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CONSUMER BEHAVIOUR

The liberalization and global operation of businesses have given an


opportunity to the customers/ consumers to select one out of various
similar products available in the market. The global trend in the market has
affected the consumer's behavior to a great extent, whether it is a case of
seller operating in international, regional, local level or a case of
consumers involved in purchasing consumable/ industrial products. Due to
globalization of business and liberalized policies of the government the
auto industry has witnessed a major selling prospect. Many multinational
companies have entered to fray, turning the market place into a virtual
battlefield. Today consumers have many options and are much better
equipped with information to choose from these available options. The
consumer now exhibits a totally different behavior what they used to do in
a regulated market.

The existence of any business is due to unfulfilled needs and


wants of the consumer. To fulfill needs of consumer, products/services are
introduced in the market by business organization. So, a thorough
knowledge of consumers and understanding of their behavior is must for a
meaningful existence of any organization.

Consumer behavior can be defined as “the decision process and


physical activity engaged in when evaluating, acquiring, using or
disposing of goods and services.”1An understanding of consumer behavior
is of critical importance to all person engaged in any form of marketing
activity. This understanding enables the marketers to find behavior of
consumers, to influence their behaviors and to manipulate the influencing
variables to gain advantage.

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The growth in the size of companies and markets has given birth
to the marketing research and consumer behavior that has become one of
the focal points of marketing. This is being researched very widely. The
products are designed to fit into consumers' perception. The products are
distributed as per the consumers' convenience and advertised to
communicate consumers and ultimately influence their behavior in favor
of its offers. Since the stakes in the business are very high, competition is
too stiff and failure of the business is too risky. Therefore, it is desirable to
assess the consumers’ behavior and their preferences in order to remain
competitive in the market.

The consumer’s buying patterns, according to researchers, is an


area for in-depth study for suggesting different useful marketing strategies.
In the present era, the information technology is growing at very fast rate.
This has created tremendous competition in the market. The enhanced
importance of consumers' behavior, in the recent development of
information system, has provoked an interest in examining the
buying/subscribing pattern of two-wheelers by consumers.

Consumer Behavior in the Present Perspective


The knowledge of consumer behavior is a fairly important aspect,
both from the viewpoint of the academician’s theoretical interest and the
practical applicability that it has for the marketing practitioners. In the
modern concept of marketing, the only rationale for the firm's existence is
believed to be the consumer's satisfaction that it provides. The importance
of consumer behavior was well recognized by the social and management
scientist. The father of our nation, Mahatma Gandhi recognized the
importance of the customers. He said, “A customer is the most important

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visitor on our premises. He is not dependent on us. We are dependent on
him. He is not an interruption in our work. He is the purpose of it. He is
not an outsider on our business. He is a part of it. We are not doing him a
favor by serving him. He is doing a favor by giving us an opportunity to do
so.”2 Therefore, it is of vital importance that the knowledge of "what
makes the consumer to think" and what consequently would contribute to
his satisfaction, is at the disposal of marketer.

The fast changing business environment has provided many


inputs (in terms of both the product package and emotional images built
into them) that influences buyers' behavior and keeps consumer
preferences in a constant state of flux. The information revolution and
intensifying competition places a large amount of solicited information at
the consumer's disposal before buying a product. The informational inputs,
advocating the merits of each branded goods influence the buyers decision
to a great extent. There are various other factors that influence the
consumer behavior may also be the topics of interest from the marketer
point of view.

Model of Consumer Behaviour


In earlier times, marketers could understand consumers well
through the daily experience of selling to them. But as firms and marketers
have grown in size, many marketing decision makers lost direct contact
with their customers and now have turned to consumer research.

The market stimuli consists of the four Ps, product, price, place and
promotion . Other stimuli include major forces and events in the buyers
environment such as economic, technological, political and cultural. All
these stimuli enter the buyer's black box, where they are turned into a set

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of observable buyer responses such as product choice, brand choice, dealer
choice, purchase timing and purchase amount.

Factors Influencing Consumer Behaviour

Consumer behavior is affected by a host of variables, ranging


from personal motivation, needs, attributes and values, personality
characteristics, socio-economics and cultural background, age, sex,
professional status to social influences of various kind exerted by family,
friends, colleagues and society as a whole. The combination of these
various factors produced a different impact on each one of us as
manifested our different behavior as consumer.

Psychological factors such as individual consumer needs and


motivations, perceptions, attitudes, the learning processes and personality
characteristics are the similarities, which operate across different types of
people and influence their behavior. Amongst the social influences
affecting behavior, we can classify the influence of family, friends, leaders
and the social clause to which the consumer belongs

Factors Influencing Consumer Behavior

Cultural Factors: Cultural factors exert the broadest and deepest


influence on consumer behavior. The marketer needs to understand the
role played by the buyers' culture, sub culture and social class.

(a) Culture: It is the most basic cause of person's wants and behavior.
Human behavior is largely learned. Growing up in a society, a child learns
basic value, perceptions, wants and behavior from the family and other
important institutions.

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(b) Sub-Culture: Each culture contains smaller sub-cultures or groups of
people with shared value systems based on common life experiences and
situations. Sub-cultures include nationalities, religions, racial groups, and
demographic regions. Many sub-cultures make up important market
segments, and marketers often design products and marketing programs
clubbed to their needs. These factors will effect the consumer’s food
preferences, clothing choices, recreation activities and career goals.

(c) Social Class: Social classes are the society's relative permanent and
ordered divisions whose members share similar value, interests and
behaviors. Social class is not determined by a single factor such as income,
but is measured as a combination of occupation, income, education, wealth
and other variables. Social class shows distinct product and brand
preferences in areas such as clothing, home furnishings, leisure activities
and automobiles.

Social Factors: Consumer's behavior is also influenced by social factors


such as consumer’s small groups, family and social roles and status.
Keeping these factors in to consideration, the marketers and companies
should design the market strategies for better response from consumers.

(a) Reference Groups: A person's behavior is influenced many small


groups. The primary groups are such as family, friends, neighbors and co-
workers. Secondary groups are such as, religious groups, professional
associations and trade unions. The reference groups are the groups that
serve as direct or indirect points of comparison or reference in forming a
person's attitude or behavior. People often are influenced by reference
groups that they do not belong to.

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(b) Family: Family members can strongly influence buyer behaviour. We
can distinguish between two families in the buyer's life. The buyer's
parents make up the family of orientation. Parents provide a person with
an orientation towards religion, politics and economics and a sense of
personal ambition, self worth and love.

“The family of procreation”- The buyer's “spouse and children”


have a more direct influence on every day buying behavior. This family is
the most important consumer buying organization in the society, and it has
been researched extensively. Marketers are interested in the roles and
relatives influence of the spouse, and children on the purchase of large of
variety of products and services.

(c) Role and status: The person's position in each group (such as family,
clubs and organization) can be defined in terms of both “role” and
“status”. A role consist of the activities that people are expected to
perform according to the persons around them. Each role carries a status,
which reflects the general esteem given to it by society. People often
choose products that show their status in the society.

1.5.3. Personal Factors: The buying decision of consumer/ buyer is also


influenced by personal characteristics such as buyer's age and life-cycle
stage, occupation, economic situation, life style and personality and self
concept.

(a) Age and Life-Cycle stage: The consumers change the goods and
services they buy over their life times. Tastes in food, clothes, furniture
and recreations are often age related. Buying is also shaped by the stage of
the family life cycle. Marketers should pay attention to the changing
buying interests that might be associated with these adult passages.

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(b) Occupation: A person's occupation affects the goods and services
bought. Blue-collar workers tend to buy more work clothes, whereas
white-collar workers buy more suits and ties. Marketers try to identify the
occupational groups that have an above average interest in their products
and services.

(c) Economic Condition: The economic condition of buyer normally


affects the product choice and buying decision. Marketers of income
sensitive goods closely watch trends in personal income, savings and
interest rates. If economic indicators point to a recession, marketers can
take steps to redesign, reposition and reprise their products.

(d) Life Style: As the time changes, the life style of the people also
changes. Life style is a person's pattern of living as expressed in his or her
activities, interests and opinions. Life style captures something more than
the person's social class or personality. It profiles a person's whole pattern
of acting and interacting in the world.

1.5.3 (e) Personality and Self Concept: Everyone has a distinct


personality and it influences his or her buying decision. Personality refers
to the unit psychological characteristics that lead to relative consistent and
lasting responses to one's own environment. Personality can be useful in
analyzing consumer behavior for certain product or brand choices.

A person's self-concept also influences the buying decision. In order


to understand consumer behavior, the marketers must first understand the
relationship between consumer self-concept and possessions. Then, the
buying decision can be made oriented towards the particular product.

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Psychological Factors: The buying decision and behavior of consumer for
a particular product is also influenced by four major psychological factors.
These are motivation, perception, learning and beliefs and attitudes. The
same are explained in the following headings:

(a) Motivation: “The motivation is an inner state that mobilizes bodily


energy and directs it in selective fashion towards goals usually located in
the external environment.”4 A person has many needs at a given time.
Some are "biological" arising from states of tension such as hunger, thirst
or discomfort. Others are “psychological” arising from the need for
recognition, esteem or belonging. Marketers do their best to motivate the
buyers and attract them for a particular product. Thus, the motivation helps
in influencing the buying decision of buyer to a great extent.

(b) Perception: It is the process by which people select, organize and


interpret information to form a meaningful picture of the world.
Motivation makes the persons ready to buy the item, and perception makes
the person mentally ready for selecting a particular brand of item.
Marketing managers make efforts, so that the buyers get confirmed to buy
that item or services.

(c) Learning: Learning describes changes in individual's behavior arising


from experience. Learning occurs through the interplay of drives, stimuli,
cues, responses, and reinforcement. The practical significance of learning
theory for marketers is that they can build up demand for a product by
associating it with strong drives using motivating cues and providing
positive reinforcement.

(d) Beliefs and Attitudes: Through doing and learning, people acquire
their beliefs and attitudes. These in turn, influence the buying behavior of

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consumers. A “belief” is a descriptive thought that a person has about
something. An “attitude” describes a person's relatively consistent
evaluations, feelings, and tendencies towards an idea or object.

The marketers are interested in the beliefs that people formulate


about specific products and services, because these beliefs make up
product and brand images that affect buying behavior.

1.6 Consumers’ Decision


In the present context, the consumers get many information at hand
due to the information revolution. Media (electronic and print), TV, Radio
and satellite communication have made easy to consumers to choose the
best products available in the market for their use. The marketers have to
play a key role in attracting the potential buyers in favor of their products.
The buying decision varies as per the information available with the
consumer before buying a particular product. Information available
through Internet with the help of cable TV has created a new dimension in
making decision before the buying any product. Thus, the decision of
buyers depends a lot on the information available with the buyers.

Making a decision to buy any item is a rationale and conscious


process in which the consumer evaluates each of the available alternatives
to select the best among them. Each decision, one makes, involves an
elaborate mental exercise and a degree of active reasoning, though on the
surface, it may not always seems to be so.

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Stages in the Buyers’ Decision Process
In making a purchase decision, a consumer normally goes through
the following five stages:

(a) Problem Recognition: The buying process starts with the buyer
recognizing the need or problem. This need occurs for replacing an old
item with new one because of its poor performance, perishable stage or not
able to fulfill the requirement. It may happen for household items, official
use items, industrial or agricultural implements. Thus, the marketers must
understand how and when consumers make choices and they can facilitate
those types of products available in the market.

(b) Pre-Purchase Information Search: This is of two types:

(I) Internal Search: It refers to recalling relevant information stored

in the memory.

(ii) External Search: It refers to the deliberate and voluntary seeking of


new information regarding the product/brand under consideration.

Evaluation of Alternatives: The buyer's final decision for purchasing


depends on product attribute, the relative importance of each attribute to
the consumer, brand image, attitudes towards the different brands or
alternatives under consideration. This stage of the buying decision process
gives the marketer a relative importance attached to each attribute by
various consumer segments, altering beliefs and attitudes about his own
brand, and calling attention to neglect product attributes.

(a) Purchase Decision: After calculating everything, buyer takes


decision to buy that item. At the last stage also, the buyer's decision
can be influenced by giving some special price discount and attract

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the buyer towards the product. In this, marketer plays a very crucial
role.

(e) Post Purchase Decision: After purchasing the item, the buyer
finds that the performance and utility matches up to his expectation.
The satisfaction will reinforce the buyer's perceived favourable
image of the brand, which is likely to be extended to the entire range
of products manufactured by the company. A satisfied customer is,
thus, a very powerful source of influence for potential customers.

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The self explanatory block diagram about the aforesaid discussion follows: 5

Problem Recognition

Information Search

Evaluation of Alternative

Purchase Decision

Post purchase behavior


Stages in Buyer’s Decision Process
Thus, one can now appreciate the many individual
characteristics and factors affecting on consumer behavior. The
information technology which has attained new dimensions in the recent

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past has sufficiently influenced the consumer's behavior especially in the
field of brand selection and buying patterns. The markets some times face
difficulties for motivating and influencing the buyer's decision in favor of
a particular product.

The consumer's choice results from the complex interplay of


culture, social, personal and psychological factors. Although, many of
these factors cannot be influenced by the marketer, they can be useful in
identifying interested buyers and in shaping products and appeals to better
serve their needs.

Organizational buying Vs. Consumer buying

Marketing theory traditionally splits analysis of buyer or customer


behavior into two broad groups for analysis –Consumer Buyers and
Organizational Buyers.
Consumer buyers are those who purchase items for their personal
consumption.
Organizational buyers are those who purchase items on behalf of their
business or organization.
In contrast to consumers, organizational buyers represent those “buying
goods and services on behalf of an organization for the purpose of the
furtherance of organizational objectives” (Lancaster, 1999). Before
highlighting some of the differences between the two, however, it is
important to caution against over stressing the differences. For instance,
you may come across some authors who argue that buying goods on
behalf of one’s employers makes buyers more caution and rational than
when purchasing consumer goods privately. Come of the features of
organizational buying which is different from the consumer buying can
be summarized as :

Setting for Buying: For consumers, the buying unit is within the
household, whereas for the organizational buyer, the setting is within the
firm. This means as an industrial marketer targeting the organizational

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buyer, one must take account of factors such as buying procedures, levels
of authority, and so on, factors not relevant in consumer marketing.

Technical/Commercial Knowledge: You will see that usually, the


organizational purchaser will be a trained professional, more
knowledgeable than the average consumer purchaser. This can often
necessitate a completely different sales approach.

Contact with Buyers/Distribution Channels: You will find that


organizational markets are usually more geographically concentrated than
consumer markets. Factors such as proximity to available labor, raw
materials, and transportation facilities often dictate an industry’s location.
In addition, compared to consumer markets, there can be far fewer
potential customers. Taken together, these variables mean that you, as an
industrial marketer must normally maintain far more direct and personal
contact with his or her potential clients.

Number of Decision-Makers: Normally in consumer purchasing, the


number of people involved in the decision making process can be very
small; i.e. an individual, a couple, a family, etc. In organizational buying,
however, a great many people can be involved in the purchasing process.
This can mean differences in both the number of people marketing
communications must attempt to convince and that quite different
decisions might emerge as a result of group dynamics than might initially
be anticipated on the basis of individual discussions.
Derived Demand: Organizational buyers often continually adjust their
buying decisions on the basis of projected sales figures, buying more
units when forecast sales are higher. The result can be a sort of
“pendulum effect”, with a knock-on effect throughout the buying chain as
each chain member adjusts it’s buying patterns accordingly.

Reciprocal Demand: Sometimes, a buyer can also be a seller at the same


time. A software company producing a package for an insurance
company, for instance, might also purchases its insurance services from
what is effectively one of its own customers. Both companies want to sell
to each other, affecting each other’s eventual buying decisions to a
varying degree. As we can see, there are subtle differences between
consumer and organizational forms of buying.

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Differences in Organizational Transactions

• Buying specialists are often used. It is usually seen that organizations


often employ people who are professional purchasing agents. Just as sales
agents are professional specialists at finding organizations that need the
products that their employer produces, purchasing agents are specialists
are professional specialists at finding what their employer needs.
Whatever stereotypes you might have from experiences with salespeople
in consumer sales, any negative stereotypes of salesperson behavior
probably would not be appropriate in dealing with professional buyers.

• Often use multiple buying responsibilities. A household purchaser is


often the sole decision maker. Making a sale toan organization, however,
often requires selling to several entities within the buying center. For
example, you might be using a desktop computer at work, but the
decision as to what specifications were needed might have been set by
someone in the computer department, the decision to buy might have
been made by your department manager, bids taken by someone in the
purchasing department, and the final authorization made by the company
president.

• Often use multiple suppliers. It is often desirable to have a long-term


relationship with more than one supplier, even if a second supplier has
higher prices for otherwise similar terms and conditions. If problems in
quality or delivery are experienced with a supplier, production can still be
maintained if the second supplier can be used to replace the first. The
ideals of a cozy, trusting relationship that has been promised with
strategic alliances in the popular business literature does not always work
if it leaves one party vulnerable as a sole supplier or buyer.

• More likely to require exact specifications. A household purchaser


might select a particular model of desktop computer for no other reason
than it has a pleasing color. An organizational purchaser is more likely to
set specifications regarding processor speed, memory, hard drive size,
and such before taking bids on price.

• Often lease equipment and space. As a household consumer, you would


probably prefer to own your own car, furniture, and home. These are
things that represent personal expression, status, and wealth. Your
objectives as a business manager, however, are very different. You might

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prefer to lease public warehouse space to provide the flexibility to change
locations when the market demands, to lease trucks so that you can leave
the problems of maintenance and disposition to someone else, etc.

• More frequently employ competitive bidding and negotiation.


Household consumers (especially those of us in urban settings) are more
likely to accept as final a price that is placed on a product in a retail
setting or to accept a price that is given to us by a service provider. As a
business manager, your employer is more likely to require that you
accept, say, three bids for a service or to negotiate various terms and
conditions associated with product specifications, delivery, and price.

Users: If you are a secretary, you might have had the experience of
arriving to work one day to find a new typewriter on your desk, whether
or not you even wanted it. A salesperson would not call on you if you had
no influence over what product was purchased. However, if you and your
co-workers submit numerous complaints about missing or problematic
features of the new replacements, the salesperson might be faced with a
very expensive customer service problem to solve. A user is the end
consumer of a product.

• Influencers: Perhaps in this case, the office manager was consulted


with regard to features or specifications to set in the purchase of new
typewriters. Although the office manager might have no decision-making
authority with regard to the purchase, whatever specifications s/he
requests could be used without change in making the purchase. A
salesperson might need to be aware of these influencers - a special trick
is to get the influencer to write a specification list that happens to match
the seller’s product features! An influencer is someone who has influence
over what is purchased.

• Deciders: In this case, some middle manager, ignorant of the needs of


secretaries, might have made the decision as to when and what to
purchase. The point of this statement is that the marketer or seller must be
aware of how it is that decisions are made and often must focus some or
all efforts at whomever it is that makes decisions in the organization.
Note, however, that decision-making authority does not necessarily mean
that this person exerts any influence on what is purchased. The company
president might be the only person who signs all purchase requisitions,
and therefore has ultimate decision authority, but might otherwise merely

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sign some requisitions without question or involvement. A decider is
someone who ultimately has authority if or what to purchase.

• Buyers: The final purchase transaction might be left to a purchasing


agent who otherwise has no involvement in decision-making. A sales
agent for an office equipment supply house might help an organization to
decide what brand of typewriters would be best, but that organization
could then allow the purchasing agent to find the best deal on that brand,
and the best deal with regard to price might come from a competing
office supply house. A responsibility of salespeople, then, is often to
maintain good, trusting, and long-term relationships with the purchasing
agents in prospective buying organizations, whether or not they have
purchased in the past. A buyer is someone who arranges the
transaction.

• Gatekeepers: Why do salespeople often give secretaries little gifts of


chocolates or flowers or an occasional free lunch? A secretary can be nice
or nasty in passing information in either direction. The prospective
buyer’s secretaries can be helpful in providing names, telephone numbers,
and office hours of key members of a buying center in an organization.
They can also be helpful in passing messages from the salesperson to
members of the organization. A gatekeeper could include anyone in the
organization who can control the flow of information. Some books use
the term Decision Making Unit to describe the notion of the buying
center, and some additionally include the entity of initiator. An initiator
would be a person who initiates the idea or a purchase. Note that the idea
of the Buying Center is conceptual - there is no such department in any
organization!

Application of Consumer Behavior: The consumer behavior has a


number of applications in the following areas of marketing:

Analyzing market opportunity: Study of consumer behavior helps in


identifying needs and wants which are unfulfilled. This is done by
examining trends in income, consumer’s life styles and emerging
influences. As I have taken case study of buying pattern of beers by the
consumers of Lucknow city so by studying trends in income, consumers’

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life style, their preferences, and other related issues will give opportunity
for marketers for assessing the demand for the two-wheelers.

Selecting the Target Market: The study of consumer trends would reveal
distinct group of consumer with very distinct need and wants. Knowing
who these groups are, how they behave, how they decide to buy, enable
the marketer to market product/services specially suited to their needs. By
studying consumer behavior, the marketer can plan and can segment the
prospects in a effective manner. He would position his in that locality in
which people can afford to pay easily.

Determining the Product Mix: Today most of the companies


manufacturing the two-wheelers produces the variety of brands in order to
meet the diverse need of the consumers. The knowledge of consumer is
most useful in determining the product mix and place the product in a
better and effective way.

Determining the Price of the Product: the decision related to price is a


critical factor for the management. To decide price, the manufacturer has
to choose that price level which maximises sales revenue. In a free market
economy where there is a tough competition in the market, manufacturer
try to gain competitive edge through setting different price policy.
Actually only thorough knowledge of consumer behaviour in actual
buying situation that marketer can hope to find answer to these issues.

Determining the Promotional Strategies: Marketer can plan promotional


strategies by knowing target consumer, their location, media to which they

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have access, their preferred media and role played by advertising in
influencing purchase decision.

Marketing Research is a vehicle through we can obtain information about


present and potential customer’s behavior, their reaction and prospective
about marketing. Learning more about the consumer and marketing is the
heart of marketing research. The objective of this study is to know about the
consumer’s perception & preference towards Beer of MML.

‘Beer’ it self has a niche in the market. A certain age group people use to
drink for the shake of just showing which some people take it just as a
substitute to whisky and do not Jan as that of whisky. The Beer industry is
developing with speed of app. 15%. The Mohan Meakin enjoys a good
position in the Beer Market by launching Meakin 10000 The coming up of
Multinational in the filed has made it tough for the company to capture the
same market share as it was enjoying few decades ago. Since thirty years
put now seeing the current requirements the company decided to change its
old pattern and planned to walk with the Traits. This study contains the
about the reaction of consumers towards the Beer. The target consumers are
there figured and the area for research is also sound and through it.

Through the proper & throughout research of the company & its
external environment the SWOT, Conclusion and Recommendation are
concluded with proper marketing strategies. This research study is
taken in NCR area.

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This research training helped me in getting more practical and enhanced my
awareness level of consumer oriented towards buying a product of liquor of
“Mohan Meakin Ltd.”.

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Chapter 2
COMPANY PROFILE
Review of previous literature

COMPANY PROFILE

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An Englishman named Edward Dyer from the UK who set up the first-ever
brewery in 1855 at Kasauli, India and brought to “Hindootan” the first thrills
of Modern beer. Riding on the ware of his successful venture, Dyer set up
breweries in the old Simla and Solan(U.P), Lucknow and Mandalay(Burma).
During this time another like minded Englishman H.G. Meaking, who haild
from a brewer’s family in Burton-on-treat, decided to set up shop on the sub-
continent and therafter founded the firm Meakins & co. He purchased the
old Simla and Kasalui breweries and constructed others at Dalhosie,
Ranikhet, Chakrata, Darjeeling and kirkee.

Both these firms E.Dyer & co. and Meakins & co. continued separate
business dealing up till the 1920’s. During World War I, when importing
beer was a hard risk, the two firms supplied cheap, but good quality beer to
the thirsty subcontinent. Huge quantities were sent overseas, like the Egypt,
where soldiers more than welcomed reasonably priced beer.

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After the first World War in 1953 the two were firms merged and formed
Dyer Meakin Co. The name and style recharged after reconstruction of the
Co. with the Indian asserts named Dyer Meakin Breweries Ltd.

As if being fashioned by history, the company once again went through


landmark change when two years after Indian Independence in 1949, the
management was taken over by the last N.N. Mohan. The company asserts
and profits register a manifold increase under a dynamic stewardship of N.N.
Mohan to mark the contribution of Mohan the company name changed from
Dyer and the name was Mohan Meakin Breweries Ltd. In 1967.

In 1969 Mr. N.N. Mohan passed away & reins of the bursting conglomerate
feel into the hands of both his sons, Col. V.R. Mohan and Brig. Kapil
Mohan, and under his stewardship the Company saw vast growth. Assisted
by their father’s vision they laid the foundation for the Mohan Nagar
industrial complex (Near Delhi on G.T. Road) which began production in
1962 and comprised of production activities such as a distillery, brewery,
cold storage Unit, ice factory, malt extract Unit, food products Unit,
breakfast food Unit and glass works etc.

The first brewery is established for the purposed to simply quality spirit to
the drinking people at kasuali. They found good quality of water of natural
spring at koral peak above the village known as solan therefore, the beer
making was shifed from kausli to solan that is company conducted survey.

During the probation years in the seventies the company acquired a number
of units which were on the average of collapse. Some of the more notable

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ones were Artos Brewery in Andhra Pradesh, Mysore, Fruit Products
Limited in Bangalore and Nagaland Distillery in Nagaland. These Units
were made highly productive within a short span of time. The cultivation of
‘hops’ an important ingredient in beer manufacture, was for the first time in
India, undertaken by the Company in Jammu & Kasmir. In keeping with the
times, Mohan Meakins also entered the international market in a big way
and began export of beverage to countries such as the U.S.A. U.K., Japan &
the nation of Western Europe and the Middle East.

The company also began export of manpower and technical know how
overseas especially where collaboration existed. A distillery and glass
factory was set up the Meakins personal at Nairobi, Kenya, and breweries
were set up in Nepal and Bhutan.

Apart from liquor, the other Meakin products which began to view for
good quality profile were Mineral water, Cornflakes, Mango Nectar and
Apple juice. Brig. Mohan was also instrumental in promoting a new
venture called SIDECO Mohan Tool Kerla Ltd. Which was a Meakin’s
project in collaboration with the Kerla State Industry & Employment
Corporatrs. A bottling plant at Bhankarpur(near Chandigarh)and
Collaboration with South Indian parties for sale of IMFL Brands were
among other steps company took in ordet to consolidate its market
position. It was this transformative inclination that lead the Company
to rename itself in 1980 as Mohan Meakin Litmited.

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Production of beer by Indian Breweries is 75 million cases(12 bottles of 750
ml) or 47 millions, & 15% to 17% beer market cover by Mohan Meakin Ltd.

A few last words on Mohan Nagar, virtually a township equipped with its
own hospital, schools staff quarters. Most officers working with Mohan
Meaking have seen at least twenty years of Service and these are surely
many morts to come. They sear loyalty to the company & its head and point
to the fact that cordial relations between the entire working staff, numbering
5,000 are the backbone of Meakins stability.

PARENT UNIT
OF
MOHAN MEAKIN LIMITED

The registered office of Mohan Meakin Limited is situated at solan in H.P.


and its manufacturing and bottling centers are located at:

Solan H.P. : Distillery, Brewery and Bottling

Kasauli H.P. : Distillery

Lucknow U.P. : Distillery, Brewery, Glass Unit

Mohan Nagar U.p. : Distillery, Brewery, Glass Unit, Bottling &


Fruit juice Unit

26
SISTER CONCERNS COMPANIES

A. IN INDIA

1) Mohan cold water Brewery Ltd. Lucknow.

2) Mohan Rocky Spring Water Breweries Ltd. Maharashtra.

3) Mount Shivalik Breweries Ltd. Punjab.

4) Astob Breweries Ltd. A.P.

5) Nagaland Distilleries Ltd. A.P.

6) Mohan Breweries & Distilleries Ltd. Madras.

7) Shivalik Kenima Pvt. Ltd. Gwalior.

8) Golden Drink Pvt. Ltd. Gwalior.

9) Sidco Mohan Kerla Ltd. Kerla

10) Mohan Chemicals & Dyers Ltd. Kerla.

11) Mysore Fruit Product Ltd. Mysore.

12) Mohan Sharmik Udyog Ltd.

13) Mohan Zupack Ltd.

14) Maharashtra Distilleries Nagpur.

27
B. OUT SIDE INDIA

The Mohan Meakin Ltd. Has provided technological know how


machinery and trained personal to set up projects as follows:

1) The company has helpers to set up distillery under the Arug Welfare
project in Bhutan.

2) The company has established a Brewery in collaboration with


Himalayan Breweries Ltd. At Katmandu (NEPAL).

3) In Kenya Mohan Meakins (KENYA) Ltd. have a distillery and a Glass


factory.

28
COMPETITION

Today’s world is the world of Competition. In every field there is


competition, the success of any company or product is also largely
depends upon competition. At present scenario customer became aware
about the market, he has full knowledge of the market.

Competition provides a good quality of product to the customers. If a


company wants to survive itself he will have to face through-cut
competition. In liquor industry there is also competition. The increasing
awareness and exposure to wines among consumers and the removal of
quantitative restrictions in 2001 has been a big boost to the wine industry. It
saw the emergence of new companies like Future Wine and Spirit Brand (P)
Ltd (FWSB), set up recently by two non-resident Indians (NRIs) from USA.
The consumption of liquor is growing at 20 per cent per annum. ‘Beer’
consumption in the country is slated to treble in the next ten years with the
segment for strong beer segment registering high growth. It boasts of a
growth of 25 per cent per year. The increasing awareness and exposure to
wines among consumers and the removal of quantitative restrictions in 2001
has been a big boost to the wine industry.

The major Competitors of Mohan Meakin Ltd. Products are below: -

29
United Breweries:

In 1898, UB Group was established with the name of McDowell’s. The


company is going to continues to be India’s no. 1 spirits company. The
market share of the company is 36% in the spirits industry with growing.

1) Shaw Wallence:

In 1886 Shaw Wallence is established in Calcutta. SWC is one of the


leading spirits and Beer Company in the country with brands like Royal
Challenge, Director’s Special and Hawards 5000. The market
share of the company is 15% in the spirits industry.

2) Jagajit Industry:

Jagatjit Industries is owned and managed by Bhai Mohan Singh. It has one
of the largest distilleries in the country located at Kapurthala in Punjab. The
company's main market is in the Northern part of the country. Aristocrat and
Bonnie Scot are its two leading brands. The company also manufactures and
markets malted food drinks. Besides the Kapurthala plant, the company has
3 other plants in UP located at Noida, Sahidabad and Sikandarabad. The
company has a 9% market share in the Indian liquor market.

30
There are other such company which are in Keeping in view the day to day
increasing competition in the field & to meet the demand of the customer’s
more efficiently and effectively, the company has used easy and simply
way of distribution channel to reach the product directly to the customer.

PRODUCT PROFILE
1) BEER
Meakins 10000
Golden Eagle
Golden Eagle Deluxe Premium
Black knight Super Strong
Solan No.1 Extra Strong
Solan No. 1 Super Strong
GymKhana
Golden Eagle Herbal Beer
Asia 72 Mild Beer
Lion Beer

2) WHISHKY

Solan No. 1 Malt Whisky


Summer Hall
Colonel’s Special Malt Whisky
Golden Eagle
Diplomat Deluxe Malt Whisky
Black Knight Malt Whisky
King Castle
Cellar 117
M.M.B. Whisky
Old Master

31
3) RUMS

Old Monk Supreme


Old Monk Gold Reserve
Old Monk White Rum
Black Beauty
Old Monk XXX Rum

4) BRANDIES

Triple Crown
Golden Eagle
Doctor’s Reserve No.1
DM
M.M.B.

5) GINS

Big Ben London


M.M.B.

6) JUICE

Mohan’s Gold Coin Apple Juice


Gold Reserve Mixed Fruit Juice

7) Vodka

Kaplansky Vodka

8) MINERAL WATER

Golden Eagle Mineral Water


Mohan’s Mineral Water

32
9) BREAKFAST FOODS

Mohan’s New Life Corn Flakes


Mohan’s Wheat Porridge

10) VINEGARS
Mohan’s Pure Malt Vinegar
Mohan’s Synthetic Vinegar

11) EXTRACTS
Brewer’s Yeast
Malt’s Extract

12) OTHER FOOD


Pickle
Jam & Jelly

13) EXPORT PRODUCTS


Beers
Rums
Whisky
Brandy
Gin

33
THE LIQUOR INDUSTRY IN INDIA
Despite step-motherly treatment from the government by way of exorbitant
taxes and negative policy decisions, the liquor industry has managed to stay
afloat and is on the verge of tremendous growth. Achal Dhruva does an in-
depth analysis...

The Indian brewing industry has been on a roll for the past many years,
despite bans by some state governments and an unfavorable policy
environment. Despite declining trends worldwide, the Rs 5,000 crore Indian
liquor industry has been growing rapidly and multinational companies with
unremitting regularity innundate the Indian market with new brands. This
trend has been fostered to a great extent by the removal of quantitative
restrictions.

34
The overall growth of the liquor industry has been reflected by the findings
of International Wine and Spirit Records (IWSR), an UK-based research
organization, which states that India took over US as the largest whisky
consumer two years ago and the consumption is growing at 20 per cent per
annum. IWSR also places India in third position worldwide in the spirits
segment. Beer consumption in the country is slated to treble in the next ten
years with the segment for strong beer segment registering high growth.
Besides these traditionally strong segments i.e. beer, whisky and other
spirits, India has a potentially huge market for wines and pre-mixed drinks
or Ready To Drink (RTDs).

35
Raising A Toast:

While the wine industry accounts for less than one per cent of the alcohol
and spirits industry in India, it boasts of a growth of 25 per cent per year.
The wine market in the country is estimated at 2 million bottles, including
wine made in Goa, a quantum jump from six lakh bottles in 1997.

There has been a huge influx of foreign wines in the past few years with top
international wine companies like Ernest and Julio Gallo (California), Veuve
Clicquot Ponsardin (French), Cranswick Estate (Australia), Nelson Creek
(South Africa), Lost Horizons (South Africa) Riunite (Italy) introducing
their top selling brands in the Indian market. The entry of so many
international foreign players has also aided the spurt in sales of foreign
wines, which increased from 13,500 bottles in 1997 to approximately 50,000
last year.

The increasing awareness and exposure to wines among consumers and the
removal of quantitative restrictions in 2001 has been a big boost to the wine
industry. It saw the emergence of new companies like Future Wine and
Spirit Brand (P) Ltd (FWSB), set up recently by two non-resident Indians
(NRIs) from USA. FWSB introduced fruit flavoured wines for the first time
in the country. Even established liquor companies like Radico Khaitan Ltd
have jumped on the wine brandwagon by tying up with Ernest and Julio
Gallo for distributing their brands in India.

36
However, according to H R Ahuja, senior vice-president, FWSB, “Though
the removal of quantitative restrictions has been a welcome move, the
government has levied additional custom duty to protect the domestic
market. Hopefully in this year’s budget the government will reduce the duty.
There is no threat to the domestic players as there is enough scope for all
players to grow. In fact the medium range wine below Rs 450, mostly
produced by the domestic players has recorded the highest growth.”

37
Echoing similar sentiments, Amar Jog, junior vice-president, Chateau
Indage, said, “There is enough scope for growth and more players will enter
the fray which is good for the industry.” Domestic companies like Chateau
Indage, Grover Wines and recent entrant Sula Wines have all done
exceedingly well.

38
Jog stated that a survey recently conducted by Ernst & Young indicated that
Indage constitutes 91 per cent of the wine industry in India. “Domestic
wines are now sold internationally which is a clear indicator of the quality.
Our wines are being sold in more than 300 restaurants in Paris alone. Soon
we shall be launching a wine in New York,” said Jog.

However, in his opinion the main pitfall faced by the domestic market is that
under international banners we may have very mediocre quality wines
coming in at very cheap rates. “This would definitely affect the domestic
wine market as we cannot match those prices and could give the market a
wrong turn. Apart from the Indian wineries, the consumer would also lose in
terms of the quality of wine available to him,” stated Jog.

Education of the consumer is the answer to this problem and most


companies have adopted it as part of their marketing strategy and as a means
of facing competition.

Jog said, “We initiated the concept of wine education in India and it is an
ongoing process. Besides taking care of the initial curiosity, an average wine
drinker knows what he or she is looking for. Besides, one has to provide
Value For Money (VFM) products as it is no secret that our market is
extremely VFM driven. Also the quality and type of wine is important,
growing the right kind of wine to suit the Indian palate.”

39
Domestic players have been around for two decades producing quality
wines, according to R Vazirani, vice- president sales, Radico Khaitan
Limited. In his opinion the availability of international wines will only foster
the growth of the small wine market in the country. Vazirani cited the
examples of Chile and Australia to elucidate this point. "A few years ago
these two nations were importing new world wines but today they are the
leading exporters," stated Vazirani.

Pre-mixed drinks or Ready To Drink (RTDs), introduced in the Indian


market in 2001 has great potential for growth. Bacardi Martini India Ltd
(BMIL) made a foray into the RTD alcoholic beverage segment last year
with the launch of Bacardi Breezer. The company, which is a 74:26 joint
venture between Bacardi and Gemini Distilleries introduced Breezers (a

40
fruit flavored drink with 4.8 per cent alcohol content) in three flavors - lime,
cranberry and orange, available in 330 ml bottles priced at Rs 40. Starting
with Delhi, Maharashtra and Goa, Bacardi Breezer will be distributed
nationally in a phased manner.

Globally, Breezer is available in many flavors, which includes watermelon,


cranberry, orange, lime, pineapple, peach, lemon and ruby grape fruit.
Breezer is currently available across 30 countries in the world with UK as its
biggest market. The brand stormed the UK in 1993 after tasting success in
the US and induced widespread consumer shift from pints of lager and white
wine. It was positioned as a credible alternative to beer.

According to Val Smith, chairman, IWSR, the market of RTDs in Britain is


10 million cases. “RTDs in the European market have eaten into the beer
sales by 10-15 per cent and the US beer market has also been hard hit. RTDs
will

41
be a success in India as worldwide it has done favourably in countries with
hot climate,” stated Smith. Targeted at the youth, RTDs has found favour
with those in the clubbing habit and also with women drinkers. Both
Baccardi Breezers and Romanov Shots introduced in five flavours (330 ml
bottles at Rs 40) are quite popular in the metros.

The reason for the success of RTDs in a short span of time is the value for
money factor and the perception of not being a hard drink. With the alcohol
content as low as mild beers it has a huge market amongst the youth. The
fruit flavoured taste is also an advantage compared to the bitter taste of beer.
“RTDs are making a mark world over and are creating new consumers. The
fears that RTDs will eat into the beer market are uncalled for as they are
targeting a totally different class and age group,” opined R Vazirani, vice
president sales, Radico Khaitan Limited.

Smith felt that RTDs offer a huge opportunity for major breweries in the
country to tap this segment as they can produce and distribute it easily.
While international brands like Bacardi Breezer and Smirnoff Ice are world
leaders even local brands in some countries have done exceedingly well like
Umex in Mexico. The tequila producer registered sales of 4 million cases in
just two and half years. Predicting a phenomenal growth in the next five
years with American breweries alone looking at a 80 million to 300 million
growth, Smith however feels that heavy taxation by the governments
worried about teens taking to drinking, may kill the RTD market.

42
THREE CHEERS FOR BEER

Despite being placed 39th in the world rankings, the beer market in India
with 5.6 million bottles is the most emerging market and is set for rapid
growth in the coming decade. USA with 232, China with 219 and Germany
with 107 million bottles is placed first second and third respectively. With
85 million potential beer drinkers set to be added in the next ten years, the
market will see penetration levels increase from 11 to 20 per cent.

According to Dr Mohan Krishna, deputy general manager-strategic


planning, Shaw Wallace Breweries Limited, factors like rising incomes,
changing lifestyles and removal of market distortions will fuel the growth of
the beer market. He informed that the strong beer is currently the largest and

43
fastest growing segment currently enjoying 61 per cent share while the mild
beer segment has 39 per cent share. While the mild segment has witnessed a
fall from 66 per cent in ’93-94, the strong beer segment has seen a growth
from 34 per cent in 93-94.

The three main reasons for the rise in strong beer segment, according to Dr.
Krishna, is that it gives greater intoxication (helps one get a kick), more
value for money (high kick for lower price) and in summer consumers prefer
to drink chilled strong beer instead of hard liquor. Consumption of strong
beer is pegged at 75 per cent in smaller towns and cities compared to 65 per
cent in metros and bigger cities. Studies according to Dr Krishna predict that
the mild segment will be placed at 21 per cent and the strong beer segment at
79 per cent of the total beer market in India by year 2011-12.

44
A host of international beer brands have entered the Indian market over the
past few years in the mild beer segment like Becks, Fosters, Corona, San
Miguel, Cobra, Castle Lager. Among these Fosters has made the biggest
impact. Among the Indian brands in the mild segment Kingfisher of United
Breweries, Royal Challenge from Shaw and Wallace are amongst the most
popular brands. Kingfisher has also made its impact abroad. Smith felt that
Indian strong beers were really good and comparable with the international
brand. He said that there was great potential in marketing Indian strong
beers, especially in France and United Kingdom. “The French are interested

45
in stocking novel beers and Indian strong beers could find place in
restaurants in Paris and London along with Japanese, Chinese and Kenyan
beer. The marketing trick to sell Indian beers abroad is to have a very
definite Indian identity as consumers should identify the product with India,”
stated Smith.

46
Whisky WISE

Whisky is the largest segment of the liquor industry in the country. India
today is the largest consumer of whisky overtaking USA two years ago,
according to the IWSR study. According to Smith, domestic whisky growth
is concentrated in India with the other big market Japan registering a fall.

The Indian Made Foreign Liquor (IMFL) and scotch segments is pegged at
79.5 million cases in India with 2.5 million cases in premium and above, 7
million cases in prestige and above, 31 million cases in regular and 39
million cases cheap and medium categories.

IMFL is split into categories, the first Rs 150 and above which constitutes
the bread and butter for the industry accounting for 92 per cent of whisky
industry profits and roughly 52 per cent of the volume while the second
category is the Rs 90-140 price range accounting for 42 per cent of volumes
but contributing just 8 per cent of the whisky industry profits. However this
category helps mop up volumes in big markets like Tamil Nadu and Andhra
Pradesh. The mid-segment has shown the maximum growth with brands like
8 PM whisky from the stable of Radico Khaitan Limited entering the Limca
Book of Records for selling more than a million cases in its launch year.
However, domestic players face a threat from international players with the
expected total removal of quantitative restrictions by 2004-2005. Already

47
quite a few international companies have entered the Indian market. “We
will have to face the challenge and improve our product and packaging. It
should be turned into an opportunity to offer our customers more value for
money,” said Vazirani.

While all whisky in India is made from molasses the question often raised is
why doesn’t the Indian whisky manufacturers switch over to grain based
whisky? According to Jim Murray, author of Complete Guide to Whisky, the
Indian barley can offer the most intensely attractive spirit to taste. Murray’s
guess is that it is being consumed by the breweries that produce beer. The
reason for all whiskies having a molasses base is that India is one of the
largest producers of sugar cane in the world and molasses is a cheap by-
product of the sugar industry. The liquor companies purchase this as the
source material for conversion to alcohol and all that they have to do is to
add whisky essence and a little color to market it as whisky.

Murray said that some of the liquor companies do not even convert the
molasses into alcohol. They simply purchase the pure spirit. “The local
demand is so high that liquor companies cannot afford aging and whatever
aging take place is the time lag between bottling and casking. The average
price is in the region of Rs 175 to Rs 500 (USD 3.57 to USD 10.20). There
are some better varieties available from Rs 300-Rs 650. Since the local
whisky is available at such low prices, the masses do not care for real

48
Scotch, which is any way astronomically priced. More so when the kick is
same for whatever whisky it is,” says Murray.

On the other hand, due to the burgeoning elite class in cities like Delhi and
Bombay, the awareness and demand for deluxe whisky is increasing and
already international companies like Seagram’s, UDV are entering the
Indian market. There are representative offices of many of the well-known
foreign brands and there have been some joint ventures.

Among the other spirits like rum, vodka, gin, brandy etc rum followed by
vodka has done better than the rest in the Indian market. While the defense
canteen sales are one of the biggest markets of dark rum, white rum has seen
a marked growth. Flavored rum which is very popular in the US, Brazil,
Caribbean and Philippines is now being introduced in India. Indian brands
like Old Monk, Contessa Rum, Celebration are popular. Smith feels that
Indian dark rum is really good and comparable to international brands. In his
opinion Indian dark rum has good export potential. According to the IWSR
study, growth of Vodka has been mainly restricted to Russia.

DIFFEREENT DUTIES ON LIQUOR

1) Excise Duty

2) Export Pass Fee

49
3) Vend Fee

4) Sale Tax/Surcharge

5) License Fee

6) Toll Tax

7) Brand/Label Fee

8) Permit Fee

9) Transportation Fee

10) Import Pass Fee

11) Additional Duty

12) Distillery/Brewery License Fee

13) Bottling Fee

14) Litterage Fee

15) Assessment Fee

16) Franchise Fee

50
DISTRIBUTION SYSTEM
A. FOR RETAILORS

COMPANY

Order slip sent on the


behalf of the wholesaler

Goods delivered

Order slip sent to Excise Office


and Pay Excise Duty
WHOLESALER EXCISE OFFICE

Goods delivered

RETAILORS
B. FOR C.S.D.

COMPANY

51
Order slip sent on the
behalf of the C.S.D.

Goods delivered

Order slip sent to Excise Office


C.S.D. DEPOT
EXCISE OFFICE

Goods delivered

UNIT CANTEEN

CONSUMERS

C. FOR BARS

COMPANY

52
Order slip sent on the
behalf of the Bar Holder

Goods delivered

Order slip sent to Excise Office


and Pay Excise Duty
BAR EXCISE OFFICE

RESTURANT

53
SWOT ANALYSIS

SWOT ANALYSIS

54
Organization performs swot (Strength, Weakness, Opportunity, Threats)
analysis to identify and evaluates their competitive position.

STREGTHS:
1) The company has excellent distribution system.

2) The company has build a strong image among the customers.

3) The company has an excellent distribution system.

4) The company experiences excellent Brand loyalty for its Products


from the customers.

5) The company has made its Packaging attractive which lures the
customers and consequently the products are favorite among the
customers.

WEAKNESSES
1) Some products have high prices as compared to the other products.

2) The company branches are not spread through out the region; as a
result load of the work at the regional offices are tremendous.

3) The company pays less attention towards advertisement.

4) The brewery of the company is old and not up to expectation of


modern times.

OPPORTUNITIES

1) India has a vast potential market, which the company can get hold up.

55
2) The company can prove to be major threats for its competitor’s if it
increases its marketing efforts.

3) MML should concentrate on the premium segment market.

THREATS
1) The major threat that company faces is from its competitors who are
introducing products with more features at lower cost backed by
aggressive promotional schemes to attract buyer.

2) The new packaging style introduce by the company for the beer i.e. in
Tin is posing threat to the existing bottle packing system.

3) The arrival of the MNC is a major serious threat for the company.

PRESENT SCENARIO

56
“Scotch is not a mass product any where in the World. What the scotch
player will not say but do realize it that the scotch market in India is even
not self sustaining.”

While the wine industry accounts for less than one per cent of the alcohol
and spirits industry in India, it boasts of a growth of 25 per cent per year.
The wine market in the country is estimated at 2 million bottles, includingine
made in Goa, a quantum jump from six lakh bottles in 1997.

Jog stated that a survey recently conducted by Ernst & Young indicated that
Indage constitutes 91 per cent of the wine industry in India. “Domestic
wines are now sold internationally which is a clear indicator of the quality.
Our wines are being sold in more than 300 restaurants in Paris alone. Soon
we shall be launching a wine in New York,” said Jog.

At present, the domestic liquor industry is protected by high effective import


duties. These duties are likely to decline over the medium term and would
lead to entry of international majors.

Whisky is the largest segment of the liquor industry in the country. India
today is the largest consumer of whisky overtaking USA two years ago,
according to the IWSR study. According to Smith, domestic whisky growth
is concentrated in India with the other big market Japan registering a fall.

The Indian Made Foreign Liquor (IMFL) and scotch segments is pegged at
79.5 million cases in India with 2.5 million cases in premium and above, 7

57
million cases in prestige and above, 31 million cases in regular and 39
million cases cheap and medium categories.

The ‘Beer’ market is witnessing flurry of launches from the MNC’s by


having their collaborations done with the Indian partners. These
collaborations done by then are in two ways either share of profits or
technical partnership. Even scotch, the attempt now is stable all price ends.
Companies are launching scotch brands at premium regular and economy
ends.

58
FUTURE PROSPECTS
As far as the industry players are concerned, they are very optimistic about
future. The reason are very evident, a growing middle class with increasing
purchasing power, hanging life styles, changing social attitudes and above
all the large population. All these reasons are enough for the industry to be
upbeat about the future. Although whisky will continue to dominate, the
emphasis will be on the low alcohol drinks and white drinks.

In ‘Beer market the future is seem of Strong Beer. The three main reasons
for the rise in strong beer segment, according to Dr. Krishna, is that it gives
greater intoxication (helps one get a kick), more value for money (high kick
for lower price) and in summer consumers prefer to drink chilled strong beer
instead of hard liquor. Consumption of strong beer is pegged at 75 per cent
in smaller towns and cities compared to 65 per cent in metros and bigger
cities. Studies according to Dr Krishna predict that the mild segment will be
placed at 21 per cent and the strong beer segment at 79 per cent of the total
beer market in India by year 2011-12. According to the study report this is
say that 7-8 persons out of 10 like to alcoholic product. Thus it can be say
that the future of this can be bright and successfully.

The liquor industry in India is highly regulated with production, distribution,


advertising and marketing having to comply with various government
regulations. In addition, the liquor industry is subject to a high level of
taxation. The levels of regulation and taxation vary from State to State;
certain States have even enforced a policy of prohibition. The import of

59
liquor is also subject to a high import duty (at present, the effective duty is
over 300%). A significant feature of the Indian liquor industry is the
presence of a large illegal market selling both smuggled as well as illicitly-
distilled liquor.

The IMFL industry in India is estimated at nearly 84 million cases and is


growing at 8% per annum. Consumption is largely skewed towards whisky
which accounts for over 60 % of the market. Brandy accounts for 21%, rum
for 14 % and Whites (Gin, Vodka, others) for 5 %. Besides, there is a large
unorganized sector in the Indian liquor industry, consisting of local country-
liquor manufacturers. Within the IMFL segment, whisky and rum are the
largest segments, accounting for 60% and 16% of total IMFL volumes
respectively. Although the liquor industry worldwide is either stagnating or
witnessing negative growth, India's IMFL market is growing at 8-10% per
annum; currently, the country accounts for nearly 6% of the world's spirit
consumption.

The Indian liquor industry is characterized by intense competition among the


major domestic companies: Shaw Wallace, McDowell's, Herbertson's,
Mohan Meakins, Jagatjit Industries, and RKL. This would further intensify
competition, especially in the premium segment.

60
Chaptor3
OBJECTIVES

61
OBJECTIVES
It is said that the well defined objective is half attained. In order to
make sure that a proper research has been taken ensures defining clear
cut objectives and outline is a prerequisite. The research objectives of
the study are:-

 To determine the Market position of Beer produced by Mohan


Meakin Ltd.
 To determine the perception of consumer towards beer of Mohan
Meakin Ltd.
 To know the market share of Mohan Meakin Ltd. Regard to beer
only.
 To determine the competitors of Mohan Meakin Ltd.
 To analyzing the market expansion in future.

62
Chaptor4
RESEARCH METHODOLOGY

63
RESEARCH METHODOLOGY
This research was conducted to find out the awareness of the customers
towards the beer brands of MML.
Research refers to the systematic method consisting of enacting the
problems, collecting that facts or data, analyzing them and reaching certain
conclusion either in the form of generalization for some theoretical
formulation. The research conducted by me is Exploratory Research.

Exploratory Research: - This type of research is Qualitative and


Quantitative. Qualitative refers to the character of data or the process by
which the data are gathered. The researcher here tries to identify the
potential opportunities. But the research conducted here is designed to help
to choose among the various courses of action. This research is conclusive.
In this study a decision is made to select one course of action. The
hypotheses which is already established is in the market.

Statistical Method has been used by me to collect the data. The data has
been collected by interviewing the best unit.

DATA is a collection of raw information based on certain facts and figures.


It is collected on a number of ways mainly Primary and Secondary source.
In this research the data is collected form Primary source

Sampling: - The data was to be collected only from the Consumers and
Retailers. A questionnaire was prepared and interviewing with Retailers and
Consumers. On the bases of questionnaire conclusive research has been
done, which tells us the degree to which the product varies with user’s
characteristics like age, sex, income, etc. This research helps together facts.

 No. of Samples used in the Survey = 100


 Sampling used to find unit of Survey- Probability
 sampling Unit
For Retailer – Liquors Shop
For Consumer – Drinking ‘Beer’s
 Area of Research Study: - Luckno

64
Chapter 5
Findings of research

65
Drinking habbit of consumers

100%

80%

60% Drinking Habbit


40%

20%

0%
Yes NO

• As per the investigation at


beer shops and model
shops I have found that-
• 89% people who are
coming to beer shops are
consuming beer.
• 11% people who are
coming to beer shops and
model shops do not
consume beer.

66
Quality preference of consumers

60% • As per the investigation at


beer shops and model shops
50% I have found that-

40%
• 58% people who are coming
to beer shops and modal
30% Quality shop prefer strong beer.
prefeence
• 24% people who are coming
20% to beer shops and model
shops prefer mild beer
10%
• 18% people who are coming
0% to modal shop and beer shop
Strong Mild Both
or beer bars are choosing
either strong or mild beer
depending on the availability.

67
Awareness of MML
100%
90%
80%
70%
60%
50% Awareness
40%
30%
20%
10%
0%
Yes No

• As per the investigation at beer shops and


model shops I have found that-
• 99% people who are coming to beer shops and
modal shops are aware about the brand name
of MML
• Only 2% people who are coming to beer shops
and model shops are not aware about MML

68
Quality preference of consumers

100%
90%
80%
70%
60%
50% Quality
prefeence
40%
30%
20%
10%
0%
Strong Mild Both

• As per the investigation at beer shops and model


shops I have found that-
• 58% people who are coming to beer shops and
modal shop prefer strong beer.
• 24% people who are coming to beer shops and
model shops prefer mild beer
• 18% people who are coming to modal shop and beer
shop or beer bars are choosing either strong or mild
beer depending on the availability.

69
Brand preference in strong beer segment

100%
90%
80%
70%
60%
50%
40% Strong
beer
30%
20%
10%
0%
Hawards 5000

Meakins 10000

Kingfisher

Fosters

Golden eagle

• As per the investigation at beer shops and model


shops I have found that-
• 38% people who are coming to beer shops and
modal shop prefer Hawards 5000 strong beer.
• 21% people who are coming to beer shops and
model shops prefer Meakins 10000 strong beer
• 33% people who are coming to modal shop and
beer shop or beer bars prefer Kingfisher strong
beer.
• 4% people who are coming to modal shop and
beer shop or beer bars prefer Golden Eagle strong
beer. and
• Rest of 4% people prefer Fosters strong beer
depending on the availability.

70
Brand preference in Mild beer segment

100%
90%
80%
70%
60%
50%
40%
Mild
30% Beer
20%
10%
0%
Kingfisher

Fosters

Others

• As per the investigation at beer shops and


model shops I have found that-
• 83% people who are coming to beer shops
and modal shop prefer Kingfisher mild beer.
• 11% people who are coming to beer shops
and model shops prefer Foster mild beer
while
• 6% people who are coming to modal shop
and beer shop or beer bars prefer other
available mild beer..

71
Factors influencing purchase

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Taste

Price

Brand name

Packaging

• Other factors
As per the investigation at beer shops and model shops
I have found that-
• 42%% people who are coming to beer shops and modal
shop prefer taste of beer.
• 15% people who are coming to beer shops and model
shops prefer price of beer
• 23% people who are coming to modal shop and beer
shop or beer bars prefer brand name means they are
very much brand loyal.
• 9%% people who are coming to modal shop and beer
shop or beer bars prefer packaging of beer. and
• Rest of the 11% people prefer other factors that
influence the purchase.

72
Rating of MML
100%
90%
80%
70%
60%
50%
40%
30% Ratings
20%
10%
0%
Good

Satisfactory

Poor

• As per the investigation at beer shops


and model shops I have found that-
• 25% people who are coming to beer
shops and modal shops says rating of
MMlL is good.
• 62% people who are coming to beer
shops and model shops says rating of
MML is Quite satisfactory.
• 13% people who are coming to modal
shop and beer shop or beer bars says
it is poor.

73
Consumption frequency at a time

100%
90%
80%
70%
60%
50%
40% Consumption
frequency
30%
20%
10%
0%
1 bottle

2 bottle

>2 bottle

• As per the investigation at beer shops


and model shops I have found that-
• 56% people consume one bottle at a
time.
• 22% people consume two bottle at a
time.
• 22% people who are coming to modal
shop and beer shop or beer bars
consume more than two bottles/can at a
time.

74
Moment preference for
consumption
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
With friends

In sad mood

in happy mood

no reason

• As per the investigation at beer shops and


model shops I have found that-
• 47% people consume beer in a party/with
their friends.
• 12% people consume beer when they are
sad.
• 29% people drink beer when they are in a
good or happy mood.
• 11% people did not given any reason for
drinking beer.

75
Place preference for consumption
100% 80%
60%
40%

Place
20%
0%

Home

Bars/pubs

shops

Open space
Modal

• As per the investigation at beer shops


and model shops I have found that-
• 4% people consume beer in their homes.
• 33% people consume beer in modal
shops and restaurants.
• 53% people drink beer in bars and pubs
while
• 10% people drink beer in open space.

76
Sex wise consumption of beer

100%
50%
0%

male

female
• As per the investigation at beer shops
and model shops I have found that-
• 98% people consume beer are male.
• Only 2% people consume beer in modal
shops and restaurants are female.

77
Age wise consumption of beer

100%
80%
60%
40%
20%
0%

14-18years

18-21years

21-25years

>25 years
• As per the investigation at beer shops
and model shops I have found that-
• 9% people consume beer are between
age group of 14-18years.
• 26% people consume beer in modal
shops and restaurants are between age
group of 18-21 years.
• 28% people consume beer in modal
shops and restaurants are between age
group of 21-25 years.
• 34% people consume beer in modal
shops and restaurants are more than 25
years old.

78
Marital Status of consumers
100%
50%
0%

Married

unmarried

• As per the investigation at beer shops


and model shops I have found that-
• 52% people consume beer are married.
• Only 2% people consume beer in modal
shops and restaurants are unmarried.

79
Chapter 6
Conclusion

80
CONCLUSION
The study which has to be taken concludes that the product of MML is
satisfactory product for the consumers. The sale of MML is average rather
that Good. According to the previous study report of Business Today, MML
stand at 3rd rank in the Beer market.

The following are conclusion:-


A. CUSTOMERS
1) The awareness of MML is good to the consumer .

2) Strong Beer is much consume rather than Mild Beer.

3) Taste of Beer attracts most consumers while taking a Beer.

4) Consumers prefer Bottled Beer.

5) Most of the consumers feel happy after consuming Beer. They feel
relaxed after consuming Beer.

6) In U.P. consumer take Beer for Enjoy.

7) According to some consumer the Golden Eagle has no proper taste,


but their strong beer is doing well.

8) In strong Hawards-5000 & in Mild Golden Eagle is more preferred by


the consumers.

9) No attractive scheme is offered by the MML.

10) Consumers are not Brand loyal; they change their loyal according to
availability.

B. RETAILERS:-

81
Two most preferred Brands are Kingfisher and Hawards- 5000.

1) Hawards & other Brands expenditure on advertisement is much more


the MML Brands

2) Some Retailers do not feel happy while selling the MML product, due
to not attractive scheme & helped by consumer and they are attracted
towards condition of environment in and around the Retail shops.

82
BIBLIOGRAPHY

Books:

1. C.R. Kothari, RESEARCH METHODOLOGY , Wishwa Prakashan


Jaipur, 1990.
2. Prof. P.C. Tripathi, Human Resource Development, Sultan Chand
and Sons, New Delhi, 1st Edn., 1997.
3. Dr. C.B. Gupta, Human Resource Management, Sultan Chand &
Sons, Educational Publisers, New Delhi 1st Edn., 1996.
4. Gupta, S.P., Stastical Methods, 9th Revised Edn., 1997, S, Chand &
Sons, New Delhi
5. Thakur C.P. and K.C. Sethi, Industrial Democracy: Some Issue and
Experience, Shri Ram Centre for Industrial and Human Resource :
New Delh 1973.
6. Virmani B.R. Worker Participation in Management , Macmillan
Company of India Ltd, New Delhi 1978
7. Chandra S. Grievance Procedure: A survey of Practice of India ,
Administrative Staff College of India, Hyderabad 1968.

Journals:
1. Davis, William L. (1993). Performance appraisal: How extension
agents view the system. Journal of Extension. Winter, Vol. 31 (4): 15-
17.
2. Hejazi, Y. (1988). Extension agent's job attractions. Iranian Journal
of Agricultural Science. Vol. 18 (3-4): 27-38.

83
3. Gani, A. (1998). Appraising the performance appraisal systems.
Indian Journal of Training and Development. Vol. 28 (2): 60-70.
4. Jabeen, Shagufta (1997). Satisfaction of performance appraisal in
private and public organization. HRD News Letter. July-Aug. 1997. p.
7-10.
5. Muralidhar, S. (1993). Employee performance appraisal. Excellence
in supervision. Vol. 9 (4): 146-150.
6. Patterson, Thomas F. (1987). Refining performance appraisal. Journal
of Extension. Winter. p. 165-18
7. Riggs, Kathleen. (1993). Job satisfaction in Extension. Journal of
Extension. Vol.31 (2): 23-28.
8. Singh, D.P.N. and Singh, Ashok Kumar. (1990). Employee's
performance appraisal - where it can lead to? Paribandh, Oct. 1990 -
Mar. 1991. p. 10-15.

Websites:

1) www.hrfolks.com
2) www.google.com

84
Annexure

85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
Questionnaire
1) Do you drink Beer?
yes No

2) How often do you drink Beer?


Occasionally Regularly

3) What type of Beer is consumed by you?


Strong Mild Both

3(A.) Which Brand is preferred by you in Strong…………….?


3(B.) Which Brand is preferred by you in Mild………………?

4) What are most determinates factor affect you while purchasing Beer?
Taste Brand Name Price Other

5) Have you heard about Mohan Meakin Ltd.


Yes No

6) What do you feel about the rating of MML’s Products?


Good Satisfactory Poor

7) How much Beer is consumed by you within one time?


1Bottle 1-2Bottle >2Bottle

8) You drink Beer usually when you are


In the Party/with friends
In sad moment
In Happy
No reason

9) Does the retailer force you to purchase other Beer in the absence of
demanded Beer?

109
Yes No.

10) You like to consume the Beer at


Home
Bar/Pubs
Restaurant/modal shops
Open Space

11) Do you want to give any suggestion to MML for their product?
if yes then Please …………….

12) Personal Information


Name: _______________________________________
Address: _______________________________________
Sex: _______________________________________
Age: _______________________________________
Marital status: _______________________________________
Occupation: _______________________________________

Thank you very much for your kind co-operation.

110
B. FOR RETAILORS:

1) How many Brands of Beer is sold by you?


……………..

2) Which type of Beer is mostly demanded by the consumer?


Strong Mild Both

3) Which Brand in Mild Beer is mostly demanded………………

4) Which Brand in Strong Beer is mostly demanded………………

5) How much quantity of Beer sold by you of MML daily?


<10 cases
10-20cases
>20cases

6) Which Brand of MML has good sale in the Market?


Golden Eagle
Meakin10,000
Gold Lager
Other

7) Do you satisfied with the distribution system of the MML?


Yes No

8) Do you think that promotional expenditure helps to boost sales?


Yes No

9) Do you think that sales can be affected by providing scheme to you


and consumers?

111
Yes No

10) Biggest competitors of MML in the market.


……………….

11) Does the company representative visit your outlet regularly?


Yes No

12) Do you want to give any suggestion to MML for improvement?


if yes, then ………………………..

13) Personal Information


Shop Name:
Address:

Consumer behaviour towards consumption pattern of


beer brand by the consumers of Lucknow city

Research Guide

112
ACKNOWLEDGEMENT

113
Preface
In the changed business scenario, where organizations are required to
compete globally, benchmarks have also become global, organization
survival and excellence requires not only meeting the targets, but also
setting up of global standards. In the present scenario, to achieve world
class excellence or even surpass them depends upon the efficiency
marketing scenario of the company, which is the most important for any
organization.

The quest of productivity, quality and speed has spawned a remarkable


number of management tools and techniques. Total quality management,
bench marking, and Time based competition. Out servicing partnering,
reengineer, change management of feeling the gap between the originations
and the consumer, on the bases of market research are conducted by the big
organizations.

Today’s world is a world of competition. The concept of marketing is


totally has been changed, in every field customer became aware, now
the market is customer oriented. The prime motive of the company
should be customer delight hence to survive and achieve higher goals.

Beer is one of the alcoholic products. ‘Beer’ it self has a niche in the
market. A certain age group people use to drink for the shake of just
showing which people take it just as a substitute to Whisky and do not
Jan as that of whisky.

Alcoholic products are excisable item, which is controlled by the


Government. The Government earns much money from Alcoholic
product due to much excise duty on Alcoholic product. The liquor
company work under the rule and regulations of the Government. It is
very necessary and compulsory for distributors of alcoholic to take
license from the Government.

114
Present study is aimed with objectives to
 To determine the Market position of Beer produced by Mohan
Meakin Ltd.
 To determine the perception of consumer towards beer of Mohan
Meakin Ltd.
 To know the market share of Mohan Meakin Ltd. Regard to beer
only.
 To determine the competitors of Mohan Meakin Ltd.
 To analyzing the market expansion in future.

The Project Report consists of six chapters and selected


bibliography. The first three chapters include as Introduction to
consumer behaviour, review of previous literature which include
company profile, competitors list, product list, company’s
strategies, market position etc. and objectives of study. Research
methodology and research design of the Study is presented in fourth
chapter. Fifth chapter includes research findings and chapter six
contains conclusions and limitations of the dissertation. It is hoped
that the Project Work will be able to achieve its stated objectives.

115
CONTENT SHEET

ACKNOWLEDGEMENT

DECLARATION

PREFACE

List of Tables

TOPIC PAGES
From – To

1 Introduction to Consumer 1-21


Behaviour
22-60
2.
Review of Previous Literature

3. Objectives of the study and


Research Methodology 61-64
4 65-76
Analysis of Survey Results.

5. Conclusions and Suggestions. 77-79

6. Bibliography 80-81

Annexure
VIII-IX

116
Lists of Tables
S.No INDEX Page No.
1 Age wise classification of respondents 77
2 Sex wise classification of respondents 78
3 Marital status 79
4 Education level wise classification of respondents 80
5 RESIDENTIAL BACKGROUND 81
6 82
Classification of respondents on the basis of family size

7 Monthly income of the respondents 83


8 Present nature of industry 84

9 Job profile of the employees 85


10 Category of employment 86
11 Nature of job in the organization 87
12 Importance of job in the organization 88
13 Matching of job with salary 89

14 Association of Respondent’s perception about matching of their 90


job with their educational qualification
15 Provision for financial incentives 91

16 Type of incentive 92

17 Kind of incentives 93
18 Prefernce of incentive 94

19 Satisfaction with the kind of incentive 95


20 Suggestion for incentive 96
21 Utilisation of professional capability 97
22 Degree of Association of Employee's educational qualification 98
and utilisation of their professional capability

23 Willingness to work outside lucknow 99

117
24 Degree of Association of respondents age and their willingness to 100
work outside Lucknow

25 Reason of not working outside lucknow 101

26 Interest of organisation in the welfare of its employees 102

27 Degree of Association of provision of financial incentive for the 103


good job done and interest of organisation in the welfare of
employee's

118
BIBLIOGRAPHY

Books:

8. C.R. Kothari, RESEARCH METHODOLOGY , Wishwa Prakashan


Jaipur, 1990.
9. Prof. P.C. Tripathi, Human Resource Development, Sultan Chand
and Sons, New Delhi, 1st Edn., 1997.
10.Dr. C.B. Gupta, Human Resource Management, Sultan Chand &
Sons, Educational Publisers, New Delhi 1st Edn., 1996.
11.Gupta, S.P., Stastical Methods, 9th Revised Edn., 1997, S, Chand &
Sons, New Delhi
12.Thakur C.P. and K.C. Sethi, Industrial Democracy: Some Issue and
Experience, Shri Ram Centre for Industrial and Human Resourc :
New Delh 1973.
13.Virmani B.R. Worker Participation in Management , Macmillon
Company of India Ltd, New Delhi 1978
14.Chandra S. Grivence Procedure: A survey of Practice of India ,
Administrative Staff College of India, Hyderabad 1968.

Journals:
9. Davis, William L. (1993). Performance appraisal: How extension
agents view the system. Journal of Extension. Winter, Vol. 31 (4): 15-
17.
10.Hejazi, Y. (1988). Extension agent's job attractions. Iranian Journal
of Agricultural Science. Vol. 18 (3-4): 27-38.

119
11.Gani, A. (1998). Appraising the performance appraisal systems.
Indian Journal of Training and Development. Vol. 28 (2): 60-70.
12.Jabeen, Shagufta (1997). Satisfaction of performance appraisal in
private and public organization. HRD News Letter. July-Aug. 1997. p.
7-10.
13.Muralidhar, S. (1993). Employee performance appraisal. Excellence
in supervision. Vol. 9 (4): 146-150.
14.Patterson, Thomas F. (1987). Refining performance appraisal. Journal
of Extension. Winter. p. 165-18
15. Riggs, Kathleen. (1993). Job satisfaction in Extension. Journal of
Extension. Vol.31 (2): 23-28.
16. Singh, D.P.N. and Singh, Ashok Kumar. (1990). Employee's
performance appraisal - where it can lead to? Paribandh, Oct. 1990 -
Mar. 1991. p. 10-15.

Websites:

1) www.hrfolks.com
2) www.google.com

120
Chapter 1
Consumer Behaviour

121
122