DISSERTATION

TO STUDY THE SCOPE OF “IMFL” IN INDIA

FACULTY GUIDE : SUBMITTED BY :

Dr. SANJEEV CHATURVEDI VIPUL

ARORA
A1802009013
 Introduction:

Indian Made Foreign Liquor, often abbreviated IMFL, is a term used to denote western-
style hard liquors such as whisky, rum, vodka, etc., which are manufactured in India. It is used to
differentiate them from indigenous recipes such as fenny, toddy, and arrack, which are
collectively called country liquor.

While the term Indian Made Foreign Liquor may sound oxymoronic or humorous, it is the
official term used by government, business, and print media in India.
A common characteristic of many IMFLs, distinct from spirits elsewhere in the world, is that
irrespective of the final product the starting ingredient is a neutral spirit distilled from molasses,
a byproduct of the sugar industry. For example, whereas a whisky in most countries would be
distilled from grain, Indian whisky is made by adding whisky-like flavoring and coloring to
neutral spirit obtained from molasses.
Of what is actually consumed, the Intake of Indian Made Foreign Liquor (IMFL) is growing at
the considerable rate of 15 per cent a year. Again, The Hindustan Times says that 65 per cent of
the Indian liquor market is controlled by whiskey manufacturers. The state of Kerala stands
first in per capita consumption of liquor at 8.3 liters followed by Punjab 7.9 liters.

Alcohol Situation in India among youth

Today in India, the tendency to alcohol consumption has percolated down to the youth. The
media has played a leading role in encouraging the use of alcohol among young people by such
means as the portrayal of drinking in congenial social settings, by associating the habit with
glamour and celebrity status, and by direct and indirect advertising.
 * Indian Made Foreign Liquor (IMFL)

• Major players in the alcoholic beverages market - United Breweries (UB)

Group(Bangalore), Shaw Wallace (Calcutta), Jagajit Industries (Kapurthala, Punjab),
Mohan Meakins (Solan, Himachal Pradesh), Associated Breweries & Distilleries
(Mumbai)
• Per capita beer consumption in India - 0.5 litres; as against 20 litres in China, 100 litres
each in USA & Germany , annually
 Objectives:

1. To study the consumer perception and preferences regarding IMFL brands.

2. To study the effective brand positioning of the major IMFL brands.

3. To learn about the market needs and demand for IMFL.

Hypothesis:

H0= consumer purchasing decision is not influenced by the brand image.

H1= consumer purchasing decision is influenced by the brand image.

 Literature review:

IMFL market growing at rapid pace: IMFL has grown at the rate of 9% in last decade. In last

two years; the industry has grown at 12% and current growth momentum is expected to continue.

Whisky is the most important segment. White spirits is the fastest growing segment; however it

is on the lower base. Similarly, other segments such as wine and bear are also growing at rapid

pace.

Segment Grow IMFL Market

s th Breakup

Whisky 8.0% 60%

Brandy 4.0% 18%

Rum 1.0% 17%

White
45.0% 5%
Spirits

High Entry Barriers: Entry barriers are extremely high for new players as no advertisement is

allowed. Thus with growing demand; existing brands have the opportunity to garner greater

market share due to their distribution strengths. Also the consumers are highly addictive in terms

of their brand preferences; hence any increase in prices does not drive down demand.

Players Mn Market
 Cases Share

McDowell - UB 38 42.2%

Shaw Wallace -
16 17.8%
UB

Herbetson - UB 4 4.4%

Radico Khaitan 10 11.1%

Mohan
7 7.8%
Meakins

Jagatjit
1 1.1%
Industries

Others 14 15.6%

Total 90 100.0%

The IMFL industry in India is estimated at nearly 84 million cases and is growing at 8 per cent

per annum. Consumption is largely skewed towards whisky, which accounts for over 60 per cent

of the market. Brandy accounts for 21 per cent, rum for 14 per cent and whites (Gin, Vodka,

others) for 5 per cent.

The total IMFL market is estimated to have grown at 18.5% in value terms over FY09,

when it was valued at Rs 38,549 crore. In volume term, the market has grown 21% from 157.5

million cases in FY09. The government garnered 54% of the revenues at Rs 24,786 crore

through excise levies, Octroi and state taxes and value-added taxes. On the other hand, industry

realisation stood at Rs 10,459 crore, excluding levies, a share of 23%.

Scope Of The Study

This study will help to find out the factors that guide the buying behavior of the customers and

will emphasize on the factors that are most important to the retailers, which will further help

them to retain the customers.

 Research Methodology:

1. Approach to problem

a. Formulation of research hypothesis.

NULL HYPPOTHESIS:-

consumer purchasing decision is influenced by the brand

image.

2. Research design

a. Research type - Descriptive

b. Data collection

Secondary data: - Journals, articles, magazines

prints.

Primary data: - questionnaire

c. Tools for data analysis.

SPSS (Statistical Package for the Social Sciences)

d. Census or sample survey

Sample survey is used because of the limited time frame and the

population is to vast to cater in short time frame.

e. Sample size
Sample size would be 100

f. Sample design- sampling technique

Judgmental sampling is used because of the authority to

choose representatives that can bring more accurate

results.
 g. Scaling technique used

Likert scale will be used to indicate a degree of

agreement or disagreement with each of a series of
statements related to the attitude object.

3. Testing tool
Chi-square
QUESTIONAIRE

1. Do you prefer liquor?

a) Yes () b) No () c) May be ()
c) Never ()

2. How many times you consume liquor?

a) Regularly () b) Twice in week () c) Weekly ()

d) Monthly ()

3 Where do you prefer to drink whisky?

a) Parties () b) At Home () c) Outside with Friends. ( )

4 Which is your favorite brand in whisky?

5. Which brand you take regularly in whisky

a) Vat69 () b) 100Pipers () c) Black & White ()

d) Others ()

6. from where you get to know about this product.

a) News paper () b. Magazines () c) Friends () d.

Bars ()

7. Will you choose this brand due to free gift or its taste?

a) Yes ( ) b. No () c) May be ( ) d.
Can’t say ()

8. Which feature you like most in 100PIPERS from rest of the other brand?

a) Availability ( ) b) Taste () c) Price ()

c) Brand ()

9. Will you change this brand due to any other gifts giving by other Brands?
a) Yes ( ) b) No () c) Never ()
d) May be ()

10. What types of promotions would draw you to our liquor store? (please check all
that apply)

a) Every 1000 spent, an entry into a raffle ( )b) Discount coupons

()

c) Gift give-a-ways ( ) d) Other

()

11 In relation to whisky and its use indicate your preference for the following
features.

Extremely Important Slightly Not important

important important

quality

availability

price

Brand name

12. Rate the above 4 features in order of their relative importance with respect to
each other

1 ____________________________________.

2 ____________________________________.

3 ____________________________________.

4 ____________________________________.

Name : …………………………………………….

Age : …………………………………………….
 Designation : …………………………………………….

Company : ……………………………………………

Address : ……………………………………………

……………………………………………..
Signature

Contact : …………………………………………….
Date: ………………….