Final Liquor Industry

8/4/2019 Final Liquor Industry

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Ethics in LiquorIndustry

Presented by:

Anjali Bhargav (6)

Jinal Pethad (16)

Meenu (26)

Preeti Nair (36)

Rushil Khanna (46)

Swapna Dalvi (56)


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Background Origin of "liquor" and its close relative "liquid" was the Latin

verb liquere, meaning "to be fluid

Earliest reference to alcohol ( Somras & Sura) traced to year

2000B.C


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Background

First Indian brewery set up (1805) in Kanpur

IMFL by Carew & Co.Ltd.

Excise Committee (1905) to control rise in

consumption

Alcohol Advertisement

-Surrogative ads Industry faced criticism for targeting young

people


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Status Of Alcohol Industry In India

Generates Rs.16,000 crore per annum

Alcohol sales proceeds account for 45%of the

total revenue collection in the country

Whiskey - 60% of the liquor sales

Rum- 17%

brandy- 18%

Vodka - 6%


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Status Of Alcohol Industry In India

Duty on foreign distilleries = 464-706%

Domestic industry accounts for 99% of the

market share Maharashtra, Uttar Pradesh, and Tamil Nadu

have a liberal policy


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Major Players And Their MarketShare


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Market Size

70 million cases market

Growth rate :- 10-12 % per annum

Major market zone:-South and Westaccount for bulk (> 75 %) of this market

Major beer consuming centers :- Maharashtra

(Mumbai),Karnataka (Bangalore), Tamilnadu (Chennai)


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IMFL Categories: Market size (in %)


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Major Brands

Major beer brands (manufacturers)

King Fisher

Kalyani Black Label (UB Group)

Golden Eagle (Mohan Meakins) Haywards (Shaw Wallace)

London Pilsner(Associated Breweries andDistilleries)

Foreign brands Strohs

Fosters


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Company Market Size (mn cases) Brands

Herbertsons 8 Bagpiper

McDowell & Co. 17 McDowell no.1, Diplomat

Shaw Wallace 9 Directors Special

UDV Over3 Green Label, Smirn Off

Bacardi 0.1 Bacardi Rum

Seagram 0.8 Royal Stag


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Other Players

Ace Continental Exports - Manufacturer of beer Amrut Distilleries - Supplier of dark rum, brandy and whisky

Champagne Indage - Producers of still & sparkling wine

Chateau Indage - Sparkling wines manufacturer

Cobra - Beer manufacturer

Dajeeba Vineyards - Red and white wine manufacturer

Kem Liquors - Rum and brandy bottling services


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8. Liquors India - Manufacturer of liquor

ND Wines - Red, white and appetizer wines producer

Radico Khaitan, Rampur - Liquor manufacturer

Shaw Wallace - Producers of spirits and beer

United Breweries - Kingfisher - A leading brand of Indian beer

from the UB group

Vinbros & Co - Manufacturer of whisky, vodka, brandy, rum &gin


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Strategies Of Beating UpCompetition


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BCG Matrix

Consists of four quadrants namely:

STAR

CASH COW QUESTION MARK

DOG


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STAR

Stars are high-growth, high-share businesses.

Eg.

TAJMAHAL BEER:-It has a distinct aroma and

unique taste. The demand of this beer is mainlyin abroad (Australia, France, USA) as it ispremium priced and has bitter taste which is notliked much in India though it is served in some

premier hotels in India. The demand outside isvery good and it accounts for good market sharein the exported beer in India.


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KINGFISHER STRONG:-spectacular growth of

36% (against amarket growth of 16%)was

witnessed. Kingfisher Strong has now

achieved the number one position in thestrong beer segment.


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CASH COW

Cash cows are low-growth and high-sharebusinesses.

Eg.

KINGFISHER LAGER BEER:-it has witnessed amarket growth of 13% in comparison tothe lagerbeer industry growth of 9.4%.In the lager beersegment, UBL is the market leader in all the 10

largest states of the Country. UBL commands amarket share of around 40% with 67% of themarket share in the lager beer segment.


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QUESTION MARK

Question marks are low-share business units,

in a high-growth market.

Eg.

LONDON PILSNER:-it has witnessed a market

growth of more than 20% and targeting a

market share of 15% .


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DOG

Dogs are low-growth and low-share businesses.

Eg.

KALYANI BLACK LABLE:-one of the oldest brand

launched in 1969. It has low marketshare as it is

only popular in east India and it is assumed to be

economical . The market growth for this brand is

not good as people are shifting towards otherbeers such as London pilsner which is also an

economical brand.


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Porters Five Force Model

This model is developed by Michael Porter, this

model analyzes the nature and intensity of

competition in an industry through five forces :

BARGAINING POWER OF SUPPLIERS

RIVALRY

THREAT OF NEW ENTRANCE

BARGAINING POWER OF CUSTOMERS

THREAT OF SUBSTITUTE


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Ethical And Unethical Ways Of

Business Conduct In Liquor Industry


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Ethical Ways Can Be:-

Writing on the bottles that liquor is harmful for

health.

Sometimes it is important to use in medical

purpose.

Sponsorship of sports, social and cultural

events that is surrogate advertising.

Uniform Federal Excise Policy

Strategic tie up with global players


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Unethical Ways Can Be:-

On one hand, govt. says, put a label sayingliquor is harmful to health" to people on the

other side of the fence it may sound unethical

but to manufacturers or brand owners it is anecessity because any business which is

allowed under the law has a right to advertise

and market their product. By denying them that right, we are

transgressing the law.


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Indirect Advertising

Teachers whiskey has launched the Teachers

achievement Awards. Other sponsored awardsand events include: Smirnoff international

fashion award. Lakme India Fashion Week

was sponsored by Seagrams Blenders pride.


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Strategies of Major players


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8 PM Whisky

Launched in 1998, it was the firstIndian whisky (blended with scotch)offered to Indian consumers

First Spirits brand to enter Limca

book of Records for selling onemillion cases in the first year oflaunch

The launch TV campaign wasadjudged among the best ads of the

century at Cannes

Recently famous Bollywood actressMallika Sherawat endorsed thebrand.

Radico Marketing Success Stories


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8 PM Whisky

The new packaging

launched in FY 09 is the

first Grain blended whiskylaunched in operating

segment.

Grain proposition isconsidered to be smooth,

mellow & a superior

whisky.



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Old Admiral Brandy Launched in 2002

Adjudged fastest growingbrandy brand in the world

by Drinks International fortwo consecutive years 2003and 2004

Sold one million cases in the

second year of its launch

Katrina Kaif had endorsedthe brand in 2004.


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Contessa Rum

Largest selling rum brand in

the defense segment in FY08

20% of the defense market

share

Sold 2.35 million case in

FY08


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Magic Moments Vodka

The only successful Brand launch in

the industry across all flavors in last 5

years

Innovation in Packaging

Created new price point in thesegment

Fastest growing brand in the

category

The youth icon of Indian Bollywood

industry- Hrithik Roshan has endorsedthe brand

Rewarded with Gold Medal at

Monde selection



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Magic Moments Remix

Vodka

Launched in Six New

Flavors in FY 09.

Chocolate

Green AppleRaspberry

Lemon Grass &

Ginger

Lemon

Orange


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M2- Remix


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Case Lets

Case 1 Kingfisher Beer

Case 2 Anti-Liquor protest & Govt.


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Case 1 Kingfisher Beer

Kingfisher -solid beer brand in south and west India which aremajor areas of beers consumption.

Liquor advertising is banned in print and electronic media,liquor companies have resorted to surrogate advertising,which are soon to be banned by govt.

As a result, liquor industries could promote themselves onlythrough sponsorship of sports events, contests and fashionshows.

Kingfisher already has stopped surrogate advertising.

In Kingfisher Derby which is held in Bangalore every July,kingfisher beer brand is promoted.

also, Mr. Mallaya sponsored Kingfisher Fashion Awards ,presenting Ritu Beris Collection in Paris.


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Case 2 Anti-liquor Protest & Govt.

In 1990, the women of Dubagunta, a small village in the

Nellore district of the south Indian state of Andhra Pradesh

began an anti-liquor protest.

They pressurized men to swear that they would stop

drinking, physically restrained habitual drinkers, attacked

liquor shops and godowns and fought with the police,

liquor mafia and the drunks.

The movement spread like wildfire to 800 villages

throughout the state.

Women in these 800 villages not only prevented the entry

of liquor into their villages, but also prevented district

collectors from holding liquor shop license auctions.


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Explaining that those women are tortured tointolerable limits by the abuse and beatings of drunkhusbands and the hunger and poverty in which theirchildren grow and die, women have taken up the step.

It was reported that the women were beaten withrods, sticks, boots and rifle butts by the liquorcontractors' henchmen as well as the police force. Non-bailable cases were filed against agitators who werethen imprisoned.

There were even reports that many women activistswere raped and murdered.

These events became a matter of national debate andeventually led to the then Congress government ofAndhra Pradesh announcing a statewide ban on thesale of liquor from October 1993.


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The AP government lost $ 362 million in annual

revenues after the prohibition. Despite new taxes onvehicles and consumer goods, the state's budget deficitrose to $ 242 million.

Prohibition continued in the state till 1997.

In the same year, the new CM Chandrababu Naidulifted the ban on liquor, claiming that he was forced todo so because of the state's financial problems.

This move met with unprecedented criticism in the

media. Critics claimed that the state could have easilyavoided unnecessary expenditure on many otherfronts, such as salaries and various subsidies.


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Suggestions To Control And

Minimize Or Eliminate Unethical

Behaviors In Liquor Industry


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Unethical Behavior

* Abuse of inmate

* Inappropriate relationships with inmates

* On-duty misconduct

* Off-duty misconduct

* Introduction of contraband


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How To Avoid Unethical Behavior

The Initial Complaint

Confidentiality

Interviewing Witnesses/ObtainingDocumentary Evidence

Polygraph

Photo Lineups Positive Action

Law and public policy


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Thank you..!

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Final Liquor Industry

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