You are on page 1of 7

C.1TOT\ ..1\5J5 - T1.

C JO


Submitted By,
Ramakanth 1adhav - 10M067
C. Ravish - 10M073


CATERGORY ANALYSIS - BLACK DOG
Introduction
THE LIQUOR INDUSTRY IN INDIA
In India, though Drinking` has been termed as a bad word, still the liquor market continues to
grow at an impressive rate even against the economic recession. The Indian liquor industry can
be analysed by segmenting into three Parts.
1. ountry Spirit
2. Indian made Ioreign liquor
3. Bottle in Origin
1. COUNTRY SPIRIT
This is the unorganized sector occupying about 60 oI the liquor market. ountry spirits are
distilled spirits mixed or unmixed with spices or other ingredients in small quantities to import
taste and aroma. This spirit is most common among the lower class; it is manuIactured by local
methods and has local names the most common being Tharra |1|.
2. INDIAN MADE FOREIGN LIQUOR
This liquor is not the contemporary Indian liquor. In these category products like whisky, rum,
brandy and vodka are there. British`s had brought in this liquor to India later they set up
distilleries and brewery to manuIacturer it in India. In post-independence period there were 28
distilleries and 5-6 breweries. Today there are 233 distilleries and 75 breweries in India. This
shows the tremendous growth and acceptance oI IMFL brands in India.
3. BOTTLE IN ORIGIN:
This is the imported liquor includes Beer and IMFL brands but the most common is scotch.
Imported scotch is in great demand in India but the Indian. Govt. bans the import oI bottled
scotch whisky, though a limited quantity can be brought in Ior duty Iree shops, Iive star`s hotels
and in bulk Ior local bottling by joint ventures.




DIFFERENT ALCOHOLIC DRINKS
1. WHISKY: hisky is amongst the most popular distilled liquor known all over the world. It is
made oI malt and molasses spirit, which is obtained by distillation oI mash or cereal grains like
maize, rice barley malt. Better the malt better the whisky. Large quantities oI IMFL are
manuIactured in India and is the maximum sold alcohol. The alcohol content in whisky is 42.8.
2. RUM: Rum is a distillate Irom the Iermented juice oI sugarcane oI molasses. RUM is
characterized with its taste and aroma. The alcohol content oI Rum is 42.8.
3. BRANDY: Brandy is generally obtained Irom Iruits, thought the most commonly used Iruit is
grapes. The best quality oI brandy is cognac, which is made in France.
4. VODKA: Vodka is a sprit resulting out oI distillation at very high prooI. This is neutral, even
aIter dilution required Ior palpability. The traditional source oI making vodka has been potatoes.
5. BEER: Beer is not a distillate like the drinks mentioned above but it is a beverage made by
Iermentation oI malt obtained Irom carbohydrate rich material barley. Hops are used to add taste
while yeast is used to Ierment the beer.
Beer is oI two types
O Pilsner or Lager - Lager Beer is the most common bottled Beer Iound in almost all the
retail shops in the country. This Beer is served chilled and is oI two types. Mild Beer
alcohol content 6.75. Strong Beer alcohol content 8.75.
O raught - Draught Beer is served chilled in mugs and is generally available in Pubs only.
It can be stored Ior 72 hours only and does not have any brand name.
6. GIN It is sweetened or unsweetened grain spirit Ilavoured with essential oil juniper berries
and some other product including angelica roots, orange peel, cardamom, bitter almonds give it a
kick and taste.
|2|
In this study oI analysing the category we are particularly concerned about the whisky BLA
DOG.
Category Attractiveness Analysis
Aggregate Market Factors
ategory Size
The Liquor industry is a high pace growing industry having its sales throughout the year. The
contribution oI whisky to the liquor industry is about 66 Irom which the Black Dog supports
by approximately 16 to it.

THE INDIAN LIQUOR MARKET

MARKET SEGMENTS
Category Share of market () Growth ()
hisky 66 13
Gin 1 6
Rum 16 8
Brandy 16 4
Others 1 20
Total 100 -

REGION-WISE CONSUMPTION

Region Mn cases - IMFL
Andhra Pradesh 15
Assam 1.7
Bengal 1.5
Bihar 2
Mumbai 2
Maharashtra 2
Delhi 2
Haryana 2
Punjab 2
Rajasthan 3
Tamilnadu -
|3|




Assessment Market Attractiveness
Category Growth: (+)
The growth rate oI the liquor industry is about 10 a year with annual sales oI $ 1 billion. The
very reason in the growing pace is the thirst oI the middle class Ior alcohol. In addition to this the
sales in number oI cases a year touches to 115 million cases a year.|4|
Sales Cyclicity: (+)
The pricing oI the Black Dog is a bit higher when compared to the rest oI the brands but is
considered to be a premium brand that pushes into the cars or bars oI the people.
Seasonality: (+)
There is no such as seasonal sales Ior alcohol, but through observation it could be said that
summer brings more proIit than rest oI the year.
Profits: (+)
There are always proIits in the liquor industry. By seeing the sales oI 58 million cases till 2004
and now touching to 115 million cases can simply depict the proIits.

Category Factors
Porter`s Five Forces Analysis
O Threat of New Entrants (-)
A new entrant cannot just enter into this huge captured market. To start up with it takes
lot oI capital investment and also takes to build a brand Ior themselves.

O Supplier Power (-)
There are no suppliers in this market and so there is no bargaining power oI the suppliers.

O Threat of substitutes (-)
There are substitutes like Teachers 50, 100 Pipers etc... That gives a chance Ior the others
to have a choice.




O Buying Power (-)
As stated earlier the thirst Ior alcohol has given the industry to Iix the prices so there is no
buying power also.

O Internal Rivalry
hen there is competition it is obvious that there would be rivalry but there is no change
i.e. there is no switching cost.


Environmental Factors
Economical
Though priced higher the economy doesn`t aIIect so much because the target is not the low or
middle class customers.
Political
The political Iactors have a great impact on this because they run across the globe and which is
the reason they have to Iollow many norms.
Technological
In this globally connected wireless world technology plays an important role, may not be in the
manuIacturing oI some products but at least in getting connected with the clients. Seeing this
industry that runs globally it is quite obvious that they should accept the change in the
technology.






Conclusion
From the study done we understand the there is a positive Iactors Ior the liquor market and
would have a rapid growth as the time passes. And there could also be a possibility oI a new
entrant.

Bibliography
|1| Tharra is locally (oIten illegally) brewed alcoholic drink.
2hLLp//wwwlcmrlndlaorg/free20resources/casesLudles/1he20lndlan20Llquor20lndusLry20
rohlblLlon20SLory6hLm
3hLLp//wwwlcmrlndlaorg/free20resources/casesLudles/1he20lndlan20Llquor20lndusLry20
rohlblLlon20SLory6hLm
4 hLLp//wwwallbuslnesscom/reLallLrade/foodbeveragesLores/7992631hLml

You might also like