GROUP MEMBERSSAGAR- PUNEET BRIJENDRA SHEETAL PALLAVI-
Introduction • Indian Liquor Industry is divided into 2 broad categories Indian Made Foreign Liquor (IMFL) Country Made Liquor • Indian Liquor Industry with market value of INR 8500 Crore against INR 60 billions in 1999-00 & is growing at 10-12% • Shift from country liquor to IMFL because of rising per capita.
Legal Environment • Ban on direct advertising • Excise regulations and Licenses • ‘Regulated’ industry - movement, prices of intermediate goods (molasses, ethanol) tightly controlled - state governments exert considerable influence. • Subject to licensing under Industrial (Development and Regulation) Act, 1956 • Cap on licensed capacity; special license for expansion • Excessof duties and taxes from bottling to sales stage; varying from state to state.
Legitimate business & their surrogateadvertisements Brands Surrogate advertisements McDowell’s malt whisky McDowell’s Soda/water Radico Khaitan’s 8 pm whisky Radico Khaitan’s water Hayward’s 5000 Beer Hayward’s water/soda Derby Special Derby special soda Bacardi Liquor Bacardi Blast CDs & Cassettes Bagpiper liquor Bagpipers soda and cassettes Kingfisher Beer Kingfisher bottled drinking water Royal Challenger whisky Royal Challenger golf accessories & mineral water & cricket team White Mischief Liquor White Mischief holidays
controversies • As per cable Tv act 1995 liquor advertisement is banned • Satellite channels are not under this ban • Liquor is the main source of revenue for channels • Liquor co. started their promotion through surrogate advertising • Companies continued to brand building & recall
Observation from case study • Guidelines are not clear • Casual approach of the government • Difference between guidelines & rules • Uncontrolled satellite channels • Govt should ban to liquor companies to do CSR activities
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