“Market potential of premium whisky of USL Brands in lucknow” The goal of this report is to analyze different factors which directly or indirectly affect the consumer behavior during buying of liquor and to analyze different promotional tools adopted by UB group and different breweries companies that are prevailing in India also to understand the level of competition that is prevailing in India among the different brewery industries. It Is not so difficult to be the no. 1 company. but it is so difficult to retain that position. Since UB group is no. 1 in liquor market. No doubt it has done such a wonderful job. Whether it is the matter of innovation or brand or customers satisfaction, it has consistently find out news ways and means to be the global leader. The project starts with an overview of UB group and its products in which it is dealing. There is only five whisky which comes in premium whisky. Ie. Antiquity blue, antiquity Rare, Signature, Royal challenge, Blenders pride. Out of these brands only blenders pride is the competitor. The strategy of


the company is always to offer a wide range of product against competitive brand. Earlier when Blenders pride was similar in the form of price of signature, The company had 2 brands Signature & Royal challenge. Now price of the Blenders pride has been increased, and the company has again 2 brands Antiquity blue & Rare. The Blenders pride is still preferable by the consumers. If we see the data USL brands has covered more than 80 % of market share in the premium whisky segment. But it is the group performance by 4 brands. And blenders pride has alone 20 % of market share. Unlike FMCG companies, here is also cut throat competition. But the company managed it very well. The promotion strategies used by the company is customer oriented. They use to give daily use product in the form of promotion. It is not an easy task to switch a customer, usually they do not prefer to change their taste & preferences. But due to promotion at least they come to know about the product. A flaw of any department can cause a lot of problem and hence we have to be very cautious about the same. Usually it is said that it is better to retain an old customer, rather than making 10 new customer. During the project, there was exposure to theoretical as well as practical learning. At last some suggestions were given to the company that would increase the market share by understanding consumers behavior and to adopt different sales promotion tools. Promotion helps companies to establish their brand in the mind of consumers. As there is so many customer who can switch to another brand if the company gives promotion or gifts to them .The conclusion has drawn with the help of questionnaire as well as observations.






higher disposable income. This is due to rapid development of growth factors like changes in lifestyle. The Indian IMFL industry is estimated to be in the region of 121 million cases of 9 bulk liters (BL) each. drinks and entertainment to the global trends. The segment has an historical CAGR of more than 10%. INDIAN MADE FOREIGN LIQUOR (IMFL). The market size in India is expected to expand in the next five years as consuming population is expected to increase by 100 million. white rum and vodka account for the residual 5% of the industry. Contrary to international trends. followed by the rum at 25% and brandy at 16 %. COUNTRY LIQUOR. The country liquor segment of the alcoholic beverages industry is unorganized and therefore accurate statistic of its size is not available.UB GROUP INDUSTRY INFORMATION Products of the alcoholic beverages industry fall into the categories of beer. White spirits comprising gin. In our estimate the country liquor market would in the region of 200 – 225 million cases of 9 BL each. WINE AND BOTTLED IN ORGIN (BIO) BOTTLED IN INDIA (BII) spirits. and shift in expenditure pattern in favor of personal consumption items such as food. Whisky dominates the industry at 54%. SCOPE AND OBJECTIVE OF PRESENT STUDY 6|Page . brown spirits accounts for 95% of the Indian industry. Of these industry segments United breweries currently operates only in the IMFL space.

It was then called “SOMA RASA” and was used not only for invigorating effect but also in worship. Keeping the same view in mind the main objective of the report is as follows:  To understand the market size. 7|Page . then half of the problem is solved.UB GROUP The main objective of the project is to tell where we are and where we have to go. Today not only has the consumption of alcohol been continued but also it is an integral part of the ayurvedic system of medicine.  To know the market leader  To know the perception of consumer towards premium whisky?  To know the promotional techniques applied by other companies?  How the consumers come to know about the brands of liquor?  To know the other techniques applied to push its sales?  How much sales promotion techniques adopted by companies are effective in the market? INTRODUCTION The use of alcohol as a drink is an old aged story in India as it appears that the techniques for fermentation and distillation were available in Vedic times. If the objective is clearly stated and understood.

There advertising offers a reason to buy. CHAPTER II 8|Page . The alcohol produced is being used in the ratio of approximately 52% for potable and the balance 48% for the industrial use.UB GROUP The distillery industry today consists broadly of two parts. It consists of diverse collection of incentive tools. Over the year the potable liquor industry has shown remarkable results in the production of quality spirits. mostly short term design to stimulate quicker and greater purchase of particular products or services by consumers or the trade. sales promotion offers an incentive to buy. Sales promotion is key ingredients in market campaigns. The industrial alcohol distilleries are showing a declining trend because of high prices of Molasses which is used as substrate for production alcohol. The potable distillery producing Indian made foreign liquor and country liquor has a steady but limited demand with a growth rate of about 8% per annum. one potable liquor and industrial liquor.


The purpose was to make available the products of the industrial revolution to thousands of expatriate Britons serving the Empire in various parts of the globe. Late Mr. In 1951.IMFL (Indian Made Foreign Liquor) was coined. which in those days was a major trading centre of the British empire. VITTHAL MALLYA The Name 10 | P a g e . McDowell has been the indisputable market leader as one of the largest fast moving consumer goods companies in the country. Under the able guidance of the founder of the UB Group. Since then.George in Madras (now Chennai).UB GROUP In the late Nineteenth Century. It had its origins in a warehouse near Fort St. MR. Vittal Mallya the company became the first to manufacture Indian substitutes to foreign liquor. Angus McDowell set out from the scenic Northern lands of Gaelic Britannica. It was this spirit of adventure that launched McDowell & Company in India. McDowell became the prime acquisition of the United Breweries Group. A new term .

He started a firm .UB GROUP The name „McDowell‟ originally came from the Gaelic word „Macdougall‟. „Dubh gall‟ means dark stranger. was a squire of the Dougall ancestry.McDowell. McDowell had its warehouses situated about a mile to the north of Fort St. which was marketing the finer products of the Industrial Revolution to the Britons staying in various corners of the empire. Angus McDowell. after whose name McDowell & Company Limited came into being. USL CORPORATE BACKGROUND United Spirits Limited (USL) – the INR 4000 crore (USD 1 billion) spirits arm of the UB 11 | P a g e . in the northern islands of Gaelic Britannica. McDowell has now grown to become the country‟s undisputed leader in the spirits market. possibly to distinguish the dark haired Danes from the fair-haired Norwegians. In India. From being one of the first names to be associated with the import of wines and spirits into India as early as in 1898.George in Madras.

of which 16 are millionaire brands* (selling more than a million cases a year) and enjoys a strong 59% market share for its first line brands in India. the company has a portfolio of more than 104 brands. the first Tetra pack in the spirits industry in India. first single malt manufactured in Asia and the first diet versions of luxury whisky and vodka in India. MISSION STATEMENT 12 | P a g e . a total of 84 awards and certificates (as of December 2007). The Company is known to be an innovator in the industry and has several firsts to its credit such as the first premixed gin. United Spirits Limited. Herbertsons Limited. United Spirits‟ brands have won the most prestigious of awards across flavors. It has manufacturing and Bottling units in 67 locations across the country and in Nepal and supported by a robust Distribution network to deliver its products to customers located anywhere in India. Limited. USL has a committed 6000 strong workforce spread across its offices and distilleries in the country. USL was earlier McDowell and Company Limited. USL has a global footprint with exports to over 18 countries. Phipson Distillery Limited.UB GROUP Group – is India‟s largest and world‟s third largest spirits company. ranging from The Mondial to International Wine and Spirit Competition (IWSC) to International Taste and Quality Institute (ITQI). USL represents the merged entities of erstwhile McDowell & Co. Besides Whyte and Mackay and Bouvet Ladubay being 100 % subsidiaries of USL.

United Spirits is and will continue to be responsible towards its stakeholders and the society. driven by highly motivated employees and supported by best-in-class processes and continued innovations.” STRATEGIC OBJECTIVES AND CHALLENGES OF UB GROUP 13 | P a g e .UB GROUP “To be the most admired global leader in the spirits industry by creating unique high quality brands for consumers.

UB GROUP Innovation into the Premium Segment Premium positioning through Acquisition International Expansion core part of growth Strategy OPERATIONAL AND DISTRIBUTION STRATEGY 14 | P a g e .

UB GROUP unrivalled distribution network in the Indian market Mutual distribution agreements comprehensive portfolio of production sites BRAND STRATEGY 15 | P a g e .

2008) 16 | P a g e .UB GROUP Moving from the lower end of the market to a wider positioning range Spirits portfolio of mainly local brands Intensified product development activities Increased marketing Focus USL SALES SHARE (2007.

9 USL 190.UB GROUP Sales 71.4 INDUSTRY Overall Volume in Mio cases For The year 2007-2008 USL MARKET SHARE (2007.2008) MARKET SHARE 38% USL OTHERS 62 % For The year 2007-2008 USL SALES SHARE (2008-2009) 17 | P a g e .

UB GROUP Sales INDUSTRY USL FOR THE YEAR 2008-2009 USL MARKET SHARE (2008-2009) Sales 39.70% 60.30 % USL OTHERS FOR THE YEAR 2008-2009 18 | P a g e .

distilled in copper pot stills.670 Signature It is blended for an extended period of time to ensure that the essence of various scotches. Rs. The carefully matured blend is an inviting. Rs. made from the finest grain. choicest malts. rich antiquity gold in color. 555 19 | P a g e . using choicest malts. Rs. matured and mellowed in imported white oak casks & blended with super Premium imported Scotch. complimented with aroma of sweet and delicate malt.UB GROUP BRAND PORTFOLIO Antiquity Blue A luxurious whisky. the new RC promises a smoother and richer palate experience. The blend contains highest quantity of scotch per drop among the premium Indian whisky. each adding its distinct flavor is present in every sip. Rs. 560 Royal Challenge A blend of rare scotch and selected grain matured in imported white oak casks.730 Antiquity rare The Antiquity rare premium whisky has been developed after decades of untiring efforts by our team of distillers and blenders. distilled in traditional copper pot stills.

signature. antiquity rare.UB GROUP DESCRIPTION OF MAJOR PRODUCTS OF UB GROUP In the premium segment there is only 5 whisky. Royal challenge & Blenders pride. Brand Highlights  Finest & most expensive Indian whisky with the market share of 23% in premium whisky. Antiquity blue. Ie. 20 | P a g e . Out of these only blenders pride is the competitor.

and is smooth with a velvety feel on the tongue USP: Finest Indian whisky with world-class credentialsSpecially imported blue bottle in line with brand ‟s super-premium image. 21 | P a g e . in category for Scotches (Single Malt/Blended/Specialist)  Several International awards for superior packaging including Worldstar 2006 & bronze at World Beverage Competition.UB GROUP  Won several blend awards including Gold at World Beverage Competition. USA (2007). USA (2007)  Ultra-premium variant of Antiquity Rare. has established itself as the new benchmark in the super premium whisky segment growing at over 61% Blend  Made from choicest malts. mellowed in imported white-oak casks and distilled in traditional copper stills  Has a rare touch of “HEATHER & PEAT”.

Brand Highlights 22 | P a g e .UB GROUP .

UB GROUP    Blend   The only whisky in its class Won the ITQI Taste award at Brussels in 2006 Won the Gold Medal at Monde Selection. Brussels in 2006 Double distilled in special copper pot-stills. matured in imported white-oak casks Blended with choicest. imported vatted malt spirit from Scotland. in proportions which is a well guarded proprietary secret USP: Blend of International standards Brand Highlights Synonymous with the finest Indian Whisky Largest selling Premium whisky of India • 24-year Heritage brand with sales of over 1.2 million cases per 23 | P a g e .

UB GROUP annum • Has a Market share of 13% • Won awards at ITQI. USA. Blend   Full-bodied blend of imported scotch & select Indian malts Carefully matured in imported white oak casks to attain the unique blend which makes Royal Challenge a connoisseur‟s delight  USP: Finest Indian Whisky Widely accepted for over 2 decades 24 | P a g e . Brussels and World Beverage Competition.

each adding its distinct flavor. Exquisite whiskies from Scotland are combined perfectly with the finest aged Indian malts and blended for an extended period of time to ensure the essence of various scotches. The highest quantity of scotch per drop among all the premium Indian whisky brands results in an unforgettable scotch-like experience Brand Sales have been growing year on year and today it commands a healthy national market share of 25% and is steadily growing at 30%. Blends 25 | P a g e . adds to its superior value delivery.UB GROUP The full-bodied Signature blend with a wellrounded bouquet of peated malts and a generous infusion of Scotch. is present in every sip.

Sharply positioned on „Success is Good fun 26 | P a g e .UB GROUP  Exquisite whiskies from Scotland have been combined perfectly with the finest aged Indian malts  These are blended for an extended periodof time to ensure that the essence of various scotches. each adding its distinct flavor. is present in every sip  Highest quantity of scotch per dropamong all the premium Indian whisky brands resulting in an unforgettable scotch-like experience USP:  World-class blend. Attractive & Unique packaging.

money back) or the inclusion of additional value-added material (e. which can then be used as part of follow-up marketing efforts. As a reward.e. something more for the same price). In this way sales promotion can act as an effective customer information gathering tool (i.g.. Additionally. Objectives of Sales Promotion Sales promotion is a tool used to achieve most of the five major promotional objectives discussed in the Promotion Decisions tutorial:  Building Product Awareness – Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction.. several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. sales lead generation). marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e.. 27 | P a g e .g.UB GROUP SALES PROMOTION ON PREMIUM WHISKY Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. as part of the effort to build product awareness. lower purchase price.

UB GROUP  Creating Interest – Marketers find that sales promotions are very effective in creating interest in a product. can be employed to stimulate sales.  Providing Information – Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. especially those that lower the cost of ownership to the customer (e. However. This free access may include receiving product information via email. some sales promotions do offer customers access to product information. price reduction). creating interest is often considered the most important use of sales promotion. 28 | P a g e . the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions. In fact. For instance. a promotion may allow customers to try a fee-based online service for free for several days..g. Another important way to create interest is to move customers to experience a product.  Stimulating Demand – Next to building initial product awareness. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors.

including airlines and retail stores. 29 | P a g e .UB GROUP  Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). such as email “special deals” and surprise price reductions at the cash register. reward good or “preferred” customers with special promotions. Many companies.

To FEEL.UB GROUP PROMOTION TECHNIQUES ADOPTED BY BREWERIES COMPANIES DISPLAY OF PRODUCT AT OUTLETS 1) The benefit of display of product is that it makes the product eye catching as the display is done in the front portion of the outlets. To TOUCH. To SEE. 3 unit display generates …a sales volume of 5 units! 5 unit display generates … a sales volume of 10 units! Product should always be displayed at Eye level GLODEN LINE While arranging shop display. therefore 20 degree below the eye level is the most convenient point To LOOK at. To OPERATE! This point is the GOLDEN LINE 2) PROMOTION PARTIES 30 | P a g e . the base line is just below average customer height.

31 | P a g e . 4) GIVING INCENTIVES TO THE RETAILERS AND CUSTOMERS There is always a big hand in increasing the sale of a product by the salesman therefore different companies always try to keep every retailer in their favor by offering them various incentives regularly. And on other hand company also try to attract various customers through various schemes.UB GROUP a) People come in the party in mass to enjoy the party and aware about the companies product b) Arranging DANCE COMPETITION and distributing gifts to the winners c) Arranging the ARTIFICIAL rain dance parties d) Arranging ALBUM release parties In all these parties only the target product is available at special prices so each and every guest enjoy and have taste of it. 3) PROMOTION AT CLUBS AND BARS Companies always try to attract regular customers in bars and club members by giving some attractive offers on the drinks example one peg free on every two pegs of a drink or they offer some free snacks with every three pegs of drink a customer take.

Surveying the available literature.UB GROUP CHAPTER III PRESENTATION OF DATA AND ANALYSIS METHODOLOGY The problem should be defined in a systematic manner. giving due weightage to all related Points. The technique for the purpose involves the undertaking of the steps generally one after the other:-      Statement of the problem. Developing the ideas through discussions. Understanding the nature of the problem. Sample Size 32 | P a g e .

UB GROUP   Collection of Data. Analysis of Data. market penetration.B GROUP in Lucknow City. The Statement of the problem The Statement of the problem is market share. While analyzing the situation in the market I came across certain points that helped me during the survey.  Quality 33 | P a g e . brand image and segment wise placement of U. Understanding the nature of the problem.

The sources of information for my report were both primary and secondary data. PRIMARY DATA: Questionnaire method was chosen for fulfillment of basic objective. SECONDARY DATA:    Internet Magazine and Newspapers. Dealer price with other companies 34 | P a g e .UB GROUP   Low Awareness Not a proper distribution Developing the ideas through literature. The primary sources were dealers and customers in Lucknow city.     Discussion with Company Guide Discussion in Market with salesmen‟s and customers Discussion with dealers & distributors Faculty Guide and friends Collection of Data.

This involved converting raw data into useful information. CHAPTER IV 35 | P a g e .UB GROUP Analysis of Data. It involved tabulation of data and Using statistical measures on them for developing frequency distributions and calculating the Averages and dispersions.

UB GROUP  Findings  Conclusions  Recommendations MARKET ANALYSIS 36 | P a g e .

4) Seagram‟s has only around 13% market share.UB GROUP Sales 14% 13% 60% 13% UB SEAGRAMS RADICO OTHERS 1) UB Group grabbed around 60% of market share among all Spirit Companies. 37 | P a g e . 2) 100% availability of our products in all variety. 3) Strong Brand Base of 30 products.

74 38 | P a g e . AGE GROUP OF CONSUMER CONSUMING LIQUOR AGE %age 18-25 37.6 60-above 6.98 40-60 22. 2) The demand of Vodka and Scotch is also increasing at rapid rate.68 25-40 32.UB GROUP 1) According to my survey Whisky is more saleable than other products.

98 16.28 39 | P a g e .UB GROUP Age group 40 30 20 10 0 18-30 30-45 % 45-60 60 and above 18-30 30-45 45-60 60 and above Implementation: It has been seen that maximum people consuming alcohol are in the age group of 18 yrs to 45 yrs.43 10. Because they are young CRITERIA OF PREFERENCE OF THE BRANDS Criteria Taste and Quality Price Brand Others %age 48.31 24.

67 Monthly 12.66 occasionally 3.UB GROUP criteria for preference 60 40 20 0 % price taste brand promotional offers   It is observed that the customers are not so much price sensitive. FREQUENCY OF CONSUMPTION OF CONSUMERS Frequency Daily %age 54.27 Weekly 29. Taste matters for them.4 40 | P a g e .

32 6.54 16.56 42.47 12.11 41 | P a g e .UB GROUP frequency Daily weekly 3% 13% monthly ocassionally 30% 54%  Most of the customers use to drink everyday Preference for premium whisky Brand Antiquity blue Antiquity rare Signature Royal challenge Blenders Pride % 22.

69 42 | P a g e .57 4.UB GROUP   Blenders pride is the market leader Rest others has captured more than 55 % of market share Customers preference to drink (place) Preference for drink Home Model shop Bar Others % 8.28 24.46 62.

UB GROUP   Most of the customers prefers bar for drink Few customers also prefers model shops 43 | P a g e .

Many of the Promotional programmes like Spot selling is going on in different cities. But UB Group is just not alone in the field there are also players like Seagram‟s.. It also Organized Promotional parties that swore success. UB Group is adopting good marketing and promotional strategies these days to encourage its new product launching. But after achieving all the success the company should look into certain points so that its product acquires great heights. Now premium whisky is not only the demand of some people but now it is demand of all people who like to enjoy their precious moments with it. Bars and Clubs 44 | P a g e . Antiquity Blue and Antiquity Rare is going to be a successful brand in coming days as customers prefer this because of its smooth taste. no smell and no hangover. • Communication and Distribution channel should be strong.UB GROUP CONCLUSION To be number 1 is not a difficult task the most difficult one is to sustain at that position in long run and UB Group is proved itself in the field of Whisky also. UB Group is already having a brand image in the market and now its promotional displays are all around in the market. Radico which has a very large market coverage in the field of Whisky. McDowell and Signature is already a success story. • Proper Display of products in Retail Outlets. Its Whisky products like Royal Challenge.

• Should target Corporate Personnel especially Youth where Whisky is quite demanding 45 | P a g e .UB GROUP . • UB Group should concentrate on those areas where the sale of liquor area is very low.

which will deal mostly with USL brands. 4. The gifts which are given by the company as a part of promotion are old. 46 | P a g e . Some corporate parties or event can be sponsored so as to promote the brand. 6.UB GROUP RECOMMENDATIONS & SUGGESTIONS UB group is the market leader in liquor industry. 2. The company is running with good promotion offers. which are based on observations during my summer training. pens.  Cash discounts can be other alternative. there should be innovation.  We can also give gifts occasionally like Seagram gives at least twice a year. FOR RETAILERS:  There can be free gifts or cases on bulk purchase. 7. Customers do not want to take glass. Company can arrange a surprise party or gift for the customers‟ occasionally. so they should be encouraged. The company can open a bar in city. music CDs. The company can increase the market share. 1. Sales promoters are very important. 3. Here are some suggestions. There should be strong friends and family network. 5. Some incentive should be given to the barmen as commission on sales.

 Club Programmes can be sponsored by the company 47 | P a g e . so there should be Schemes like free Passes for Programmes. etc.  Free snacks can be given with the drinks  We can also provide T-shirt or cap to bar tenders for brand promotion. holiday packages on lucky draw basis.UB GROUP FOR BARS  We can give schemes like buy two peg get 1one free. FOR CLUBS  In clubs generally high class society people are seen.

Questionnaire for Customers 48 | P a g e .UB GROUP ANNEXURE 1.

2.Your frequency of consumption of Whisky is a) Weekly b) Monthly c) Frequently d) occasionally 3.…………………. Why do you prefer this brand over others? 49 | P a g e . 4.……………………… Income Range . Which premium Whisky do you prefer most? a) Antiquity Blue d) Royal challenge b) Antiquity Rare e) Blenders pride c) signature 5.……………… Age . Where do you usually prefer to drink? i) Home ii) Model shops iii) Bar iv) Others (specify)…..UB GROUP QUESTIONNAIRE FOR CONSUMER GENERAL INFORMATION: To be used only for the purpose of analysis Name .Who influenced you to drink Whisky? a) Friends b) Advertising c) others. 1.

6..Rate the underlined brands as per the following from 1 to 5( 1=highest and 5 = lowest) Brands Taste Value for money Smell Hang-Over problem. 8. Where do you usually prefer to drink? i) Home ii) Model shops iii) Bar iv) Others (specify)…. Will you switch to other brands if your choice is not available? (i)Yes (specify which brand)……… (ii)No (iii) May be 7. Antiquity Blue Antiquity Rare Signature Royal Challenge 50 | P a g e . What attracts you while making the purchase decision? a) Price b) Brand c) Taste d) Offers 9.UB GROUP ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ……………………………………………………………………………….

Any suggestions for improvement? ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ……………… 51 | P a g e .UB GROUP Blender Pride 10.

UB GROUP 52 | P a g e .

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