DISSERTAT ION REPORT

ON:

Impact of Alcohol Advertising and Marketing

on Drinking Behaviour of People

UTTARAKHAND TECHNICAL UNIVERSITY

DEHRADUN

BY: SUBHAM CHAKRABORTY

ERP: 0191MBA004

MENTOR: Dr. ISHVINDER SINGH AHUWALIA

MASTER IN BUSINESS ADMINISTRATION

(2019-2021)

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 CERTIFICATE

This is to certify that the project report entitled “Impact of Alcohol Advertising and

Marketing on Drinking Behaviour of people”, submitted by SUBHAM CHAKRABORTY,

ERP-0191MBA004, a second year MBA student , in the partial fulfilment of the requirement

for the award of the degree of “MASTER OF BUSINESS ADMINISTRATION” from Doon

Business School, during the academic year (2019-2021)

STUDENT MENTOR
SUBHAM CHAKRABORTY Dr. ISHVINDER SINGH AHUWALIA

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 DECLARATION

I, Subham Chakraborty, hereby declare that this project work entitled “Impact of Alcohol

Advertising and Marketing on Drinking Behaviour of people” is my work, carried out

under the guidance of my mentor Dr. Ishvinder Singh Ahuwalia.

SUBHAM CHAKRABORTY

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 ACKNOWLEDGEMENT

I am sincerely grateful to a lot of people who have played an incredible role for the

completion of this project. Firstly, I would like to thank my mentor, Dr. Ishvinder Singh

Ahuwalia, for his continuous support and guidance. I would also like to extend my deepest

gratitude to all those who have been a part of my project, and got involved directly or

indirectly.

-SUBHAM CHAKRABORTY

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 CONTENT:

PARTICULARS PAGE NO.

-Acknowledgement

1)Introduction 6-7

2)Literature Review 7-9

3)Research objectives and hypothesis 9-10

4)Scope of research 10-11

5)Research methodology 11-12

6)References 12

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1)INTRODUCTION

The first studies concerning the impact of alcohol advertising on the drinking behaviour of
young people were so-called econometrical studies: the investments into advertising were
related to the alcohol sales figures and the studies tried to determine whether a rise in
investments led to a rise in sales. On the basis of these studies it was not possible to show a
clear effect. In comparison with other influences on drinking behaviour advertising showed,
at the most, a very small effect. Despite this, the American researcher Saffer has shown a
relation between advertising and consumption on the basis of multiple econometrical studies.
Among other things, he concluded that a ban on alcohol advertising could reduce the monthly
consumption of alcohol by young people by roughly 24 percent. Binge drinking, according to
Saffer, would be reduced by 42 percent. Saffer takes the position that econometrical studies
are complicated to perform and that large datasets with a lot of variation are needed to be able
to show relations conclusively (Hastings et al. 2005). The results of many econometrical
studies were generally not convincing enough. Especially where the drinking behaviour of
young people is concerned, these studies give no insight into the behaviour of subgroups in
the alcohol market.
Statistics regarding the level of investments in advertising don’t show whether or not these
investments specifically stimulate the consumption of the premixes that are popular among
young people. Other factors also complicate measuring the impact of advertising on alcohol
consumption. In Western Europe, for instance, society is as it were saturated with alcohol
advertising, and alcohol consumption there is more or less at the top of the scale also.
Changes in the input of advertising related to drinking behavior are small; they depend on
many factors and are therefore difficult to measure.
India alcoholic beverage industry is one of the biggest alcohol industry across the globe only
behind from two major countries such as China and Russia. Growing demand for alcoholic
beverages in India is majorly attributed to the huge young population base and growing
consumption of alcohol by the young generation as well as rising disposable income is
strengthening the industry growth. With population of 1.3 billion India is one of the largest
consumer markets across the globe. It is also demographically one of the youngest with
around 50% of its population below the age of 25 and around 65% below the age of 35. The
majority of alcohol volume is consumed by people between the ages of 18 and 40.These
demographic stats are expected to fuel the growth of alcoholic beverages market over the
forecast period at rapid pace. Additionally, rapid urbanization of tier-II cities is further
fueling the market growth.
Goldstein Research analyst forecast the India alcoholic beverages market to grow at a CAGR
of 7.4% during the forecast period 2017-2030. Further, the market is anticipated to reach
USD 39.7 billion by the end of forecast period as alcohol consumption is growing in urban
areas of the country.

Based on origin type, Indian Made Foreign Liquor (IMFL) accounted for the largest market
share of more than 40% in 2016. On the other hand, foreign liquor bottled in origin or

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imported alcohols showed the fastest growth in terms of consumption in last few years and
likely to grow at faster pace with CAGR of 25% over the forecast period.
Geographically, South India accounted for the largest market share of more than 45% in
terms of alcohol consumption owing to significant rise in urban and female alcohol
consumers in the region. North India and Western India are expected to be fastest growing
markets owing to growing number of urban cities in these regions and presence of favorable
demographic factors.
Growth Drivers: According to our India Alcoholic Beverages market study on the basis of
extensive primary and secondary research, “Over the past few years, there has been a huge
change in attitudes and lifestyle, making consumption of alcohol more socially acceptable.
This acceptability of alcohols extends to drinking in family environments, at social events,
and by females/youngsters. The growing acceptability and changing social norms have
significantly boosted 6teh growth of alcohol beverage industry growth.”

According to the report, major driver in India alcoholic beverages market is growing
consumption of alcohol owing to rapid urbanization and favourable demographics in the
country. Huge population in India are migrating towards bigger cities, where they are
exposed to a wider variety of alcoholic beverage products, including IMFL and significantly
contributing to the market growth. India is a young country, with more than 55 per cent of
Indians falling in the 18-45 years age group. This is the age group the industry targets as
potential customers.

Challenges: Further, the report states that one challenge in India alcohol beverage market is
liquor licensing and sourcing. In terms of starting new business and expansion liquor
licensing and sourcing emerged as the major growth barrier for the industry, as the necessity
to obtain number of mandatory licenses and regulation related to hours of operation and
consumers minimum age, which varied from state to state.

2)LITERATURE REVIEW

 The effect of alcohol advertising, marketing and portrayal on drinking

behaviour in young people: systematic review of prospective cohort studies
Lesley A Smith* and David R Foxcrof - The influence of alcohol marketing and
advertising on thedrinking behaviour of young people is a matter of muchdebate,
mostly focused on the question of whether adver-tising increases consumption and
risky drinking by youngpeople. On the one hand the International Center forAlcohol
Policy (ICAP) reported in 2003 to a World HealthOrganisation (WHO) meeting that
there is no compel-ling evidence of an association between advertising anddrinking
patterns or rates of abuse among young people,noting that:

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 The Influence of Advertising on Alcohol Consumption: A Literature Review and
An Econometric Analysis - Econometric and laboratory research in the US, Canada
and the UK have not revealed advertising to have a significant effect on alcohol
consumption. The same is true of survey research, which confirms the powerful role
of social factors such as the attitudes and behaviour of parents and peers. We present
an econometric analysis of the alcoholic beverage markets of France, Germany, the
Netherlands, Sweden (where alcohol advertising has been prohibited since 1979), as
well as a new analysis of the UK market. The results provide further support for the
view that advertising does not have a substantial effect on alcohol sales. The data also
show that social forces other than prices and income were bringing about a strong
reduction in demand for alcoholic beverages during the 1970s and 1980s, and that
advertising did nothing to ward off this trend.

 Immediate effects of alcohol marketing communications and media portrayals

on consumption and cognition: a systematic review and meta-analysis of
experimental studies Kaidy Stautz, Kyle G. Brown, Sarah E. King, Ian Shemilt
and Theresa M. Marteau - Restricting marketing of alcoholic products is purported
to be a cost-effective intervention to reduce alcohol consumption. The strength of
evidence supporting this claim is contested. This systematic review aimed to assess
immediate effects of exposure to alcohol marketing on alcoholic beverage
consumption and related cognitions.

 Atkinson, A, Ross-Houle, KM, Begley, E and Sumnall, H (2016) An exploration

of alcohol advertising on social networking sites: an analysis of content,
interactions and young people’s perspectives. Addiction Research and Theory,
25 (2). pp. 91-102. ISSN 1606-6359 - Young people increasingly communicate and
interact via social digital media such as Social Network Sites (SNS) where they
discuss and display alcohol-related content. SNS have also become an important
aspect of the alcohol industry’s multi-platform marketing strategies, which may
contribute to the creation of intoxigenic digital spaces in which young people learn
about alcohol. This paper presents findings of a content analysis of the extent, nature,
and user interaction with SNS-based alcohol marketing for brands popular among
young people in the UK.

 Alcohol Marketing and Young People's Drinking: A Review of the Research

GERARD HASTINGS , SUSAN ANDERSON, EMMA COOKE and ROSS
GORDON -The influence of alcohol advertising on young people continues to be the
subject of much debate. This paper presents a review of the literature showing that,
while many econometric studies suggest little effect, more focused consumer studies,
especially recent ones with sophisticated designs, do show clear links between
advertising and behaviour. Furthermore, these effects have to be viewed in
combination with the possible impact of other marketing activities such as price
promotions, distribution, point of sale activity and new product development. Here,
the evidence base is less well developed, but there are indications of effects. It must
be acknowledged that categorical statements of cause and effect are always difficult in

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 the social sciences; marketing is a complex phenomenon involving the active
participation of consumers as well as marketers and more research is needed on its
cumulative impact. Nonetheless, the literature presents an increasingly compelling
picture that alcohol marketing is having an effect

 Alcohol marketing and young people: an analysis of the current debate on

regulation, Wim E. Van Dalen Monique M.A.P. Kuunders - The debate on the
regulation of alcohol marketing is becoming an affair of current importance. Scientific
knowledge about the impact of advertising is growing, and so is concern about
increasing alcohol consumption among young people. However, the alcohol industry
has a vested interest in maintaining as much freedom of advertising as possible, and
the industry gives voice to its position. It is therefore difficult to predict in what
direction the regulation of alcohol marketing will develop. This article aims to inform
readers about the background and implications of alcohol marketing regulation. The
authors are experts in the field of alcohol policy and have been active in monitoring
and studying alcohol marketing in the Netherlands and Europe

 The extent of global alcohol marketing and its impact on youth BY DAVID H.
JERNIGAN, PH.D. - Alcohol marketing is a global phenomenon, in which an
increasingly small number of companies spend considerable sums to establish and
embed their brands in the lives and lifestyles of populations. Market research data
offers insight into the size and extent of the global alcohol trade, and the magnitude of
alcohol advertising expenditures. Recent examples of alcohol marketing in a variety
of national contexts illustrate the techniques used by the global companies

 Alcohol marketing and youth alcohol consumption: a systematic review of

longitudinal studies published since 2008.David Jernigan Jonathan Noel Jane
Landon Nicole Thornton Tim Lobstein - Youth alcohol consumption is a major
global public health concern. Previous reviews have concluded that exposure to
alcohol marketing was associated with earlier drinking initiation and higher alcohol
consumption among youth. This review examined longitudinal studies published since
those earlier reviews.

 Alcohol Advertising and Youth HENRY SAFFER, PH.D. † National Bureau of

Economic Research - The question addressed in this review is whether aggregate
alcohol advertising increases alcohol consumption among college students. Both the
level of alcohol-related problems on college campuses and the level of alcohol
advertising are high. Some researchers have concluded that the cultural myths and
symbols used in alcohol advertisements have powerful meanings for college students
and affect intentions to drink.

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3)RESEARCH OBJECTIVES AND HYPOTHESIS

Objectives of the study:

 To study the impact of Alcohol Advertising on Drinking Behaviour of people.
 To study the factors of advertisement that attracts people .
 To understand the pschology behind buying behaviour of an individual.

4)SCOPE OF RESEARCH

 This study focuses on ways and techniques which the alcohol industry uses to

promote its product among the people

 This study will allow the people to take effective decision against the attractive

advertisement and marketing strategies which is being used to attract customers

5)RESEARCH METHODOLOGY

Sources of data collected:

After stating the objective, and doing necessary research regarding the subject, the next step

in formal research project is to determine the source from which the data is required to be

collected. The data collection is an import aspect of the study as we will get results based on

the accuracy of the data so collected.

Data can be collected from various sources, and accordingly we have two types of data:

a)PRIMARY DATA: The primary data is collected in the following ways:

 Questionnaire: A google form was created and circulated.

 Interview: Personal interviews and interactions were conducted for precise

information.

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  Observation: By observing the environment.

b)SECONDARY DATA: The secondary data has been collected from research papers,

books, websites and the Internet.

SAMPLING TECHNIQUE - In the process of questionnaire, I have used purposive

technique as a sampling technique to find out the impact of alcohol advertisement on

drinking behaviour of a person.

Sample Size is of 300 responses.

TOOL OF ANALYSIS – Descriptive study with the help of pie charts.

6)REFERENCES
 businesstopia.net

 businessjargons.com

 khoj.mitsom.edu.in

 researchgate.net

 nber.org

 Google Scholar

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