SUMMER TRAINING REPORTON
Study of marketing strategy of USL and increasing the market share of
McDowell’s No-1 Platinum
at United Spirits, Amritsar
submitted in partial fulfillment of the requirement for the degree
Of
MASTERS OF BUSINESS ADMINISTRATION(2010-2012)
SUBMITTED TO: SUBMITTED BY:PROF. JASPAL SINGH KARAN MUTNEJA
ROLL NO. 1032MBA 3RD SEMESTER
GURU NANAK DEV UNIVERSITY, AMRITSAR
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ACKNOWLEDGEMENT
It is only when one undertakes a project, he realizes how massive an effort it really is, or
how much one must rely upon one’s self less efforts and goodwill of others. There were
many people who helped during the course of this endeavor.
Summer internship report is an integral part of MBA curriculum. It helps the student to
undergo a simulation test of what the student is going to face in his future job sphere and
a taste of practicality. It helps the student to understand how an organization works. The
competitive atmosphere, the ups and downs in the cycle of the organization, the enthusiasm
of interacting with newer people and gaining vast practical and theoretical
knowledge is what a student goes through during his work in the organization.
My project in United Spirits Limited is an experience worth sharing. My project has
enhanced my managerial skills and made me opt to face all the hurdles in my future. The vast
knowledge that I have gained from this project, I have tried to put them down in
this project report.
I am really thankful to Mr. Inderjeet Singh Bhullar (A.S.E), Mr. Dheeraj Raina (Sen.
T.S.E.) Mr. Gurpreet Singh Mann (T.S.E), for guiding me to make this project a success.
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PREFACE
The problem of unemployment is one of our major problems. This problem has been troubling us
ever since we gained independence. One reason for growing unemployment in the country is our
faulty education system. Students are given bookish knowledge without any training for specific
jobs. To mitigate such problems of our education system to some extent, training programs are
being introduced. These programs help the students to widen their horizon. Training can be done
in industries, business-houses, sales and income tax department of various central, state, local,
government societies etc.
A training program in industry is to get an overall view and exposure of the industry and its
working environment. It enhances the confidence and boosts the morale of the students preparing
themselves to work in industry in future. These programs continuously find place in curriculum
of management studies for development of the personality of students and to provide them with a
firsthand experience about working in industry.
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Table of Contents
Introduction of the topic 6Organizational Profile of the CompanyUSL at a glance 11Brands 23Promotional activities McDowell’s No.-1 Platinum 36Competitors Profile 42USL Market Share 44USL Sales share 45Promotion Techniques Adopted by Breweries Companies 46Promotion Of McDowell’s No-1 Platinum Whisky 49SWOT Analysis 50Impressions 51Achievements 52Target of USL 53Findings, Conclusion And SuggestionsFindings 55Comparative study of Market share of McDowell’s No.-1 Platinum v/s Royal Stag whisky 59Market Analysis 60Market Share Of Different Products 61Age Group Of Consumer Consuming Liquor 62Criteria of preference of brand 63Comparison of different companies 64Conclusions 65Recommendations & Suggestions 66Questionnaire for Customers 68Bibliography 69
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INTRODUCTION OF THE TOPIC
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Introduction of the topic
To study the marketing strategy of USL (United Spirits Limited) to increase the market share
of McDowell’s No.-1 Platinum.
Significance of present study
The topic is very significant, as it gives a unique chance to study and know the different
strategies adopted by the organization to increase its market share and overcome its rivals. It
also helps to understand the importance and need of marketing in corporate world.
Scope and objective of study
Marketing people are involved in marketing 10 types of entities: goods, services,
experiences, events, persons, places, properties, organizations, information, and ideas.
Goods. Physical goods constitute the bulk of most countries’ production and marketing
effort. The United States produces and markets billions of physical goods, from eggs to steel
to hair dryers. In developing nations, goods—particularly food, commodities, clothing, and
housing—are the mainstay of the economy.
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Services. As economies advance, a growing proportion of their activities are focused on the
production of services. The U.S. economy today consists of a 70–30 services-to-goods mix.
Services include airlines, hotels, and maintenance and repair people, as well as professionals
such as accountants, lawyers, engineers, and doctors. Many market offerings consist of a
variable mix of goods and services.
Experiences. By orchestrating several services and goods, one can create, stage, and market
experiences. Walt Disney World’s Magic Kingdom is an experience; so is the Hard Rock
Cafe.
Events. Marketers promote time-based events, such as the Olympics, trade shows, sports
events, and artistic performances.
Persons. Celebrity marketing has become a major business. Artists, musicians, CEOs,
physicians, high-profile lawyers and financiers, and other professionalsdraw help from
celebrity marketers.
Places. Cities, states, regions, and nations compete to attract tourists, factories, company
headquarters, and new residents.5 Place marketers include economic development specialists,
real estate agents, commercial banks, local business associations, and advertising and public
relations agencies.
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Properties. Properties are intangible rights of ownership of either real property (real estate)
or financial property (stocks and bonds). Properties are bought and sold, and this occasions a
marketing effort by real estate agents (for real estate) and investment companies and banks
(for securities).
Organizations. Organizations actively work to build a strong, favorable image in the mind of
their publics. Philips, the Dutch electronics company, advertises with the tag line, “Let’s
Make Things Better.” The Body Shop and Ben & Jerry’s also gain attention by promoting
social causes. Universities, museums, andperforming arts organizations boost their public
images to compete more successfully for audiences and funds.
Information. The production, packaging, and distribution of information is one of society’s
major industries.6 Among the marketers of information are schools and universities;
publishers of encyclopedias, nonfiction books, and specialized magazines; makers of CDs;
and Internet Web sites.
Ideas. Every market offering has a basic idea at its core. In essence, products and services are
platforms for delivering some idea or benefit to satisfy a core need.
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Area and period of study
The main area of study is the marketing segment of the organization. As the market area of
the organization is very vast so it was a great learning experience.
The period of study is of one and half months i.e. from 1ST June 2011 to 12th July 2011.
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ORGANIZATIONAL PROFILE OF
THE COMPANY
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USL at a glance
Angus Mcdowell Mr. Vitthal Mallya
Fig. 1 Fig. 2
In the late Nineteenth Century, Angus McDowell set out from the scenic Northern lands of
Gaelic Britannica. 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.
It was this spirit of adventure that launched McDowell & Company in India.
It had its origins in a warehouse near Fort St.George in Madras (now Chennai), which in
those days were a major trading centre of the British empire. In 1951, McDowell became the
prime acquisition of the United Breweries Group. Under the able guidance of the founder of
the UB Group, Late Mr. Vitthal Mallya the company became the first to
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manufacture Indian substitutes to foreign liquor. A new term - IMFL (Indian Made Foreign
Liquor) was coined. Since then, McDowell has been the indisputable market leader as one of
the largest fast moving consumer goods companies in the country.
The Name
The name ‘McDowell’ originally came from the Gaelic word ‘Macdougall’. ‘Dubh gall’,
meaning dark stranger, possibly to distinguish the dark haired Danes from the fair haired
Norwegians. Angus McDowell, after whose name McDowell and Company Limited came
into being, was a squire of the Dougall ancestary.
He started a firm- McDowell, on the northern islands of Gaelic Britannica, Which was
marketing the finer products of the Industrial Revolution to the Britons staying in various
corners of the empire. In India, McDowell has its warehouses situated about a mile to the
north of the Fort St. George in Chennai.
From being one of the first names to be associated with the import of wines and spirits into
India as early as in 1898, McDowell has now grown to become the country’s undisputed
leader in spirits market.
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USL CORPORATE BACKGROUND
United Spirits Limited (USL) – the INR 4000 crore (USD 1 billion) spirits arm of the UB
Group – is India’s largest and world’s third largest spirits company. USL was earlier
McDowell and Company Limited. Besides Whyte and Mackay and Bouvet Ladubay being
100 % subsidiaries of USL, the company has a portfolio of more than 104 brands, 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.
United Spirits’ brands have won the most prestigious of awards across flavors, ranging from
The Mondial to International Wine and Spirit Competition (IWSC) to International Taste and
Quality Institute (ITQI); 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, 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.
USL has a global footprint with exports to over 18 countries. 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. USL has
a committed 6000 strong workforce spread across its offices and distilleries in the country.
USL represents the merged entities of erstwhile McDowell & Co. Limited, Phipson Distillery
Limited, United Spirits Limited, Herbertsons Limited.
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MISSION STATEMENT
Fig. 3
-“To be the most admired global leader in the spirits industry by creating unique high
quality brands for consumers, driven by highly motivated employees and supported by
best-in-class processes and continued innovations. United Spirits is and will continue to
be responsible towards its stakeholders and the society”
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Business interest of UB Group
Beverage Alcohol: The UB group is 2nd largest spirits marketer in the world, with overall
sales of 90 million cases. The company offers 140 brands at varying price points. Some of
the famous brands of UB group are bagpiper whisky, McDowell’s No.1 whisky, director
special whisky, McDowell’s No.1 Brandy and McDowell’s celebration rum.
Pharmaceuticals: The group’s company Aventis Pharma Ltd is the second largest
pharmaceutical multinational in India. It develops and markets branded prescription drugs
and vaccines.
Media: The UB group also has a share holding in Asian Age Holdings Ltd, the company
that owns and manages daily newspapers, The Asian Age.
International trading: the group’s company UB group global ltd is recognized export
house engaged in the export of beer, spirits, leather footwear and processed food the
company also exports pharmaceutical products and customized perfumes.
.
Fertilizers: Mangalore chemicals & fertilizers ltd is under UB group management. It has a
manufacturing capacity of 2,23,700 MT of ammonia and 4.30,000 MT of urea.
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Research and development: Vijay Mallaya Scientific Research Foundation (VMSRF)
was established in 1987 with the objective of developing newer and novel technologies that
will have substantial application in industry and health care. The foundation is recognized by
the departments of Scientific & Industrial Research (DSIR) Department of Biotechnology
(DPT), Council for Scientific and Industrial Research (CSIR) and the Ministry of Finance,
Govt. of India.
Aviation: UB group entered Aviation sector in 2005 with launch of Kingfisher Airlines
Ltd. Kingfisher Airline has captured an impressive Market Share and has established a
Niche identity for itself.
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ORGANIZATIONAL STRUCTURE
Dr. Vijay Mallya
(Chairman)
Fig. 4
Dr. Vijay Mallya is the face of the $2 billion UB Group. 52 year-old Dr. Mallya took over
the Reins of the United Breweries Group in 1983.....
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S. R. Gupta
(Vice Chairman)
Fig. 5
Mr. Subhash Raghunath Gupte , aged 68 years, is a Chartered Accountant. Mr. Gupte has
worked with Caltex India Limited for 5 ½ years.
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Mr. Vijay K. Rekhi
(President & M. D.)
Fig. 6
Mr. Vijay K. Rekhi is the President and Managing Director of United Spirits Limited,
India's
Largest and the world's third largest alcohol beverage company.
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M. R. D. Iyenger
Fig. 7
Mr. M. R. Doraiswamy Iyengar. aged 66 Years is a Graduate in Commerce and a
Chartered
Accountant. He is also a post Graduate in Law, holding a B.L. degree.
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Our Distillers
UNITED SPIRITS LIMITED, ROSA
UNITED SPIRITS LIMITED, ALWAR
UNITED SPIRITS LIMITED, UDAIPUR
UNITED SPIRITS LIMITED, PATHANKOT
UNITED SPIRITS LIMITED, PALWAL
UNITED SPIRITS LIMITED, BADDI
UNITED SPIRITS LIMITED, MEERUT
UNITED SPIRITS LIMITED, HATHIDAH
UNITED SPIRITS LIMITED, ASANSOL
UNITED SPIRITS LIMITED, SERAMPORE
UNITED SPIRITS LIMITED, KHURDA
UNITED SPIRITS LIMITED, BHADRAKALI
UNITED SPIRITS LIMITED, NARAYANPUR
UNITED SPIRITS LIMITED, BETHORA-PONDA
UNITED SPIRITS LIMITED, NASIK
UNITED SPIRITS LIMITED, BARAMATI
UNITED SPIRITS LIMITED, BHOPAL
UNITED SPIRITS LIMITED, AURANGABAD
UNITED SPIRITS LIMITED, CHERTALA
UNITED SPIRITS LIMITED, NACHARAM- HYDERABAD
UNITED SPIRITS LIMITED, MALKAJGIRI- HYDERABAD
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Contract and Associate Units
Chandigarh Distillers & Bottles Ltd
Batra Breweries & Distilleries Pvt Ltd
Saraya Industries Ltd
Sir Shadilal Distillery & Chemical Works
A B Sugars Ltd
Trishul Bottlers
Gemini Distilleries (Tripura) Pvt Ltd
North East Distilleries Pvt Ltd
Ajantha Bottlers & Blenders Pvt Ltd
Centenary Distilleries Pvt Ltd
M T M Wines & Bottlers Pvt Ltd
Milestone Beverages (P) Ltd
Surma Distillery Pvt Ltd
Mount Distillery – Sikkim
Himalayan Distillery Pvt Ltd
Salson Liquors Pvt Ltd
Ambient Liquors Pvt Ltd
Chitwan Blenders & Bottlers Pvt Ltd
Aegis Beverages (P) Ltd – Bilaspur
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BRANDS
Fig. 8
USL BRANDS
Whisky
Whyte and Mackay
Dalmore
Jura
Black Dog
Antiquity
Signature
Royal Challenge
McDowell’s No-1
Director’s Special
Bagpiper
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McDowell’s No-1 Platinum
Green Lable
Vodka
Pinky
Red Romanov
Premium Romanov
White Mischief
Rum
McDowell’s No-1 Celebration Rum
Old Cask Rum
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Whisky
1- Whyte and Mackay-Refined to richness .Excelled to last
In 2007, United Spirits acquired Glasgow based Whyte and Mackay and ramped up its
premium scotch and single malts portfolio significantly. Whyte & Mackay is a leading
distiller of Scotch whisky owning brands including The Dalmore, Isle of Jura, Glayva,
Fettercairn, Vladivar vodka and the eponymous Whyte & Mackay blended Scotch. The
Company also owns several other Scotch whisky brands such as Mackinlays, John Barr,
Cluny and Claymore to name a few. Whyte & Mackay also owns four malt whisky
distilleries in Scotland and a state of the art bottling facility in Grangemouth with a capacity
of producing 12 million cases per annum. At a time when global demand for Scotch whisky
is showing strong growth and prices are increasing rapidly, Whyte & Mackay’s bulk scotch
inventory of 115 million litres are not only very valuable but provide United Spirits the
opportunity to meet their own growing requirements in India.
Whyte & Mackay recorded sales of 9 million cases and case equivalents in the last 12
months. United Spirits recorded sales of 66 million cases for the year ended on March 31,
2007. With this acquisition, United Spirits will have consolidated sales of 75 million cases
per annum.
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2-Dalmor -
e -Rich in perfection. Pure in taste
For over 160 years, the distillery has produced malts of great character and
distinction. The Dalmore Single Highland Malt Whisky Collection has won numerous,
prestigious awards and is recognized as being one of the finest distilleries in the world.
The malts which make up this collection, the twenty-one years old, the twenty-one
years old and the cigar malt have been maturing under the careful eye and expertise of
Scottie and his colleagues at the Dalmore distillery. Each is matured in a wooden cask
selected from a choice which includes sherry wood and American white oak which, along
with the years and the climate, contributes to the flavor of each malt.
From Norse and Gaelic, Dalmore means “the big meadowland” referring to the rich
and fertile Black Isle, on the opposite shore of the Cromarty Fifth from the distillery. The
pure waters of the River Alness are used to produce The Dalmore, producing some of
Scotland’s very finest single Highland Malt whiskies Chocolate and spice are just two of the
more unusual and unexpected “notes” among the multitude of flavors and aromas that can be
discovered in The Dalmore. In this superb, award winning single malt it is possible to detect
around 26 distinctly different, and often surprising, aromas.
The Dalmore undergoes subtle transformation as it matures to 12 years old, 21 years
old. As it ages the aromas and tastes alter and you will detect orange, heather, spice and
subtle hints of smoke. To find more you simply have to follow your nose and taste with help
of Richard Paterson’s tasting notes.
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3-Jura-A sense of inspiration, a blend of heritage
There is no quick way of getting to the island of Jura. The fastest method from
London involves two planes, a ferry, and the best part of a day. Coming by car from Glasgow
takes about the same amount of time. George Orwell, who came here to write 1984,
described it as “an extremely un-getable place.” Things haven’t changed a great deal since
then .Which is partly what makes this Hebridean Island – producer of the award-winning
JURA single malt – such a magical destination.
But for true whisky enthusiasts there is one over-riding reason to come to Jura, and
that is to visit its distillery. Established in 1810, JURA’s single malts have won numerous
awards and are distinguished for their subtle flavors which are dramatically different to the
peaty whiskies from the neighboring island of Islay. Often the smallest of factors can affect
the balance of flavors in whisky.
Although much of a whisky’s character is decided by the type of barrel it is aged in,
the finest single malts quite literally offer a taste of their location, starting with the water that
is used to the local weather and atmospheric conditions. During the ageing process, the
whisky not only absorbs the flavors of the wood, but the island’s atmosphere and sea breezes
as they pass over the porous walls of the barrels. Jura’s exceptionally mild climate and gentle
breezes, together with the local spring water, are significant factors contributing to JURA’s
smooth, warm flavors.
Jura may be hard to get to, but as those who’ve been there will testify, it’s a place
that’s even harder to leave.
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4- BLACK DOG - A little science, a little art, & a snifterful of magic.
Black Dog is a 100% genuine Scotch whisky distilled, matured and blended in
Scotland. A blend of many elegant whiskies drawn from Highland, Speyside, Islay and
lowland regions of Scotland, Black Dog captures the essence of Scotland with its distinctive
taste and flavor. The masterful whisky is available in two enchanting blends, 12 Year Old
Deluxe Scotch whisky and 8 Year Old Centenary Scotch whisky.
On the misty shores of Scotland, his exploration finally yielded an impeccable blend,
robust yet smooth, an intricate fusion of delicate tones and soft aromas. Created by James
McKinley, of the second generations of the Leith Scotch Whisky blending family, this
exquisite blend was christened by Millard Black Dog. Thus was born a great whisky.
After more than 120 years later, Black Dog remains faithful to its original blend. Every
ingredient and every time-honored process has been retained the same way as James
McKinley intended them.
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5-ANTIQUITY-The spirit of luxury, the art of perfection
Antiquity Premium Whisky has been created with great care to minutest detail on quality of
various ingredients. Antiquity Premium Whisky is a unique blend of exclusive Scotch, fine
Indian malts and alcohol and it do not contain any artificial flavors.
A timeless packaging that's earned global recognition, bagging prominent awards like
WordStar, Asia-star and India-star. Grown from strength to strength, Antiquity succeeds in
consolidating brand values of "exclusivity and luxury", while establishing itself as the finest
– of all. Available in two distinct blends - Antiquity Blue and Antiquity Rare, the brand is
known for its indomitable spirit and superior taste. Antiquities captured the fascination of
whisky and scotch drinkers and made its presence felt in the major metros and big cities in
the 80s. An exceptional creation, it challenges the connoisseurs to explore its complex inner
details. Needless to say, the blend composition was arrived at after numerous experiments
and till today the composition is a closely guarded secret, known only to our Master Blender.
Quality of the product is maintained using strict quality control norms including finger-
printing using the sophisticated Gas Chromatographic technique.
Antiquity became a part of United Spirited Limited in 2005, when UB Group acquired Shaw
Wallace. In past two years, the popularity of Antiquity has gained new heights owing to the
powerful campaign unleashed by USL.
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6- SIGNATURE- The genuine flavor.
The genuine occasion
One of the fastest growing spirit brands in the country, Signature has always stood out for its
unique packaging, identified chiefly by its octagonal green bottle and mono carton, the
flourish with which the band name is inscribed and the green and golf color combination.
The physical identity of brand Signature has played an instrumental role in creating a
premium, aspiration and exclusive imagery for it. Considered commonly as a "Scotch like
Experience", McDowell's
Signature is clearly young, modern, stylish and for the discerning. In the late 80s and early
90s, a Scotch/ expensive whisky connoisseur stocked his bar largely from trips abroad or the
bootlegger. With the latter, the risk of getting 'non-original' stock was ever present. Also,
bulk purchase requirements of corporate partners, could not be served by bootlegger.
To cater to this need in 1991, McDowell & Company launched a prized blend of Imported
Scotch and impeccable Indian malts and called it McDowell's Signature. It was created to be
not just a 'good Indian whisky' but the 'Best Indian Whisky.' The going was great with
McDowell's Signature expanding its consumer franchise and growing strong.
But by the turn of the century a new roadmap for McDowell's Signature was unfolded as the
brand became more accessible to a larger audience by redirecting its focus towards the
premium whisky drinker who was younger, well-heeled, well-exposed and on-the-way-to-
the-top. Thus was born the New Signature - the New Sign of Success, priced at a 5-10%
premium over the leading premium whisky brand of the time Royal Challenge.
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%.
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7- ROYAL CHALLENGE- A master of excellence. A masterpiece of style
Royal Challenge is the largest selling premium whisky in India. Cherished by connoisseurs
of spirits all around the world, Royal Challenge is a 24 years old blend with a rich heritage of
innovation and unsurpassable quality. A true personification of the spirit and energy of
today's achievers, this flagship brand of United Spirits Ltd. is the sole millionaire brand to
inhabit the premium whisky segment.
Royal Challenge was the whisky that proved to be a trailblazer from the time it was launched
in the 80s. It swept from the North and won the hearts of whisky drinkers across South India
and became so popular by the mid 80s that not many were even aware that RC stood for
Royal Challenge. As the UB Group acquired Shaw Wallace in 2005, RC became a part of
USL's proud legacy.
Royal challenge exudes a vibrant and youthful image. It is a true market leader not just
because of its high market share but also because of the imagery it lends to its consumers.
An amazingly smooth whisky, the secret of its velvet-like texture lies in the use of leisurely
matured malt spirit. To create this unique blend, enormous time was spent by the Master
Blender in studying the properties of various oak wood casks. Eventually, the 'Right' casks
were chosen for maturation of the malt spirit used in Royal Challenge after extensive
research. Thus was born Royal Challenge.
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8- McDowell’s No.1- A blend – in a league of its own.
McDowell's No.1 Whisky, one of the flagship brand of United Spirits Limited, is the world's
fifth largest selling whisky. Its unbroken monopoly of leadership in the Prestige segment lies
in the constant innovations in product, packaging, marketing and promotions. The proof of its
quality and appeal is that it has not only survived the Scotch invasion, but is on its way to
becoming one of the biggest whisky brands in the world even beating pure Scotch!
Apart from the popular McDowell's No. 1 Reserve Whisky, McDowell has another variant
under its label - Diet Mate Whisky, world's first diet whisky, created specially for the fitness
conscious drinkers.
McDowell, the drink has always been positioned as the No.1 drink in its category, both
literally and laterally. The 'cheer finger' has always stood for McDowell's No.1 Whisky. In
the beginning, it had the tag 'Mera No.1' attached to it. However, over the years, it has
evolved and transformed from an "icon" to a brand character. The brand has reinvented itself
in all possible ways and has looked at greater accomplishments over the years.
The cheer finger has been the trademark of the brand. Quite evidently so, it has been a rage
with connoisseurs of liquor. At present, the print campaigns that conveyed the ideas, 'a
rocking one', 'a playful one', 'a wild one' etc have seen an overwhelming response from the
masses- the central concept of the advertisements being that all celebrations in life begin with
McDowell.
The brand's uncanny ability to change itself constantly and remain connected to the ever -
changing customer aspirations is the key to its success.
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9- DIRECTOR’S SPECIAL
With an established reputation as being the best blend in the prestige whisky segment,
DSP is aiming to re-launch itself in terms of a new pack and communication campaign. The
black and white packaging has been changed to gold to reflect a premium and contemporary
image, which has been received well in the market.
DSP is well perched on its flight path of success – it sold 4.32 million cases in
calendar year 2005, a growth of 11% over 2004. It crossed the “half a million cases” mark in
2004-05, for the first time since its launch in 1998. The success of the brand could be
attributed to the excellent marketing initiatives of the brand in FY05, which includes “War of
the DJ’s” – the best DJ Event in the nation, Colonial Cousins Musical Night in Bangalore
and the Radio Mirchi RJ Hunt in Mumbai.
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10- BAGPIPER-Keep walking, Bagpiper
Bagpiper whisky has become India’s largest selling IMFL brand. Continuing its historic
success run, Bagpiper registered a 44% growth over last year. In 2004, with sales of 7.34
million cases, it was already India’s most favored whisky. It has further consolidated it
position this year, with a whopping sale of 10.54 million cases. Bagpipers all India market
share is more than double of its closest competitor.
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11- McDowell’s No.-1 Platinum
On April 3 2010, United Spirits launched a new phase in whisky and it was McDowells
No-1 Platinum. Platinum is 100% grain whisky.Its BLEND is very smooth and AROMA is
brilliant. It was blended by world’s best blender from Scotland i.e. Mr. Robert Peterson. The
packaging of Platinum is eye-catching. It has a black coloured cover and is the only whisky
of its range whose all three sizes i.e. Nip, Pint and Quards come in packaging.
McDowell’s No-1 Platinum comes with a tag-line which says
“PURE GRAIN PURE PLEASURE”
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Promotional activities McDowell’s No.-1 Platinum
As McDowell’s No.-1 Platinum has been recently launched in kanpur i.e. on 3rd April 2010
hence a strong promotional activity was launched by USL for its promotion in the city. The
Promotional Activities comprised of the following:-
The Promotional Scheme was valid in institutions only i.e. BARS, CLUBS, MODEL
SHOPS, HOTELS etc.
The scheme contained that with every 2 Pegs of McDowell’s No.-1 Platinum 1 free Peg
would be served to the customers as a complimentary gift in bars.
Scratch card was also given to the customers, the scratch card had a special code which
they had to SMS “PLAT” to 9215392153, the lucky ones would get a chance to have
dinner with Shahrukh Khan on Star Cruise & all kind of expenses of the customers would
be barred by UB Group, and also there were lots of other gifts like T-shirts, caps etc.
McDowell’s No.-1 Platinum also sponsored various parties, rock bands at various hotels,
bars & clubs as a promotional tactic so as to penetrate into the market.
Customers enjoyed & loved the newly introduced 100% grain whisky, blend, aroma, &
hence responded very positively.
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RUM
1-McDowell’s No.1 Celebration Rum
The reason for celebration. The reason to cheer.
Popularly called "Whisky among rums", McDowell's No. 1 Celebration Rum is the 4th
largest rum in the world with sales of 6.6 million cases p.a. and a market leader in India with
51% market share. A unique blend that is widely accepted and a part of the legendary
McDowell's lineage, Celebration Rum has won numerous awards for superior taste.
The brand has 2 variants; No.1 Celebration Rum and No.1 Celebration Rum Dry & White,
both of which are matured, distilled and blended with exceptional finesse. Regarded as the
"Connoisseurs delight," McDowell's No. 1 Celebration Rum captures the true tradition of
rum making.
Launched in 1990, Celebration Rum was created by our expert master blender, who has
carefully studied the age-old art of rum making, before creating this superb blend. Although a
hundred thousand cases was a modest beginning, 6.6 million cases reach markets across 12
countries making it the 4th largest selling rum in the world today.
2- Old Cask Rum
Old cask's blend is a perfect combination of strength and smoothness. The blend has been
carefully created by our master blenders to ensure its appeal to the connoisseurs of fine rum.
It has a unique barrel shaped bottle.
37
VODKA
1- PINKY-Flirty flavored, tickled pink
It’s pink. It’s redolent of flowers and fruit. And in its chic perfume style bottle, it
could live on a vanity table. Pinky Vodka offers a shot of sheer feminity. Created in Sweden
by champion wine tasters, Pinky owes its elegance and distinctive “pink” taste to a bouquet
of violets, rose petals, wild strawberries and other botanicals, hand blended into the vodka
after distillation for maximum flavor.
Pinky comes in an oversize perfume-like bottle, with the brand name printed in
metallic silver on a black label and a mono carton accentuating its sensual appeal. The
brand’s unusual typeface adorned with rose thorns suggests its beauty while alluding to its
ingredients. Tickle your lady love pink this season with the world’s most beautiful vodka.
38
2-WHITE MISCHIEF-The spirit… with a twist of mischief
Distilled from the finest spirit and filtered to the highest levels of purity to ensure a high
quality vodka blend, White Mischief embodies the pure enthusiasm and flamboyant spirit of
youth – its core essence being "flirtatious mischief". The frosty and smooth look of the bottle
and the shades of royal blue and white on the vial stand for the stylish youth of today. No
wonder, it is one of the most preferred brands of this age.
Fastest growing vodka in the country, White Mischief is the market leader today with 46%
market share.
White Mischief is triple-distilled from the finest spirit and systematically carbon filtered to
the highest levels of clarity and purity. The clean and dry Extra Neutral Alcohol is blended in
close supervision and strict quality control parameters to ensure a high quality vodka blend.
39
3- PREMIUM ROMANOV VODKA- A glint of glamour. A pint of charm
Seductive and magical, Romanov is all enticing beauty with the zing. A stylish pack
that screams attitude and attractive labels make Romanov Vodka a premium offering. The
fastest growing vodka in the country, Romanov is at the forefront of innovations. Keeping in
step with the changing times, Romanov is introducing a first-of-its-kind offering - Romanov
Diet Mate Vodka. Besides, Romanov is also available in two peppy flavors namely Green
Apple and Tropical Thrill.
Romanov gets its name from the last czar of Russia and true to its calling remains
committed to the finest vodka making, the way Russians traditionally made their vodkas.
Romanov then not only delivers an international youthful imagery but also provides the
consumer vodka that is truly superior.
40
4-RED ROMANOV-CHASE RED
Romanov Red Vodka is multigrain- triple- distilled Vodka. Romanov Red is made from
carefully selected multiple grains. The fine grain alcohols are then immaculately purified
through a multi-distillation process, inspired by the traditional manner in which the Russians
prepared their Vodka. The high quality spirit is then put through an intensive filtration so you
can experience an internationally superior, smooth blend.
41
Competitors Profile
SEAGRAMS INDIA
Seagram India Pvt. Ltd. engages in the spirits business in India. It offers Scotch whiskey,
wines, gin, and brandy. The company was founded in 1994 and is headquartered in Gurgaon,
India. Seagram India Pvt. Ltd. is a subsidiary of Pernod-Ricard SA. In the 2001, group
Pernod Ricard acquired part of Seagram’s worldwide, after the divestment of the spirits and
wine business by Vivendi Universal. The acquired part of the Seagram’s business catapulted
group Pernod Ricard into the top three of the global wine & spirits players. The acquisition
also brought Seagram’s India into its fold, making group Pernod Ricard, headquartered in
Paris, the biggest MNC in the spirits business in India. Seagram’s India has shown an
average growth rate of 69% per annum since 95-96 and is today the most profitable company
in the spirits business in India.
The main competitor during this study to be targeted is Seagrams India, and the product to be
targeted is Royal Stag Whisky.
BRANDS OF SEAGRAMS
100 PIPERS SCOTCH
BLENDERS PRIDE WHISKY
ROYAL STAG WHISKY
IMPERIAL BLUE WHISKY
FUEL VODKA
42
RADICO KHAITAN
Radico Khaitan is one of India's oldest and largest liquor manufacturers. Formerly known as
Rampur Distillery which was established in 1943. It was only in 1999, that Radico decided
to launch and market its own brands, thereby embarking on a period of phenomenal growth.
To further boost its production capacity of bottled and branded products, the company has
tied up with bottling units in various parts of the country.
Radico Khaitan Ltd today has three millionaire brands in its portfolio. Radico's flagship
brand, 8 PM Whisky, launched in 1999, was a runaway success In the first year alone, it sold
one million cases - a record for any Indian or foreign brand operating in India. This also
made it the first brand in the liquor industry to make it to the Limca Book of Records. The
other millionaire brands are: Contessa Rum has won the prestigious Monde Selection award
for its overall quality for the past three executive years. It has a large market share in the
defense market.
Today, Radico Khaitan has brands that straddle almost every market segment - whisky,
rum, brandy, vodka & gin - and price category. The company has form a 50:50 joint venture
with Diageo to exploit the large and developing Indian made foreign liquor (IMFL) segment.
Diageo, the world's leading premium Drinks Company with iconic brands such as Johnnie
Walker and Smirnoff in its portfolio, and Radico Khaitan Ltd, the second largest drinks
company in India
BRANDS OF RADICO
8 PM WHISKY
MAGIC MOMENT VODKA
CONTESSA RUM
MAGIC MOMENT DRY GIN
43
USL Market Share
in the year 2008-2009
Fig. 25
In the year 2008-2009
Fig. 26
44
USL Sales share
in the year 2008-2009
Fig. 27
in the year 2008-2009
Fig. 28
45
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.
2- 3 unit display generates …a sales volume of 5 units!
3- 5 unit display generates … a sales volume of 10 units!
4- Product should always be displayed at Eye level
46
GOLDEN LINE
While arranging shop display, the base line is just below average customer
height, therefore 20 degree below the eye level is the most convenient point
To LOOK at, To TOUCH, To SEE, To FEEL, To OPERATE!
This point is the GOLDEN LINE
47
2) PROMOTION PARTIES
a) People come in the party in mass to enjoy the party and aware about the company’s
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.
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.
48
PROMOTION OF McDOWELL’S NO-1
PLATINUM WHISKY
The first project assigned to me was the promotion of McDowell’s No-1 Platinum whisky. The
main purpose of this promotion was to make consumers aware about the new blend, its
packaging, and its new aroma.
Previously USL didn’t had a competitive whisky with Seagram’s Royal Stag Whisky hence
McDowell’s No-1 Platinum was launched. Its blend is very smooth and its 100% grain whisky.
McDowell’s No-1 Platinum was launched with an attractive packaging.
Strategy Adopted
The company adopted distributing gifts as a promotional strategy. These gifts included a pen,
a lighter cum torch and a wallet. Under this project I was told to visit a retail shop where I
had to do spot selling of McDowell’s No-1 Platinum whisky and give above mentioned gifts.
Gifts were given on the basis of purchase, i.e. on purchase of every Nipe a pen, on purchase
of every Pint a lighter cum torch and on purchase of every Quards of McDowell’s No-1
Platinum whisky a wallet was gifted.
Record of each day’s sales of McDowell’s No-1 Platinum whisky in a specific format which
was provided to me by the company.
Bar promotion at GANGES Club and KANHA CONTINENTAL is a big success. There an
offer was displayed for the customers that read “BUY 2 PEGS GET 1 PEG FREE”. This
offer was displayed on the TAN-CARDS. This gave a good response and McDowell’s No-1
Platinum whisky became a success story over Seagram’s Royal Stag Whisky.
49
SWOT ANALYSIS
Every company SWOT analysis will differ even among the same industry. Basically, the
terms are self-explanatory with the key difference being strengths and weaknesses are
internal attributes and opportunities and threats are looking at external factors that could
change the success of the firm.
STRENGTH:-
UB Group grabed around 60% of market share,
100% availability of our products,
Aggressive Acquisition and Market Penetration,
Strong product base of 30 products,
Experienced management team and other key personnel.
Market competitive prices of products.
WEAKNESS:-
Indirect promotional schemes,
OPPORTUNITY:-
High demand of Whisky in India,
Since Shaw Wallace is now a part of UB GROUP so we expect that it acquire more
liquor companies,
Further scope of Conglomerate Diversification,
THREATS:-
Tough competition in Vodka segment,
Competitive market strategies of other companies are very strong,
Impressions
50
1898, McDowell & Co. Ltd. was established. The company, with a 100-year-old history
continues to be India’s no. 1 spirits company.
In 1951, late Mr. Vittal Mallya, founder of the UB Group acquired McDowell.
In 1958, Phipson & Co. Ltd. was acquired.
In 1961, Carew & Co. Ltd. became a part of the group.
In 1973, Herbertsons Ltd., a company established in 1936, was acquired by the United
Spirits Limited Herbertsons Ltd. is India’s third largest spirits company today.
Mr. Vijay Mallya, the current Chairman of the UB Group took over in 1983. Since then,
the Spirits Division has earned a reputation for innovation in product development,
manufacturing and marketing strategies.
Consolidated Distilleries Ltd. was started in 1987.
Carew Phipson Ltd. and Consolidated Distilleries Ltd. were merged with McDowell &
Co. Ltd. in 1995.
Acquiring Triumph Distillers & Vintners (TDV) (December 2002).
Increasing the holdings in Herbertsons Ltd (HL) (February 2005).
Acquiring Shaw Wallace and Company Ltd (SWC), the second largest player in Indian
Spirits market (June 2005).
Achievements
51
Four of our brands, have made it to the top 100 global alcohol brands by retail value.
These include McDowell’s No.1 Whisky, McDowell’s No.1 Celebration Rum.
McDowell’s No. 1 Brandy, all under the McDowell’s No. 1 umbrella and Bagpiper
Whisky from the Herbert sons stable.
The largest spirits company in India, with 60% market share
The 3rd largest spirits group in the world* selling over 60 million cases through
McDowell, Triumph Distillers & Vintners, Herbert sons Ltd & Shaw Wallace
There are over 140 brands out of which 15 are millionaire brands.
Manufacturing Network of 75 manufacturing locations include market leaders in all
flavors’ and categories.
11 group distilleries have been awarded ISO 9002 certification.
First to sponsor and promote brands through event marketing (Grand Prix, Derby,
Football and Tennis)
First to deal in international brands of Spirits, Beer, Wines, Lifestyle Products,
Perfumes and Cigars
First to launch a single malt whisky (McDowell's Single Malt in 1992)
Pioneers of pre-mixed drinks- Gin - Blue Riband Duet, Tango
First to launch 12 Year Old Deluxe Scotch whisky - Black Dog (1994)
First to launch ready to drink low alcoholic beverages- McDowell’s Mixed
Doubles( 1999)
The Chairman of the organization is now the owner of the IPL’s one of the most
expensive team i.e. Royal Challenger Bangalore. And it has tied up with all other
teams of IPL as a promoter
52
Target of USL
Fig.30
The target of USL is to capture the majority of Indian Spirit market by 2015, as by 2015 the
GDP of India would be around 1400 US$ in BRIC Estimate. As the GDP will increase then the
investment capacity in the market will also increase, and this will increase the demand in the
market.
53
FINDINGS, CONCLUSION AND
SUGGESTIONS
54
Findings
BENEFITS OF DISPLAY :
Display at retail outlets
The Main 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.
When the customers look at the display they become curious to ask that which brand
of display is this. It helps to increase the sale of that product.
Display enhances the image of the company as well as image of the product.
In today’s competition display helps a product to be distinct from its competitors.
With the help of display Royal Challenge and McDowell got a good start-up and also
gave a healthy Competition to its main competitor that is Blender’s Pride and Royal
Stag.
55
BENEFITS OF PROMOTION PARTIES:
People came in the party in mass to enjoy the party and aware about our New
McDowell’s No.-1 Platinum whisky.
We arrange a DANCE COMPTETION there and distribute lots of gifts to the winners
and also arrange the artificial rain for the guests.
For the drink only McDowell’s No.-1 Platinum Whisky is available so each and
every guest enjoys and tasted the drink.
After the promotional parties we found that sale of our McDowell’s No.-1
Platinum
Whisky is increased from before and each and every customer who comes to buy the
drinks knows about our product.
56
Based on the topic “Market penetration and promotion of UB products” I have done a market
survey for our product in which I have checked the availability of our premium brands in the
retail shops. My research is based on the primary data which I have collected during my
survey.
I have checked the availability of the new product and helped in increasing the availability of
the product by making the sales person and the retailers aware of this product and by putting
some promotional schemes in Bars and Clubs and retail stores. There are 105 retail shops in
Karanpur. Their information was taken by visiting the retail shops personally, stock
availability chart was prepared to check the availability of the products of our company.
In the first phase of my training I was asked to promote Royal Challenge Whisky on retail
shops as it was re-launched with new blend and with a new name of “McDowell’s No.-1
Platinum.” For promoting its product company launched it with a scheme of gifts through
scratch coupons on every unit the customer purchased which was a coffee mug, table clock,
salt pepper shaker and a soda bottle. The main target for the promotion were the customer
who bought Blenders Pride (Seagram’s product) to be converted in to Royal Challenge Gold,
the promotion was carried out at 23 outlets for one month which resulted in increase in sales
of the product from 400 cases to 600 cases.
57
As McDowell’s No.-1 Platinum was facing stiff competition from the Royal Stag I tried
to find out the reasons for demand shift which were as follows:
1) Rise in price of McDowell’s products.
2) Promotional schemes offered by major competitor Seagram's.
3) Lack of aggressive promotion of McDowell’s.
4) 3 D attack on McDowell i.e. its market share was taken away by Royal Stag, Imperial
Blue (both Seagram’s product) and Bagpiper its own brand (observed increase in market
share)
5) Complaint of customers for duplicity of the product.
58
Comparative study of Market share of McDowell’s
No.-1 Platinum v/s Royal Stag whisky
Fig.32
Increasing market share of McDowell’s No-1 Platinum
Fig.33
Decreasing market share of Royal Stag
59
Market Analysis
Fig.34
1) UB Group grabbed around 60% of market share among all Spirit Companies.
2) 100% availability of our products in all variety.
3) Strong Brand Base of 30 products.
4) Seagram’s has only around 13% market share.
60
MARKET SHARE OF DIFFERENT PRODUCTS
Fig.35
1) According to my survey Whisky is more saleable than other products.
2) The demand of Vodka and Scotch is also increasing at rapid rate.
61
AGE GROUP OF CONSUMER CONSUMING LIQUOR
Fig.36
The above data is prepared according to the age group of consumers.
62
Criteria of preference of brand
Fig.36
Above data is tabulated according to the preferences of the customers based
upon taste, price, availability etc.
63
Comparison of different companies
Fig.37
1) UB group are more focused on taste, appearance and other preference criteria.
2) It provides glow sign board, hoardings and well symmetric manner to its brand in each
shop.
3) Posters and danglers have played an important role for maximum awareness of their
products.
64
CONCLUSIONS
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. Its whisky products like
McDowell’s No-1; Signature is already a success story. But UB Group is just not alone in the
field there are also players like Royal Stag and Blender’s Pride which has very large market
coverage in the field. UB Group is adopting good marketing and promotional strategies these
days to encourage its new product launching. UB Group is already having a brand image in
the market and now its promotional displays are all around in the market. McDowell’s No-1
Platinum is going to be a successful brand in coming days as customers prefer this because of
its smooth taste, no smell and no hangover.
Many of the Promotional programmes like Spot selling is going on in different cities. It also
organized Promotional parties that were success. Now McDowell’s No-1 Platinum 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. But after achieving all the success the company should look into
certain points so that its product acquires great heights.
• Communication and Distribution channel should be strong.
• Proper Display of products in Retail Outlets, Bars and Clubs.
• UB Group should concentrate on those areas where the sale of liquor area is very low.
• Should target Corporate Personnel.
65
Recommendations & Suggestions
U.B. group is enjoying the top most position in the SPIRITS market of India. As per my
survey and company’s sales report the market share of USL products is about 60%. To
increase this share my suggestions and recommendations on the basis of the findings are as
follows -:
There should be better co-ordination between retailers and company executives.
Need to advertise more in remote areas where there are hardly any neon sign or glow
sign boards such as Mall Road v/s C.T.I. etc.
They should put more emphasis on displaying their product in the Retail Outlets
through Pop’s, Danglers, Sparkling Sheets, Decorative Lights etc so that their
products become more attractive.
Moreover the company should adopt three simultaneous Promotional strategies for
Retailers, Bars and Clubs respectively-:
66
FOR RETAILERS:
Give free gifts on bulk purchases
We can also give gifts occasionally like Seagram gives at least twice a year.
Cash discounts can be other alternative.
UB group should try to give incentives to the salespersons in terms of money i.e. they
can offer RS. 1 on Nips, RS. 2 on Pints, RS. 5 on every unit they sell. This in return
will motivate the salespersons to sell the product at large
FOR BARS
Free snacks can be given with the drinks
We can also provide T-shirt or cap to bar tenders for brand promotion.
FOR CLUBS
In clubs generally high class society people are seen, so there should be schemes like
free Passes for Programmes, holiday packages on lucky draw basis, etc.
Club Programmes can be sponsored by the company.
Regular feedbacks should be taken from the customers in order to keep a check on the
quality of the product.
Live shows are very much effective so the company should organize live shows
regularly.
UB group should try to sponsor Corporate parties at large because they can be good
prospects.
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Questionnaire for Customers
Q.1. What do you do for recreation?
(a) Family (b) Movie (c) Shopping (d) Others
Q.2. Do you like to consume Hard Drink?
(a) Yes (b) No
Q.3. Where do you consume Hard Drink?
(a) Home (b) Model Shop (c) Bar (d) Others
Q.4. What is your frequency of drinking?
(a) Occasionally (b) Daily (c) Shopping (d) Others
Q.5. What do you like in Hard Drink?
(a) Rum (b) Beer (c) Wine (d) Whisky (e) Vodka
Q.6. What quantity do you prefer?
(a) Quartz (b) Pint (c) Nip
Q.7. How do you consume Hard Drink?
(a) Water (b) Soda (c) Cold Drink (d) Neat
Q.8. Which brand of Whisky do you like most?
(a) Platinum (b) Blender’s Pride (c) Royal Challenge (d) Royal Stag
Q.9. Have you ever tasted McDowell’s No-1 Platinum?
(a) Yes (b) No
Q.10. Do you like McDowell’s No-1 Platinum or Royal Stag? Why?
(a) Taste (b) Smoothness (c) Smell (d) Brand Loyalty
Thank you for giving your valuable time to us!
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BIBLIOGRAPHY
1. MARKETING MANAGEMENT by PHILP KOTLER.
2. MARKETING WAR-FARE by AL RIES and JACK TROUT
4. THE ART OF WAR - SUN TZU
5. WWW.MCDOWELL.COM
6. WWW.GOOGLE.COM
7. WWW.UNITEDSPIRITS.COM
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