“A Comparative Analysis of Products of Liquor Industry Between Diageo and Seagram in Jaipur

City”
Summer Internship Project Report Undertaken At

Submitted in partial fulfilment of the requirement for the

Award of
Post Graduate Diploma in Management

Submitted By:
Aashish Varghese George
PGDM
Roll No. 1201529
Enrollment No. BM/JULY/18/31/3601

Corporate Guide: Faculty Guide:

Mr. Kinshuk Parnami Dr. Gaurav Malpani
Assistant Manager (Diageo)

FACULTY OF MANAGEMENT STUDIES

INSTITUTE OF RURAL MANAGEMENT, JAIPUR

(2018-2020)
DECLARATION

I hereby declare that the following report title “A Comparative Analysis of Products of Liquor Industry
Between Diageo and Seagram in Jaipur City” is an authentic work done by me.

This is to declare that all the work indulged in the completion of this project such as research, analysis is a
profound honest work of mine.

Aashish Varghese George

Place: Jaipur

PGDM-BM

(2018-2020)
ACKNOWLEDGEMENT

I would like to thank our Director Dr. Jessy John, Indian Institute of Rural Management, Jaipur for
providing me with this wonderful opportunity to put my theoretical knowledge to practical use through the
summer internship program.

I express my sincere gratitude to my corporate mentors Mr.Kinshuk Parnami for their thorough guidance and
support at each and every point. They always encouraged me to explore new ways to enhance my learning
during the internship. Also, a special thanks to my college mentor Dr.Gaurav Malpani for him guidance
throughout the internship and in preparing this report.

I would like to thank the whole staff of Diageo,Jaipur. All of them were highly supportive and helped me in
gaining better understanding of the Alcohol industry. Their valuable suggestions and cooperation helped me
to gain more value from the internship program.
 S.NO. Particulars Page No.

Executive Summary 5

CHAPTER 1 Introduction 6-8

1.1 Overview of alcohol 6-7

1.2 Statement of the Problem 8

1.3 Objective of the study 8

CHAPTER 2 Review of literature 9-16

CHAPTER 3 Sectorial analysis 17-18

CHAPTER 4 Profile of the Organization 19-36

4.1 Introduction of the Organization 19-20

4.2 3C's 21-35

4.3 SWOC analysis 36

CHAPTER-5 Research methodology 37-39

CHAPTER 6 Data analysis and Interpretation 40-52

CHAPTER 7 Findings, Suggestions, Conclusion & Learnings 53-55

CHAPTER 8 Bibliography 57-58

Annexure 59-61
 LIST OF TABLES

S.NO. PARTICULARS PAGE NO.

1 Table No.6.1 41

2 Table No.6.2 42

3 Table No.6.3 43

4 Table No.6.4 44

5 Table No.6.5 45

6 Table No.6.6 46

7 Table No.6.7 47

8 Table No.6.8 48

9 Table No.6.9 49

10 Table No.6.10 50

11 Table No.6.11 51

12 Table No.6.12 52
 LIST OF FIGURES

S.NO. PARTICULARS PAGE NO.

1 Fig No.4.1 20

2 Fig No.4.2 21

3 Fig No.4.3 22

4 Fig No.4.4 22

5 Fig No.4.5 23

6 Fig No.4.6 24

7 Fig No.4.7 25

8 Fig No.4.8 26

9 Fig No.4.9 27

10 Fig No.4.10 28

11 Fig No.4.11 29

12 Fig No.4.12 30

13 Fig No.4.13 31

14 Fig No.4.14 32

15 Fig No.4.15 33

16 Fig No.4.16 34

17 Fig No.4.17 34

18 Fig No.4.18 35

19 Fig No.4.19 35
EXECUTIVE SUMMARY
I Aashish Varghese George,student of FMS-IRM have done my summer internship at DIAGEO India and
prepared the following project ‘‘A comparative analysis of products of liquor industry between diageo and
seagram’’. The purpose of this study is to analyze the similarity and dissimilarity of products of Liquor
Industry between Diageo and Seagram. It Is not so difficult to be the no. 1 company. but it is so difficult to
retain that position. Since USL is no. 1 in liquor market. No doubt it has done such a wonderful job.
Whether it is the matter of innovation or brand or customers satisfaction, it has consistently find out news
ways and means to be the global leader.

The project starts with an overview of USL and its products in which it is dealing. There is only five whisky
which comes in premium whisky. EX:. Antiquity blue, antiquity Rare, Signature, Royal challenge, Blenders
pride. Out of these brands only blenders pride is the competitor. The strategy of the company is always to
offer a wide range of product against competitive brand. Earlier when Blenders pride was similar in the form
of price of signature, The company had 2 brands Signature & Royal challenge. Now price of the Blenders
pride has been increased, and the company has again 2 brands Antiquity blue & Rare. The Blenders pride is
still preferable by the consumers. If we see the data USL brands has covered more than 80 % of market
share in the premium whisky segment. But it is the group performance by 4 brands. And blenders pride has
alone 20 % of market share. Unlike FMCG companies, here is also cut throat competition. But the company
managed it very well. The promotion strategies used by the company is customer oriented. They use to give
daily use product in the form of promotion. It is not an easy task to switch a customer, usually they do not
prefer to change their taste & preferences. But due to promotion at least they come to know about the
product.A flaw of any department can cause a lot of problem and hence we have to be very cautious about
the same. Usually it is said that it is better to retain an old customer, rather than making 10 new customer.

During the project, there was exposure to theoretical as well as practical learning.At last some suggestions
were given to the company that would increase the market share by understanding consumers behavior and
to adopt different sales promotion tools. Promotion helps companies to establish their brand in the mind of
consumers. As there is so many customer who can switch to another brand if the company gives promotion
or gifts to them .The conclusion has drawn with the help of questionnaire as well as observations.

After doing the thorough analysis it can be concluded that Diageo products has more customers compared
to Seagram .Customers are satisified with the products of Diageo compared to Seagram and Diageo
products are popular among customers.It was great experiance to work with a company of such a high
reputation.

5
 CHAPTER-1

INTRODUCTION

6
CHAPTER 1

1.1 Overview of alcohol

The use of alcohol as a drink is an old aged story in India as it appears that the techniques for fermentation
and distillation were available in Vedic times. It was then called “SOMA RASA” and was used not only for
invigorating effect but also in worship. Today not only has the consumption of alcohol been continued but
also it is an integral part of the ayurvedic system of medicine.

The distillery industry today consists broadly of two parts, one potable liquor and industrial liquor. The
potable distillery producing Indian made foreign liquor and country liquor has a steady but limited demand
with a growth rate of about 8% per annum. The industrial alcohol distilleries are showing a declining trend
because of high prices of Molasses which is used as substrate for production alcohol. The alcohol produced
is being used in the ratio of approximately 52% for potable and the balance 48% for the industrial use. Over
the year the potable liquor industry has shown remarkable results in the production of quality spirits.

Sales promotion is key ingredients in market campaigns. It consists of diverse collection of incentive tools,
mostly short term design to stimulate quicker and greater purchase of particular products or services by
consumers or the trade.There advertising offers a reason to buy; sales promotion offers an incentive to buy.

Products of the alcoholic beverages industry fall into the categories of beer, INDIAN MADE FOREIGN
LIQUOR (IMFL), COUNTRY LIQUOR, WINE AND BOTTLED IN ORGIN (BIO) BOTTLED IN
INDIA (BII) spirits. Of these industry segments United breweries currently operates only in the IMFL space.
The Indian IMFL industry is estimated to be in the region of 121 million cases of 9 bulk liters (BL) each.
The segment has an historical CAGR of more than 10%.

Contrary to international trends, brown spirits accounts for 95% of the Indian industry. Whisky dominates
the industry at 54%, followed by the rum at 25% and brandy at 16 %. White spirits comprising gin, white
rum and vodka account for the residual 5% of the industry.

The country liquor segment of the alcoholic beverages industry is unorganized and therefore accurate
statistic of its size is not available. In our estimate the country liquor market would in the region of 200 –
225 million cases of 9 BL each.

The market size in India is expected to expand in the next five years as consuming population is expected to
increase by 100 million. This is due to rapid development of growth factors like changes in lifestyle, higher

7
disposable income, and shift in expenditure pattern in favor of personal consumption items such as food,
drinks and entertainment to the global trends.

India is the third largest global spirits market by volume in the world, just behind China and Russia. In some
states, certain alcoholic beverages like wine and beer can be sold in supermarkets that further increase the
availability. The Indian alcohol industry is a high-risk industry, on account of the high taxes and
innumerable regulations governing it. The Indian liquor industry comprises the Indian Made Foreign Liquor
(IMFL), country liquor, foreign Liquor Bottled in Origin (BIO), illicit alcohol, beer and wine segments. The
overall IMFL market is increasing at the rate of 9 to 10 per cent annually and growth rate of 11.9 per cent in
the last financial year (2011-12). Country liquor produced in local licensed distilleries and is made of cheap
raw material, primarily rectified spirits of grains or molasses. The production cost for country liquor is low;
the excise duties are also lower than they are for other liquor. Beer has become a popular beverage in the
country only over the last two decades and it’s growing at a rate of about 17 per cent per year. Imported
liquor forms a very small part of alcohol consumption in India and growing at the rate of 25 per cent
annually. Illicit alcohol also evades all national and state-level taxes and duties, thus, making it very cheap
and affordable. South India dominates the alcohol market in India, with that region accounting for about 60
per cent of total IMFL sales and 45 per cent of total beer sales. The state governments receive a large part of
their cash flow from this industry. The state governments should be allowed to make state-specific rules,
which should be in conformity with the national legislation.

1.2 Statement of the Problem

The study conducted inorder to compare the similarilty and dissimilarilty between the products of Diageo
and Seagram in Jaipur city.In the study 100 respondents from Jaipur city are taken randomly.The problem is
stated as “A Comparitive analysis of products of liquor Industry between Diageo and Seagram”

1.3 OBJECTIVE OF THE STUDY

The main objective of the study are as follows:

To understand the perception of consumer towards products of Diageo.

To comprehend the promotional techniques applied by other companies.

To suggest the company about new techniques to push its sales.

8
 CHAPTER-2
REVIEW OF LITERATURE

9
CHAPTER 2

Review of literature

Alcohol occupies such a central place in the human experience that Galileo Galilei, the father of modern
science, once compared wine to sunlight itself. The history of liquor can be traced back to the earliest
stages of human evolution, running through the story of human civilization and coming to occupy a place
that is both sacrosanct and controversial in human society today.

General Enhancement of Life

As many as 10 million years before modern humans began to cultivate alcohol, the evolutionary ancestors
of homo sapiens developed a taste for alcohol, according to Live Science. In Alcohol and Role in the
Evolution of Human Society, author Ian Hornsey explains that it has long been held in the fields of
archaeology and anthropology that “man’s ingestion of alcoholic beverages may well have played a
significant part in his transition from hunter-gatherer to agriculturalist,” a form of society that we would now
recognize as farming.

So much of the human story is woven around alcohol; everything from religion, nutrition, medicine,
quenching thirst, improving the taste of food, inducing relaxation, social bonding, mating rituals, and
“generally enhancing the quality and pleasures of life” has been touched by liquor for thousands of years,
according to Alcohol: Science, Policy and Public Health.

In a 2017 feature on “our 9,000-year love affair with booze,” National Geographicwrites that a group of
researchers have put forward the argument that alcohol could be among “the most universally produced and
enjoyed substances in history – and prehistory,” with evidence strongly suggesting that human beings
enjoyed alcohol even before they developed the concept of writing. As far back as 9,000 years ago, the early
Chinese created wine from a mixture of fruit, rice, and honey. Between the Caucasus Mountains of Georgiu
and the Zagros Mountains of Iran, natives domesticated grapes and made wine almost 7,400 years ago.
Patrick McGovern, a biomolecular archaeologist at the University of Pennsylvania told National
Geographic that from as early as the Stone Age, the psychological effects of liquor could well have been the
catalyst for any kind of rudimentary expression in everything from music to dancing, from religion to
language itself. The most significant milestones in human evolution, such as the development of farming to
the origin of writing, could potentially be linked to alcohol.

As far back as 9,000 years ago, the early Chinese created wine from a mixture of fruit, rice, and honey.

10
There is enough evidence to suggest that human cultures from all over the world consider alcohol important,
and even the cultures that reject consumption do so because of the fear of how alcohol could prove
destabilizing. In Islam, for example, drinking liquor is forbidden because of the belief that doing so weakens
the conscience and convictions of the faithful; nonetheless, some Muslim majority countries have created
their own alcoholic beverages. Turkey, for example, produces raki (the country’s national drink, according
to CNN, made from twice-distilled grapes and aniseed), which was driven underground because of
government laws that prohibit the advertising of alcoholic products.

The Drunken Monkey Hypothesis

Research has pointed to the love affair with alcohol being hardwired into human evolution, a trait that
sets our species apart from nearly all other animals. To understand this, it is necessary to look at what makes
liquor tick.

The active ingredient in all alcoholic beverages is made by yeasts, single-celled organisms that exist on the
microscopic level. Yeasts eat sugar and leave behind carbon dioxide and ethanol, the only form of alcohol
that is safe to drink. This process is known as fermentation. Today, the manufacturers of beer, wine, or sake
(Japanese rice wine) use cultivated varieties of a single strain of yeast.

However, there are many different kinds of yeasts found in nature, and they have been fermenting ripe fruit
ever since fruit first appeared on Earth, as many as 120 million years ago.

To modern humans, ethanol is what makes us feel good (through the release of neurotransmitters that induce
feelings of pleasure and reduce feelings of anxiety and tension). But for our pre-human ancestors, the
ethanol released in rotting fruit had other properties. Ethanol has a very distinctive smell, making the fruit
easy to locate. Fermentation makes fruit easier to digest, which allowed early hominids to get their precious
caloric intake, a process much easier now than it was then. Lastly, the antiseptic qualities countered the
microbes that might sicken a proto-human primate with a weak immune system. A biological anthropologist
at Dartmouth College explained that all it took was for one such primate, millions of years ago, to keep
helping itself to the fallen and rotting fruit; this preadapted its billions of descendants for the consumption of
liquor.

11
This theory has a name: the “drunken monkey hypothesis,” which The Atlanticsays “explains our taste for
liquor.” The process of smelling the ethanol and getting to the fruit before a competitor is evolutionary in
nature; it gave that one primate an advantage over the other animals. Not only would it be most likely to
attract the attention of a mate (and, therefore, succeed at reproduction), but it would also experience a gentle
rush of stimulation in its primal brain, compelling the primate to look out for another piece of rotting fruit.

The satisfied response to the ethanol in fermented fruit seems limited to humans and apes. One theory is a
critical gene mutation that occurred in the missing link that connects primates to homo sapiens, which
occurred at least 10 million years ago. Whatever caused the mutation in the ADH4 gene, primates after that
point were able to digest ethanol 40 percent faster than their predecessors and suffer fewer of the ill effects.

Lubricating the Neolithic Revolution

Archaeological excavations in southeastern Turkey led researchers to believe that alcohol convinced the
hunter-gatherer tribes of the Stone Age to not only give up their weapons in favor of farming tools, but also
to create communities based on rudimentary religion and mythologies where alcohol was used as an elixir of
communication with the world beyond.

In order to attend tribal gatherings more easily, people settled down in and near their fields, creating small
settlements, which grew into towns. This shift in paradigm is known as the Neolithic Revolution,
which National Geographic suggests was “lubricated” by alcohol.

Beer may have played a bigger role in bread to inspire Neolithic humans to domesticate grains, which the
American Society of Plant Biologists says “marked a dramatic turn in the development and evolution of
human civilization.” Early farmers came upon the idea of selectively breeding wild grasses, leading to the
barley, wheat, and other grains that are commonplace in today’s agricultural markets. Indeed, “the
domestication of plants is driven forward by the desire to have greater quantities of alcoholic beverages,”
says a biomolecular archaeologist, and such a process was vital in the progression of human civilization.

The Ancient Medicine

Such is the importance of liquor in human history that Antarctica is the only continent where alcoholic
beverages, and the agriculture behind them, were not cultivated. For over thousands of years, almost every
plant that has some form of sugar or starch (agave, apples, cocoa, bananas, corn and even cacti, rice, sweet
potatoes, peach palms, pumpkins, pineapples, and, of course, grapes) has been fermented to produce alcohol.
Even in regions where the land is bare, such as the steppes of Central Asia, nomads compensate for the
12
dearth of fruit and grain by fermenting horse milk. The resultant drink, called koumiss, has the alcoholic
content of a weak beer.

For over thousands of years, almost every plant that has some form of sugar or starch has been fermented to
produce alcohol.

Although alcohol’s role in religious and tribal ceremonies is well established, the undeniable truth of its
central presence in almost every human culture is the fact that people simply like the taste and effects. In
that way, it is no different than why primates ate fermented fruit. The ethanol produced by yeast fights off
the other microbes trying to survive inside rotting fruit, and the strength derived from the victory benefits the
drinker. This is why, until the development of modern sanitation, beer, wine, and other fermented drinks
were often safer and healthier to consume than water, which was likely to be polluted with cholera, among
other harmful microbes. Indeed, The New York Times called alcohol “an ancient medicine,” because of this
and also because alcohol is a mild antiseptic. Furthermore, brewing alcoholic beverages is a form of
sterilization (by way of boiling), to the point where early peoples who drank fermented drinks could live
longer and reproduce more than people who got by on dirty water. Over centuries, this habit led to
descendants and future generations developing a deeper taste for alcohol.

The process of fermentation yields more than alcohol. Yeasts produce a number of nutrients, including folic
acid, niacin, riboflavin, and thiamine. In ancient Western Asia, beer was almost a kind of “enriched liquid
bread,” providing vital calories and vitamins, with hydration to wash them down with.

‘Humans Were Made to Drink Alcohol’

Archaeological work has unearthed “industrial-scale breweries” in Ancient Egypt, producing enough
liquor to supply the slaves who constructed the Great Pyramid of Giza, which was completed in 2560 BC.
In The Private Lives of the Pyramid Builders, a British archaeologist explains that the standard rations for
a worker was 10 loaves of bread and a measure of beer. Supervisors and people of higher statuses received
not only hundreds of loaves, but “many jugs of beer a day.”

So important was beer to the ancient Egyptians that their royals were entombed with small breweries, to
better enjoy the comforts of the afterlife. It was considered a “necessity of life,” and wine was believed to be
an elixir of renewal that was reserved for the nobility. Both beer and wine were key components in the
ritualistic life of the ancient Egyptians, playing vital roles in personal health and communal religion, but also
covering everything from pleasure and medicine to nutrition and remuneration.

13
National Geographic suggests that it would not be inaccurate to credit the nutritional benefits of beer for the
development of writing and the formation of some of the earliest cities in the world. The nutrients produced
by the fermentation process provided access to basic vitamins that were otherwise absent in ancient diets;
without these early grains, the Mesopotamian civilization might never have flourished.

An archeologist notes that “nutrition was very bad” in cities like Uruk, founded in the 4th millennium BC;
but “as soon as you have beer, you have everything you need to develop really well.” Mesopotamia is “the
birthplace of civilization,” says The Guardian, where civilized life took place well before the ancient Greeks
and Romans came into being.

So intrinsic is liquor in the history of the human race, that “humans were made to drink alcohol,” in the
words of Patrick McGovern, the University of Pennsylvania biomolecular archaeologist. The drinking reflex
is, for most humans, initiated in the first few minutes of life through the act of breastfeeding. But even as
those humans grow, their sensory organs are already developing to sniff out fermented beverages. The
evolutionary trait goes back to the first drunken monkey and then to the humans who came out of Africa, the
Middle East, and China. In the main cradles of civilization, “alcohol is central to human culture and
biology,” says McGovern, “because we were probably drinking fermented beverages from the beginning,”
and the popularity of alcohol today – everything from children being given sips of wine at dinner in Europe
to Super Bowl commercials – is derived from that start.

Healing Powers

Even in religion, which has had a love-hate relationship with liquor for centuries, alcohol has been a
central component in one way or another. Most of the world’s religions make provisions for alcohol or make
customs explicitly forbidding its use. The process of fermentation, itself mysterious to early humans,
complements the mysticism of religious ceremonies quite well. McGovern suggests that early shamans and
priests associated the mind-altering effects of alcohol with supernatural forces, perhaps as a form of
communication between the mortal coil and the great hereafter.

Beyond religion, even medicine would not be what it is today, if not for alcohol. Every major Chinese work
on herbal prescriptions and medicine is based on alcohol remedies, with the earliest examples of organized
medical literature discussing cases that called for the consumption of liquor as treatment, with discussion of
side effects and the potential for abuse.

Most of the world’s religions make provisions for alcohol or make customs explicitly forbidding its use.

14
On the other side of the world, physicians in classical Greece prescribed wine for everything from physical
wounds to cancer. Wine was also used to improve halitosis and cure diarrhea. Hippocrates, known as the
father of medicine, thought of wine as an appropriate form of treatment for many conditions. The drink was
also popular for its use in pathology and treatment, and dosages were regulated based on the patient’s age,
sex, medical ailment, and lifestyle. Even in those days, people understood that alcohol is inherently healthy;
moderate drinking kills harmful bacteria. The empirical scientists of the age realized that the members of
their community who drank alcohol were healthier and lived longer (and were seemingly happier) than those
who drank raw water. Says McGovern, “the earliest medicines from the Romans and Greeks involve a lot of
wine.”

Bowls of Wine

Of course, alcohol is a double-edged sword, and for every example of how the history of liquor is so closely
interwoven with the story of the human experience, there is a corresponding example of how alcohol has
been directly (or indirectly) responsible for damage and death. At an archeological site in France, the former
town of Corent was home to 10,000 people in the first and second centuries BC. With a marketplace, taverns,
a temple, a theater, and hundreds of private dwellings, alcohol was a social lubricant, a status symbol, and a
cultural glue; but the power of the neighboring Roman empire brought with it Roman wine, and violence
and chaos soon followed.

Wine was at the center of almost every communal ritual across the Europe of the Roman Empire, and not
everyone knew when to stop drinking. Prisoners and slaves were often sacrificed, and sword fights quickly
broke out over the most trivial of quibbles, egged on by a drunken audience.

It is estimated that the Celtic people living in that region of what is modern-day France drank up to 28,000
bottles a year of Roman wine.

In the same way that drunken monkeys and Neolithic farmers may have created our taste for alcohol, the
excesses that soon followed might also have planted the genetic and neurochemical seeds for compulsive
drinking.

Even though many societies grew around the numerous benefits of alcohol, a number of other societies have
gone back and forth on how to properly control what liquor can to do human passions. The ancient Greeks
themselves serve as a good example of this dichotomy. Wine was a catalyst for much of the spiritual and
intellectual sides of Greek life, but limits were (mostly) recognized; Greek hosts would serve their guests
only three bowls of wine (one for their health, the second for pleasure, and a third to induce sleep). When
the third bowl was served, it was understood that that would be the last bowl of the evening. However, it

15
was not unheard of for the more raucous parties and events to serve more bowls. In the fourth century BC,
the comic poet Eubulus warned that “the fourth bowl is ours no longer, but belongs to violence”; the fifth
bowl belonged to uproar, the sixth to drunken revelry, and the seventh to personal injury. There was even an
eighth bowl, which would see police summoned; the ninth bowl led to vomiting, and the 10th bowl
culminated in “madness and the hurling of furniture.”

United Spirits Limited (USL) - the INR 5500 crore spirits arm of the UB Group is India’s largest and the
world’s third largest spirits company. USL was earlier McDowell and Company Limited. USL has a
portfolio of more than 140 brands, of which 19 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 recorded global
sales of 90 million cases for the year ended on March 31, 2009.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 99 awards and certificates (as of
November 2008). 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 Tetrapack in the spirits industry in India and the first single
malt manufactured in Asia.
In 2007, United Spirits acquired the 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 of 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 is not only valuable but provides United Spirits the
opportunity to meet their own growing requirements in India. Whyte & Mackay recorded sales of 1.68
million cases of W&M brands and 1.56 million cases of third party owned labels (Tesco’s, Label 5), for the
fiscal ending March 31, 2009

16
 CHAPTER-3
SECTORIAL ANALYSIS

17
CHAPTER 3

SECTORIAL ANALYSIS
Global Alcoholic Beverage Market is forecasted to grow at a CAGR of 3.1% during the forecast period
(2019 - 2024).

The market is driven by the increase in global young-adult demographic, coupled with high disposable
income and consumer demand for premium/super premium products.

On a global level, Beer drives the market of alcoholic beverages.

Asia-Pacific is expected to dominate the global market during the forecast period.

Growth in online retailing has been observed. For instance, Drizly, an alcohol E-commerce platform has
experienced growth of online alcohol delivery revenue.

The growing demand for premium alcoholic beverages is considered to be one of the primary drivers for this
market. Efforts by alcoholic beverage manufacturers for strengthening distribution channels and extension of
purchase channels, such as online stores, and convenience stores, is also contributing substantially to the
growth of the global alcoholic beverages market. Millennials consumers, particularly are running premium
alcoholic beverage market. Product innovation and economic growth are drawing the consumers to go for
expensive alcoholic beverages. New product launches and innovations in alcoholic drinks are favoring the
growth of the industry. Companies are launching innovative products because of the changing consumer
preferences. Consumers are paying a huge amount for low-calorie and superior ingredients.

Europe Dominates the Global Alcoholic Beverages Market

Beer is the most consumed alcoholic drink across the globe and contains around 4-7% of alcohol. Craft beer
has gained popularity among a large section of the consumers in the North America regions. The growing
popularity of craft beer among the consumers, especially the younger generation, is considered as the major
factor of growth. However, Europe recorded the highest market share as there has been increasing in the
sales of red blends, sparkling, and rose wines, with a special demand for premium wines, owing to a surge in
the spending pattern of per bottle.

18
 CHAPTER-4
PROFILE OF THE ORGANISATION

19
CHAPTER 4

4.1 Introduction of the Organization

Angus Mcdowell Mr. Vitthal Mallya

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 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.
20
4.2 3C’S Company

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.

21
MISSION STATEMENT

-“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 . ”

Vision:

Dedicated and commitment to the vision of becoming the world’s no 1 in spirits

industry.

22
 BRANDS

USL BRANDS

Whisky

 Whyte and Mackay

 Dalmore

 Jura

 Black Dog

 Antiquity

 Signature

 Royal Challenge

Vodka

 Pinky

 Red Romanov

 Premium Romanov

 White Mischief

Rum

 McDowell’s No-1 Celebration Rum

23
Whisky

1- Whyte and Mackay-Refined to richness .Excelled to last

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 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.

24
2-Dalmor -

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 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.

25
3-Jura-A sense of inspiration, a blend of heritage

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 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.

26
4- BLACK DOG - A little science, a little art, & a snifterful of magic.

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 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.

27
5-ANTIQUITY-The spirit of luxury, the art of perfection

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 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.

28
6- SIGNATURE- The genuine flavor.

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'sSignature 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.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%.

29
7- ROYAL CHALLENGE- A master of excellence. A masterpiece of style

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 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.

30
8- McDowell’s No.1- A blend – in a league of its own.

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.

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.

31
9- DIRECTOR’S SPECIAL

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 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.

32
10- McDowell’s No.-1 Platinum

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

33
CUSTOMER:-

We have a wide based clientele all over the globe. Our quality products have clinched us a set of satisfied
high profile clients with whom we have a developed a strong bond. United spirits ltd maintain a long term
relationship with their clients who reflects company’s commitment and diligence. Some of our clients are

KSBCL- Karnataka civil

BSF- Bangalore
KSBC- Kerala civil
CSD(Kerala, Karnataka, Tamilnadu, Andhra Pradesh)

Pondicherry

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.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

BLENDERS PRIDE WHISKY

ROYAL STAG WHISKY

IMPERIAL BLUE WHISKY

100 PIPERS SCOTCH

34
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 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

35
4.3 SWOC ANALYSIS

Every company SWOC 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 shares about 60% of market share.

Massive availability of our products across the various counters in the country.

Aggressive Acquisition and Market Penetration.

Strong product base of 30 products.

Experienced management team and other key personnel.

Competitive prices of products.

WEAKNESS:-

Indirect promotional schemes.

Beers of Diageo Brand unavailable in India.

Tough competition .

Weak Margins.

OPPORTUNITY:-

High demand of such products in India,

Since Shaw Wallace is now a part of UB GROUP so we can expect that it will acquire more liquor
companies.

Further scope of Conglomerate Diversification.

CHALLENGES:-

Tough competition in vodka and whisky segment.

Competitive market strategies of other companies are very strong.

Increase in Raw Material Prices .

Duties and Policies Adopted by Government.

36
 CHAPTER-5
RESEARCH METHODOLOGY

37
Research methodology

1. Research methodology:
The research method used in the study was “descriptive research”. Descriptive research is used to describe
characteristics of a population or phenomenon being studied. It does not answer questions about
how/when/why the characteristics occurred. Rather it addresses the "What" Question. In this study the
researcher has used primary data that was collected during the field study and secondary data available
from company’s data, in company’s website.

2. Research design

1. Studying the available literature and designing of questionnaire: In this previous studies done on
related subject were studied and after that mixed questionnaire was formulated as per the requirement of
the topic.
2. To carry out survey: The survey through interview schedule.
3. Analysis of data collected: After the collection of data through interview schedule, tabulation was
done and data analysis was done with the help of SPSS.
4. Interpretation & suggestions: With the help of the analysis the interpretation was done to find out the
objectives of the study and suggestions were given accordingly.

Questionare Design

Questionare design in two sets.In which first set (Sec A) of questionare is on demographic profile and
second set (Sec B)carry questionare related to comparative analysis of products of liquor industry between
diageo and segram .

Tools of data Presentation

Tables,Bar graph,Pie charts and Line graph are used for analysis and interpretation of questionare that are
filled up by customers during the survey of this study

38
Sample size

The sample size of this research consisted of 100 customers who are consuming liquor.

Sampling technique

The type of sampling technique used for survey was “Snowball sampling”.

Snowball sampling or chain-referral sampling is defined as a non-probability sampling technique in which

the samples have traits that are rare to find. This is a sampling technique, in which existing subjects provide
referrals to recruit samples required for a research study.

For example, if you are studying the level of customer satisfaction among the members of an elite country
club, you will find it extremely difficult to collect primary data sources unless a member of the club agrees
to have a direct conversation with you and provides the contact details of the other members of the club.This
sampling method involves a primary data source nominating other potential data sources that will be able to
participate in the research studies. Snowball sampling method is purely based on referrals and that is how a
researcher is able to generate a sample. Therefore this method is also called the chain-referral sampling
method.

Snowball sampling is a popular business study method. The snowball sampling method is extensively used
where a population is unknown and rare and it is tough to choose subjects to assemble them as samples for
research.This sampling technique can go on and on, just like a snowball increasing in size (in this case the
sample size) till the time a researcher has enough data to analyze, to draw conclusive results that can help an
organization make informed decisions.

Universe

The universe of the study is population of jaipur city .

39
 CHAPTER-6

DATA ANALYSIS
&
INTERPRETATION

40
Ques 1: What do you generally Prefer?

Preferance

Frequency Percent Valid Percent Cumulative Percent

Valid BEER 57 57.0 57.0 57.0

OTHER 4 4.0 4.0 61.0

RUM 5 5.0 5.0 66.0

VODKA 8 8.0 8.0 74.0

WHISKY 26 26.0 26.0 100.0

Total 100 100.0 100.0

Data Interpretation: Customer preferance towards beer is more compared to rum,vodka,whisky and other
drinks.
41
Ques 2: How much do you earn on a monthly basis?

Monthly Earning

Frequency Percent Valid Percent Cumulative Percent

Valid <25000 39 39.0 39.0 39.0

25000-30000 25 25.0 25.0 64.0

30000-40000 23 23.0 23.0 87.0

40000> 13 13.0 13.0 100.0

Total 100 100.0 100.0

Data Interpretation:In my study customer <25000 are more compared to other monthly earning groups.

42
Ques 3: How much do spend on monthly basis?

Monthly Spending

Frequency Percent Valid Percent Cumulative Percent

Valid <1000 28 28.0 28.0 28.0

1000-2500 33 33.0 33.0 61.0

2500-5000 23 23.0 23.0 84.0

5000> 16 16.0 16.0 100.0

Total 100 100.0 100.0

Data Interpretation: Monthly spending of customers lies between 1000 to 2500 are more.

43
Ques 4: How much drinks you generally consume?

QTY

Frequency Percent Valid Percent Cumulative Percent

Valid 1L 26 26.0 26.0 26.0

375 ML 21 21.0 21.0 47.0

50 ML 15 15.0 15.0 62.0

750 ML 38 38.0 38.0 100.0

Total 100 100.0 100.0

Data Interpretation: Customers generally consume 750 ml of drinks.

44
Ques 5: How do you came to know about Diageo Products?

Awarness

Frequency Percent Valid Percent Cumulative Percent

Valid INTERNET 15 15.0 15.0 15.0

MEDIA ADS 23 23.0 23.0 38.0

NEWSPAPER 7 7.0 7.0 45.0

REFERANCE 55 55.0 55.0 100.0

Total 100 100.0 100.0

Data Interpretation: Customers generally came to know about Diageo products mostly by referance from
friends.

45
Ques 6: How frequently do you take drinks?

Consumption

Frequency Percent Valid Percent Cumulative Percent

Valid EVERYDAY 22 22.0 22.0 22.0

MONTHLY 39 39.0 39.0 61.0

SPECIAL OCCASION 10 10.0 10.0 71.0

WEEKEND 29 29.0 29.0 100.0

Total 100 100.0 100.0

Data Interpretation: Customers belonging to monthly consumption are more compared to other groups.

46
Ques 7: Do you think promotional techniques influence you to drink?

Promotional Influence

Frequency Percent Valid Percent Cumulative Percent

NO 28 28.0 28.0 28.0

Valid YES 72 72.0 72.0 100.0

Total 100 100.0 100.0

Data Interpretation: Yes promotional techniques influence customers to drink.

47
Ques 8: Do you get any offers and discounts on your regular purchase of drinks?

Offers and Discounts

Frequency Percent Valid Percent Cumulative Percent

NO 33 33.0 33.0 33.0

Valid YES 67 67.0 67.0 100.0

Total 100 100.0 100.0

Data Interpretation: Yes offers and discounts on customers regular purchase of drinks.

48
Ques 9: How long you have been using the above stated brands?

Usage

Frequency Percent Valid Percent Cumulative Percent

Valid <1 15 15.0 15.0 15.0

1 27 27.0 27.0 42.0

1-2 12 12.0 12.0 54.0

2> 46 46.0 46.0 100.0

Total 100 100.0 100.0

Data Interpretation: >2 years customers have been using the above stated brands.

49
Ques 10: If your preferred brand is not available for purchase what will you do?

Unavailablitiy for purchase

Cumulative
Frequency Percent Valid Percent Percent

Valid GO TO OTHER SHOP 29 29.0 29.0 29.0

POST PONE 26 26.0 26.0 55.0

SEARCH FOR PREFFERD 7 7.0 7.0 62.0

BRAND

SWITCH OVER 38 38.0 38.0 100.0

Total 100 100.0 100.0

Data Interpretation: Customers generally switch over to other brands.

50
Ques 11: Which factors mostly affects your buying decision?

Buying Decission

Frequency Percent Valid Percent Cumulative Percent

Valid PACKAGING 10 10.0 10.0 10.0

PRICE 22 22.0 22.0 32.0

QUALITY & TASTE 26 26.0 26.0 58.0

RECOMMENDATION 42 42.0 42.0 100.0

Total 100 100.0 100.0

Data Interpretation: Recommendation from friends mostly affects customers buying decision.

51
Ques 12: How do you rate our Diageo products?

Rating

Frequency Percent Valid Percent Cumulative Percent

Valid HIGHLY SATISFIED 19 19.0 19.0 19.0

MODERATE 35 35.0 35.0 54.0

NOT SATISFIED 17 17.0 17.0 71.0

SATISFIED 29 29.0 29.0 100.0

Total 100 100.0 100.0

Data Interpretation: Customers moderately rated the Diageo products.

52
 CHAPTER-7

FINDINGS, SUGGESTIONS, CONCLUSION

53
Findings

1. Customer preferance towards beer is more compared to rum,vodka,whisky and other drinks.

2. In my study customer less than 25000 are more compared to other monthly earning groups.

3. Monthly spending of customers lies between 1000 to 2500 are more.

4. Customers generally came to know about Diageo products mostly by referance from friends.

5. Customers generally consume 750 ml of drinks.

6. Customers belonging to monthly consumption are more compared to other groups.

7. Yes promotional techniques influence customers to drink.

8. Yes offers and discounts on customers regular purchase of drinks.

9. More than 2 years customers have been using the above stated brands.

10. Customers generally switch over to other brands if thier preferred brand is not available for purchase.

11. Recommendation from friends mostly affects customers buying decision.

12. Customers moderately rated the Diageo products.

Suggestions

The gifts which are given by the company as a part of promotion are old, there should be
innovation ,customers do not want to take glass, pens, music CDs.
 Company can arrange a surprise party or gift for the customers’ occasionally.
Some incentive should be given to the barmen as commission on sales.
There should be strong friends and family network.
The company can open a bar in city, which will deal mostly with USL brands.
Some corporate parties or event can be sponsored so as to promote the brand.
Sales promoters are very important, so they should be encouraged.
Diageo should introduce beer in india because there is huge demand for beer.

54
Conculsion
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 Royal Challenge, McDowell and
Signature is already a success story. But UB Group is just not alone in the field there are also players like
Seagram’s, Radico which has a very large market coverage in the field of Whisky.. 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.
Antiquity Blue and Antiquity Rare 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 swore success. Now premium whisky 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 especially Youth where Whisky is quite demanding.

55
Learning through internship

The two month internship at Diageo was a great experience as there was so much to learn and I saw a lot of
improvement in myself after its completion. It was a life time experience of talking with different kind of people
and understanding there perception and behavior towards Diageo products. Some of the major learning from
internship are:
1. The most important learning was the knowledge of the field i.e., about Diageo & it’s market & customers.
2. I learned how the market survey is done on various parameters.
3. Interacting with several of kind of people developed relationship building skill in me with customers.
4. I interacted with different Hotels, Restaurant, Caterers Services which resulted in my personality
development as I learned how to talk with them, listening to their queries and their perception about Diageo.
5. Last but not the least, time management skills developed automatically during this duration of two months.

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 CHAPTER-8

BIBLIOGRAPHY

57
Internet Websites
https://shodhganga.inflibnet.ac.in/

https://www.slideshare.net/

https://www.scribd.com/

https://www.diageoindia.com/

https://rajexcise.gov.in/RSBCL/Website/Default.aspx

Books

 The Complete Cocktail Manual: 285 Tips, Tricks, and Recipes by Lou Bustamante

 Amaro: The Spirited World of Bittersweet, Herbal Liqueurs, with Cocktails, Recipes, and
Formulas by Brad ThomasParsons

 I Taste Red: The Science of Tasting Wine by Jamie Goode

 American Rhone by Patrick J.Comiskey

58
ANNEXURE

59
A Comparative Analysis of Products of Liquor Industry Between Diageo and
Seagram in Jaipur City

Personal Information

Name :

Gender :

Male Female

What is your age group :

18-28 29-39 40-59 60>

Occupation :

Ques 1: What do you generally Prefer?

Beer Rum Whisky Vodka Other

Ques 2: How much do you earn on a monthly basis?

<25000 25000-30000

30000-40000 40000>

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Ques 3: How much do spend on monthly basis?

<1000 1000-2500

2500-5000 5000>

Ques 4: How much drinks you generally consume?

50ml 375ml 750ml 1l

Ques 5: How do you came to know about Diageo Products?

Media Ads Internet

Newspaper Referance from friends

Ques 6: How frequently do you take drinks?

Everyday Only weekends

Monthly Special Occassions

Ques 7: Do you think promotional techniques influence you to drink?

Yes No
Ques 8: Do you get any offers and discounts on your regular purchase of drinks?

Yes No

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Ques 9: How long you have been using the above stated brands?

<1 Year 1 Year

1-2 Year 2> Year

Ques 10: If your preferred brand is not available for purchase what will you do?

Post pone purchase Switch over to other brands

Search for the preffered brand Go to other shops

Ques 11: Which factors mostly affects your buying decision?

Quality & Taste Price

Packaging Recommend from friends

Ques 12: How do you rate our Diageo products?

Highly Satisfied Satisfied

Moderate Not Satisfied

Ques 13: Any Suggestions for Diageo products improvement?

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