Summer Internship Report

Study of marketing strategy of RKL group and increasing the market share of The 1965 Spirit
Of Victory XXX Premium Rum in the Delhi Cantonment Territory

Rahul Malik
8/9/2019
 DECLARATION

Title of Project Report;

Study of marketing strategy of RKL group and increasing the market share of The 1965 Spirit Of Victory
XXX Premium Rum in the Delhi Cantonment Territory

I declare

(a)That the work presented for assessment in this Summer Internship Report is my own, that it
has not previously been presented for another assessment and that my debts (for words, data,
arguments and ideas) have been appropriately acknowledged

(b)That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.

Date. Rahul Malik.

1880170143

G.L. Bajaj Institute Of Management And Research

2|Page
Table of Contents

Acknowledgement Page 5

CHAPTER I

Introduction of the topic Page 7

Significance of present study Page 7

Scope and objective of study Page 7

Area and period of study Page 8

CHAPTER II; Organizational Profile of the Company

RKL at a glance Page 10

A Look at the Prestigious Rampur Distillery Page 11

Values Of RKL Group Page 12

Business interests of RKL Group Page 13

Organisational Hierarchy of RKL Group Page 14

Brands of Radico Khaitan Limited in the Defence Sector Page 18

Competitors Profile Page 25

Current State Of Radico Khaitan Limited In the Indian Market Page 26

Awards Page 28

CHAPTER III; Research Methods and Procedures

Purpose of Research Page 30

Method of Data Collection Page 31

Data Collection Page 32

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CHAPTER IV; Data Analysis And Findings

Results of First time Consumer Page 34

Results of Regular Consumer Page 38

CHAPTER V; Observations, Suggestions & Conclusions

Observations and Suggestions from I.N.C.S Page 42

Observations and Suggestions from D.G.B.R Page 46

CHAPTER VI; My Job Experience

How is the alcohol produced Page 51

Working of the CSD Page 52

Visits to different unit run canteens Page 57

Bibliography Page 58

Annexure 1 Page 59

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ACKNOWLEDGEMENT;

It is only when one undertakes a project; he realizes how massive an effort it really is, or how much one
must rely upon one’s selfless efforts and goodwill of others. There were many people who helped during
the course of this endeavor.

Perseverance, inspiration and motivation have played a great role in the success of any venture. It would
be incomplete to submit this report without acknowledging the people behind this endeavor and
without whose support I wouldn’t have able to achieve this. It gives me immense pleasure to express my
gratitude to everyone who shared with me their precious time and effort during the project.

First of all, I thank Radico Khaitan Ltd. (RKL) for granting me the permission to work in their esteemed
organization. I am thankful to Mr. Tarun Chaudhary (Vice President, Sales) for giving me a chance and
having faith in my abilities to complete this project at such a premier organisation.

It is both an honor and pleasure for me to thank Mr. Rohit Kumar (Marketing Head, Defence Marketing
Division) and Mr. Chanderkant Kataria (Manager Sales, Defence Marketing Division) for constantly
guiding me and mentoring me during this two month journey and as I retrospect it is due to this that this
project has been a success.

I must also thank Mr. Sanjeev Kumar Yadav (TSR – DMD) and Mr. Shivom Giri (TSR – DMD) without
whom I would not have gained the knowledge about the working of the Canteen Stores. Their guidance
and support proved to be a key element during this research.

Lastly, I must also thank Commander Ankur Kulsheshta (Indian Navy) and Colonel Manish Kumar (Border
Road Organisation) for giving me the opportunity to carry out research in the I.N.C.S and D.G.B.R
respectively.

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 CHAPTER 1

INTRODUCTION TO THE
TOPIC

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Introduction of the topic;

Study of marketing strategies of Radico Khaitan Limited and increasing the market share of 1965 Spirit of
Victory Rum in the Delhi Cantonment Territory

Significance of present study;

The topic is very significant, as it gives a unique chance to study and know the different strategies
adopted by the organization to increase its market share and overcome its rivals. It also helps to
understand the importance and need of marketing in corporate world.

Scope and objective of study

The research study was conducted to learn the marketing strategy of the beverage company Radico
Khaitan Limited. In the process detailed information was collected on products, sales and distribution
practices followed by the company, the working style of the Unit Run Canteens that stocked and to a
limited extent the psyche of the consumers.

This research was conducted with the help of personal interview that tried to find the satisfaction levels
of the consumers the products offered by Radico Khaitan Limited with special emphasis on the 1965
Rum. In addition consumers were also queried on what more they expected from the company, and the
response of consumers towards Radico’s products.

This project is prepared to provide a comprehensive introduction to the Study of marketing strategy of
RKL group and increasing the market share of The 1965 Spirit Of Victory XXX Premium Rum in the Delhi
Cantonment Territory. A genuine attempt was made to provide a very clear understanding of the range
selling done by the company, the various decision of the organization; the work done at the CSD
territory.

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Area and period of study;

The main area of study is the marketing segment of the organization in the Canteen Stores Department.
The Canteen Stores Department, CSD as it is commonly referred to, was created to provide 'easy access
to quality products of daily use, at prices less than market rates' to the soldiers, ex-servicemen and their
families. Today, because of the surging aspirations of Service personnel and their families and the media
exposure to the improving standards of living in our country, the CSD provides a range of quality
branded and unbranded products from shoe brushes to microwave ovens and cooking oil to luxury cars.
The portfolio has grown from just a few items of daily use in 1948 (when the Department was created)
to over four thousand products today. Information on all these products and brands is available on this
web site through a "know-all" Search Engine for the benefit of the consumer.

As the market area of the organization was very vast it therefore was a great learning experience. The
period of study is of two months i.e. from 10th June 2019 to 10th August 2019.

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 CHAPTER 2

ORGANISATIONAL
PROFILE OF THE
COMPANY

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RKL at a glance;

Radico Khaitan Limited ("RKL") is among the oldest and one of the largest manufacturers of Indian Made
Foreign Liquor ("IMFL") in India. Earlier known as Rampur Distillery, Radico Khaitan commenced its
operations in 1943 and over the years emerged from a major bulk spirits supplier and bottler to other
spirit manufacturers to the originator of four millionaire labels and over fifteen organically grown
brands.

Radico Khaitan Limited has come a long way in its exceptional journey of growth and brand creation to
become one of the most admired liquor brands across India. It is one of the few companies in India to
have developed its entire brand portfolio organically. With over 15 brands and their distinct variants, the
rich history of 75 years continues to set the pace for today and shape the business outlook for
tomorrow.

Radico Khaitan Limited is also one of the largest providers of branded IMFL to the Canteen Stores
Department (“CSD”), which has significant business barriers to entry. The company has been successfully
building its brand equity in international markets and currently exports its products to over 85 countries.

The Company currently has two distilleries- Rampur Distillery in Rampur (Uttar Pradesh) and Radico NV
Distilleries Maharashtra Limited, a joint venture with RNV in Aurangabad (Maharashtra) in which Radico
Khaitan Limited owns 36% equity. The company has a total capacity of over 157 million liters and
operates 28 bottling units, spread across the country.

Rampur Distillery is one of the largest and most efficiently-run distilleries in India manufacturing high
grade Extra Neutral Spirit (ENA) from Molasses and Grain, with a capacity of it has taken the capacity up
to 157 million lit peas which make it one of the largest distilleries in the country.

The Unit is self-sufficient in meeting the fuel and power requirement by way of backward integration of
utilizing its effluent for generating the bio-gas which, in turn, is utilized for generating the steam and
power for its captive requirement.

The Unit has a series of firsts to its credit:

1. It is the first Indian distillery to obtain ISO 9001:2000 certification

2. It has achieved capacity utilization of over 100% in the alcohol plant
3. It is the first environment-friendly distillery in the country

Business Today Magazine, a leading business magazine from the India Today Group listed Radico Khaitan
Limited among top 500 in the list of India’s most valuable companies.

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A Look at the Prestigious Rampur Distillery;

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Values of the RKL Group;
Mission:
1. To be inspired by consumer aspirations
2. To develop products that customers love and endorse
3. To be driven by our passion for technological excellence, product innovation and brand creation

Vision:
To be the most valuable spirits company in India with global standards, whilst at the same time
committed to environment, sustainability and governance.

Focus on Customer:
We believe in the age old business mantra – ‘Customer is the king’, hence our entire portfolio of brands
are designed in a way to fulfill all the demands of our consumers. We truly believe that consumers
should be able to find value in our products, and this is also the reason why it is important to provide
them with a quality product. For us the only award that matters and we hold close to our heart is the
stamp of approval given by our customers.

Innovation:
We constantly pursue newer and better processes, products, services and management practices.

For the employees:

As a company that manufactures and sells a range of liquor brands, we value individual opinion and
perspective. Moreover, when it comes to our employees, we want them to dream big to be able to
create innovative products and further experiment in pursuit of opportunities. At our workplace, we
strive to create an environment where employees can think out-of-the-box.

Guardianship:
As one of the leading liquor firms, we are conscious that Radico Khaitan Limited is deeply trusted as a
brand by all the stakeholders. We actualise stakeholder value and interest on a long term sustainable
basis.

Contribution to the national economy:

We, as a company, are aware of our responsibility to generate economic value for the nation. In pursuit
of our organisational goals, we don’t compromise on complying with applicable laws and regulations at
any level.

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Business Interests of Radico Khaitan Limited;

The Journey
We create Magic. The journey to establish an exemplary spirits company was inspired by the vision of
our promoters. In 1998, the company started its own label - After supplying bulk spirits and bottling
services to other spirit manufacturers for over five decades - with the introduction of 8PM Whisky.

Within a year of its launch, 8PM Whisky became a millionaire brand, a record yet to be reckoned with
for any other brand in India. The first brand in the history of liquor industry to make it to the Limca Book
of Records.

The Products
Radico Khaitan Limited currently has four millionaire brands in its portfolio; 8 PM Whisky, Magic
Moments Vodka, Contessa XXX Rum and Old Admiral Brandy.

The company's robust brand portfolio also includes Rampur Indian Single Malt Whisky, Jaisalmer Indian
Craft Gin, Magic Moments Verve Vodka, Morpheus Premium and Morpheus Blue Super Premium
Brandy, 8PM Premium Black Whisky, After Dark Whisky, Pluton Bay Rum, Regal Talon Whisky, Whytehall
Brandy, 1965 - The Spirit of Victory Rum to name a few.

Products launch timelines:

1981: Contessa XXX Rum (in CSD)
1998: 8 PM Whisky
2002- Old Admiral Brandy
2004: Whytehall Whisky
2006: Magic Moments Vodka
2008: Magic Moments Remix Vodka (Flavoured)
2009: Morpheus Premium Brandy
2011: After Dark Fine Grain Whisky
2012: Magic Moments Verve Vodka
2013: Morpheus Blue Super Premium Brandy
2014: Green Apple and Orange Flavours of Magic Moments Verve Vodka
2015: Magic Moments Electra (Ready to Drink)
2016: Rampur Indian Single Malt Whisky and Regal Talons Semi Deluxe Whisky
2017: Pluton Bay Premium Rum and 1965 The Spirit of Victory Premium Rum
2018: 8 PM Premium Black Whisky, Jaisalmer Indian Craft Gin and Whytehall Rare Premium Brandy

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 Organisational Hierarchy at Radico Khaitan Limited;

The organisational structure of Radico Khaitan Limited is as follows;

DR. LALIT KHAITAN (CHAIRMAN & MANAGING DIRECTOR RADICO KHAITAN LTD)
A veteran with over 50 years of experience, Dr. Khaitan, is one of the pioneers in the Indian spirits
industry. He provides the overall strategic direction to Radico Khaitan. He has been instrumental in
improving quality standards and enhancing customer satisfaction, leading to substantial revenue growth
and increased market shares. In the process, he has succeeded in transforming Radico Khaitan from a
bottler to a leading IMFL player in India. His unique management style has helped maintain Radico as an
ethical and transparent organisation with highest corporate governance standards.

Dr. Khaitan has been widely recognised for his contribution to the liquor industry. He has been
associated with a number of developmental projects, has represented India with several international
delegations, and is involved in social & educational activities across India. He is currently:

• Chairman, U.P. Committee of PHD Chamber of Commerce and Industry

• Senior Member, Managing Committee, ASSOCHAM
• Member, Managing Committee, All India Distillers Association
• Member, Managing Committee, U.P. Distillers Association
• Member of the Standing Committee of PHD Chamber
• Chairman, Northern Region Development Council, ASSOCHAM
He has received the lifetime achievement award from the Confederation of Indian Alcoholic Beverage
Companies in 2005 and by Alcobev in 2008. Most recently he has been awarded the ‘Legend of the
Industry’ at Spiritz 2014.

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 ABHISHEK KHAITAN (Managing Director)
Abhishek Khaitan is the brain behind Radico’s foray into the branded business. He started his career in
1997 by spearheading the marketing division at Radico Khaitan Limited. The first brand that he launched
was 8PM Whisky- a runaway success; sold one million cases in the first year itself and featured in the
Limca Book of World Records.

A visionary gifted with sharp entrepreneurial acumen, Abhishek was able to see Vodka as the next
emerging drink and quick to launch Magic Moments Vodka. The tremendous success of Magic Moments
Vodka is a testimony to his astute business intelligence. Not only is Magic Moments the largest selling
vodka in India, it is also the 11th largest selling Vodka in the world.

As the Managing Director with over 2 decades of industry experience, he has been instrumental in
launching over 15 successful brands of which 5 feature in the millionaires club. His relentless pursuit for
premiumisation of the portfolio continues with brands like Morpheus Premium Brandy, Rampur Indian
Single Malt Whisky and Jaisalmer Indian Craft Gin.

Recognising his outstanding contribution to the Indian liquor industry and transformation of Radico
Khaitan, he has been conferred upon various awards, including the prestigious “Bhartiya Udyog Ratan
Award” by the Govt. of India, “National Industrial Excellence Award” by the World Economic Progress
Society.

He holds a Bachelor degree of Engineering from BMS college of Engineering, Bangalore and has
completed a Managerial Finance & Accounting course from Harvard, USA.

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 AMAR SINHA (Chief Operating Officer)
Amar Sinha, a sales & marketing expert has a distinguished professional career spanning across more
than 30 years with a diverse range of fast moving consumer goods. He has an acknowledged track
record of heading large corporations both of Indian and Multinational origin. Before Joining Radico
Khaitan Limited as COO, he was the Executive Director at the Wave Group. He has also been on the
advisory board of the S&D Group, the largest gaming & Lotteries Company of Asia, with interests in real
estate, information technology and e-commerce.

Amar began his career in 1983 as a management trainee with the consumer products division of Shaw
Wallace Distilleries Limited and climbed the corporate ladder to become the Managing Director and CEO
of the company.

During his professional career over the last three decades, Amar has served as the Managing Director of
Whyte & Mackay India Ltd, Executive Director & CEO of BDA (now Allied Blenders & Distillers Ltd);
Director & CEO of Golden Tobacco Ltd., Managing Director of Play win (Zee Group) besides working in
senior positions with Herbert sons Ltd (U.B.Group) and Smithkline Beecham.
In 2001, he was conferred upon the ‘Corporate Professional of the year’ Award by then Union Minister
Shri Ajit Singh. He has also been the recipient of the ‘Certificate of Excellence for Meritorious Services,
Outstanding Performance & Remarkable role in the Corporate Sector’ in 2002 from the hands of the
Governor of Madhya Pradesh, Bhai Mahavir.
In 2015, he received the Rajeev Gandhi Excellence Award for the ‘Most Enterprising CEO of the Year’. In
2016, he received the ‘Make in India Excellence Award for the most enterprising CEO for being a
management expert in diverse industries and contribution to the growth of the corporate sector.’

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 DILIP K BANTHIYA (Chief Financial Officer)
Dilip Banthiya has over 30 years of experience in corporate finance, treasury, international finance and
corporate mergers and acquisitions. He was invited to the CFO100 Roll of Honour 2012 in recognition of
excellence and has been associated with various professional bodies and committees. He is also a fellow
member of the Institute of Chartered Accountants of India.

KRISHAN PAL SINGH (Whole Time Director, Director – Operations)

Krishan Pal Singh, a qualified Technocrat, has over 45 years of experience in the field of Alcohol & Liquor
Industry and has been associated with Radico Khaitan Limited for over three decades. He heads the
operations of the Company’s Units at Rampur, Bazpur & Bahadurgarh. He is also the Occupier of the
Company’s Factory in Rampur, Uttar Pradesh.

He is one of the Members of the Expert Committee Constituted by Central Pollution Control Board for
Distilleries. He is an active member of Molasses Advisory Committee of Uttar Pradesh, convener for
organising Technical Seminars with All India Distillers Association (AIDA) and Uttar Pradesh Distillers
Association (UPDA).

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Brands of Radico Khaitan Limited in the Defence Sector;

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A Detailed Review of the Brands;

Contessa Rum;

For men with a strong resolve, Contessa Rum is the perfect antidote. One of the largest selling brands
amongst defense forces, Contessa Rum enjoys nearly 24% market share in the segment. With a drive to
constantly raise the bar, Radico is continuously committed in delivering strong performance and
exceptional quality through its Spirits. Because the courage to beat the odds is a trait that only a few
possess.

8PM Bermuda Rum;

This dark Caribbean mystique is warm, full-bodied and blended to perfection in matured old oak cask.
8PM Bermuda Rum delivers the classic Caribbean experience in every sip.

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 The 1965 Spirit of Victory XXX Premium Rum;

Marketed exclusively to the Indian Defence Force Personnel, it is available at Canteen Stores
Department. The product was created to cater to the premium rum drinkers, with rich flavours like dried
fruits, chocolate, oak and honey. The product is nominally priced and is a shiny new feather in Radico
Khaitan’s cap.

After Dark Whiskey;

When darkness descends, the only thing that’s awake is your temptations. Satiate those wild desires
with the fine blend of After Dark Whisky. This premium category blend is renowned for its bold taste
and character and offers a delightful mix for connoisseurs of taste. Just like the mystique of the night,
engulf your senses in a spirit of passion, adventure and clandestine fantasies. Indulge in an energy that’s
spontaneous, quirky and magical. Because a passionate affair with life begins only After Dark.

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 8PM Whisky;

When the clock strikes 8Pm, India’s “Thaath” reached a crescendo. No wonder, 8PM is the first brand in
the liquor industry to make it to the LIMCA book of records for selling one million cases in the first year
of its launch. Launched as a flagship brand of Radico, 8PM exalts as unparalleled brand experience for its
loyal customers, giving them a taste of real “Thaath”. Made with the finest quality grains, new 8Pm is an
epitome of lavishness and quality drinking.

WHYTEHALL CLASSIC DELUXE WHISKY;

Whytehall Classic Deluxe Whisky is a distinguished blend of aged scotch malts and the finest Indian
spirits, skillfully blended to give a rich, warm, full-bodied whisky with a graceful after note that lingers.
It’s intense, crisp character and unmistakable classic style takes you into a league that’s class apart. Truly
a classic, it’s for those special moments that become an integral part of our lives.

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 Morpheus XO Brandy;

For those who value taste, there’s always the spirit of France. Containing the texture of warm soils,
fragrant scents and all the richness of tropical weather, its rich blend is truly irresistible. Having
achieved a gold medal at the prestigious Monde Selection Award 2011, the world is taking note of its
treasured legacy and trademark excellence. Without mention, Morpheus has become a leader in its
segment owing to a stringent process of creation and arduous maturity.

Magic Moments Vodka;

India’s largest selling vodka was launched with an international packaging, enabling the premium vodka
to become a rage overnight. Produced from the finest grains, triple distilled process is a mark of
absolute purity. Adding on to the razzmatazz is an exciting array of flavours that make it smooth as silk.

The spirit of Magic Moments is all about believing in creativity, excellence and working with the leaders
of contemporary culture.

No wonder, this amazing brand of vodka is a millionaire brand of Radio Khaitan and has won many
coveted laurels for the organization, including the Gold Medal for 4 consecutive years in the Monde
Selection.

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 Magic Moments Verve Super Premium Vodka;

Using a five staged slow filtration process with silver and platinum filters, Magic Moments Verve is
unique vodka that possesses the ability to send you in a trance. The tantalizing aroma of its flavour and
its crisp taste has enabled it to become the fastest growing vodka in the super premium segment. This is
the only premium Vodka that comes with a unique, imported tamper-evident seal to ensure authenticity
of its product. Hence this is the only Vodka in the country that comes with an utmost supreme
packaging.

Magic Moments Verve has been felicitated with Monde Selection Gold Award for the last five years for
its exemplary quality and distinctive flavours – Verve Green Apple and Verve Orange that have carved a
niche in the category. Verve Green Apple has the crunchy taste of freshly plucked Green Apples,
whereas Verve Orange has a citrusy and tangy aroma of fresh and ripe oranges with a sweet taste that
lingers on.

Radico Is the Exclusive Importer / Distributor of Imported Wine (Carlo Rossi) In CSD

Manufactured by The Gallo family who are headquartered in Modesto, California. A privately held,
family-owned and managed winery – 4,600 employees with three generations of Gallo family members.

They have a distribution in over 90 countries, making them the largest exporter of California wine. With
over 70 brands in our portfolio, including wine, coolers, beverage, sparkling, fortified spirits, etc.

Presently the brands are enjoying 25% market share during FY 2018-19 in CSD.

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 Magic Moments Electra

A unique offering in the ‘Ready-to-drink’ segment in the alcohol and beverages category, Radico
Khaitan’s Magic Moments Electra is a vibrant product which is the first ever ‘Ready-to-drink’ Vodka
Cocktail. It is available in two different variants based on the need of the consumers, who either look for
a ‘light’ or a ‘strong’ alcohol volume in their cocktail. So Magic Moments Electra 8.0 (launched in 2015) is
for people who like their drink strong, whereas 4.8% (launched in 2018) is the ‘Light’ one for consumers
who like to take it light on their palate.

The flavourful, all-natural blend of Magic Moments Electra, with no artificial colours and flavours is
unique. In line with the increasing cocktail trend in the Indian market, Electra 8 and 4.8 provides 4
different options for consumers which are Cosmopolitan, Appletini, Agent Orange, Mojito, and taking
into consideration changing consumer tastes and demands there are many more to come. This
nonpareil offering in terms of product, flavour and taste has been resonating very well with the
consumers. The brand rests on the strength of Magic Moments Vodka, which has been ruling the roost
since inception. What’s more, that it comes with this unique hassle free ring pull-off cap which makes it
“on the go” drink and an attractive packaging. An extremely relatable branding and communication for
the young and lively consumers as a part of the robust marketing plan, Radico successfully carved a
niche in the RTD segment with Magic Moments Electra first ever Vodka Cocktails.

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Competitors Profile;

United Spirits Ltd (A Diageo Company)

The company was founded in the year 1826 by Angus McDowell. It is Indian alcoholic beverage
company. United Spirit is a subsidiary of Diageo and headquartered at UB tower in Bangalore,
Karnataka. USL manufactures Indian Whisky, Vodka, Gin, Wine Scotch Whisky etc.

Some of the products of United Spirits include;

1. Gin: Tanqueray, Gordon's, Booth's

2. Rum: Captain Morgan, Ron Zacapa, Cacique

3. Tequila: Don Julio

4. Vodka: Smirnoff, Ketel One, Cîroc

5. Whisky: Johnnie Walker, Crown Royal, Bulleit, Royal Challenge, George Dickel, Caol Ila, Talisker,
Lagavulin, Oban, J&B, Bell's, Buchanan's, Cardhu, Signature, Antiquity.

6. Others : Baileys, Guinness

United Breweries Ltd (UB)

UB was founded in the year 1857 by Thomas Leishman. It is headquartered in UB City, Bangalore. It is
offering a range of products including engineering, horse breeding, and investments in sports, derbies,
alcoholic beverage and brewery. Its subsidiaries are United Breweries Ltd, Kingfisher Airlines, UB Global,
UBICS, Inc. UB core business areas are investments, beverages and aviation. It is one of the Top 10
Distilleries & Wineries Companies in India.

Some of the products of United Breweries include;

Beer: Kingfisher Premium (mild beer), Kingfisher Strong (strong beer), Kingfisher Draught (draught
beer), Kingfisher Storm (strong beer), Kingfisher Ultra, Kingfisher Blue

Globus Spirits Ltd

It is one of the top 10 Distilleries & Wineries companies in India. The company is catering to four
important segments of the alcohol industry- Indian Made Indian Liquor, Indian Made Foreign Liquor,
IMFL Bottling and Bulk Alcohol.

GM Breweries Ltd

G.M.Breweries Limited (GMBL) was set up in the year 1981 by Shri Jimmy William Almeida. GMBL is
engaged in the activities of manufacturing and marketing of Alcoholic Beverages; such as Indian Made
Foreign Liquor (IMFL) and Country Liquor (CL).

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Current State Of Radico Khaitan Limited In the Indian Market;

1. Strong premiumisation focus with over 10% growth since FY2014;

2. Consistent revenue with significantly improved profitability;

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 3. Q4 FY2019 Performance Highlights;

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Awards Given To Radico Khaitan Limited;

The following is the collection of recent awards given to different brands from The House of Radico
Khaitan;

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 CHAPTER 3;

RESEARCH METHODS AND

PROCEDURES

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Purpose of the Research:

Research Objectives:

• To gain an insight about the perception of the 1965 Sprit of Victory XXX Premium Rum amongst
the defence personnel.
• To study various factors which directly or indirectly influence the sale of the 1965 Sprit of
Victory XXX Premium Rum.
• To identify the needs and wants of both the consumers and canteens and how well are they
being managed by the company’s higher authorities.
• To find out various reasons which are creating stumbling block in market expansion of 1965
Sprit of Victory XXX Premium Rum.
• To identify the wakefulness of the brand and Radico’s products in the market.

Type of research: Exploratory and descriptive Research.

The research design adopted is the multi-cross sectional design as my research study involved the study
of more than two respondents and information through questionnaire has been collected from each
sample only once. I managed to collect data about 1965 rum using the quota sampling technique. Quota
sampling is a method of selecting survey participants that is non probabilistic version of stratified
sampling. This kind of sampling is useful when time is limited, a sampling frame is not available and the
research budget is less. These qualities made this technique ideal for this procedure.

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Method of data collection

There are two types of data collection method;

1. Primary data
2. Secondary data.

1. Primary Data:

This data is original in nature and is generated from results of personal interviews with the consumers.

• General observation method-The consumers were observed to have an insight about the
mindset and preference for a particular brand.
• Personal interaction method-I made interactions with every consumer during this market survey
at the D.G.B.R V.I.P canteen with most wanting to give some extra information other than
questionnaire but there were those who were busy and not ready to fill the questionnaire as
well. This technique helped to clear doubts arising due to observation method.
2. Secondary Data:

Some data was acquired from existing sources of information which were accessed due to availability of
various other forms of information and data. These data served as the secondary data to me. Sources
for these data are the company’s websites, journals, publications and articles from industry
experts/professionals, previous market reports and some details about the different products at CSD.

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Data collection;

This research involved a study, which was descriptive in nature. It basically aims at gathering the data
about the factors favoring the product, the price point, and the level of quality, comparisons between
pet and glass bottles. I have contacted consumers directly and taken the personal interviews at the
D.G.B.R canteen. This has allowed me greater flexibility in capturing the insights of the consumers.

Sample design;

Sampling unit: The D.G.B.R and I.N.C.S canteens were selected.

Sample Size: For this survey, I made two mutually exclusive subgroups as shown below;

Consumer of 1965 Rum

First time Consumer Regular Consumer

(Sample Size = 50) (Sample Size = 40)

Sampling technique;

Normal Convenience and judgmental sampling technique was followed.

Sampling method;

Data were collected from the personal interviews with the consumers.

Instruments Used;

1. Questionnaire :
a) Likert scale
b) Structured and un structure questions.
2. Analysis ( SPSS and MS EXCEL)
a) Frequency Distribution
b) Case Summary

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 c) Distribution Charts
d) Distribution tables

Procedures;

The following procedure was followed for the purpose of research:

1) Research title was decided and parameters to be measure were set.(idea generation)
2) The basic frame work for the activities to be done was made.(planning)
3) The project activities were then equally divided. (Staffing)
4) Questionnaire was made on the basis of the parameters given by Radico Khaitan Limited.
5) I had to collect the information by personally interviewing the consumers and then getting the
questionnaire filled by the consumer. (data collection)
6) The data which was collected was fed in the excel sheet on the daily basis. (Data feeding). The
process continued till whole week at D.G.B.R and another week at I.N.C.S
7) The final data of the whole research was then coded and entered into the SPSS and analysis was
done.
8) Results were drawn and on the basis of them interpretations were made.

Limitations;

Though this study was taken up with sincere efforts to accomplish the objectives, there were certain
factors which created hurdles in accomplishing the work. These factors are:-

1. Some consumers were having very non-cooperative behavior at the time of data collection from
them.
2. The research was depending on the information provided by the respondents (consumers).It may be
insufficient.
3. The time frame for this research is short to cover the whole market of CSD.
4. Due to the security and time constraints the study wasn’t able to include more canteens.
5. To convince the consumer for a proper interviewing process was also difficult.
6. Some consumers sometimes give wrong data.
7. The reluctance on the part of the consumers was also major setback.
8. The analysis of project was based on observations and interpretation on the basis of sample survey.
9. The busy schedule of consumers had made my collection of information very difficult.

33 | P a g e
 CHAPTER 4;

DATA ANALYSIS AND

FINDINGS

34 | P a g e
DETAILED ANALYSIS:

First Time Consumer;

During my stint at D.G.B.R as I had to make customers aware about the 1965
rum during which I saw a major chunk of customers being first time consumers. To be less time
consuming, after making the sale I asked a fixed set of 5 questions to 50 consumers.

Results;

The results of the survey are arranged in a question wise manner as follows;

Question 1; What Attracted you to buy 1965

A beautifully
Rum for the first time
crafted glass bottle
(8%)

Presence of an
A need to try a offer with every
new product bottle
(16%) (32%)

Recent information
attained regarding
the premium quality Recommendation
and flavours of the by your friends and
rum work mates
(44%) (0%)

35 | P a g e
 Question 2; For a premium rum, is the 1965 Rum
well priced?

No
(46%)
Yes
(54%)

Question 3; Should the 1965 Rum be available in a

plastic version as well?

No
(22%)

Yes
(78%)

Does the packaging of 1965 Rum give a premium

feel?

No
(18%)

Yes
(82%)

36 | P a g e
 Question 5; Would you suggest 1965 Rum to be
encased in a case or a box cover?

No
(8%)

Yes
(92%)

Key Aspects to Note about the Survey;

a) This procedure was done using Non probability Sampling i. e By Random selection of first time
consumer of the 1965 rum
b) A sample size of 50 consumers was taken out of a total of around 120 first time consumers.

Conclusion;

a) The information about the premium quality of the 1965 rum is still unknown but the consumers
did not hesitate to buy the product as soon as they were made aware about the premium
quality and distinct flavours of the 1965 rum.
b) The addition of an attractive offer along with the 1965 rum aided the sales of the 1965 rum.
c) Regarding the pricing of the 1965 Rum, there was a mixed bag of responses as the slight
majority (54%) felt the price was right but the rest (46%) strongly felt that the price should be
lowered a bit in order to be much more pocket friendly.
d) A major percentage of consumers liked the glass bottle as compared to the plastic version
simply because of the premium feel it provided to the consumers. A few consumers preferred
the plastic bottle as it eased their travel with a lesser chance of breakage.
e) During this survey, the packaging of the bottle of the 1965 rum turned out to be a huge winner
as the packaging was attractive to most of the consumers.
f) A large majority were interested in having 1965 cased so as to ensure the bottle was not broken
while the personnel were in transit to their homes. Some said it ensured that the bottle would
be safe as they are paying a high price for it.

37 | P a g e
Regular Consumers;

The D.G.B. R canteen provided a reservoir of customers who had previously

bought the 1965 Rum and this further aided the survey. To be less time consuming, after making the
sale I asked a fixed set of 5 questions to 40 consumers.

Results;

The results of the survey are as follows;

Question 1; What is the one factor that made

you choose the 1965 Rum again?
It is easily available
10%

The rich and

premium taste
The 37%
smoothnes
s The Patriotic
53% message behind
1965 Rum
0%

Question 2; For a premium quaity rum, is the

1965 rum well priced?

no
5%

yes
95%

38 | P a g e
 Question 3; Should 1965 rum be available in
plastic version as well?

No
30%

Yes
70%

Question 4; Would you suggest the 1965 Rum

to be encased in a case or a box cover?

No
5%

Yes
95%

39 | P a g e
 Question 5; In what aspects do you feel The
1965 Rum needs improvment?

Packaging
10%

Addition of new
and unique
Smoothness flavours of rum
28% 40%

Quality & Taste

22%

Key Aspects to Note about the Survey;

a) This procedure was done using Non probability sampling i. e By Random selection of the regular
consumers of the 1965 rum.
b) A sample size of 40 consumers was taken out of a total of around 70 regular consumers.

Conclusion;

1. It has to be noted that once tasted the rich flavour and the smoothness of the rum acted as
major factors for repeat customers of the 1965 Rum.
2. The Defence Personnel had no problem with the price whatsoever as they all expressed that the
price was worth the quality being provided to them.
3. A majority of consumers (70%) were willing to stay with the glass bottle as compared to the pet
bottle as they felt the touch of the premium with the presence of the glass bottle. Still there was
a considerable minority (30%) of consumers who felt it was not safe for travel and should have a
pet bottle option as well.
4. A vast majority felt that a casing or a box like cover of the bottle would add to the premium feel
of the Rum. This could also solve the problem of consumers who want to travel hassle free
without worrying about bottle damage.
5. The consumers without any doubt want options in flavours of rum, a path famously taken by
Bacardi and many major players by bringing out flavours like the Limon and pine apple rum. A
gigantic chunk of the minority felt that there could be an improvement in the quality and
smoothness of the product. Finally a few consumers felt the packaging could use a more
premium touch.

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 CHAPTER 5;

OBSERVATIONS,
SUGGESTIONS AND
CONCLUSIONS

41 | P a g e
Observations, Suggestions and Conclusions;

During my internship, I had the honour of conducting my research at two of the most prestigious
canteens in the Delhi Cantonment i.e. D.G.B.R canteen run by the Border Roads Organisation and the
I.N.C.S run by the Indian Navy. To make this reading a more optimal experience, I have decided to divide
the observations, suggestions and conclusions for each canteen i.e.

1. Observations And Suggestions from I.N.C.S

2. Observations And Suggestions from D.G.B.R

Observations and Suggestions from I.N.C.S;

I have divided this data into 2 parts as follows;

1) Observations and suggestions on 1965 Rum solely.

2) Observations and suggestions regarding other brands.

Observations and suggestions on 1965 Rum;

Observations;

The following are the observations made regarding 1965 rum;

a. Old Monk Is A Culture;

During my time at the Navy canteen I keenly saw and realised that old monk was not consumed
as a beverage but rather as a cultural drink. The soldiers are reluctant to try other brands as they
feel they only have the taste buds for old monk.

b. The Glass Bottle Is A Big Turn Off;

It has to be noted that a lot of the defence personnel show restraint in buying the 1965 as they
fear that it might break. While the glass bottle increases the beauty of the product, the
personnel feels otherwise as they do not want to pay a premium price and end up breaking the
bottle.

c. The Price Of The Bottle;

In a price sensitive place like the Defence Canteens it makes sense to say that the price of the
1965 is a major hindrance to its sale. The biggest competitor to the 1965 rum is old monk which
is priced at Rs. 159 which is in line with the price of our Contessa Rum while 1965 rum is priced
highly at Rs. 186. Hence the personnel have kept a liking for old monk as it is cheaper but
provides a similar premium feel. Not to forget there are other cheaper rums like old fox which
are priced significantly lesser as compared to 1965 Rum

42 | P a g e
 d. The Story Is Not Yet Out;
While convincing the Defence Personnel regarding our 1965 Rum, I quickly realised that not
many had actually even tried the beverage let alone have any idea regarding the product itself.
Yet there is so much to inform regarding the ingredients and the story behind the rum itself.

e. The Comparisons With Old Monk;

Apart from the pricing, comparisons were made regarding the shapes of both the bottles. I was
even asked whether the rum was only dedicated to the army as the crest has two guns crossing
each other which signalled ground troops leaving out the Navy and Air force.

f. The Unique Selling Points Are Not Visible;

The unique selling points of the 1965 rum are the smoothness and the flavours of chocolate and
honey that make it a magnificent blend. But none of this is mentioned clearly in the packing with
only a small note mentioning the ingredients and the story of the rum.

Suggestions Regarding 1965 Rum;

The following are the suggestions that would have a positive impact on the sales of 1965 Rum;

a. Free Cotton Bags With Every Bottle Of 1965;

The demand for 1965 might not be high but there is a huge demand made by the personnel to
the canteen officials to provide them with something to carry their beverages. This could be an
opportunity for us to provide a small 6 bottle size cotton bag to every person who purchases a
bottle of 1965. On this bag we could even put the logo of 1965 and on the back a logo saying
“Drink Responsibly”. This one little scheme could work wonders as it will cater to the demand
for something to carry the beverages which will in turn help increase the demand for our
product, advertise the beverage and send a safety message showing how much we care creating
faith and goodwill in the eyes of the customers. However this should be currently implemented
at the INCS on a trial basis as that could serve as a test market for this strategy.

b. Make The Unique Selling Point More Visible;

The unique selling points of the 1965 are the smoothness and the ingredients that make it an
exotic beverage. These have to be mentioned boldly in the packaging in order to let the word
out regarding the above mentioned aspects. An example to follow is the Amrut brand as they
poetically tell the story about how their product came to existence and what blends
differentiate it from the others.

c. A Niche Needs To Be Created;

A niche must be created between 1965 and other rums that would make it a stand out in the
segment. The fact that it is only made for the Defence Personnel should be loudly advertised.
Even adding a case to the bottle would not be a bad idea as it would solve the problem of the
glass bottle which is also impacting the sales of old monk negatively and also add a rather more
premium feel to the product.

43 | P a g e
 d. A Dedicated Program;
The dedication towards the Defence Forces is the message of the 1965 rum and it has to be
shown to the forces by having dedicated programs towards the welfare of the wives and
children of the Defence Personnel which has been a pressing issue for quite some time.

Observations and Suggestions regarding other brands.

Observations;

The observations for each brand are listed below;

1. Magic Moments;
Magic Moments has been hugely popular as an easy cocktail among the forces and sells for
itself. One thing to be noted though is that despite verve being a premium part of the magic
moment family, it commands a high demand and its absence at the INCS was quite a turn off for
a large number of people. Seeing the demand of Magic Moments, it should be said that the
“Electra” will be a humungous success when launched in this market.

2. Contessa Rum;
Just like the Magic Moments, the Contessa Rum flies off the shelf on its own. The major
competition is coming from other plastic bottle brands like old smuggler which is similarly priced
or old fox and Madeira which is significantly lesser priced. While it has created its own place in
the mindset of the customers, it cannot be ignored that it faces a very stiff competition from its
rivals.

3. 8 PM Whiskey;
The 8 PM whiskey sold relatively well in its segment as the personnel preferred it to others due
to its plastic bottle packaging and the low price is also an added incentive. There is no real
competition to 8 PM in its segment and it has its own place.

4. Whytehall Whiskey;
The Whytehall whiskey had very poor sales while I was at INCS. Competing with Royal Stag,
Royal Challenge, and McDowells No 1. This is the most competitive segment that I saw in which
customers already have a mindset and blatantly ignore other brands. The biggest market share
is with Royal Stag and McDowells No 1 in this segment.

44 | P a g e
Suggestions;

The following are the suggestions that would have a positive impact on the sales of some of the brands;

a. The Price Of Contessa;

The price of Contessa should be lowered so that it could provide stiffer competition to the likes
of old smuggler and old foxx. Driving the price down could also help drive down the sales of old
monk as it would also directly compete with it as well. A lower price could also ensure that
Contessa further cements its position in the market.

b. A Whytehall Revamp;
Whytehall which was ignored due to the competition needs to be reinvented in order to survive
in the market. A change in the packaging and a lower price may suffice in reigniting the sales.

45 | P a g e
Observations And Suggestions from D.G.B.R;

I have divided this study into 2 parts as follows;

1) Observations and suggestions on 1965 Rum only.

2) Observations and suggestions regarding other RKL brands.

Observations and suggestions on 1965 Rum;

Observations;

The following are the observations made regarding 1965 rum;

a) The Glass Bottle Hinders Travel;

The defence personnel show restraint in buying the 1965 as they fear that it might break. The
personnel who were travelling preferred the pet bottles as they eliminated the chance of
breakage hence providing a hassle free experience for the travelling personnel.

b) The Price Of The Bottle;

In a price sensitive market, the price of the 1965 has come out as a major inconvenience to the
first time consumer of this rum. In other words the price hinders the sale to a first time
consumer as he has not tasted the rum and could not tell whether it is worth the price or not.
Another way to see this is that the biggest competitor of the 1965 is the old monk which is
evenly priced at Rs 160 which makes the sale of 1965 Rum much harder.

c) The Lost Message Of the 1965 Rum;

The 1965 rum has two major unique selling points that are the patriotic message behind the
rum and the premium flavour of the rum. As I retrospect, during my tenure I realised that the
personnel were not well informed regarding the above mentioned points. This has also come in
as a major hindrance when it comes to converting a first time consumer. In complete contrast,
our biggest competitor old monk which enjoys a vast following has all its aspects and stories
well known by the personnel.

d) The Cult Following Of Old Monk;

Old monk has managed to create a cult like following within the Defence Forces which has acted
as a humungous obstacle in the sales of the 1965 Rum. The lower price of the old monk acts as
an added advantage to its sales and rather as an inconvenience to the sales of the 1965 Rum.

46 | P a g e
Suggestions

The following are the suggestions that would have a positive impact on the sales of 1965 Rum;

a) Casing Every Bottle Of 1965;

It is fair enough to say that the glass bottle drives away many potential consumers due to the
risks involved in transit. Adding a case or a box cover to the bottle will eliminate this as I saw in
the case of McDowell No 1 whiskey and many others as personnel were willing to purchase glass
bottles with casing or covers as it reduced the risk of breakage. Another advantage of casing
would be that it would provide the much needed space to mention all the unique selling points
of the rum. Finally adding the case or cover would also help create a difference or a niche
between 1986 and other rums as it would be the only rum in CSD with any sort of cover or
casing. It must be considered that Old Monk has also seen a fall in sales due to the very reason
that it also is sold in a glass bottle.

b) The Unique Selling Points Should Be More Visible;

The unique selling points of the 1965 are the smoothness and the ingredients that make it an
exotic beverage. These selling points need to be showcased in a more aggressive manner to the
consumer in the form of packaging as mentioned in the point above. In short a much more
premium feel needs to be imparted on the consumer
c) A Rum Of The Forces;
In order to break the cult following of Old Monk, 1965 Rum has to be portrayed as “The Rum Of
The Forces.” In order to make this happen, we have to look to make the consumers feel closer
to the rum. This can be done with a few simple competitions i.e. one has to understand that the
difference between the forces and the civilians is the training the personnel undergo to be a
part of the defence forces hence meaning most of them are physically fit. Now the competitions
will be for all units and could be simple competitions like Mr Fit or Mr Defence Competitions
that would involve all units and also touch those who were never informed about the rum. Such
competitions will impart a sense of unity, appreciation and a feeling that The 1965 Rum is
indeed dedicated to the Defence and will have a rather bigger appeal to the Defence Personnel.
Many more different competitions could be organised.

47 | P a g e
Observations and suggestions regarding other brands.

Observations;

The observations for each brand are listed below;

1) Magic Moments;
Magic Moments has been a hugely popular brand as an easy source of a cocktail among the
forces and sells for itself. The flavours of the vodka are widely loved by the personnel and there
is rather a large need of other different flavours. A matter of concern is the portrayal of the
Magic Moments Verve as it only sold after the flavoured vodkas were out of stock.

2) Contessa Rum;
The Contessa Rum goes off the shelf on its own. The major competition is coming from other
pet bottle brands like old smuggler which is similarly priced or old fox and Madeira which is
significantly lesser priced which has in turn given consumers many more options to buy from.
Still the Contessa has managed to hold on its own despite facing such a stiff competition from
other brands.

3) 8 PM Whiskey;
The 8 PM whiskey sold extremely well in its segment as the personnel preferred it to others due
to its pet bottle packaging and the low pricing has also acted in the favour of the sales of 8 PM
whiskey. The whiskey holds a fortress of its own in the market and there is a very low chance
that it will ever be displaced by its rivals. The 8 PM whiskey has rather developed an image as
The Poor Man’s Whiskey and during my tenure at the DGBR I got a lot of complaints regarding
the taste and quality of the whiskey. The only competition to the 8 PM whiskey is the Royal
Arms whiskey and the IGL supreme whiskey which are only surviving due to their low price

4) Whytehall Whiskey;
The Whytehall whiskey sold particularly well due to the absence of major players like Royal Stag,
McDowell’s whiskey and Royal Challenge. The relatively low price and deluxe quality aided the
sales of the whiskey as well

5) 8 PM Bermuda Rum;
The 8 PM Bermuda Rum sold relatively solidly as it has its own niche market among the rum
consumers. The 8 PM Bermuda Rum has successfully created its own niche amongst customers.
It has to be noted that when I inquired, its distinct taste and low price acted as a driving factor
for the sale of the rum.

48 | P a g e
Suggestions;

The following are the suggestions that would have a positive impact on the sales of some of the brands;

a) The Pricing Of Contessa;

The Contessa should be priced more aggressively so that it could provide a stiffer competition to
the likes of old smuggler and old foxx. Another advantage of driving the price down could also
help lower the already lowering sales of old monk as it would also directly compete with it as
well and the pet bottle could play a rather stronger hand than old monk.

b) The Quality Of Magic Moment Verve ;

The magic moments Verve which is premium addition to the Vodka segment has failed to deliver
the message that it is a much cheaper substitute to other premium vodkas like Absolute Vodka.
The quality of the Vodka needs a much more exquisite mention in order for the sales to rise up
rather than be a last resort to the flavoured magic moment’s vodkas.

c) The Packaging & Quality Of 8 PM Whiskey;

The pet bottle of the 8 PM whiskey needs a slight revamp to add to a more premium feel rather
than the poor man’s whiskey as it has largely been portrayed in the Defence Community. It
should rather an appealing packaging in order to attract more customers and change this
perception. The quality also needs a little bit of enhancement so as to attract the customers
more towards the brand.

49 | P a g e
 CHAPTER 6;

MY JOB EXPERIENCE

50 | P a g e
Job Experience At Radico Khaitan Limited;

If I am to decode the learning’s that I attained from my two months at Radico Khaitan limited, and then I
will have to divide them into three parts as below;

1) How is the alcohol produced.

2) Working of the CSD
3) Visits to different unit run canteens

How Is the Alcohol Produced?

A simple procedure of how alcohol is produced at Radico Khaitan Limited is shown below;

51 | P a g e
Working Of the CSD;

Introduction;

The Canteen Stores Department (CSD) has been in the service of the Defence Services since 1948. The
Department which made a modest beginning with four Depots and a turnover of less than Rs 48 lakhs
has now grown into 34 Area Depots and has crossed a turn-over of Rs 17,000 crores in 2016-17.

The clientele has also grown steadily from a few thousand British soldiers in 1942 to over four million
Services‟ households today. Of them, nearly 90% of the clientele comprises JCOs, other Ranks and their
families. 1.2 CSD provides its consumers, all over the country, quality products of daily use at rates less
than those prevailing in the market. These items are meant for sale to Armed forces, Defence civilians,
ex-servicemen and their families.

Organisation;

CSD functions under the Ministry of Defence. CSD is efficiently managed by Defence civilian officers and
few serving officers on deputation from Armed forces. However, the remaining workforce comprises
Civilian Central Government Employees. The organization structure of CSD is given at Appendix 1A to
this chapter.

CSD Head Office;

CSD Head Office is located at Mumbai. The Department controls and manages its field operations
through a network of 34 Area Depots located across the length and breadth of the country. These
Depots have been grouped into five Regions based on the Indian States and their contiguity.

Regional Office;

Each Region is commanded by a Regional Manager (RM). As would be seen from Appendix 1-A to this
chapter that each of the Regions has six to eight Area Depots under its command & control. The Area
Depots are categorised as Small, Medium, Large and Extra large depots depending upon their annual
turnover. On an average, each Area Depot caters to about 100 URCs.

Inventory;

There are nearly 5735 items in the CSD inventory including items Against-Firm Demand (AFD). Each item
has an independent Identification Number called Index Number and a Nomenclature.

52 | P a g e
Inventory Grouping;

For the purpose of warehousing management and ease of indenting by URCs, the inventory has been
grouped into following seven groups, based on functional usage and mentioned in the Pictorial Price-List
published by the Department during January each year and issued to all URCs.

Group Type of item Items covered

1 Toilet Requisites Toilet Soaps, Oral Care, Hair
care, Cosmetics, Detergents
Etc
2 Household Requisites Electrical Appliances,
Cookers, Crockery,
Kitchenware, Sewing
Machines and other
Household requisites such as
Gas Stove, Flask, Casserole,
Light Products and Torch Cell
etc
3 General Use Items Hosiery items, Plastic ware,
Footwear, Luggage’s,
Undergarments, Helmet,
Sunglasses, Track suit, Sports
Goods and Plastic Furniture
etc
4 Wrist Watches & Stationery Wrist Watches & Stationery
5 Liquor Rum, IMFL, Brandy, Scotch
Whisky, BIO, Breezer, Wine
& Beer etc.
6 Food & Medical Items Food, Beverages & Medicinal
items etc
7 AFD Items Television, Refrigerators,
Washing Machines, Two
wheelers, Cars, Tractors,
Cooking Ranges (Ovens &
Chimneys), Air Conditioners
& Geysers etc.

53 | P a g e
Rank wise Purchase Limit;

54 | P a g e
State Wise Levy (Tax) On Liquor;

55 | P a g e
Supply of Rum/IMFL/BIO and Breezer

There are three categories of liquor in CSD. These are as follows:-

(a) Matured Rum;

Matured rum is matured for a period ranging between one to seven years. Some of the known
brands in CSD inventory are Old Monk, Contessa and Mc Dowel Celebrations etc. White rum is also
matured rum.

(b) IMFL;
Whisky, Brandy, Beer, Gin, Vodka, single malt whisky, tequila, scotch whisky, BIO, Breezer etc come
under the category of IMFL.

Orders for liquors are placed for various brands listed with the Department based on the following
criteria;

(a) Demands generated by virtue of off-take of an item.

(b) The items positioned at Depots should ordinarily be adequate to meet the demand of URCs for
a period of 60 days.
(c) Popularity of an item and brand.
(d) Minimum combined order on a distillery for an Area Depot is at least 550 to 600 cases as that is
the minimum quantity carried by one truck.

URCs must project their demand for their preferred brands to enable the CSD to place the orders
correctly. There may be difficulty initially to position stocks as per units‟ choices. However, if the
item gets continuously demanded, suitable orders will be placed for the required and demanded
products.

56 | P a g e
Unit Run Canteens Visited;

The following Unit Rum Canteens were visited by me during my tenure of 2 months. They are as follows;

1. Air force Canteen

2. I.N.C.S
3. D.G.B.R
4. Station Workshop Canteen
5. Aashu Unit Canteen
6. 972 tpt Unit Canteen
7. 147 FD Unit Canteen
8. Race Course Unit Canteen
9. Liason Unit
10. 261 URC
11. 147 COD
12. CSD Depo

Sales Made At I.N.C.S and D.G.B.R;

While carrying out my research I was tasked with a paramount task to inform the customers about the
“1965 Spirit of Victory XXX Rum” and make a sale as well to the defence personnel visiting the I.N.C.S
and the D.G.B.R canteens.

During the 3 weeks I worked at these canteens I managed to sell approximately 37 cases (450 bottles) of
the 1965 Rum to the defence personnel amounting to a figure of Rs. 83,700.

57 | P a g e
BIBLIOGRAPHY;

REFRENCES;

BOOKS; AUTHOR;

1) MARKETING RESEARCH NARESH MALHOTRA

2) MARKETING MANAGEMENT PHILIP KOTLER
3) RESEARCH METHEDOLOGY C.R.KOTHARI

Websites;

www.google.com

www.wikipedia.com

www.csdindia.gov.in.

www.radicokhaitan.com

58 | P a g e
ANNEXURE 1;

First Time Consumer Questionnaire;

To be less time consuming, after making the sale I asked a fixed set of 5 questions to 50 consumers. The
questionnaire is as follows;

1. What attracted you to buy 1965 Rum for the first time?
a) Presence of an offer with every bottle (A glass with every bottle for the first 6 days of the
survey)
b) Recent information attained regarding the premium quality and flavours of the rum
c) A need to try a new product
d) Recommendation by your friends and work mates
e) A beautifully crafted glass bottle
2. For a premium quality rum is the 1965 Rum well priced?
a) Yes
b) No
3. Should 1965 Rum be available in a Plastic version as well?
a) Yes
b) No
4. Does the packaging of 1965 Rum give a premium feel?
a) Yes
b) No
5. Would you suggest the 1965 Rum to be encased in a case or a box cover?
a) Yes
b) No

59 | P a g e
Regular Consumers;

To be less time consuming, after making the sale I asked a fixed set of 5 questions to 40 consumers. The
questionnaire is as follows;

1. What is the one factor that made you choose the 1965 rum again?
a) The rich and premium taste
b) The smoothness
c) The Patriotic message behind 1965 Rum
d) It is easily available
2. For a premium quality rum is the 1965 Rum well priced?
a) Yes
b) No
3. Should 1965 Rum be available in a Plastic version as well?
a) Yes
b) No
4. Would you suggest the 1965 Rum to be encased in a case or a box cover?
a) Yes
b) No
5. In what aspect do you feel The 1965 Rum needs improvement?
a) Addition of new and unique flavours of rum
b) Quality and taste
c) Smoothness
d) Packaging

60 | P a g e