Internship Project Report

DECLARATION I hereby certify that the work which is being presented in the project entitled, “Study of marketing strategy of USL and increasing the market share of McDowell’s No-1 Platinum” in partial fulfillment of the requirements for the award degree of MASTER OF BUSINESS ADMINISTRATION at AMITY BUSINESS SCHOOL, LUCKNOW, is an authentic record of my own work carried out under the supervision of Dr. Nimish Gupta.

The matter presented in the Project Report has not been submitted by me for the award of any other degree of this or any other university.

Arjit Shukla Student

Dr. Nimish Gupta Faculty Guide

Professor R.P. Singh Director, ABS

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Table of Contents Certificate from Faculty Guide Certificate from Industry Guide Acknowledgement

Page 4 Page 5 Page 6

CHAPTER I Introduction of the topic Significance of present study Scope and objective of study Area and period of study

Page 8 Page 8 Page 8 Page 11

CHAPTER II Organizational Profile of the Company USL at a glance The Name USL Corporate Background Mission Statement Business interest of UB Group Organizational Structure

Page 13 Page 14 Page 15 Page 16 Page 17 Page 19

Our Distillers Contract and Associate Units Brands

Page 23 Page 24 Page 25

Promotional activities McDowell’s No.-1 Platinum Competitors Profile USL Market Share USL Sales share Promotion Techniques Adopted by Breweries Companies Promotion Of McDowell’s No-1 Platinum Whisky SWOT Analysis Impressions Achievements Financial Prospects of USL Balance sheet

Page 46 Page 54 Page 57 Page 58 Page 59 Page 62 Page 63 Page 65 Page 66 Page 68 Page 71

Share holding

Page 73

CHAPTER III Presentation and Data Analysis

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Methodology

Page 76

The Statement of the problem Understanding the nature of the problem. Collection of Data Analysis of Data Target of USL

Page 76 Page 77 Page 77 Page 78 Page 79

CHAPTER IV Findings, Conclusion And Suggestions Findings Comparative study of Market share of McDowell’s No.-1 Platinum v/s Royal Stag whisky Market Analysis Market Share Of Different Products Age Group Of Consumer Consuming Liquor Criteria of preference of brand Comparison of different companies Conclusions Recommendations & Suggestions Questionnaire for Customers Bibliography

Page 81 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 95 Page 97

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CERTIFICATE FROM FACULTY GUIDE

Certified that this report is prepared based on the summer internship project undertaken by ARJIT SHUKLA, a student of MBA (G) Section-A, in UNITED SPIRITS LIMITED, Kanpur from 3rd MAY, 2010 to 15th JUNE, 2010 under my guidance in partial fulfillment of the requirement for award of degree of Master Of Business Administration from Amity University, Uttar Pradesh.

Date:

(Dr. Nimish Gupta) Faculty Guide

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CERTIFICATE FROM INDUSTRY GUIDE

Certified that this report is prepared based on the summer internship project undertaken by ARJIT SHUKLA, a student of MBA (G) Section-A, in UNITED SPIRITS LIMITED, Kanpur from 3rd MAY, 2010 to 15th JUNE, 2010 under my guidance in partial fulfillment of the requirement for award of degree of Master Of Business Administration from Amity University, Uttar Pradesh.

Date:

(Mr. Vishal Tyagi) Industry Guide

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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. Rajesh Fanda (G.M Sales), Mr. Ritesh Bhasin (Sen. T.S.E.) Mr. Vishal Tyagi (T.S.E), under whose auspicious leadership and constant mentoring of Dr. Nimish Gupta (Faculty ABS) for guiding me to make this project a success.

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CHAPTER I

INTRODUCTION OF THE TOPIC

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Introduction of the topic

To study the marketing strategy and 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 3rd May 2010 to 15th May 2010.

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CHAPTER II

ORGANIZATIONAL PROFILE OF THE COMPANY

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USL at a glance

Angus Mcdowell Fig. 1

Mr. Vitthal Mallya 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

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 Bagpiper  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

Fig. 9

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

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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

-

Fig. 10 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

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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

Fig. 11

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

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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.

Fig. 12

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

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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. 5-ANTIQUITY-The spirit of luxury, the art of perfection

Fig.13

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 34

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 fingerprinting 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.

Fig. 14

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

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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-tothe-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

Fig. 15

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 38

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.

Fig. 16 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. 40

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

Fig. 17

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

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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

Fig. 18

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

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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.

11- McDowell’s No.-1 Platinum

Fig. 19

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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” 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.

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 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.

RUM

1-McDowell’s No.1 Celebration Rum

Fig. 20

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.

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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.

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VODKA

1- PINKY-Flirty flavored, tickled pink

Fig. 21

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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.

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2-WHITE MISCHIEF-The spirit… with a twist of mischief

Fig. 22

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.

51

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.

3- PREMIUM ROMANOV VODKA- A glint of glamour. A pint of charm

Fig. 23

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

52

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.

4-RED ROMANOV-CHASE RED

Fig.24

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

53

prepared their Vodka. The high quality spirit is then put through an intensive filtration so you can experience an internationally superior, smooth blend.

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. 54

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

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

55

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

56

USL Market Share

57

in the year 2008-2009

Fig. 25

In the year 2008-2009 Fig. 26

USL Sales share

58

in the year 2008-2009

Fig. 27

in the year 2008-2009

Fig. 28

PROMOTION TECHNIQUES ADOPTED BY BREWERIES COMPANIES

DISPLAY OF PRODUCT AT OUTLETS

59

Fig. 29

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

60

GLODEN 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

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 61

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.

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.

62

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.

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, 63

• 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,

64

• Competitive market strategies of other companies are very strong,

Impressions •

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.

65

•

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

 Four of our brands, have made it to the top 100 global alcobev 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

66

 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 Banglore. And it has tied up with all other teams of IPL as a promoter.

67

Financial Prospects of USL

Price Waterhouse Chartered Accountants Place: Bangalore Date: July 29, 2009

68

[Referred to in paragraph 9(b) of the Annexure to the Auditors' report of even date to the members of United Spirits Limited on the financial statements for the year ended March 31, 2009].

Name

of

the Amount*

Forum

where

Year To Which The Amount Relates Statute (Rs. Million) dispute is pending The Income-Tax Commissioner of 1993-94, 1994-95, 1999-00, 2000-01, 2001-02, 2002126.203 Act, 1961 Income-Tax Appeals 03 to 2005-06 3.620 140.476 The

Wealth-Tax

Assessing Officer 2003-04 Income Tax 2003-04, 2004-05, 2005-06 Appellate Tribunal Commissioner

of

Act, 1957 Central and Respective State 199.471 Sales Tax Acts

1992-93, 1994-95,1996-97 Income Tax -Appeals Supreme Court

1996-06 1982-83,1984-86,1992-93,1995-96,1996-97, 1997-98,1997-00,1999-00, 2002-03, 2003-04, 2006-

56.825

High Court 07 1986-90,1985-86,1986-87,1987-88, 1988-89, 1989-96,1990-91,1991-92, 1991-93, 1994-95, 1995-

88.749

Appellate Tribunal

96,1996-97, 1997-98, 1997-01,1998-99, 1999-00, 2000-01 1984-85,1985-86,1987-88,1991 -92, 1992-93, 2000-

15.756

Joint Commissioner 01, 2006-07, 2007-08 Deputy

8 848

1984-85,1992-93, 2002-03 Commissioner Commissioner

0.291

of 1999-00, 2000-01

Sales Tax Assistant 1.995

1974-76, 1995-96,1996-97, 2002-03, 2008-09 Commissioner

7.183 0.892

Assessing Officer 1993-94,1995-96, 1997-98, 2003-04, 2004-05 Appellate and 1993-94, 2004-05, 2005-06 Revisional board Additional

115.431

2002-03, 2004-05, 2005-06 Commissioner

69

1971 -72,1972-73,1973-74,1977-78, 1978-79, 1979Respective

State

80, 1980-81, 1981- 82, 1981-09 1963-64,19724.785

Supreme Court

Excise Acts

74,1983-84,1984-85, 1985-86, 1986-87, 1988-91, 1990-91, 1991-92,1992-93, 1993-94,1995-00, 1996-97,1997-98, 1998-99, 1998265.885

High Court 01, 1999-00, 2000-01,2001-09,2002-03, 2003-04. 1995-96 1974-81,1980-81,1981-82,1982-83, 1983-

17,464

Appellate Tribunal 84, 1983-85,1984-85,1984-85, 1985-86, 1986-87, 1985-87,1987-88, 1987-89, 1988-89,1989-90, 1991Excise

92,

1991-96,

1995-96,1993-94,1995-98,

1993-

Commissioner

96,1998-99,1999-00, 2001-02, 2002- 03, 2004-05,

193.185 2005-06. Excise 1.593

1986-87,1992-93,1992-99,1997-98, 2001-02 Superintendent District Magistrate

1.701

1994-95 and Collector Chinsurah

Court,

12.170

1981-84 Hooghly Additional

District

8.311

1993-94 Magistrate

0.081

Collector

1994-95

6.000

Supreme Court

25.635

High Court Commissioner

The Central Excise Act, 1944 1989-97,1996-97, 2004-05 of

2.363

1995-96, 2003-04 Central excise Assistant

-

1995-96 Commissioner

Table- 1

70

Balance sheet

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus

100.16 7.75 3,001.94

100.16 1,909.16

94.48 7.75 1,239.79

60.47 41.76 793.87

51.72 235.76

Loan funds Secured loans Unsecured loans Total

1,306.48 1,106.74 948.52 1,004.73 505.67 616.37 55.34 519.26 527.47 68.27 5,032.70 3,171.40 2,809.80 2,428.30 861.42

Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments

787.62 194.99 592.63 28.26 2,051.48

653.07 160.24 492.84 36.12 657.16

586.21 132.34 453.87 10.61 662.46

563.72 103.84 459.87 2.60 702.27

282.98 67.81 215.17 4.29 380.32

3,337.42 977.09 2,360.33 5,032.70

2,786.08 800.79 1,985.29 3,171.40

2,287.90 605.04 1,682.86 2,809.80

2,014.01 750.45 1,263.56 2,428.30

552.46 290.82 261.64 861.42

2,050.71 4.74 3,294.15 1001.63

171.62 482.44 2,638.12 1001.63

169.34 179.45 112.48 944.82

209.54 282.41 150.86 604.71

330.79 101.36 231.44 517.20

Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total

Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding

71

Share holding

Share holding pattern as on : 30/06/2010 31/03/2010 31/12/2009 Face value 10.00 10.00 10.00 No. Of % No. Of % Shares Promoter's holding Indian Promoters 36628260 Sub total 36628260 Non promoter's holding Institutional investors Banks Fin. Inst. and 141307 Insurance FII's 59378193 Sub total 66061096 Other investors Private Corporate 3270622 Bodies NRI's / OCB's / 5979687 Foreign Others Govt. 7521 Others 1766417 Sub total 11008793 General public 11880726 Grand total 125578875

No.

Of %

Holding Shares

Holding Shares

Holding

29.16 29.16

36628260 36628260

29.16 29.16

36628260 36628260

29.16 29.16

0.11

169157

0.13

223798

0.18

47.28 52.60

58132523 66615398

46.29 53.04

59004854 67414440

46.98 53.68

2.60

3013503

2.40

4331428

3.45

4.76

5986267

4.77

6006748

4.78

0.01 1.41 8.77 9.46 99.99

7521 1366241 10358078 11977139 125578875

0.01 1.09 8.25 9.54 99.99

7521 1186697 11500998 10019235 125562933

0.01 0.94 9.16 7.98 99.98

72

Table- 3

73

CHAPTER III PRESENTATION AND DATA 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. • Understanding the nature of the problem. • Surveying the available literature. • Developing the ideas through discussions. • Sample Size • Collection of Data.

74

• Analysis of Data

The Statement of the problem

The Statement of the problem is market share, market penetration, brand image and segment wise placement of United Spirits Limited in Kanpur City.

Understanding the nature of the problem.

While analyzing the situation in the market I came across certain points that helped me during the survey. • Quality • Low Awareness • Not a proper distribution

Developing the ideas through literature. 75

• Discussion with Company Guide • Discussion in Market with salesmen’s and customers • Discussion with dealers & distributors • Faculty Guide and friends

Collection of Data

The sources of information for my report were both primary and secondary data. PRIMARY DATA: Questionnaire method was chosen for fulfillment of basic objective. The primary sources were dealers and customers in Kanpur city.

SECONDARY DATA: • Internet • Magazine and Newspapers. • Dealer price with other companies

Analysis of Data

This involved converting raw data into useful information. It involved tabulation of data and Using statistical measures on them for developing frequency distributions and calculating the Averages and compiling them in graphs. 76

Target of USL

Fig.30

77

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.

CHAPTER IV 78

FINDINGS, CONCLUSION AND SUGGESTIONS

Findings

BENEFITS OF DISPLAY:

Display at retail outlets

79

Fig.31  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.

80

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.

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 81

Kanpur. 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.

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.

82

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.

Comparative study of Market share of McDowell’s No.-1 Platinum v/s Royal Stag whisky

83

Fig.32

Increasing market share of McDowell’s No-1 Platinum

Fig.33

Decreasing market share of Royal Stag Market Analysis

84

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.

MARKET SHARE OF DIFFERENT PRODUCTS

85

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.

AGE GROUP OF CONSUMER CONSUMING LIQUOR

86

Fig.36

The above data is prepared according to the age group of consumers.

Criteria of preference of brand

87

Fig.36 Above data is tabulated according to the preferences of the customers based upon taste, price, availability etc.

Comparison of different companies

88

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.

CONCLUSIONS

89

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.

Recommendations & Suggestions

90

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-:

FOR RETAILERS: 91

 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.

92

 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.

93

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?

94

(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!

95

BIBLIOGRAPHY

1. MARKETING MANAGEMENT by PHILP KOTLER.

2. RESEARCH METHODOLOGY by C.R.KOTHARI

3. 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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