The indian liquor industry
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The document summarizes the Indian liquor industry, which is divided into Indian Made Foreign Liquor and country liquor. It has grown significantly from 1999-2000 and is regulated by excise laws and licensing at the state level. It discusses how liquor companies use surrogate advertising like branded water and sodas to promote their products, since direct advertising is banned, exploiting a loophole through satellite channels. It observes the need for clearer guidelines from the government to control such surrogate advertising.
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An Overview of The Indian Liquor Industry
The liquor industry in India has grown significantly over the past decade and is currently valued at Rs. 8,500 crore. Major players include United Breweries, Shaw Wallace, and Jagjit Industries. The industry faces a strict legal environment with bans on advertising and state-level licensing. Consumer demand has shifted from country liquor to IMFL. Substitutes like soft drinks and health drinks pose a threat. Suppliers have bargaining power over raw materials. Rivalry within the industry is intense as companies compete on packaging, pricing, and promotions. Future growth is predicted with the commercial production of ethanol blending.
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Indian Alcohol Industry
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Alcohol Industry in India
The alcohol industry in India has seen rapid growth and is now the third largest in the world. It is dominated by a few large multinational companies that produce Indian Made Foreign Liquor (IMFL), which has increased in popularity over traditional country liquor. The industry is regulated by heavy government controls over licensing, production, distribution and taxation. Brand recognition, geographic diversity of operations, and product variety are keys to success in this high risk market, which is also attracting significant foreign interest due to India's rising whiskey consumption.
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United Breweries (UB) is India's largest beer producer with a 48% market share. It produces many beer brands like Kingfisher and owns various other alcohol brands. To promote its products given advertising restrictions on alcohol, UB pursues marketing strategies like sponsoring sports teams, introducing new premium products, and using its popular Kingfisher calendar. It also aims to consolidate its diverse sporting assets into a single entity for more effective utilization. My suggestions to UB include introducing new products, expanding retail outlets, and increasing promotional activities.
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An Overview of The Indian Liquor Industry
The liquor industry in India has grown significantly over the past decade and is currently valued at Rs. 8,500 crore. Major players include United Breweries, Shaw Wallace, and Jagjit Industries. The industry faces a strict legal environment with bans on advertising and state-level licensing. Consumer demand has shifted from country liquor to IMFL. Substitutes like soft drinks and health drinks pose a threat. Suppliers have bargaining power over raw materials. Rivalry within the industry is intense as companies compete on packaging, pricing, and promotions. Future growth is predicted with the commercial production of ethanol blending.
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The document discusses the beverage market in India and challenges faced by Coca-Cola and Pepsi in the Indian market. It notes that Coca-Cola and Pepsi dominate the cold drinks category in India. Both companies faced numerous regulatory barriers and issues when entering the Indian market in the late 1980s and early 1990s. These included foreign ownership restrictions and legal inconsistencies. Coca-Cola and Pepsi also faced challenges in rebuilding brand image and regaining consumer trust due to activism against their environmental and business practices. The document examines strategies used by both companies and lessons learned for effectively entering new markets.
Cadbury launches beer
Cadbury began operations in India in 1948 and today has 5 manufacturing facilities and 5 sales offices. Cadbury enjoys over 70% value market share in India, the highest for any Cadbury brand worldwide. The document proposes introducing "BeerCules", a beer brand by Cadbury, to diversify into the alcohol industry. It provides details on the beer market in India such as categories, pricing, popular brands and marketing challenges due to regulations. The marketing and sales strategies outlined target different segments and focus on brand association, partnerships and festivals to promote trial of the new product.
Surrogate marketing
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This document provides a business plan for a liquor delivery service in Delhi, India. The key points are:
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- The management structure, products, services, target market, competitors, and financial projections are outlined. The plan estimates a monthly profit of Rs. 230,375 after repaying loans.
Surrogate Advertisement
The document discusses surrogate advertising in India, which involves promoting restricted products like tobacco and liquor through advertising other associated products. It outlines the growth of the advertising sector in India and the loopholes in laws regarding surrogate ads. Examples like Royal Challengers cricket team sponsored by Royal Challenge whiskey are examined. While surrogate ads help companies circumvent bans, they can mislead consumers and negatively impact public health. Stricter regulation of such ads is needed.
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The indian liquor industry
- 1. The Indian Liquor Industry SAGAR-
- 2. GROUP MEMBERS SAGAR- PUNEET BRIJENDRA SHEETAL PALLAVI-
- 3. 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.
- 4. 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.
- 5. Legitimate business & their surrogate advertisements 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
- 6. 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
- 7. 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
- 8. well……. Mat piyo sharab is the Use se Hoti hai ZINDIGI Kharab is the