company needs more focus on taste, quality, availability and promotional schemes
because most of the customers have considered these factors as important factor for
purchase intention.
2. To target young customers pricing strategies should me made taking concerns of medium
income group because their earning power is not very much.

66
Bibliography

Hooley, G. J. Perceptual Mapping for Product Positioning: A Comparison of Two Approaches.

European Research. Deventer: Jan. 1979. Vol. 7, Iss. 1; pg. 17

Fassino, Michael J. Similarity Trees: New Approach Eliminates Inherent Shortcomings of

Perceptual Maps. Marketing News. Chicago: Jan 6, 1984. Vol. 18, Iss. 1; Part 2. pg. 22, 2 pgs

Michel J Find Out How Your Product Is Viewed. Medical Marketing and Media. New York:
Apr 1987. Vol. 22, Iss. 5; pg. 22, 6 pgs

Hauser, John R., Koppelman, Frank S. Alternative Perceptual Mapping Techniques: Relative
Accuracy and Usefulness, JMR, Journal of Marketing Research. Chicago: Nov 1979. Vol. 16,
Iss. 4; pg. 495

Johnson, Rick. Adaptive Perceptual Mapping, Applied Marketing Research. Chicago: March
1988. Vol .28, Iss. 1; pg. 8, 4 pgs

Judith Lynne Zaichowsky, Myles Parlee, Jeanette Hill. Managing industrial brand equity:
Developing tangible benefits for intangible assets, Industrial Marketing Management. New York:
Jul 2010. Vol. 39, Iss. 5; pg. 776

Ann Suwaree Ashton, Noel Scott, David Solnet, Noreen Breakey. Hotel restaurant dining: The
relationship between perceived value and intention to purchase, Tourism and Hospitality
Research. London: Jul 2010. Vol. 10, Iss. 3; pg. 206, 13 pgs

Ziqi Liao, Xinping Shi. Consumer perceptions of internet-based e-retailing: an empirical research
in Hong Kong, The Journal of Services Marketing. Santa Barbara: 2009. Vol. 23, Iss. 1; pg. 24

67
Kyoung-Nan Kwon, Mi- Hee Lee, Yoo Jin Kwon. The effect of perceived product characteristics
on private brand purchases, The Journal of Consumer Marketing. Santa Barbara: 2008. Vol. 25,
Iss. 2; pg. 105

Yang, Xiaojing, Ph.D. The impact of perceived advertising creativity on ad processing and
response, Indiana University, 2006 , 220 pages; AAT 3223037

68
Annexure
Questionnair
H
e ello Sir,
I am Shailesh Tiwari , doing a research on perceptual mapping of different liquor
Would you like to answer some question? It will hardly take 10
brands.
Great , now
minutes . my questionnaire starts with…..
1. Your name?
……………………………………………………………………………………………………
………..
2. Age group
Below 25 years 25 to 30 years 35 t0 40 years 40 to 45 year
Above 45 years please
specify……………………………………………………………..
3. Educational
School level
qualification Undergraduate Postgraduate Professional
Any other please
4. Your monthly
specify…………………………………………………………………….
Lessincome
than 10000 10000 to 20000 20000 to 30000 30000 to 40000
More than 40000 please specif
5. Your
y……………………………………………………………
Private sector employee
occupation Public sector employee Self -employed
Others please
6. How often do you
specify…………………………………………………………………………..
Daily
drink? Twice in a weak Once in a weak Twice in a month
Any other please
specify……………………………………………………………………..
7. Which kind of liquor do you often
Regular
take?whisky Premium whisky Scotch whisky Vodka Beer
Any other please
8. From where do you get know about about liquor
specify………………………………………………………………………..
From wine shops
brands? From friends and relatives From banners and posters
Any other please
specify…………………………………………………………………………..
69
9. Please rate the influence of following factors on your purchase of liquor
brands.
Most important least important
1 2 3 4 5
Packagin
gPrice
Availabilit
yTaste
Alcohol
Manufacturing
content
Manufacturing process
place
Brand ambassador

10. Rank the following factors for your purchase

Strongly agree
intention. strongly disagree
1 2 3 4 5
Brand image
Promotional
Manufacturer’s
schemes
11. Please rate the companies on
reputation availability, Taste and Promotional
Strongly agree
schemes strongly disagree
1 2 3 4 5
UB products
Seagram’s
Radico’s
products products
AB sugar’s products
Jagatjit’s
product

70
12. In your views which company provides the best quality premium and scotch
whisky?
United spirits
Seagram’s
ltd
Radico
AB sugar
Jagatji
t
13. In your views which company provides the best value for
United
money?spirits
Seaggram’s
ltd
Radico
AB sugar
Jagatji
tThank you very much for your co-operation. Have a wonderful
evening.

71