ANIL SURENDRA MODI SCHOOL OF COMMERCE,

MUMBAI

OPERATION RESEARCH
Use of OR in alcoholic beverage industry in India

Admin Group 10
Tanushka Bansal 46
Tanvi Jain 47
Tilika Chawda 48
Vatsal Chitalia 49

TABLE OF CONTENTS
Sr. no. Particulars
1 Introduction
2 Analysis
3 Conclusion
4 Primary survey questionnaire
5 Primary survey report
 INTRODUCTION TO THE INDIAN ALCOHOLIC
BEVEARGE INDUSTRY

Alcohol is basically any beverage that contains ethyl alcohol of agricultural origin in random
proportion, derived either through natural fermentation or manually added during process.
Ethanol or ethyl alcohol is produced through a natural process when the yeast converts the
sugar contained in fruit, cereals and sugarcanes, into alcohol. Pure alcohol is a colorless, pure
liquid. The process used for its preparation is called fermentation.
India is the 3rd biggest worldwide spirits market by volume placing India just behind China and
Russia. India is also one of the fastest growing alcoholic beverage market place in the world.
The domestic alcoholic beverages industry has recognized that teenagers and ladies population
are the key target for manufacturers and sellers and they are primarily focusing on these
vulnerable groups by the way of innovative marketing campaigns. India is one of the few
nations which are considered world‘s most restrictive places for trade and doing business. In
2014, it was ranked 110 out of 152 countries, in terms of economic freedom, by the Economic
Freedom of the World Report. Its Freedom to Trade Index was 6.2 (highest score 10.0), 124
Doing business in India remains difficult for both foreign and domestic companies. India was
ranked 133 out of 152 countries by the World Bank in 2017 in Ease Of Doing Business
Scoreboard. Many studies have shown that trade barriers continue to be a major restriction to
India‘s development and prosperity, which is now making trade liberalization and further
deregulation very important to its economy.
The industry is continuously introducing brand new innovative products, such as flavoured
alcoholic drinks, to gain the attention of the non-drinkers in this group. The availability of
alcohol is increasing in India; there are more outlets in shopping malls and popular market
places, which make it easily accessible. In certain states, some alcoholic drinks like wine and
beer can be sold in supermarkets that increase the availability and the reach potential of these
products. Increase in physical availability of alcohol leads to increase in alcohol consumption
and alcohol related negative effects on health and society as well. Intensive engagement of the
alcohol industry is observed in social initiatives and policy related activities under the broad
framework of corporate social responsibility (CSR), which now-a-days are part of a more
general strategy that is designed to further the industry’s political and economic interests. Just
like the global alcohol industry, the Indian industry too has seen players with strong brands;
diversified portfolios and large scale of operation to gain huge amounts of market share. The
Indian liquor industry comprises the IMFL, country liquor, foreign liquor bottled in origin
(BIO), illicit alcohol, wine and beer category.
In the following research report, we have divided the entire industry into parts and studied them
individually. The segments of our research are: drinking habits & patterns, manufacturing,
marketing & advertising, trade restrictions & government policies, effect on health, effect on
society, logistics & supply chain management. This report also has a primary survey attached
at the end which was conducted in academic year 2018-2019 by the students of this admin
group. The aim of the primary survey was to identify patterns in consumption patter and the
factors affecting the same.
 LITERATURE REVIEW
1. Drinking habits in ancient India.
Indian Journal of Psychiatry

Consumption of any kind of intoxicating substances has been present throughout the history
of the world. This article traces back such use in the ancient Indian subcontinent. References
to the use of alcohol as a form of intoxication are to be found in the Vedas, the Great Epics,
and the ancient Tamil literature. In the words of the Mahatma Gandhi, who was the first
person to start a movement of abolishing all kinds of intoxication from india, the information
given in his book: Young India (published from 1913 to 1932) will definitely help the
reformer who is bent upon ridding India of the double evil of drink and drug.

2. An overview of Indian alcohol industry

K. L. Sowmya Shree, C. Kavya and G. N. Nagaraja

Indian subcontinent is the 3rd biggest liquor industry by volume of sales internationally, just
behind larger countries like Russia and China. In certain parts of the country, some alcoholic
drinks like beer, brandy and wine can be sold in supermarkets that further increase the
availability. The alcohol industry in India is a high-risk industry, because of the high taxes and
various regulations governing it. The Indian liquor industry comprises the Indian Made Foreign
Liquor (IMFL), country liquor, foreign Liquor Bottled in Origin (BIO), illicit alcohol, beer and
wine segments. The overall IMFL market is increasing at the rate of 9 to 10 per cent annually
and growth rate of 11.9 per cent in the last financial year (2011-12). Country liquor produced
in local licensed distilleries and is made of cheap raw material, primarily rectified spirits of
grains or molasses. The cost of producing country liquor is very less, the excise duties are also
very small as compared to other foreign liquor brands. Beer has become a popular beverage in
the country in the last two decades only, before that beer was not so famous as an alcoholic
beverage.

3. Alcohol Marketing and Regulatory Policy Environment in India

Dr Monika Arora, Ms Priyanka Dahiya, Dr Gaurang Nazar, Dr Himanshu Gupta, Ms Deepti
Singh, Dr Pratap Kumar Sahoo, Ms Bompu Gamlin, Ms Kavita Chauhan

This report highlights the various characteristics of the alcohol industry. This report highlights
the key alcohol manufacturing players in India and the types of alcoholic beverages and brand
names available in the Indian domestic market. It also highlights the production and selling of
alcohol under different names. The second section of this report analyses policies that regulate
alcohol in different parts of the Indian subcontinent. The third section throws light on the
advertising and promotion of alcohol products across India and how the industry plays around
with the laws regulating and prohibiting alcohol advertising. In conclusion, the report
recommends strategies and interventions for policymakers and other key stakeholders to
consider as part of a comprehensive alcohol control policy in India.
4. Alcohol consumption in India:

Anita Chopra, Davinder Mohan, Hem Sethi, Rajat Ray

Alcohol consumption has been existing in India for many centuries. Under British rules, India
witnessed a slow and steady rise in alcohol availability and consumption. There was a change
in the types of beverages consumed, pattern of drinking as well as the attitude of society
towards alcohol. Better fermentation and distillation processes and packaging technology
resulted in alcoholic beverages becoming a massively-produced item and the improved intra-
country transport facilities also contributed to its easy availability. According to studies
conducted in different parts of India, the prevalent rates of use of alcohol beverages among
men is 23 to 74 percent and among women is 28 to 48 percent. There is a visible change in
pattern of drinking, as it has changed from ritualistic and occasional to a part of routine social
interaction and entertainment. In western and southern parts of India, public bars and pubs have
emerged. Different types of alcoholic beverages are consumed in India. India made foreign
liquor (IMFL) consists of whisky, rum and brandy with a 42.8% maximum alcohol content
permitted. Country liquor is distilled alcoholic beverage made from locally available cheap raw
material with alcohol content around 40%. Illicit liquor is mostly produced clandestinely in
small product units with raw materials similar to that of country liquor with alcohol content up
to 56%. Besides these, producing alcohol at home for self-consumption is also common in
some parts of India. Lastly is beer, with alcohol content of 5 to 8 percent. Distilled beverages
are most frequently consumed, with beer becoming more popular among youngsters. Thus, it
should be noted that India is viewed as having a minority of current drinkers and among them,
a majority of heavy drinkers.

5. Effect of Surrogate Advertising in Alcohol Industry

Punit Kumar, Amit Verma, Ranit Halder, Punjala Varun Datta

Advertisements are used to get the attention of people thereby forming a distinct image in one’s
mind. Alcohol and cigarette advertisements were found to have severe impact on people which
lead to increased consumption rate. So Indian government announced a ban alcohol and
cigarette advertisements in 1995 (Nathwani 2016). This gave birth to the rise of surrogate
advertisements in India. Surrogate advertisement is a form of advertisement used for
advertising banned products by replacing them with a surrogate product. In India we can find
many surrogate advertisements like Bacardi using music CD’s, McDowell’s and Bagpiper
using soda water as surrogate to promote its alcoholic products. The aim of this study is to
study the how surrogate advertisement was evolved, incidents leading to rise of it, effects of
surrogate advertisement in India. How these advertisements can effect youth, whether they are
influenced by the role models pitched in to advertise the brand.
6. Liberalizing Liquor Trade in India
D. Dhanuraj and Rahul V. Kumar

India has the fastest growing liquor market in the world. However, constraining government
policies still keep foreign liquor out of the country and limit liquor trade across states which
leads to price of domestic liquor being extremely high for domestic consumers. This paper
offers an analysis on India’s liquor policies and their effect on people. This paper examines the
issues that the liquor industry in India is facing and suggests liberalizing the sector for specific
advantages to its various stakeholders.

7. A Conceptual Review Of Advertising Regulation And Standards: Case Studies In The

Indian Scenario
Panchali Das

The purpose of this particular study is to analyze three case studies of products, which have
generated debate due to its controversial nature like infant milk food, tobacco and alcoholic
beverages, and soft drinks and fast foods. It also seeks to study the background and the
regulatory framework within which it functions. The study also seeks to briefly study the roles
and functions of the Advertising Standards Council of India (ASCI) within the boundaries of
self-regulation.

8. Alcohol marketing on YouTube: exploratory analysis of content adaptation to enhance

user engagement in different national contexts

Himanshu Gupta, Tina LamSimone ,PettigrewRobert J. Tait

There’s very little information online about how social media alcohol marketing is utilized for
alcohol promotion in different national contexts. There doesn’t seem to be any educational
study on online exposure to alcohol promoting via social media in India, and most of the limited
research in Australia has focused only on Facebook. Hence, this present study contributes to
previous research by investigating on alcohol promotion conducted on YouTube in two
completely contrasting geographical regions. This study analyzes and compares the types of
strategies used by promoters in Indian and Australian alcohol brands with the greatest YouTube
presence, and the degree to which users engage with these strategies.

9. Misuse of social media marketing by alcohol companies

Zakirhusain A Shaikh, Rambha Pathak, MC Kapilashrami.

The intake of alcohol is rising especially in young people and women. This increased intake of
alcohol can be attributed to aggressive and innovative marketing, in spite of restrictions on its
marketing. Social media, now a days, has been misused by alcohol manufacturing companies
for marketing their products legally, due to legal loophole. The present study examined the
reach of alcohol producing companies on social media and the marketing strategies used by
them to increase their sales. In this study Facebook, Twitter and YouTube were explored for
accounts and content by alcohol companies for marketing their product. Policies of social
media sites related to alcohol marketing were also examined and studied. Alcohol marketing
was measured in terms of content posted by alcohol companies, the extent of use of direct or
surrogate advertisement and engagement with users. The findings of this report was that
alcohol companies have been conveniently using social media to target young urban population
with direct and surrogate advertisements of their products. Current social media policies and
laws are ineffective in controlling it. The authors fell that amendment of laws pertaining to
alcohol marketing to include social media also in its ambit is necessary. Social media sites
should revise their policies to prevent alcohol marketing and promotion especially to underaged
users.

10. Consumption of alcohol and women in India.

Ms. Aatika Singh
When it comes to alcohol consumption by women in a country like India, known for its
abstinence, the present trend clearly tells that the old age notions of who drinks what, where
and when are altering considerably. Alcohol has almost become ubiquitous these days. Today,
the common purpose of people consuming alcohol is to get drunk. The pattern of drinking in
India has changed from occasional and ritualistic use to social use. Women drink alcohol for a
variety of reasons- to celebrate a special occasion, help them feel more sociable, or simply to
unwind with family and friends. 
The Health Hazards of Alcohol Consumption are Increased
risk of violence and sexual assault, Increased risk for suicide, cirrhosis, hepatitis, Osteoporosis,
fall and hip fractures, premature menopause, Infertility and miscarriages, High blood pressure,
Brain and heart diseases, Breast cancer, digestive track and of the head and neck.

11. India: alcohol and public health

Vivek Benegal

The per capita consumption in a 2l per adult in India, after adjusting for undocumented
consumption (illicit beverages as well as tax-evaded products), which accounts for 45–50% of
total consumption, which is likely to be around 4l, but still low compared to that in wet nations.
Spirits, i.e. government-licensed country liquor, Indian-made foreign liquors such as whisky,
rum, vodka and gin and illicitly distilled spirits constitute more than 95% of the beverages
drunk by both men and women. Beer accounts for less than 5% of consumption. Wine is a
nascent but growing market. Repeated observations have documented that more than 50% of
all Indians are still among the world's lowest consumers of alcohol—government statistics
show only 2% Officially, of women drink but up to a fifth of this group—about 14 million
people—are dependent drinkers who require “help”. The local industry has recently introduced
flavoured alcohol drinks to attract previously non- drinking women. Multinational companies
have identified India due to its vast unexploited markets as one of the world's most sought after
places for investment.

Women are also more likely to abuse alcohol in order to self-medicate problems such as
depression, anxiety, and stress, or to cope with emotional difficulties. Thus, the rising rates of
alcohol consumption by women are a sign of parity. drinkers satisfy criteria for hazardous
drinking. The signature pattern is one of heavy drinking, typically more than five standard
drinks on a typical occasion. There is surprisingly little difference between amounts drunk by
men and women. Although a large proportion of drinkers of both genders drink daily or
almost daily, the frequency is significantly higher in men. Alcohol-related problems account
for over a fifth of hospital admissions but are underrecognized by primary care physicians.
Alcohol misuse has been implicated in over 20% of traumatic brain injuries and 60% of all
injuries reporting to emergency rooms. It has a disproportionately high association with
deliberate self- harm, high-risk sexual behaviour, HIV infection, tuberculosis, oesophageal
cancer, liver disease and duodenal ulcer. There has been a significant lowering of age at
initiation of drinking. Data from Karnataka showed a drop from a mean of 28 years to 20
years. Alcohol sales have registered a steady growth rate of 7–8% in the past 3 years.

12. Alcohol Consumption in India

An Analysis of IHDS Data by Nasim Ahamed Mondal, Mithun Mog, Kacho Amir Khan
Alcohol consumption is not uniform in India. It varies from 7% in Gujarat to 75% in Arunachal
Pradesh. A study showed that the prevalence of alcohol use in India is reported to be 21.4 per
cent. India remains one in all rock bottom alcohol shopper countries within the world. It is
found that three states/UTs, i.e. Bihar, Daman & Diu, Dadra & Nagar Haveli had the high
consumption of alcohol where more than 30 per cent of people were consuming alcohol on a
daily basis. Moreover, eight states/UTs like Punjab, Chandigarh, Sikkim, Arunachal Pradesh,
Nagaland, Chhattisgarh, and Pondicherry had 50 or more than 50 per cent of alcohol
consumption on sometimes basis. There were seven states/UTs (Pondicherry, Goa, Andhra
Pradesh, Daman & Diu, Dadra Nagar Haveli, Arunachal Pradesh, and Sikkim) which had 20
per cent or more use daily alcohol consumption. 21 states/UTs had 20 or more than 20 per cent
sometimes alcohol users.

13. Alcohol Drinking Patterns

D.S. Bhullar, Satinder Pal Singh, A. S. Thind, K.K. Aggarwal, Adish Goyal
The most common age group for starting alcohol ingestion was the 21-30 years age group.
The next most common age group was 11-20 years age group. The age group showing
minimum incidence for starting alcohol ingestion was 41-50 years age group. No case was
detected in 0-10 years age group. According to the study most of the cases preferred to take
drinks occasionally (59%). 20% of the cases preferred to take drinks on daily basis. Least
number of cases (6%) preferred to take drinks thrice weekly. According to our study the most
common reason for starting alcohol ingestion among the cases was curiosity (67%) followed
by depression (27%) cases.
14. Supply chain management
Narayan Murthy, Gopalakrishnan and Anand Gurumurthy
Raw materials submit to multiple price adding transformation processes within the offer chain
(SC) before getting consumed by the top client. SC is outlined as the network of organizations
that are concerned, through upstream and downstream linkages, in the different processes and
activities to produce value in the form of products and/or services that is delivered to the top
client (Christopher, 2010). Supply Chain Management (SCM) takes a general approach
towards the SC as a full to optimize its performance measures by managing numerous
characteristics of SC like flow of goods, inventory level, variety and placement of warehouses,
push-pull boundary decision, etc.
The production is applied within the workplace comprising of semi-automated production
setup for the merchandise of 375 millilitre and a hundred and eighty millilitre. Human
intervention existed in many stages of production method like quality check, bottle positioning,
packing etc. However, completely automated machinery dedicated only for production of tetra
packs were also available in the shop floor, which was imported from one of the European
country. Case company had utilized exactly the requisite variety of workplace workers
supported by its past expertise. The workplace operated just one shift (8 hours) as they were
able to meet the demand through the assembly inside this shift. Dedicated chemical laboratory
was additionally offered to perform specification check associated with chemical composition
of the liquor to be packed through sampling at completely different time slots. Case company
factory-made every whole at completely different volume pack sizes that were preponderantly
a hundred and eighty millilitre, 375 ml and 750 ml. Among the various merchandise equipped,
the empty bottles of 375 ml products alone were brought back through reverse logistics as they
were widely consumed. Details regarding the same are presented later. A huge warehouse was
used to store each finish merchandise and merchandise used in methods like fermentation
tanks, etc. End merchandise from the storage place area were transported to distribution
warehouses through the company-owned or contractors’ vehicles. These distribution
warehouses are owned by government – in particular the state government and this node in SC
act as a regulatory body in controlling and authorizing the inflow and outflow of alcoholic
merchandise from producer to vender.
Production manager factory-made merchandise supported the necessities provided by
individual brand managers. These managers make the necessities by evaluating the past sales
knowledge across completely different shops within the market. Sales representative has to
ensure the placement of stocks in those set of outlets under his control and regularly follow the
status of the company’s product stocks in those outlets. Sales representative had combination
of fixed and variable component in the pay to incentivize them to catch more orders and achieve
higher placements. Case company studied operated through to stock strategy as alcoholic
industry had consistent demand.
15. Factors influencing the growth of alcohol industry in India

Urbanization : a lot of individuals are migrating towards larger cities, where they are exposed
to a wider variety of alcoholic products, including IMFL. Favourable demographics India may
be a young country, with more than 60 per cent of Indians falling in the 15-45 years age group.
This is the cohort the industry targets as potential customers. About 485 million Indians are
currently of drinking age and another 150 million will be added to this group in the next five
years. Changing social norms. Over the years, there has been a change in attitudes, making
consumption of alcohol more socially acceptable. This acceptability extends to drinking in
family environments, at social events, and by females/ youngsters. More and more Indians are
now moving towards the upper/middle-income group. The per capita financial gain has
witnessed endless growth. There has been a rise within the style of alcohol brands and kinds
and every one of them are simply offered in government-licensed shops, government outlets
(monopolies), non-public authorised retail chains (permitted since the past few years),
restaurants and bars.

16. Country Profile on Alcohol in India

Shekhar Saxena
The distribution and consumption of alcohol is highly skewed amongst the different drinkers
existing in the society. Thus, the highly over-usage of alcohol all through the country in the
cities as well as the different villages , tags along with excessive health and social damage.
Health hazards are proven by a lethal mortality rate, as examining a five year study,
approximately 11.3 percent of the patients whose bodies consisted of alcohol traces had been
found dead. Also, the other impacts include liver diseases and various forms of cancer.
Although the Indian Council of Medical Research confirms tobacco as the major reason, role
of alcohol is highly contributory to few specialized body cancers. Alcohol has also played a
major role in accidents, injuries and many neuropsychiatric disorders. Apart from the many
health effects, alcohol also has various social effects like direct correlation with the violence
and crime rate, as well as family, workplace and economic effects.

17. Alcohol Prohibition and Addictive Consumption in India

Lupin Rahman
Alcohol has been one of the fastest growing industries, with an approximate increase of 25%
in per capita consumption since 1990 all throughout the Asian sub continent. The impact of
the excessive usage in India is seen in motor vehicle accidents, and all the medical research
centers have confirmed alcohol plays a major role in contributing to throat, lung and stomach
cancer. Alcohol has become a global burden of deaths because of its social and medical
effects. Along with the strong negative health externalities, one aspect which is not taken into
general consideration is the social impact. This plays a deeper role in the rural areas as the
rate of alcohol consumption results in an equivalent increase in the crime rate. It leads to
various crimes like domestic violence, family problems, sexual crimes, murders and many
more illegal atrocities.

18. Alcohol: Health and Social impact in India

Subir Kumar Das, V Balakrishnan, DM Vasudevan
One reason why the impact of Alcohol is a major concern in the economy as Alcohol abuse is
seen in all age groups, predominantly in men. The volume of consumption and the following
drinking pattern, for example irregular drinking, is responsible to decide the burden of the
disease. Therefore, we can say that the impact of average volume of consumption of alcohol
on the death rates in the country is examined by the drinking patterns. The list for social and
health effects of alcohol is wide with a lot of medical as well as crime rate details, but one
impact of alcohol which is positive is on the economy. They are a source of surplus revenue
for the government. The revenue is so high that a state derives an approximate 25% of its annual
state budget revenue from alcohol sales. Duties and taxes levied on this industry constitute of
1/4th of some state’s total revenues.

19. Partner alcohol use, violence, and women’s mental health

Madhabika B Nayak, Vikram Patel, Jason Bond and Thomas Greenfield
This research, instead of highlighting more on the health hazards of alcohol, focuses more on
the social and household impact of consumption of alcohol in India. The most frequent past
year drinking related problems reported by women with drinking patterns were increased
tension at home(23%), financial problems(15.7%), and threat to his health(12.4%). Fewer than
10% reported partner drinking related fights or their own children were physically abused by
the drinking partner. Partner alcohol use(0.6%) and legal problems(0.4%) were infrequently
reported. Overall, 27% women with partners reported at least one alcohol use related problem.
Along with all the household problems, there has also been an acute observation of mental
disorders in women. The reason for covering this research was that the impact of alcohol always
consists of physical and biological impact, but these points are often neglected in spite of being
highly threatening and harmful for the societal well being.
 CONCLUSION

After analysing a set of research papers related to the alcoholic beverage industry in India, we
found out about the demand and supply scenario in modern day India. We also analysed the
negative effects of the rising trend.

As of today, there is no established governing body or a regulating body for this industry.
This has become one of the main reasons for the widespread of alcohol abuse in India.

India is a widespread country with highly skewed and variable drinking and alcohol
consumption patterns. Times have considerably changed as to when India, as a whole was
considered to be a dry country. Along with being a country with different cultures, and
people following different practices, every urban or rural place of the country has their own
separate pattern of drinking. As alcohol is a state subject, every state has different legal
provisions that govern alcohol and the alcohol industry, leading to non-uniformity of law. A
multi-pronged strategy is thus needed to tackle the growing burden of alcohol use in India.
There is no uniform drinking pattern. The state governments receive a large part of their cash
flow from
this industry. Also, the demand in some markets is so high that banning alcohol may lead to
an increase in spurious illicit liquor, which can prove fatal. Therefore, the best way forward is
to combine best practices into a multi-component strategy and enact a national level
legislation to regulate production, sale, distribution, and licensing of alcohol. The state
governments should be allowed to make state-specific rules, which should be in
conformity with the national legislation.

Even though alcohol has been proven to be the root cause of various health as well as social
problems, it still remains unbanned / unregulated in most parts of the country. Reason being
the abnormal amounts of tax that the government receive in return. Alcohol may have
been a boon on the individualistic level, but it is definitely a blessing on the economic level.

Therefore the best decision making practises should be adopted in order to maintain a balance
on both the ends of this situation i.e. limited regulation and higher tax slabs. But the
government needs to be careful while implementing any of these decisions so as to not hurt
the corporations and also not giving rise to the establishment of a parallel black market for
the same. In such highly sensitive cases, decision making plays a very important role.

The threats and hazards which come along with alcohol have started to create an awareness
amongst most of the parts in the country. There is no denying to the fact that the efforts taken
to mitigate the alcohol problem have ended up being a major failure and the major reason
being the interference by government and various non-scientific organisations, having the
persistent aim of multiplying their own revenue. Therefore, keeping all the issues and after
analysing the entire case, we all know that the need of the hour is for strict implementation of
rules and policies which should be highly effective in curbing this vast problem, and no one
can take this problem lightly, considering the major hazard it brings with them.
This goal can only be achieved if there is an honest and hardworking government dedicated
to ensure the well being of the people, and not focus on generation of revenue. It also requires
various public figures and other powerful personalities to step up and along with the force of
media which is highly scalable, the society as a whole can be uplifted and taken out from the
alcohol problem.
 PRIMARY SURVEY
21st October 2018

Questionnaire:

1. How old are you?

2. Have you ever consumed alcohol?
3. How often do you drink?
4. Why did you start consuming alcohol?
5. If not, why don’t you consume?
6. While buying alcohol, what factors do you consider?
7. Who do you generally consume alcohol with?
8. How much do you usually spend on alcohol?
9. Are you aware of the negative effects of alcohol?
10.Do you feel that has affected your consumption pattern in any way?

Survey of Literature:

Why we chose this topic?

The reasons behind choosing this topic are:

1. Alcohol has its major consumption coming from people of the age group
of 18-40 years.
2. Research has shown that people generally start drinking after they’re 18.
3. Alcohol is a good that has been tried by almost 90% of the adults.
4. Alcohol has been one of the most widely used goods all over the world.

What we intend to find?

Through the survey we tried to find:

1. Consumption patterns of alcohol at different age groups
2. Analyzing the determinants of demand for alcohol
3. The reasons behind why people started drinking
4. Price Elasticity of demand
Methodology

The hypothesis, which this research tested, was the supply and demand for
alcohol and the consumption pattern of alcohol. The research focused on the
factors that affect supply and demand for alcohol. The research followed
Quantitative research methodology. Quantitative method emphasizes on
objective measurements and the statistical, mathematical, or numerical analysis
of data collected through polls, questionnaires, and surveys, or by manipulating
pre-existing statistical data using computational techniques.

In this research paper, random sampling method of surveying has been used.
Questionnaires using Google forms were circulated, which were passed among
subjects between the age group 18 to 40 years. Once responses were received,
the results were compiled and analyzed. The results have been projected using
pie-charts and bar graphs so that the results could have a clear understanding of
the final outcome of the survey.

Findings:

The survey showed that half (50%) of the people consume alcohol only on
special occasions, 26.7% of people do not consume alcohol, 13.3% consumed
once in a month and 10% consumed alcohol multiple times a week.

The main factor why people started consuming alcohol was out of curiosity.
The other factors were peer pressure and influence of elders followed by stress
reliever.
The determinants that affects the demand of consumers is the alcohol content
followed by smoothness of the alcohol followed by its cost.

The survey shows that the demand of alcohol is determined by its price, quality,
income of the consumer and the tastes and preferences of the consumer.

Alcohol is a product whose demand is very dependent on the psychological

expectations. Alcohol is affected by Bandwagon Effect which is a psychological
phenomenon in which people don something primarily because other people are
doing it. Hence, psychology and behavior have a huge impact on its Demand.

On the other hand, the supply of alcohol is affected by the following factors:
1. Taxation policies implemented by the government on liquor import and
production
2. Expected change in price
3. Legal regulations/Government regulations
4. Consumers becoming health aware
Price elasticity of demand for alcohol: Alcohol comes under the category of
addictive goods. Once someone is addicted to it, only a few factors can
influence its demand. Therefore, the price elasticity of demand for alcohol is
very low. Hence, it is more difficult to control its demand through price
regulations.

Conclusion of the primary survey:

After careful analysis of the responses received, we were able to draw the
conclusion regarding various determinants which affect the demand and supply
of alcohol among individuals aged between 18-40 years. We also found out that
Alcohol has a highly inelastic demand due to alcoholism or addiction to
alcohol. Hence we can consider alcohol as a good that varies according to the
tastes and preferences of the consumer and has little effect to changes in price.
Hence if the government prefers to interfere and regulate the consumption of
alcohol especially in teens, they should have a good decision making process
and come up with a strategy to tackle these issues smartly, because a simple
strategy of just a change in price wont be of any use.

Here are some recommendations for the government for effective

decision making of reducing the harmful effects of alcohol:

1. Announce it a criminal offence to be drunk in public and to disturb the

public order while intoxicated.
2. Announce it a criminal offence to serve alcohol to someone who is
obviously drunk.
3. Set limits for alcohol in the blood for drivers. The limit is 0.05% for
drivers with a regular driving licence, and 0.02% for new drivers.
4. Do not allow alcohol commercials to be broadcast on television and radio
between 6 am to 11 pm.
5. Put a limit on the holding capacity of alcohol bottles for bars and cafes in
urban areas.
6. Put a limit on serving alcohol in bars and cafes after 11 pm.
7. Establish easy and accessible alcohol abuse rehab centres in metro cities.
8. Establish alcohol abuse tollfree helpline number.

……………………..……THANK YOU……………………………….