RATAN   KUMAR T

                  1/44
 STATUTORY WARNING - Consumption of Liquor is
 injurious to health




                                                 2/44
INDUSTRY
 India is currently 3rd largest market for Branded Alcohol Beverages in
  the world

 Indian Spirits Industry accounted for an estimated 13% of the global
  spirits volumes in calendar year 2011

 Industry life cycle (growing market)


 Whisky, Rum and Brandy being a dominant 95% of the market




                                                                           3/44
4/44
5/44
PRODUCTS
 Vodka & Gin
 Wine
 Rum
 Whisky
 Scotch
 Brandy




                6/44
PRICE
 Vodka & Gin - 200 - 1500
 Wine - 100 - 4000
 Rum – 800- 3000
 Whisky – 100 - 3000
 Scotch- 500 - 4000
 Brandy- 800 - 3000




                             7/44
PROMOTION
 F1


 Entertainment


 Sponsoring Fashion events


 Go Green Initiatives


 Offers
                              8/44
PHYSICAL EVIDENCE
 For expensive level people prefer going to five star hotels
  and pubs

 For medium level – bars


 Manufacturing Units


 Local Shops


 Outlets
                                                                9/44
UNITED SPIRITS LTD
 Company Mission -Driven by the passion to be the
    most admired global leader in the spirits industry
   Proud owners of 22 million liquor brands.
   USL has a global footprint with exports to over 37
    countries
    Market leaders with 122.75 million cases in a year.
   5 year growth rate 12% - 13%
   Besides Whyte & Mackay and Bouvet Ladubay being
    100% subsidiaries of USL

                                                           10/44
Products
     SCOTCH WHISKY                  WHISKY

 Black Dog Reserve Scotch Whisky
 Black Dog Deluxe Scotch Whisky
 Black Dog Centenary Scotch Whisky


    BAGPIPER WHISKY
 Bagpiper gold
 Director’s special
 Haywards 5000
 McDowell’s Green Label
 McDowell's No.1
 Signature Premier

                                             11/44
Products

BRANDY              GIN     VODKA
• Honey Bee     • Blue     • Romanov
• John Exshaw     ribbon   • White
• Mr Shah                    Mischief
  Brandy
                           • Vladivar
                             vodka

                                        12/44
Place


 Madhuloka retail outlets
 Total Spiritz
 Local wine shops
 Malls




                             13/44
Promote
 Sports Promotion


 Entertainment Industry


 Internet




                           14/44
People




         15/44
Process
 Green Initiatives

 Royal Challengers Bangalore

 Service Delivery

 Sustainability
                                16/44
Physical Evidence
 UB city ( corporate office)

 For expensive level people prefer
  going to five star hotels and pubs

 For medium level – bars

 Youth prefers going for pubs

 Outlets ( e.g. madhuloka, Spirits,
  Total mall )


                                       17/44
Financial Performance




                        18/44
19/44
20/44
SWOT




       21/44
Strength
 Largest Spirit company By volumes sales
 59% Market Share In local Market
• Market leader

• Strong Sponsorship

• Distribution proficiency




                                            22/44
WEAKNESS
 Less differentiation, too many players
 Not on too many routes as compared to competitors
 Still has to establish itself on international
  destinations
 Collateral




                                                      23/44
Opportunities
 Expand by rising per capita consumption


 Premium sing its product segment




                                            24/44
THREAT
• Operating business internationally opens them to the
 possibilities of currency value fluctuations that can
 lead to losses.

• Managing the financial conditions in today’s economy




                                                         25/44
Competitors
 Diageo


 Sab Millers




                26/44
DIAGEO
 Diageo plc is a British multinational alcoholic beverages
    company headquartered in London, United Kingdom.
   It is the world's largest producer of spirits and a major producer
    of beer and wine
   Diageo was formed in 1997 from the merger of Guinness and
    Grand Metropolitan.
   Diageo owned Pillsbury until 2000 when it was sold to General
    Mills.
   In February 2011 Diageo agreed to acquire the Turkish liquor
    company Mey Icki for US$2.1 billion.
   In November 2012 Diageo agreed to acquire a 53.4% stake in the
    Indian spirits company United Spirits for £1.28 billion.

                                                                     27/44
Products
 Scotch Whisky


 Vodka


 Rum


 Wine & Champagne



                     28/44
Place
 North America
 Latin America
 Europe
 Asia
 Africa




                  29/44
Promotion
 F1 (Mc Laren)


 Entertainment



 Sponsoring Fashion events




                              30/44
Price
Products     UB Pricing   Diageo Pricing




Vodka        374          775




Whisky J&B   1150         1483




                                           31/44
People
 Dr. Franz Humer Chairman,
  Diageo
 Paul Wash CEO
 Deirdre Mahlan CFO
 Ivan Menezes COO




                              32/44
Process
 TQM


 Cost related campaigns & Initiatives


 Community Involvement & environment


 Trust



                                         33/44
34/44
Diageo Revenue
            13.54%

                              33.26%

                                       North
                                       America
   27.58%                              Latin America

                                       Asia

                              11.58%   Europe

                     14.04%            Africa




                                                       35/44
36/44
CUSTOMERS (7 P)
 Price
 Place
 Promotion
 Physical evidence
 Process
 Product
 People



                      37/44
PLACE
 UB City (head office)
 Madhuloka
 Malls
 Pubs & bars




                          38/44
Products
     SCOTCH WHISKY                  WHISKY

 Black Dog Reserve Scotch Whisky
 Black Dog Deluxe Scotch Whisky
 Black Dog Centenary Scotch Whisky


    BAGPIPER WHISKY
 Bagpiper gold
 Director’s special
 Haywards 5000
 McDowell’s Green Label
 McDowell's No.1
 Signature Premier

                                             39/44
Products

BRANDY              GIN     VODKA
• Honey Bee     • Blue     • Romanov
• John Exshaw     ribbon   • White
• Mr Shah                    Mischief
  Brandy
                           • Vladivar
                             vodka

                                    40/44
PRICE
Bagpiper Whisky
 Bagpiper Gold - 500
 Director’s Special -400
 Gold Riband - 1000
 Haywards - 2000
 Green Label - 800
 Honey Bee - 600
 John Exshaw - 1000
 Mr Shah Brandy - 1200
Gin
 Blue Ribbon - 1500
Vodka
 Romanov -1200
                            41/44
PROMOTION
 Offers


 Parties


 Advertisement in pubs


 Brand ambassador



                          42/44
PHYSICAL EVIDENCE
 For expensive level people
  prefer going to five star
  hotels and pubs

 For medium level – bars

 Local shops

 Outlets ( e.g.
  madhuloka, Spirits, )

                               43/44
PEOPLE
 Employees


 Supply chain member


 Brand ambassador


 Researcher


 Customers
                        44/44
PROCESS
 Go green issues


 Cycling rally for players


 Bangalore royal challengers


 Arranging BMTC buses for match commuters



                                             45/44
Merger between USL & Diageo




                          46/44
47/44

Digeo take over Of USL

  • 1.
    RATAN KUMAR T 1/44
  • 2.
     STATUTORY WARNING- Consumption of Liquor is injurious to health 2/44
  • 3.
    INDUSTRY  India iscurrently 3rd largest market for Branded Alcohol Beverages in the world  Indian Spirits Industry accounted for an estimated 13% of the global spirits volumes in calendar year 2011  Industry life cycle (growing market)  Whisky, Rum and Brandy being a dominant 95% of the market 3/44
  • 4.
  • 5.
  • 6.
    PRODUCTS  Vodka &Gin  Wine  Rum  Whisky  Scotch  Brandy 6/44
  • 7.
    PRICE  Vodka &Gin - 200 - 1500  Wine - 100 - 4000  Rum – 800- 3000  Whisky – 100 - 3000  Scotch- 500 - 4000  Brandy- 800 - 3000 7/44
  • 8.
    PROMOTION  F1  Entertainment Sponsoring Fashion events  Go Green Initiatives  Offers 8/44
  • 9.
    PHYSICAL EVIDENCE  Forexpensive level people prefer going to five star hotels and pubs  For medium level – bars  Manufacturing Units  Local Shops  Outlets 9/44
  • 10.
    UNITED SPIRITS LTD Company Mission -Driven by the passion to be the most admired global leader in the spirits industry  Proud owners of 22 million liquor brands.  USL has a global footprint with exports to over 37 countries  Market leaders with 122.75 million cases in a year.  5 year growth rate 12% - 13%  Besides Whyte & Mackay and Bouvet Ladubay being 100% subsidiaries of USL 10/44
  • 11.
    Products SCOTCH WHISKY WHISKY  Black Dog Reserve Scotch Whisky  Black Dog Deluxe Scotch Whisky  Black Dog Centenary Scotch Whisky BAGPIPER WHISKY  Bagpiper gold  Director’s special  Haywards 5000  McDowell’s Green Label  McDowell's No.1  Signature Premier 11/44
  • 12.
    Products BRANDY GIN VODKA • Honey Bee • Blue • Romanov • John Exshaw ribbon • White • Mr Shah Mischief Brandy • Vladivar vodka 12/44
  • 13.
    Place  Madhuloka retailoutlets  Total Spiritz  Local wine shops  Malls 13/44
  • 14.
    Promote  Sports Promotion Entertainment Industry  Internet 14/44
  • 15.
    People 15/44
  • 16.
    Process  Green Initiatives Royal Challengers Bangalore  Service Delivery  Sustainability 16/44
  • 17.
    Physical Evidence  UBcity ( corporate office)  For expensive level people prefer going to five star hotels and pubs  For medium level – bars  Youth prefers going for pubs  Outlets ( e.g. madhuloka, Spirits, Total mall ) 17/44
  • 18.
  • 19.
  • 20.
  • 21.
    SWOT 21/44
  • 22.
    Strength  Largest Spiritcompany By volumes sales  59% Market Share In local Market • Market leader • Strong Sponsorship • Distribution proficiency 22/44
  • 23.
    WEAKNESS  Less differentiation,too many players  Not on too many routes as compared to competitors  Still has to establish itself on international destinations  Collateral 23/44
  • 24.
    Opportunities  Expand byrising per capita consumption  Premium sing its product segment 24/44
  • 25.
    THREAT • Operating businessinternationally opens them to the possibilities of currency value fluctuations that can lead to losses. • Managing the financial conditions in today’s economy 25/44
  • 26.
  • 27.
    DIAGEO  Diageo plcis a British multinational alcoholic beverages company headquartered in London, United Kingdom.  It is the world's largest producer of spirits and a major producer of beer and wine  Diageo was formed in 1997 from the merger of Guinness and Grand Metropolitan.  Diageo owned Pillsbury until 2000 when it was sold to General Mills.  In February 2011 Diageo agreed to acquire the Turkish liquor company Mey Icki for US$2.1 billion.  In November 2012 Diageo agreed to acquire a 53.4% stake in the Indian spirits company United Spirits for £1.28 billion. 27/44
  • 28.
    Products  Scotch Whisky Vodka  Rum  Wine & Champagne 28/44
  • 29.
    Place  North America Latin America  Europe  Asia  Africa 29/44
  • 30.
    Promotion  F1 (McLaren)  Entertainment  Sponsoring Fashion events 30/44
  • 31.
    Price Products UB Pricing Diageo Pricing Vodka 374 775 Whisky J&B 1150 1483 31/44
  • 32.
    People  Dr. FranzHumer Chairman, Diageo  Paul Wash CEO  Deirdre Mahlan CFO  Ivan Menezes COO 32/44
  • 33.
    Process  TQM  Costrelated campaigns & Initiatives  Community Involvement & environment  Trust 33/44
  • 34.
  • 35.
    Diageo Revenue 13.54% 33.26% North America 27.58% Latin America Asia 11.58% Europe 14.04% Africa 35/44
  • 36.
  • 37.
    CUSTOMERS (7 P) Price  Place  Promotion  Physical evidence  Process  Product  People 37/44
  • 38.
    PLACE  UB City(head office)  Madhuloka  Malls  Pubs & bars 38/44
  • 39.
    Products SCOTCH WHISKY WHISKY  Black Dog Reserve Scotch Whisky  Black Dog Deluxe Scotch Whisky  Black Dog Centenary Scotch Whisky BAGPIPER WHISKY  Bagpiper gold  Director’s special  Haywards 5000  McDowell’s Green Label  McDowell's No.1  Signature Premier 39/44
  • 40.
    Products BRANDY GIN VODKA • Honey Bee • Blue • Romanov • John Exshaw ribbon • White • Mr Shah Mischief Brandy • Vladivar vodka 40/44
  • 41.
    PRICE Bagpiper Whisky  BagpiperGold - 500  Director’s Special -400  Gold Riband - 1000  Haywards - 2000  Green Label - 800  Honey Bee - 600  John Exshaw - 1000  Mr Shah Brandy - 1200 Gin  Blue Ribbon - 1500 Vodka  Romanov -1200 41/44
  • 42.
    PROMOTION  Offers  Parties Advertisement in pubs  Brand ambassador 42/44
  • 43.
    PHYSICAL EVIDENCE  Forexpensive level people prefer going to five star hotels and pubs  For medium level – bars  Local shops  Outlets ( e.g. madhuloka, Spirits, ) 43/44
  • 44.
    PEOPLE  Employees  Supplychain member  Brand ambassador  Researcher  Customers 44/44
  • 45.
    PROCESS  Go greenissues  Cycling rally for players  Bangalore royal challengers  Arranging BMTC buses for match commuters 45/44
  • 46.
    Merger between USL& Diageo 46/44
  • 47.