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 Dr. Nimish Gupta Professor R.P. Singh

Student Faculty Guide Director, ABS

1
 Table of Contents

Certificate from Faculty Guide Page 4

Certificate from Industry Guide Page 5
Acknowledgement Page 6

CHAPTER I

Introduction of the topic Page 8

Significance of present study Page 8
Scope and objective of study Page 8
Area and period of study Page 11

CHAPTER II

Organizational Profile of the Company

USL at a glance Page 13
The Name Page 14
USL Corporate Background Page 15
Mission Statement Page 16
Business interest of UB Group Page 17
Organizational Structure Page 19

Our Distillers Page 23

Contract and Associate Units Page 24
Brands Page 25

Promotional activities McDowell’s No.-1 Platinum Page 46

Competitors Profile Page 54
USL Market Share Page 57
USL Sales share Page 58
Promotion Techniques Adopted by Breweries Companies Page 59
Promotion Of McDowell’s No-1 Platinum Whisky Page 62
SWOT Analysis Page 63
Impressions Page 65
Achievements Page 66
Financial Prospects of USL Page 68
Balance sheet Page 71

Share holding Page 73

CHAPTER III

Presentation and Data Analysis

2
 Methodology Page 76

The Statement of the problem Page 76

Understanding the nature of the problem. Page 77
Collection of Data Page 77
Analysis of Data Page 78
Target of USL Page 79

CHAPTER IV

Findings, Conclusion And Suggestions

Findings Page 81
Comparative study of Market share of
McDowell’s No.-1 Platinum v/s Royal Stag whisky Page 85
Market Analysis Page 86
Market Share Of Different Products Page 87
Age Group Of Consumer Consuming Liquor Page 88
Criteria of preference of brand Page 89
Comparison of different companies Page 90
Conclusions Page 91
Recommendations & Suggestions Page 92
Questionnaire for Customers Page 95
Bibliography Page 97

3
 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

4
 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

5
 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.

6
 CHAPTER I

INTRODUCTION OF THE TOPIC

7
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.

8
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.

9
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.

10
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.

11
 CHAPTER II

ORGANIZATIONAL PROFILE OF

THE COMPANY

12
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

13
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.

14
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.

15
 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”

16
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.

17
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.

18
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.....

19
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.

20
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.

21
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.

22
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

23
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

24
 BRANDS

Fig. 8

USL BRANDS

Whisky

 Whyte and Mackay

 Dalmore

 Jura

 Black Dog

 Antiquity

 Signature

 Royal Challenge

 McDowell’s No-1

 Director’s Special

25
  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

26
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

27
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.

28
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

29
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.

30
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

31
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.

32
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

33
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 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.

35
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

36
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%.

37
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.

39
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.

41
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

42
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.

43
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

44
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

45
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.

46
 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.

47
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.

48
 VODKA

1- PINKY-Flirty flavored, tickled pink

Fig. 21

49
 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.

50
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, 2002-
126.203
Act, 1961 Income-Tax Appeals 03 to 2005-06
3.620 Assessing Officer 2003-04
Income Tax
140.476 2003-04, 2004-05, 2005-06
Appellate Tribunal
The Wealth-Tax Commissioner of
- 1992-93, 1994-95,1996-97
Act, 1957 Income Tax -Appeals
Central and
Respective State 199.471 Supreme Court 1996-06 1982-83,1984-86,1992-93,1995-96,1996-97,
Sales Tax Acts
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 of
0.291 1999-00, 2000-01
Sales Tax
Assistant
1.995 1974-76, 1995-96,1996-97, 2002-03, 2008-09
Commissioner
7.183 Assessing Officer 1993-94,1995-96, 1997-98, 2003-04, 2004-05
Appellate and
0.892 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, 1979-

Respective State 80, 1980-81, 1981- 82, 1981-09 1963-64,1972-

4.785 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, 1998-
265.885 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, 1991-

Excise 92, 1991-96, 1995-96,1993-94,1995-98, 1993-

193.185
Commissioner 96,1998-99,1999-00, 2001-02, 2002- 03, 2004-05,

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
The Central Excise
6.000 Supreme Court
Act, 1944
25.635 High Court 1989-97,1996-97, 2004-05
Commissioner 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 100.16 100.16 94.48 60.47 51.72
Share application money 7.75 - - 41.76 -
Preference share capital - - 7.75 - -
Reserves & surplus 3,001.94 1,909.16 1,239.79 793.87 235.76

Loan funds
Secured loans 1,306.48 1,106.74 948.52 1,004.73 505.67
Unsecured loans 616.37 55.34 519.26 527.47 68.27
Total 5,032.70 3,171.40 2,809.80 2,428.30 861.42

Uses of funds
Fixed assets
Gross block 787.62 653.07 586.21 563.72 282.98
Less : revaluation reserve - - - - -
Less : accumulated depreciation 194.99 160.24 132.34 103.84 67.81
Net block 592.63 492.84 453.87 459.87 215.17
Capital work-in-progress 28.26 36.12 10.61 2.60 4.29
Investments 2,051.48 657.16 662.46 702.27 380.32

Net current assets

Current assets, loans & advances 3,337.42 2,786.08 2,287.90 2,014.01 552.46
Less : current liabilities & provisions 977.09 800.79 605.04 750.45 290.82
Total net current assets 2,360.33 1,985.29 1,682.86 1,263.56 261.64
Miscellaneous expenses not written - - - - -
Total 5,032.70 3,171.40 2,809.80 2,428.30 861.42

Notes:
Book value of unquoted investments 2,050.71 171.62 169.34 209.54 330.79
Market value of quoted investments 4.74 482.44 179.45 282.41 101.36
Contingent liabilities 3,294.15 2,638.12 112.48 150.86 231.44
Number of equity shares outstanding 1001.63 1001.63 944.82 604.71 517.20

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 % No. Of %

Shares Holding Shares Holding Shares Holding

Promoter's holding
Indian Promoters 36628260 29.16 36628260 29.16 36628260 29.16
Sub total 36628260 29.16 36628260 29.16 36628260 29.16
Non promoter's holding
Institutional investors
Banks Fin. Inst. and
141307 0.11 169157 0.13 223798 0.18
Insurance
FII's 59378193 47.28 58132523 46.29 59004854 46.98
Sub total 66061096 52.60 66615398 53.04 67414440 53.68
Other investors
Private Corporate
3270622 2.60 3013503 2.40 4331428 3.45
Bodies
NRI's / OCB's /
5979687 4.76 5986267 4.77 6006748 4.78
Foreign Others
Govt. 7521 0.01 7521 0.01 7521 0.01
Others 1766417 1.41 1366241 1.09 1186697 0.94
Sub total 11008793 8.77 10358078 8.25 11500998 9.16
General public 11880726 9.46 11977139 9.54 10019235 7.98
Grand total 125578875 99.99 125578875 99.99 125562933 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

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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:

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 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.

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 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?

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(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. 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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