PROJECT REPORT

(SUBMITTED FOR THE DEGREE OF B.COM (HONS) IN ACCOUNTING

AND FINANCE UNDER THE UNIVERSITY OF CALCUTTA)

TITLE OF THE PROJECT

CONSUMER BEHAVIOUR ON LIQUOR INDUSTRY

SUBMITTED BY:
❖ NAME OF THE CANDIDATE: RAJIV SEAL
❖ CALCUTTA UNIVERSITY REGISTRATION NO.: 017-1111-0613-17
❖ CALCUTTA UNIVERSITY ROLL NO.: 171017-21-1187
❖ NAME OF THE COLLEGE: THE BHAWANIPUR EDUCATION
SOCIETY COLLEGE
❖ COLLEGE UID: 0101170651

SUPERVISED BY:

❖ NAME OF THE SUPERVISOR: PROF. IPSITA CHATTERJEE.

❖ NAME OF THE COLLEGE: THE BHAWANIPUR EDUCATION
EDUCATION SOCIETY COLLEGE.

MONTH AND YEAR OF SUBMISSION– JUNE 2020

1
ANNEXURE – 1A

SUPERVISOR CERTIFICATE

This is to certify that Mr. Rajiv Seal a student of B.COM (HONS) in

ACCOUNTING AND FINANCE of The Bhawanipur Education Society College
under the University of Calcutta has worked under my supervision and guidance
for his project work and prepared a project report with the title CONSUMER
BEHAVIOUR ON LIQUOR INDUSTRY which he is submitting, it is his genuine
and original work to the best of my knowledge.

SIGNATURE:

PLACE – KOLKATA

DATE –

NAME – PROF. IPSITA CHATTERJEE

NAME OF THE COLLEGE – THE BHAWANIPUR EDUCATION SOCIETY COLLEGE

2
ANNEXURE – 1B

STUDENT ACKNOWLEDGEMENT

I hereby declare that the project work with the title CONSUMER BEHAVIOUR
ON LIQUOR INDUSTRY submitted by me for the partial fulfilment of the degree
of B.COM (HONS) ACCOUNTING AND FINANCE under the University of
Calcutta is my original work and has not been submitted earlier to any other
university/institution for the fulfilment of the requirement of any course of study.

I also declare that no chapter of this manuscript in whole or in part has been
incorporated in report from any earlier work done by others or by me. However,
extracts of any literature which has been used for this report has been duly
acknowledgement providing details of such literature in the references.

SIGNATURE:

PLACE –KOLKATA

DATE –

NAME – RAJIV SEAL

CALCUTTA UNIVERSITY ROLL NO – 171017-21-1187

3
ANNEXURE- 1C

ACKNOWLEDGEMENT

To make any project, essential requirements is able guidance and references

without which project is incomplete. The success and the final outcome of this
project required a lot of guidance and hard work but it’s an honour to acknowledge
the help of those who helped me in completing the project successfully.

I would like to thank the head of the department. I take these opportunities to
express my profound gratitude, and deep regards to my guide PROF.IPSITA
CHATTERJEE for her exemplary guidance, monitoring and constant
encouragement throughout the course of this thesis. The blessings, help and
guidance given by her from time to time shall carry me a long way in the journey
of life on which I am about to embark. I thank her for her overall support.

My thanks and appreciations also go to our college librarian’s in developing the

project and people who have willingly helped me out with their abilities.

I am thankful to and fortunate enough to get constant encouragement, support and

guidance from all teaching staffs of department of commerce which helped us in
successfully completing our project work.

-THANKING YOU ALL

RAJIV SEAL

4
 TABLE OF CONTENTS

SL NO PARTICULARS PAGE NO

1. CHAPTER 1- INTODUCTION 7-31

1.1 INTODUCTION ON LIQUOR 7-9

1.2 BACKGROUND OF THE STUDY 10-19

1.3 LITERATURE REVIEW 20-26

1.4 OBJECTIVE OF THE STUDY 27

1.5 RESEARCH METHODOLOGY 28-30

1.6 LIMITATIONS OF THE STUDY 31

2. CHAPTER 2- CONCEPTUAL FRAMEWORK 32-45

2.1 NATIONAL SCENARIO 32-36

2.2 INTERNATIONAL SCENARIO 37-45

3. CHAPTER 3 – PRESENTATIONS, ANALYSIS AND 46-82

FINDINGS

3.1 PRIMARY DATA ANALYSIS 41-79

3.2 FINDINGS 80-81
3.3 SWOT ANALYSIS 82

5
 4. CHAPTER 4 – CONCLUSION AND RECOMMENDATION 83-87

4.1 CONCLUSION 83-84

4.2 RECOMMENDATION 85

4.3 BIBLIOGRAPHY 86-87

5 QUESTIONNAIRE 88-93

SL NO PARTICULARS PAGE NO

I. SUPERVISOR CERTIFICATE 2
II. STUDENT ACKNOWLEDGEMENT 3
III. ACKNOWLEDGEMENT 4

6
 CHAPTER – 1

1.1 INTRODUCTION ON LIQUOR

The origin of "liquor" and its close relative "liquid" was the Latin
verb liquor, meaning "to be fluid". According to the Oxford English
Dictionary an early use of the word in the English language, meaning
simply "a liquid", can be dated to 1225. The first use the OED mentions
of its meaning "a liquid for drinking" occurred in the 14th century. Its
use as a term for "an intoxicating alcoholic drink" appeared in the 16th
century. Liquor (also hard liquor, hard alcohol, distilled alcohol or spirit)

7
is an alcoholic drink produced by distillation of grains, fruits or
vegetables that have already gone through alcoholic fermentation.

The distillation process purifies the liquid and removes diluting

components like water, for the purpose of increasing its proportion of
alcohol content (commonly expressed as alcohol by volume). As liquors
contains significantly more alcohol they are consider “harder”. In North
America the term hard liquor is used to distinguish distilled alcohol
drinks from the non-distilled ones, whereas the term spirits are used in
the United Kingdom.

8
As examples, this term does not include beverages such as beer, wine etc
as they are fermented but not distilled. These all have a relatively low
alcohol content, typically less than 15%. Brandy is a liquor produced by
the distillation of wine, and has an ABV of over 35%. Other examples of
liquor include vodka, gin, rum and whisky.

9
 1.2 BACKGROUND OF THE STUDY

MYTHOLOGY AND PAST MILLENNIA:

Mythological writings, Ayurvedic texts and Vedas mention the use of
alcohol in various forms and methods. Recreational beverages were
classified into two types’ soma and sura. Soma-ras which finds a
mention in mythological texts too, was considered a drink of the Gods
and its elite worshippers. Mostly termed as Amrit, it was considered to
grant immortality to the drinker and hence, also rumoured to be
psychoactive. On the other hand, sura which was a fermented drink from
rice and sugarcane was considered Indra the God king’s favourite drink.
It was consumed by warriors for it would grant them courage and valour
in a battle. Though neither of the texts mention the drinks to be
alcoholic, their effects are strikingly similar to the effects after
consuming an alcoholic beverage.

Ayurveda has always strongly advocated alcohol usage foe medicinal

purpose. It was primarily used as a narcotic when patients were being
operated upon. It also extolled the virtues of alcohol consumption but
has strongly detailed its moderate usage in the following words, “Vital
as the ambrosia when consumed in small amounts and the fatal as the
poison on drinking indiscriminately”

10
THE MIDDLE AGES:
The alcoholic beverages brewed in the earlier times were low on alcohol
content and hence satisfied the recreational drinking style. During the
era when many dynasties ruled the large expanse of Indian sub-
continent, consuming alcoholic beverages was a part of life for
extremities in lifestyles. The most elite wines were consumed by the
emperors and the royals whereas soldiers and labourers would habitually
alcoholic drinks made from wheat, barley and millet.

Grape based wine finds its earliest mention in the writings of Chanakya
during the rule of the Maurya Dynasty. Although Islam prohibits
consumption of alcohol, nevertheless it was quite prevalent in the
Mughal era, especially during the period of Emperor Jahangir.

POST AND PRE-INDEPENDENCE:

Since the British occupation the consumption of alcohol in India has
been a slow and steady rise. The factors can be date back to the times of
Portuguese colonists as well who introduced port style wine. Vineyards
and breweries were encouraged and found extensive establishment
throughout regions of India.

Around this time the fermented low alcohol content beverages of India
were gradually replaced by beverages from distilleries containing higher
amounts of alcohol. This has been the very initial pre cursor to the

11
variety of alcoholic beverages available to us today. Post-independence
the liquor industry of India was at its peak but soon suffered a huge
setback. Many states began prohibiting alcohol consumption which was
later supported by myriad religious and public opinions. The flourishing
and thriving vineyards were either destroyed or reduced to producing
table grapes and raisins.

Goa one of the last remaining states to keep producing alcoholic

beverages was privy to the visit by French winemakers. Hereafter by
introduction of various grape varieties and brewing techniques, the
liquor industry in India saw its revival and progressed to the stage where
it stands now.

12
 THE INDIAN LIQUOR INDUSTRY

The Indian liquor industry is divided into two broad segments: Indian
Made Foreign Liquor (IMFL) and country-made liquor. IMFL comprises
alcoholic beverages that were developed abroad but are being made in
India (whisky, rum, vodka, beer, gin and wine), while country-made
liquor comprises alcoholic beverages made by local breweries. While
many Indian and MNC players were present in the IMFL segment, the

13
unorganized sector accounted for almost 100% of the country-made
liquor segment.

During 1999-00, the Indian liquor industry grew at the rate of 10-12%.
While IMFL was consumed by the middle and upper classes of society,
country-made liquor was consumed by the economically deprived
classes. In India, 40-50% of all males and 1% of all females consumed
alcohol.

14
Almost 62% of the drinkers could be classified as light drinkers (i.e.
social drinkers), 29% percent as moderate drinkers, and about 9% as
hard drinkers. Many government restrictions regulated the liquor
industry. Companies are not allowed to expand capacity without prior
approval from the concerned state government.

The government has banned the advertising of any alcoholic product in

the electronic media. As a result, companies have resorted to surrogate
advertising (advertising for sodas and lemonades using the liquor brand
name). However, some states have even banned surrogate advertising.
The satellite television channels initially showed liquor advertisements,
but were soon banned from doing so. As a result, liquor companies
could publicize themselves only through sponsorship of sports events
and contests.

15
The distribution of liquor was also under state control in many states, in
the form of auctions, open-market system and government-controlled
markets. Under the auction system, the government fixed a floor price
for the shops and the bidders had to quote prices. The license was given
to the highest bidder. States following the open-market system gave
companies substantial freedom to choose their distributor and to
determine the price and the discounts.

In the government-controlled system, liquor was distributed by state

agencies such as BEVCO (in Kerala) and the Andhra Pradesh Beverage
Corporation (in Andhra Pradesh). There were around 25,000-27,000
licensed retail sales outlets in the country, in addition to the bars, pubs,

16
hotels and restaurants serving liquor. There were restrictions on the
business hours of these outlets and location.

India is the third largest market for alcoholic beverages in the world. The
demand for spirits and beer is estimated to be around 373 million cases.
(Source: Annual Report, Government of India, Ministry of Food
Processing Industries).

In India, majority of distilleries manufacture alcohol from Sugar Cane

Molasses compared to international trend of grain based (rice, wheat,
millet, Barley, corn and oat) alcohol. In India, since alcohol is largely
produced from sugarcane molasses, the industry is cyclical in nature, as
sugarcane production itself is affected every 3-4 years due to monsoon

17
and other factors, resulting in low availability of molasses. Alcohol
industry is the second largest source of revenue of the State Exchequer –
Rs.25,000 cores. The Industry turnover is ~Rs.54,000 core (Source:
Euro monitor International 2009). It is the only Industry where inputs
are decontrolled (free market price) and output is controlled (selling
price is determined by State Excise in most States).

India has traditionally been among the world’s lowest per capita
consumers of foreign spirits such as whisky, rum, brandy, vodka and
gin. Indian Made Foreign Liquor (IMFL) is an industry term of art in
India used to describe these foreign spirits that are now made in India,
which are distinguished from traditional country liquor, historically

18
manufactured in India. In addition, IMFL is distinguished from beer and
wine. Indian Spirits Sector - Overview Indian Liquor Industry with
estimated market value of INR 340 billion is growing at 12-15% over
the last two years. The sector is expected to maintain its CAGR of ~15%
while the premium segment Wine and Vodka is expected to grow at a
higher rate. With consolidation and foreign acquisitions gaining steam
the sector is about to witness next phase with realization rising in line
with that of their foreign counter parts. There are 325 distilleries in
India, with an installed capacity of about 3.58 billion litres of liquor.
However, production rate is about 40% of total licensed capacity as total
requirement of liquor stands at 1.3 billion litres. Major National Player’s
united spirits with about 60 % of market share in IMFL is the undisputed
leader.

19
 1.3 LITERATURE REVIEW

Literature Review is a conscious effort of reviewing the existing literature and

gaining fruitful insight from the same. The studies on consumer behaviour have
been in abundance and the authors had to ponder on selecting relevant & effective
studies conducted across the industries. The inferences of the review have been
categorised under following heads to present the learning: Factors affecting
Consumer Behaviour, Factors linked to demography, Consumer Preferences &
attitude, Quality & Innovation and existing Models of Consumer Behaviour.

(A) FACTORS AFFECTING CONSUMER BEHAVIOUR

As part of the study of consumer behaviour it is essential to learn the factors

affecting Consumer behaviour. Hawkins, Best, Coney and Mokherjeein their book
on Consumer Behaviour discussed several factors affecting consumer behaviour
for buying such as demographic and social influences (family and household),
group influence, impact of advertising and internal influences (learning,
perception, attitude etc.). The book elucidated the topics such as types of consumer
decisions, purchase involvement and product involvement. The book also
emphasized on information search process and various ways for providing relevant
information to the consumers are recommended in this study. The book has further
emphasized on individual judgment and proposed that the ability of an individual
to distinguish between similar stimuli which could involve many variables related
to individual preferences

20
 ORGANISATIONAL
CULTURE

DEMOGRAPHIC AND
SOCIO- CULTURE
FACTORS AFFECTING
CONSUMER BEHAVIOUR PERSONALITY
INFLUENCERS

ECONOMIC CONDITIONS

BRAND AND PRODUCT

PROFILE

Figure No. 1: Factors affecting Consumer Behaviour

An Empirical Study the efforts have been made to examine the impact/influence of
salesperson’s behavioural traits- Ethical Behaviour, listening ability, relational
skills and emotional intelligence on the coinciding purchasing behaviour of the
customer. The outcome of this study emphasizes the soft skills of a salesperson,
which is otherwise disregarded as an antecedent variable, accordingly providing
insights for salespersons in refining their selling behaviour. As the result of the
study indicates a salesperson should understand importance of the required skills
and strive to develop these skills. Further, the findings of the study would also help
the retailers in ensuring that the salesperson develops the required skills by
consistently keeping a check on them

21
 (B) FACTORS LINKED TO DEMOGRAPHY

Demography arrangements also have an impact of the consumer behaviour. The

kids, adolescent, grown up adult, mid age and old age people have different
personalities and different set of values. The attractive features of products may
have separate impact on different age group of consumer, also it may have separate
impact on the area that people dwell. . The study by deva prasanna presents a
review of the literature that there is marvellous complication in consumer
behaviour. There may be several aspects both rational and emotional that may act
mutually in influencing the purchase decision. The age factor, gender, place /
location etc. Has huge impact in the response from the consumers. The study also
examines the relationship between the factors brought out and demographic factors
like age and monthly income. The study observes that the factors for selecting
packaged food include health, convenience, proximity, mood, price, brand, and
sensory appeal. Additionally it is found that 3 factors, namely health, convenience
and mood, have significant relationship with age, and four factors, namely health,
mood, price and brand, have significant relationship with monthly income. The
study reveals that consumers with income less than Rs.5000 give more importance
to health, mood and price, whereas brand as a factor is more significant for higher
income consumers. These findings reveal the characteristics of the target audience,
which can be taken into consideration by the marketers while designing the
product.

22
 (C)CONSUMER PREFERENCE & ATTITUDE

TECHNOLOGI-
CAL FACTORS

NEED FOR
INFLUENCERS TO
UNIQUENESS
CONSUMER PREFERENCE
AND ATTITUDE GROWING
CONCIOUSNESS

BRAND
ABUNDANCE

QUALITY AND
INNOVATIONS
IN PRODUCTS

Figure No. 2: Influencers to Consumer Preference & Attitude

The preference, choice, demand, attitude and actions of consumers are interlinked.
Also they all have impact on purchase decisions of consumers. Dr.
K.Alagarsamy& S. Wilson through their literary work on “A Study on Customer
Behaviour on alcohol/liquor industry” ,state that it has gone many changes based
on privatization, globalization and liberalizations adopted by government of India.
Customer is the king in the present day. Today the customer services preference
23
keep on changing at a rapid speed and their demands. Today the challenging and
tough job for the industry is retaining their existing customer base and acquiring
new customer. The aim of an industry is to make customer satisfaction and to meet
there demands. To achieve the highly challenging task of customers’ satisfaction
all the industries are turning to technology for help. Industries are not only
satisfying the customer but must also trigger the attitude of the customers towards
there varieties of product.

(D) QUALITY & INNOVATIONS

Consumer Behaviour demonstrates largely the willingness to be associated with

the brand and the usage pattern. The organisations keep working towards their
attractive features in order to attract customers. Quality management of products
and innovations form important measure so as to retain & acquire customers.
Karunik and Schiffmanin their book on Consumer Behavior have highlighted the
dynamic business environment and they it be turbulent as never before & the
service industry as promising as never before. In this era of intense competition
companies understand the customer is the king in the market and success depends a
lot on the efficiency of the managers in delivering the promised product or
services. The responsibility lies on the organisations to develop a culture, ethics,
responsibility, value and quality services should be offered to achieve higher level
of customer satisfaction. Dynamic consumer behaviour is required to analyse
various factors affecting consumer purchase decision directly or indirectly. C.
Lovelock & J. Writzauthored the book Services Marketing while emphasising on
services marketing as a broad area and placed marketing issues within a broader
general management context while offering a balanced focused on close ties that
link marketing, operations and human resource marketing. It also relates the
24
understanding of consumer behaviour function to develop appropriate marketing
strategy. Service triangle, feature of services and service marketing strategies are
also discussed in this book with detailed explanation of service quality model.The
study by Manaktola&Jauhariwas conducted in NCR Delhi, India which explored
consumer attitude and behaviour towards the green practices in lodging industry.
They identified the willingness of consumers to pay for green hotels. The findings
of the study were that there was the significant relationship between consumer
attitudes and behaviour towards green practices in hotel industry but only 15% of
the consumers were willing to pay for environmental initiatives.

(E) REVIEW OF SELECTED EXISTING MODELS OF CONSUMER

BEHAVIOUR

Behavioural Models for every process & function support the growth of the same.
There have been studies conducted and models developed towards understanding
consumer behaviour. Massively the models suggest the Input to the process as the
stimuli and behaviour as the output of the system. One of the prominent models is
Howard Sheth Model and Engel – Blackwell – Miniard Model.

Howard Sheth Model - The model suggests that the learning, perception and
attitudes influence the consumer behaviour. The model emphasizes on three
aspects towards the overall Model: Input, Constructs and Output. These all are
variables at their respective stages.The Input considered in the model is the Stimuli
in the form of Significative stimuli: Tangible characteristics of the product in the
form of Quality, Price, Distinctiveness, services rendered & availability of the
product. Symbolic Stimuli: The characteristic in the significative stimuli gets

25
influenced by their promotions. The motivation created through this process is
termed as symbolic stimuli. Social Stimuli: Motivation & influences generated
through the family, friends and social groups. The Construct considered in the
model provides the variables that influence the decision making. They may be
internal perceptions (Perpetual Constructs) or the motives considered by the buyers
(Learning Constructs). At this stage the buyer progresses towards the buying
process however has every possibility of holding the decision due to inhibitors or
other external influences. The buying decisions that usually require high
engagement goes through this extensive process. The decisions for the low
engagement process usually travel straight from Input to Output.The Output is
massively towards the result of the Purchase decision while undergoing the mental
process of creating attention, gathering comprehension, developing attitude and
resulting into Purchase or restraining from it.

Engel – Blackwell – Miniard Model - The Model was originally contributed by

Engel – Kollat – Blackwell and with more of contribution in this respect finally the
Model was prescribed with the contribution of Miniard& termed as Engel –
Blackwell – Miniard. This Model is a multidimensional effort towards
coordination among the perceptual pattern of buyers reflected in their decision
making process. Just as Howard Sheth Model even this model highlights that the
High engagement purchases requires complex decision process.This model reflects
the Input in terms of the Stimuli towards purchase leading to Information
processing & assisting the Purchase decision process. The Decision process
simultaneously also get influenced by the Environmental influencers and
Individual differences

26
 1.4 OBJECTIVE OF THE STUDY

THE OBJECTIVE OF THE STUDY IS LISTED BELOW:

1. The main objective of this study is to find out the consumer

behaviour towards liquor industry or alcohol.

2. To study the consumption pattern of alcohol or liquor.

3. To study the factors affecting buying behaviour of liquor or

alcohol.

4. To study consumer brand preference of alcohol in India.

5. To identify the most commonly preferred category of alcohol.

6. To identify the most commonly preferred source of purchase.

7. To identify the most commonly preferred source of purchase.

SO, THIS IS THE OBJECTIVE OF THE STUDY.

27
 1.5 RESEARCH METHODOLOGY

Methodology is the systematic theoretical analysis of the methods

applied to a field of study. It compromises the theoretical analysis of the
body of methods and principal associated with a branch of knowledge.
typically, it encompasses concepts such as paradigm theoretical model,
phases and quantitative or qualitative techquines.

The market study of the Indian alcoholic beverages market is

incorporated by extensive primary and secondary research. The
secondary research has been conducted to refine the available data to
breakdown the market in various segment, derive total market size,
market forecast, and growth rate. Different approaches have been
worked on to derive the market value and the market rate.

A methodology does not set out to provide solutions-it is therefore, not

the same as a method. instead, a methodology offers the theoretical
underpinning for understanding which method, set of methods, or best
practices can be applied to specific case, for example to calculate a
specific result.

Primary data – primary data means the data that has been collected
specially for the purpose in mind. It means someone collected the data
from the original source first mind. In this form of data collection,
researchers can personally ensure that primary data meets the standards
28
of quality, availability, statistical power and sampling required for a
particular research question.

With globally increasing access to specialized survey tools, survey firms

and field manuals, primary data has become a dominant source for
empirical inquiry in development economics.

Secondary data - secondary data means it is one type of quantitative data

that has already been collected by someone else for a different purpose
to yours.

Secondary data analysis can save time that would otherwise be spent
collecting data and particularly in the case of quantitative data can
provide larger and higher quality databases that would be unfeasible for
any individual researcher to collect on their own.

In addition, analysis of social and economic change considers secondary

data essential since it is impossible to conduct a new survey that can
adequately capture past change and /or developments. However
secondary data can be less useful in marketing research as data may be
outdated or inaccurate.

29
This project involves data, both from secondary as well as primary
sources.

The sample size for the primary data is 63

To depict the primary data pie-charts, bar graphs, histograms, line charts
and column charts have been used.

30
 1.6 LIMITATIONS OF THE STUDY

THE LIMITATIONS OF THE STUDY IS:

1. Survey is limited to the people of West Bengal.

2. A very limited survey would be done as time is very confined.

3. Based on the limited survey statistics would be made.

4. Every individual does not answer to the survey sincerely

5. Consumer preference on a particular brand is a very vast area of

study cannot be depicted in confined manner.

SO, THESE ARE THE LIMITATIONS OF THE STUDY.

31
 CHAPTER-2

CONCEPTUAL FRAMEWORK

2.1 NATIONAL SCENARIO

India is one of the fastest growing alcohol markets in the world. Rapid
increase in urban population, sizable middle-class population with rising
spending power, and a sound economy are certain significant reasons
behind increase in consumption of alcohol in India.
32
Our latest report “Indian Alcohol Consumption - The Changing
Behaviour” provides a comprehensive analysis of the market size of
alcohol industry on the basis of type of products, consumption in
different states, retail channel and imported and domestic. The Indian
alcohol industry is segmented into IMFL (Indian made foreign liquor),
IMIL (Indian made Indian liquor), Wine, Beer and imported alcohol.
Imported alcohol has a meagre share of around 0.8% in the Indian
market. The heavy import duty and taxes levied raise the price of
imported alcohol to a large extent. Alcohol is exempted from the
taxation scheme of GST.

The Indian alcohol market is growing at a CAGR of 8.8% and it is

expected to reach 16.8 Billion litres of consumption by the year 2022.
The popularity of wine and vodka is increasing at a remarkable CAGR
of 21.8% and 22.8% respectively. India is the largest consumer of
whiskey in the world and it constitutes about 60% of the IMFL market.

Though India is one of the largest consumers of alcohol in the world

owing to its huge population, the per capita alcohol consumption of
India is very low as compared to the Western countries. The per capita
consumption of alcohol per week for the year 2017-2018 was estimated
at 147.3 ml and it is expected to grow at a CAGR of 7.5% to 227.1 ml in
the year 2018-2019 according to our estimates.

33
The states of Andhra Pradesh, Telangana, Kerala, Karnataka, Sikkim
Haryana and Himachal Pradesh, West Bengal are amongst the largest
consumers of alcohol in India. The most popular channel of alcohol sale
in India is liquor stores as alcohol consumption is primarily an outdoor
activity and supermarkets and malls are present only in the tier I and tier
II cities of India.

The trends and pattern of alcohol consumption are changing in the

country. With the increasing acceptance of women consuming alcohol,
growing popularity of wine and high demand for expensive liquor, the
market scenario seems to be very optimistic in the near future. We
conducted a consumer research study for the alcohol market with around
1,000 respondents from the cities of Delhi, Chandigarh, Mumbai, Pune,
Hyderabad, Kolkata and Bangalore. The study reflected changing
pattern of the consumer’s mindset towards alcohol consumption in
India. 3% of the respondents who consumed alcohol favoured wine for
its health benefits. Though the popularity of whiskey is highest in the
Indian market, its market share is expected to decrease in future.

Indian Alcoholic Beverages Market Size, Share & Trends Analysis

Report by Type (Beer, Distilled Spirit, and Wine) By Packaging Type
(Glass Bottles, Cans, and Others), Forecast Period 2019-2025.

34
Indian alcoholic beverages market is estimated to grow at a CAGR of
4.2% during the forecast period. In 2018, the market in India was valued
at $36.5 billion and is further estimated to reach $48.0 billion in 2025.
The factors contributing to the market growth include increasing demand
for alcoholic beverages in the country due to their huge population base,
growing consumption of alcohol by the young generation, and rising
disposable income. The changing social norms and the growing
acceptability of alcohol have led to high and regular alcohol
consumption among people in the region. India is one of the major
countries in the market due to its demographics & economy. The Indian
alcohol industry can be classified into various categories such as IMFL
(Indian made foreign liquor), imported liquor, beer and country-made
liquor, and others. The rising demand in these categories further
contributes to the Indian alcoholic beverages market.

The increasing disposable income, growing acceptance of alcoholic

beverages in social circles, and inclining consumer preference toward
premium varieties of IMFL is expected to result in gradual growth in
favour of premium brands. IMFL includes brown spirits such as whisky,
rum, and brandy; and white spirits such as gin, vodka, and white rum.
Imported alcoholic beverages are consumed less than locally
manufactured brands in India. The imported brands are mostly preferred
by the rich and upper middle class in urban cities and are also popular

35
among young professionals and entrepreneurs. Thus, the increasing
demand for imported bands by these individuals is further expected to
contribute to the growth of the Indian alcoholic beverages market in the
near future.

36
 2.2 INTERNATIONAL SCENARIO

The annual global average alcohol consumption is 6.4 litres per person
older than 15 (in 2016). To account for the differences in alcohol content
of different alcoholic drinks (e.g. beer, wine, spirits), this is reported in
litres of pure alcohol per year.

37
To make the 6.4 litres average more understandable we can express it in
bottles of wine. Wine contains around 12% of pure alcohol per
volume so that one litter of wine contains 0.12 litres of pure alcohol. The
global average of 6.4 litres of pure alcohol per person per year therefore
equals 53 bottles of wine per person older than 15 (6.4l / 0.12l). Or to
make it more memorable, around 1 litter of wine per week.

As the map shows, the average per capita alcohol consumption varies
widely across the world.

We see large geographical differences: Alcohol consumption across

North Africa and the Middle East is particularly low — in many
countries, close to zero. At the upper end of the scale, alcohol intake
across Europe is highest at around 15 litres per person per year in the
Czech Republic, Lithuania, and Moldova. This equals around two
bottles of wine per person per week.

Only slightly behind the Eastern European countries are Western

European countries – including Germany, France, Portugal, Ireland, and
Belgium – at around 12 to 14 litres. Outside of Europe the only other
country in this category is Nigeria.

The global alcoholic beverages market was valued at $1,493 billion in

2017, and is expected to reach $1,684 billion by 2025, registering

38
CAGR of 2.0% from 2018 to 2025. Most cultures across the globe have
traditionally consumed various number have evolved into commodities
that are produced commercially no a large scale. On a global level beer
from barley wine from grapes and other distilled beverages are sold as
commodities. The pricing of these beverages is determined by the cost
of production and the duties levied on those costs. The effects of prices
as measured with price elasticities differ across countries and in different
time periods.

The growth of the global alcoholic beverages market is driven by

increase in global young adult demographic, surge in disposable income,
and rise in consumer demand for premium/super premium products.
However high cost of premium/super premium products and escalation
of non-alcoholic beverages market, owing to increase in health concerns
are expected to restrict the market growth in the near future.
Furthermore, recent developments in honey derived products appear to
be a viable alternative to produce innovative alcoholic drinks for the
consumers and to drive the future growth of this market.

39
Consumption of alcoholic beverages in North America is expected to
increase due to growth in young adult population and elevated
consumption of high-quality alcoholic beverages. On the other hand,
emerging markets such as China and India are expected to witness
significant increase in demand for alcoholic beverages during the
forecast period in Asia-Pacific. This attributed to substantial growth in
disposable income in this region. However, Europe is expected to grow
at the highest rate, closely followed by LAMEA, owing to increase in
alcohol drinking demographics.

40
Major companies have adopted agreement, product launch, and
expansion and merger strategies to sustain the intense market
competition. The key players profiled in the report include Anheuser-
Busch InBev SA/NV, Bacardi Limited, Beam Suntory Inc, Constellation
Brands Inc, Diageo Plc, Heineken Holding NV, Molson Coors Brewing
Co, Pernod Ricard SA, SABMiller Ltd and United Spirits Ltd.

Other market players (not profiled in report) in the value chain include
Accolade Wines Ltd, Asahi Breweries Ltd, Brown-Forman Corp,
Carlsberg A/S, China Resources Beer Company Limited, Remy
Cointreau SA, Tsingtao Brewery Colt, Treasury Wine Estates, Thai
Beverage Public Colt and The Wine Group.

41
The number of supermarkets is on an increase in almost all major cities,
with rapid urbanization in various emerging economics. Moreover,
availability of products at low cost and accessibility to a wide variety of
alcoholic beverages available in supermarkets fuel the growth of this
segment. Furthermore, high visibility and attractive assortment of
alcoholic beverages increase in disposable income of consumer along
with changes in preferences toward premium products boost the growth
of this distribution segment.

42
In 2017, the distilled spirits segment accounted for more than one-third
of the global market share. In terms of volume, this segment held
approximately 28% share in the overall market, attributed to increase in
premium/super premium whiskey consumption and the demand shift
from beer to distilled spirits such as rum, whiskey, vodka and others.
Thus, this segment is anticipated to provide high stability in terms of
demand along with significant return on investment for the stakeholders,
owing to its high growth rate and significant revenue contribution.

43
The per capita alcohol consumption in India increased two folds
between 2005 and 2016, according to the Global status report on alcohol
and health 2018 released by the World Health Organization (WHO) on
Saturday.

Indians consumed 2.4 litres of alcohol in 2005, which increased to 4.3

litres in 2010 and scaled up to 5.7 litres in 2016, the report said.

According to the report, the highest increase in alcohol consumption is

expected in South-East Asia, with an increase of 2.2 litres in India alone,
from 2005 to 2016.

More than 3 million people died as a result of harmful use of alcohol in

2016, the report said. More than three quarters of those reported dead
were men. Overall, the harmful use of alcohol causes more than 5% of
the global disease burden.

The report highlighted that 51.1 men per 100,000 population and 27.1
women per 100,000 populations suffered from liver cirrhosis. Cancers
associated with alcohol abuse resulted in 181 men per 100,000
population and 126.4 women per 100,000 populations.

Of all deaths due to alcohol, 28% were from injuries, such as those from
traffic crashes, self-harm and interpersonal violence; 21% due to
digestive disorders; 19% due to cardiovascular diseases, and the

44
remaining due to infectious diseases, cancers, mental disorders and other
health conditions.

“Far too many people, their families and communities suffer the
consequences of the harmful use of alcohol through violence, injuries,
mental health problems and diseases such as cancer and stroke,"
according to Tedros Adhanom Ghebreyesus, director-general, WHO.
“It’s time to step up action to prevent this serious threat to the
development of healthy societies."

45
 CHAPTER-3
PRESENTATION, ANALYSIS AND FINDINGS

3.1 PRIMARY DATA ANALYSIS

Q1) HAVE YOU EVER CONSUMED ALCOHOL?

(A) YES
(B) NO
(C) SOMETIMES

TABLE NO-3.1.1
OPTION NO OF RESPONDENT PERCENTAGE OF
RESPONDENT
YES 37 58.7%

NO 18 28.6%

SOMETIMES 8 12.7%

TOTAL 63 100%

46
 SOMETIMES,
12.70%

NO, 28.60%
YES, 58.70%

FIGURE-3.1.1

INTERPRETATION:58.7% OF THE RESPONDENT CHOOSES THE

OPTION YES FOR ALCOHOL CONSUMPTION THAT MEANS
MAJORITY OF THE RESPONDENT CONSUMES ALCOHOL, 28.75
OF THE RESPONDENTS CHOOSE THE OPTION NO AND ONLY
12.70% OF THE RESPONDENT CHOOSES THE OPTION
SOMETIMES.

47
 Q2) REASON FOR ALCOHOL CONSUMPTION?
(A) SOCIALIZING
(B) WORK
(C) PRESSURE
(D) LEISURE
(E) CASUAL DRIKING
(F) OTHERS

TABLE NO-3.1.2

OPTION NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
SOCIALIZI 08 12.70%
NG-NG
WORK 00 0%

PRESSURE 01 1.60%

LEISURE 07 11.10%

CASUAL 36 57.10%
DRINKING
11 17.50%
OTHERS

TOTAL 63 100%

48
 57.10%
60.00%

50.00%

40.00%

30.00%
17.50%
20.00% 12.70% 11.10%
10.00% 1.60%
0%
0.00%

PERCENTAGE OF RESPONDENT

FIGURE-3.1.2

INTERPRETATION:

IN THIS FIGURE 58.10% OF THE RESPONDENT CHOOSES THE

OPTION CASUAL DRINKING THAT MEANS MAJORITY OF THE
RESPONDENT CONSUMES ALCOHOL FOR CASUAL DRINKING,
WHEREAS 12.70% RESPONDENT CONSUMES ALCOHOL FOR
SOCIALIZING, 17.50% RESPONDENT CONSUMES ALCOHOL
FOR OTHER REASONS,1.60% RESPONDENT CONSUMES
ALCOHOL FOR PRESSURE AND 11.10% RESPONDENT
CONSUMES ALCOHOL FOR LEISURE.

49
 Q3)FREQUENCY OF CONSUMPTION?
(A) DAILY
(B) WEEKLY
(C) MONTHLY
(D) OCCASIONALLY
(E) YEARLY

TABLE NO-3.1.3

OPTION NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
DAILY 01 1.4%
WEEKLY 04 6.1%
MONTHLY 06 9.1%
OCCASIONALLY 14 23.1%
YEARLY 38 60.3%
TOTAL 63 1OO%

50
 70.00% 60.30%
60.00%

50.00%

40.00%

30.00% 23.10%

20.00%
9.10%
6.10%
10.00% 1.40%

0.00%

PERCENTAGE OF RESPONDENT

FIGURE-3.1.3

INTERPRETATION:

IN THIS FIGURE THE MAJORITY NO OF RESPONDENT

CHOOSES THE OPTION YEARLY. IT MEANS MAXIMUM NO OF
CONSUMERS CONSUME ALCOHOL YEARLY.

WHEREAS 1.40% CONSUMERS CONSUME ALCOHOL DAILY,

6.10% CONSUMERS CONSUMES ALCOHOL WEEKLY, 9.10%
CONSUMERS CONSUME ALCOHOL MONTHLY, 23.10%
CONSUMERS CONSUME ALCOHOL OCASSIONALLY.

51
Q4)DO YOU USUALLY PREFERRED BRANDED
ALCOHOL?
(A) YES
(B) NO
(C) SOMETIMES

TABLE- 3.1.4

OPTION NO OF RESONDENT PERCENTAGE OF

RESPONDENT
YES 48 76.2%

NO 10 7.9%

SOMETIMES 05 15.9%

TOTAL 63 100%

52
 90.00%

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
YES NO MAYBE
PERCENTAGE OF
76.20% 7.90% 15.90%
RESPONDENT

FIGURE-3.1.4

INTERPRETATION:

IN THIS FIGURE 76.20% OF THE TOTAL CONSUMER CHOOSE

THE OPTION YES IN BRAND PREFERENCE THIS MEANS
MAJORITY OF THE CONSUMER CONSUME BRANDED
ALCOHOL, WHEREAS 15.90% OF THE TOTAL CONSUMER
CHOOSE THE OPTION MAYBE ITS THEORY ARE NOT SURE
WHETHER IT IS BRANDED OR NOT AND 7.90% OF THE TOTAL
CONSUMER CHOOSE THE OPTION NO IT MEANS THEY DOES
NOT PREFER BRANDED ALCOHOL.

53
 Q5) PLACE USUALLY PREFER FOR ALCOHOL?
(A) HOME
(B) PARTY
(C) BAR CUM RESTAURANTS
(D) HOTELS
(E) OTHERS

TABLE-3.1.5

PLACE NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
HOME 15 23.8%

PARTY 22 34.9%

BAR CUM 17 27%

RESTAURANTS
HOTELS 02 3.2%

OTHERS 07 11.1%

TOTAL 63 100%

54
 11%
3% 24%

HOME
PARTY
BAR CUM RESTURANTS
27% HOTELS
OTHERS

35%

FIGURE-3.1.5

INTERPRETATION:

IN THIS FIGURE WE CAN CONCLUDE THAT ABOUT 35% OF

THE TOTAL CONSUMER CONSUMES ALCOHOL IN PARTIES,
WHEREAS 24% OF THE TOTAL CONSUMER CHOOSES HOME,
27% OF CONSUMER CHOOSES BAR CUM RESTAURANTS, 11%
CONSUMER CHOOSE OTHER PLACE SUCH AS FRIENDS
HOME, RELATIVES HOME ETC, AND ONLY 3% CONSUMER
CHOOSE HOTELS BECAUSE EVERYBODY CANNOT AFFORD
IT.

55
Q6) TYPE OF ALCOHOL USUALLY CONSUMES?

(A) WHISKY
(B) VODKA
(C) BEER
(D) RUM
(E) GIN
(F) LOCAL LIQUOR
(G) SCOTCH
(H) WINE

TABLE-3.1.6

TYPES NO OF RESPODENT PERCENTAGE OF

RESPONDENT
WHISKY 20 31.7%
VODKA 06 9.5%
BEER 21 33.3%
RUM 03 4.8%
GIN 00 0%
LOCAL 00 0%
LIQUOR
SCOTCH 07 11.2%
WINE 06 9.5%

TOTAL 63 100%

56
 WINE 9.50%

SCOTCH 11.20%

LOCAL LIQUOR 0%

GIN 0%

RUM 4.80%

BEER 33.30%

VODKA 9.50%

WHISKY 31.70%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

PERCENTAGE OF RESPONDENT

FIGURE-3.1.6

INTERPRETATION:

IN THE ABOVE FIGURE WE CAN CONCLUDE THAT ABOUT

33.30% OF THE TOTAL RESPONDENT CHOOSE BEER THAT IS
THE MAJORITY, SECOND IS WHISKY 31.70%, THIRD IS
SCOTCH 11.20%, FOURTH IS WINE AND VODKA BOTH ARE
EQUAL 9.50%, FIFTH IS RUM 4.80% AND FIFTH, SIXTH THAT
IS LOCAL LIQUOR, GIN BOTH ARE 0% CONSUMED BY THE
RESPONDENT OR CONSUMERS.

57
 Q7) FAVOURITE BRAND?

(A) BUDWEISER
(B) JACK DANIELS
(C) MAGIC MOMENT
(D) YELLOW TAIL
(E) JOHNNIE WALKER GOLD LABEL RESERVE
(F) ABSOLUTE VODKA
(G) TUBORG
(H) CORONA
(I) OTHERS

TABLE-3.1.7

BRAND NAME NO OF RESPONDENT PERCENTAGE OF RSPONDENT

BUDWEISER 12 19%

JACK DANIELS 11 17.5%

MAGIC MOMENT 02 3.2%

YELLOW TAIL 01 1.6%

JOHNNIE WALKER 08 12.7%

ABSOLUT VODKA 05 7.9%

TUBORG 09 14.3%

CORONA 02 3.2%

OTHERS 13 20.6%
TOTAL 63 100%

58
 OTHERS 20.60%

CORONA 3.20%

TUBORG 14.30%

ABSOLUT VODKA 7.90%

JOHINNE WALKER 12.70%

YELLOW TAIL 1.60%

MAGIC MOMENT 3.20%

JACK DANIELS 17.50%

BUDWEISER 19%

FIGURE-3.1.7

INTERPRETATION:

IN THIS INTERPRETATION WE CAN SEE THAT ABOUT 20.6%OF

THE RESPONDENT CHOOSES OTHER BRANDS OF LIQUOR
WHICH I HAVE NOT LISTED IN THE OPTIONS. THE OTHER
OPTIONS WHICH I HAVE LISTED FROM THAT OPTIONS WE
CAN SEE THAT BUDWEISER HAS BEEN CHOSEN BY MOST OF
THE RESPONDENT ABOUT 19%, WHEREAS 17.50%
RESPONDENT OR CONSUMER CHOOSE JACK DANIELS, 14.30%
CONSUMER CHOOSE TUBORG, 3.20% CHOOSE CORONA, 7.90%
CHOOSE ABSOLUT VODKA AND LAST BUT NOT THE LEAST
YELLOW TAIL AND MAGIC MOMENT IS LEAST CONSUMED
BY THE RESPONDENT OR CONSUMERS THAT IS 1.60% AND
3.20%.

59
 Q8) WHAT DO YOU LIKE ABOUT ALCOHOL?

(A) TASTE GOOD

(B) IT HELPS TO OVERCOME DEPRESSION
(C) IT MAKES FEEL RELAXED AND GOOD

TABLE-3.1.8

OPTION NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
TASTE GOOD 08 12.7%

IT HELPS TO 04 6.3%
OVERCOME
DEPRESSION
IT MAKES FEEL 51 81%
RELAXED AND GOOD
TOTAL 63 100%

60
90.00%
80.00%
81%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00% 12.70%
6.30%
0.00%
TASTE GOOD IT HELPS TO OVERCOME IT MAKES FEEL RELAXED
DEPRESSION AND GOOD

PERCENTAGE OF RESPONDENT

FIGURE-3.1.8

INTERPRETATION:

IN THIS FIGURE WE CAN SIMPLY UNDERSTAND THAT ABOUT

81% RESPONDENT CHOOSE (IT MAKES THEM FEEL RELAXED
AND GOOD), WHEREAS 12.7% RESPONDENT CHOOSE (IT
TASTE GOOD) AND THE REST OF THE RESPONDENT 6.30%
CHOOSE (IT HELPS THEM TO OVERCOME DEPRESSION).

61
 Q9) WOULD YOU LIKE TO SWITCH OVER OTHER BRAND OF
ALCOHOL?
(A) YES
(B) NO
(C) SOMETIMES

TABLE-3.1.9

OPTION NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
YES 16 25.4%

NO 13 20.6%

SOMETIMES 34 54%

TOTAL 63 100%

62
 35 34
30
25
20 16
15 13
10
5
0
YES
NO
SOMETIMES

NO OF RESPONDENT

FIGURE-3.1.9

INTERPRETATION:

IN THE ABOVE FIGURE WE CAN SEE THAT THE OPTION

SOMETIMES IS BEEN CHOSEN BY THE MAXIMUM NO OF
RESPONDENT. IT MEANS THE TOTAL NO F RESPONDENT IS 63
OUT THAT 34 RESPONDENTS CHOOSE THE OPTION
SOMETIMES.WHERE AS OUT OF 63 RESPONDENT 16
RESPONDENT CHOOSE THE OPTION YES AND THE REST OF
THE RSPONDENT THAT IS 13 RESPONDENTS CHOOSE THE
OPTION NO.

63
 Q10) IF YES THEN WHY?

(A) PRICE
(B) TASTE
(C) QUALITY
(D) AVAILABILITY

FIGURE-3.1.10

REASON NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
PRICE 10 19.6%

TASTE 18 35.3%

QUALITY 15 29.4%

AVAILABILITY 08 15.7%

TOTAL 51 100%

64
 8
AVAILABILITY

15
QUALITY

18
TASTE

10
PRICE

0 2 4 6 8 10 12 14 16 18
NO OF RESPONDENT

FIGURE-3.1.10

INTERPRETATION:

IN THIS FIGURE WE CAN CONCLUDE THAT MAXIMUM (18)

RESPONDENT WANTS TO SWITCH OVER THE BRANDS
BECAUSE THEY WANT TO TASTE OTHER BRANDS OF
LIQUOR. APART FROM THAT (15) RESPONDENT CHOOSE THE
OPTION QUALITY FOR THE SWITCH OVER TO THE OTHER
BRANDS. (10) RESPONDENT CHOOSE THE OPTION PRICE FOR
THE SWITCH OVER TO THE OTHER BRANDS OF LIQUOR AND
(8) RESPONDENT CHOOSE THE OPTION AVAILABILITY.

65
 Q11) IF NO THEN WHY?

(A) PRICE
(B) QUALITY
(C) TASTE
(D) AVAILABILITY

FIGURE-3.1.11

REASONS NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
PRICE 13 22%
QUALITY 13 22%

TASTE 15 31%
AVAILABILITY 14 25%

TOTAL 55 100%

66
 14 13
PRICE

QUALITY

TASTE

13 AVAILABILITY
15

FIGURE-3.1.11

INTERPRETATION:

IN THE ABOVE FIGURE WE CAN SEE THAT 13 PEOPLE DO NOT

WANT TO SWITCH OVER BECAUSE OF THE PRICE, 13 PEOPLE
DO NOT WANT TO CHANGE THERE PARTICULAR BRAND
WHICH THEY NORMALLY CONSUME BECAUSE OF THE
QUALITY, 15 PEOPLE CHOOSE THE OPTION TASTE FOR NOT
TO SWITCH OVER THE BRAND AND THE REST OF THE
PEOPLE (14) CHOOSE AVAILABILITY.

67
 Q12) WHAT IMPROVEMENT DO YOU WANT IN YOUR BRAND
WHICH YOU USUALLY CONSUME?
(A) TASTE
(B) PRICE
(C) QUALITY

TABLE-3.1.12

OPTION NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
TASTE 24 38.1%

PRICE 23 36.5%

QUALITY 16 25.4%

TOTAL 63 100%

68
 45.00%

40.00%

35.00%

30.00%

25.00%

20.00%
38.10% 36.50%
15.00%
25.40%
10.00%

5.00%

0.00%
TASTE PRICE QUALITY
PERCENTAGE OF RESPONDENT

FIGURE-3.1.12

INTERPRETATION:

IN THE FIGURE-11 WE CAN SEE THAT 88.10% CONSUMER OR

RESPONDENT CHOOSE THE OPTION TASTE FOR THE
IMPROVEMENT WHICH THEY USUALLY CONSUME. 36.50%
CONSUMER CHOOSE THE CHOOSE THE OPTION PRICE IT
MEANS THEY WANTED THAT PRICE SHOULD BE REDUCED
SO THAT IT BECOME REASONABLE FOR THEM TO BUY. AND
ABOUT 25.40% CONSUMER WANTED THAT THE QUALITY
SHOULD BE BETTER FOR THE IMPROVEMENT OF THE
LIQUOR WHICH THEY USUALLY CONSUME.

69
 Q13) WHY DO YOU START CONSUMING LIQUOR?
(A) PEER PRESSURE
(B) CURIOSITY
(C) INFLUENCE OF AN ADULT
(D) BECAUSE YOU FELT LIKE IT

TABLE-3.1.13

REASONS NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
PEER PRESSURE 04 6.3%

CURIOSITY 24 38.2%

INFLUENCE OF 07 11.1%
AN ADULT
BECAUSE YOU 28 44.4%
FELT LIKE IT
TOTAL 63 100%

70
 45.00%
44.40%
40.00%
35.00% 38.20%

30.00%
25.00%
20.00% 11.10%
15.00% 6.30%
10.00%
5.00%
0.00%
PEER PRESSURE CUROSITY INFLUENCE OF AN BECAUSE YOU FELT
ADULT LIKE IT

PERCENTAGE OF RESPONDENT

FIGURE-3.1.13

INTERPRETATION:

IN THIS FIGURE-12 WE CAN SEE THAT MOST OF THE

RESPONDENT START CONSUMING ALCOHOL BECAUSE THEY
FELT LIKE IT (44.4%), 38.20% RESPONDENT START
CONSUMING LIQUOR BECAUSE OF THE CURIOSITY, 11.10%
RESPONDENT START CONSUMING ALCOHOL BECAUSE OF
THE INFLUENCE OF ADULT, AND ONLY 6.30% CHOOSE THE
OPTION PEER PRESSURE FOR THE CONSUMPTION OF
ALCOHOL.

71
 Q14) FACTORS AFFECTING BUYING BEHAVIOUR OF
ALCOHOL?

(A) PRICE
(B) TASTE
(C) QUALITY
(D) ADVERTISEMENT
(E) PACKAGING
(F) BRAND NAME

TABLE-3.1.14

FACTORS NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
PRICE 08 12.7%

TASTE 17 27%

QUALITY 19 30.2%

ADVERTISEMENT 10 15.9%

PACKAGING 01 1.6%

BRAND NAME 08 12.6%

TOTAL 63 100%

72
 PERCENTAGE OF RESPONDENT

27% 30.20%

12.70%
15.90%

12.60%

1.60%

FIGURE-3.1.14

INTERPRETATION:
IN THIS FIGURE WE CAN SEE THAT 30.20% CONSUMER
CHOOSE QUALITY AS A FACTOR OF AFFECTING BUYING
BEHAVIOUR OF LIQUOR, 27% RESPONDENT CHOOSE TASTE
AS A FACTOR OF AFFECTING BUYING BEHAVIOUR OF
LIQUOR, 15.90% CHOOSE ADVERTISEMENT, 12.60% CHOOSE
BRAND NAME AS A FACTOR AFFECTING BUYING
BEHAVIOUR OF ALCOHOL, 1.60% CHOOSE PACKAGING AND
LASTLY 12.70% CHOOSE PRICE AS A FACTOR AFFECTING
BUYING BEHAVIOUR OF ALCOHOL.

73
 Q15) YOUR BRAND IS SUPERIOR TO OTHER BRAND BECAUSE

(A) POPULARITY
(B) TASTE
(C) QUALITY
(D) PACKAGING
(E) PRICE
(F) BRAND NAME

FIGURE-3.1.15

REASON NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
POPULARITY 08 12.7%

TASTE 17 27%

QUALITY 19 30.2%

PACKAGING 10 15.8%

PRICE 01 1.6%

BRAND NAME 08 12.7%

TOTAL 63 100%

74
 NO OF RESPONDENT

BRAND NAME 8

PRICE 1

PACKAGING 10

QUALITY 19

TASTE 17

POPULARITY 8

FIGURE-3.1.15

INTERPRETATION:
FROM THE ABOVE FIGURE-14 WE CAN SEE THAT MAXIMUM
RESPONDENT (19) CHOOSE THE OPTION QUALITY, SECOND
MAXIMUM RESPONDENT (17) CHOOSE THE OPTION TASTE,
(10) RESPONDENT CHOOSE PACKAGING, (8) RESPONDENT
CHOOSE BRAND NAME, (1) CONSUMER CHOOSE THE OPTION
PRICE AND (8) CONSUMER CHOOSE THE OPTION
POPULARITY.

75
Q16) DO YOU EVER DRIVE AFTER DRINKING?

A) YES
B) NEVER
C) SOMETIMES

TABLE-3.1.16

OPTIONS NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
YES 06 9.5%

NEVER 52 82.5%

SOMETIMES 05 8%

TOTAL 63 100%

76
 9.50%
8%

YES

NEVER

MAYBE
82.50%

FIGURE-3.1.16

INTERPRETATION:
IN THIS FIGURE WE CAN CLEARLY SEE THAT 82.50%
CONSUMER OR RESPONDENT NEVER DRINK AND DRIVE,
9.50% CONSUMER OR RESPONDENT DRINK AND DRIVE AND
8% CONSUMER OR RESPONDENT MAYBE OR MAY NOT BE
DRINK AND DRIVE.

77
 Q17) IN THE LAST 3 WEEKS HOW MANY TIMES HAVE YOU
HAD DRINKS AT A SITTING?

(A) 0-1
(B) 1-3
(C) 3-5
(D) 5-7
(E) MORE THAN 7
(F) NONE OF THE ABOVE

TABLE-3.1.17

OPTION NO OF RESPONDENT PERCENTAGE OF

RESPONDENT
0-1 24 38.1%

1-3 04 6.3%

3-5 01 1.6%

5-7 00 00%

MORE THAN 7 02 3.2%

NONE OF THE 32 50.8%

ABOVE
TOTAL 63 100%

78
 60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
ZERO-ONE ONE-THREE THREE-FIVE FIVE-SEVEN MORE THAN 7 NONE OF THE
ABOVE
PRECENTAGE OFRESPONDENT

FIGURE-3.1.17

INTERPRETATION:

IN THIS FIGURE (NONE OF THE ABOVE) OPTION HAS BEEN

CHOOSE BY THE MOST OF THE RESPONDENT (50.8%). 38.1%
CHOOSE THE OPTION (ZERO-ONE), (6.3%) CHOOSE THE
OPTION (ONE-THREE), (1.6%) RESPONDENT CHOOSE THE
OPTION (THREE-FIVE), NONE OFT THE RESPONDENT CHOOSE
THE OPTION (FIVE-SEVEN), AND (3.2%) CHOOSE THE OPTION
MORE THAN SEVEN.

79
 3.2 FINDINGS

➢ From the survey it is found that most of the people are the consumer of

liquor/alcohol.
➢ It is mostly seen that maximum consumers prefer branded liquor/alcohol.

➢ It is mostly found that consumers consume liquor/alcohol just for casual

drinking.
➢ From the survey it is found that maximum consumer prefer beer.

➢ From the survey it is found that Budweiser is the favourite brand of beer among

the consumers.
➢ It is mostly found that consumers like alcohol/liquor because it makes feel

relaxed and good.

➢ From the survey most of the consumer like to switch over the brand sometimes

because of the taste.

➢ It is found that most of the consumers want an improvement in taste of their

brand which they usually consume.

➢ It is found that most of the consumer starts consuming alcohol/liquor because

they felt like it and also because of curiosity.

➢ From the survey it is mostly seen that quality and taste are the most important

factor affecting buying behaviour of alcohol/liquor.

➢ It is mostly found that quality and taste make the brand superior of an

individual consumer or respondent which they usually consume as compared to

other brands.
➢ It is found that maximum consumer/respondent don’t drive after consuming

alcohol/liquor.

80
➢ From the survey it is found that maximum respondent consumes alcohol/liquor

yearly.
➢ It is found that maximum respondent/consumers preferred place is party for

consuming alcohol/liquor.
➢ It is also found that few respondents don’t want to change or switch over the

brand because of taste and availability.

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 3.3 SWOT ANALYSIS
STRENGTH
1.RECESSION PROOF
INDUSTRY.
2.INDIA- AN ATTRACTIVE
MARKET FOR LIQUOR.
3.FAVOURABLE
DEMOGRAPHICS.
OPPORTUNITY
1. LOW PER CAPITA
CONSUMPTION OF LIQUOR IN
INDIA- ROOM FOR GROWTH.
2. RISING MIDDLE CLASS.
3. INCREASE IN DIPOSABLE
INCOME AND
DISCRETIONARY SPENDING.
82
WEAKNESS
1. MULTIPLICITY OF TAXES.
2. BAN ON ADVERTISING.
3. INTER-STATE TRANSFER
FEES ON MOLASSES.
4. LIMITED STOCK KEEPING
UNIT RESULT IN SLOWER
DISTRIBUTION EXPANSION.
THREAT
1. INCREASING COMPETITION.
2. INAPPROPRIATE AND DELAY
IN GOVERNMENT POLICIES.
3. RELIGIOUS INFLUENCE.
4. INCREASING RAW MATERIAL
COST.
 CHAPTER-4
4.1 CONCLUSION
While working on the project I understood that a customer is the king it
is very important for every industry, organisation etc to understand the
needs and wants of their customer and try to satisfy them. And secondly,
I also understood that packaging, brand name quality, price etc could be
treated as the most valuable tools in today’s marketing to satisfy the
customers need. Necessitating more detail analysis of its elements and
an impact of those elements on consumers buying behaviour.

According to my research I found out that most consumer or respondent

like the product(liquor) quality after they purchased their desired
packaged products (liquor). Based on those facts we cannot say that
there is a 100% equal relationship between good package and good
product quality, but there is a positive thinking and trend about well-
designed package shows high product quality. As a matter of fact,
people are becoming more and more demanding. Packaging, brand
name, quality etc has shown the important role in a way to serving
consumer by providing information and delivering functions. With its
different functionality to ease and to communicate with consumers, there
is no doubt about increasingly important role of packaging, brand name,
quality etc as a strategic tool to attract consumers’ attention and their
preparation on the product (liquor).

And from the survey part from this project we can see that
83
Beer: most preferred product

Budweiser: most preferred beer

Budweiser is the brand of beer which has gained popularity among all
the age groups belonging to different professional background and has
shown brand loyalty towards it.

84
 4.2RECOMMENDATION

The suggestions made in this section are based on the primary data as
well as from the secondary data and consumer behaviour study
conducted as a part of “consumer behaviour on liquor industry”. The
suggestions are arranged in order of priority.

1) Perform a detail demand survey at regular interval to know about

the unique needs and requirements of the consumer.
2) The companies should make hindrance free arrangements for its
customers to make any feedback or suggestions as An when they
feel
3) The companies should bring some more flavours in beer
4) The distribution of beer should increase
5) The companies should use new attractive system of word of mouth
advertisement.
6) The companies should be always in a position to receive
continuous feedback and suggestions from its customers as well as
from the market and try to solve it without any delay to establish
its own good credibility.
7) A strong watch should be kept on distributors so that goodwill of
the brand doesn’t get affected.

85
 4.3BIBLIOGRAPHY

1. Ahlström-Laakso, S. (2014). European drinking habits: a review of the research

and some suggestions for conceptual integration of findings. In M.W. Everett., J.O.
Waddell and D.B. Heath (eds.), Cross Cultural Approaches to the Study of
Alcohol: An Interdisciplinary Perspective. The Hague: Mouton.

2. Ahlström-Laakso, S. (2019). Finnish drinking habits: A review of research and

trends in acute effects of heavy drinking. In N. Krasner., J.S. Madden and R.J.
Walker (eds.), Alcohol Related Problems: Room for Manoeuvre. New York:
Plenum Press.

3. Aitken, P.P. and Jahoda, G. (2013). An observational study of young adults’

drinking groups: I. Drink preferences, demographic and structural variables as
predictors of alcohol consumption. Alcohol and Alcoholism., 18: 135-150.

4. Akers, R.L. and La Greca, A.J. (2017). Alcohol use among the elderly: Social
learning, community context and life events. In D.J. Pittman and H.R. White
(eds.), Society, Culture and Drinking Patterns Reexamined. New Brunswick, NJ.:
Rutgers Center of Alcohol Studies.

5. Akutsu, P.D., Sue, S., Zane, N.W.S. and Nakamura, C.Y. (2016). Ethnic
differences in alcohol consumption among Asians and Caucasians in the United
States: An investigation of cultural and physiological factors. Journal of Studies on
Alcohol, 50(3): 261-267.

6. Alvarez, F.J., et al. (2015). Alcohol consumption in young adults in the rural
communities of Spain. Alcohol and Alcoholism, 26 (1): 93-101.

86
7. Alvira, M.F. (2016). Changes in the consumption of alcoholic drinks in
Spain. Revista Española de Investigaciones Sociologicas, 34: 11-130.

8. Amsterdam Group, The. (2018). Response to the WHO European Regional

Office Comment on the Amsterdam Group Report "Alcoholic Beverages And
European Society". London: The Amsterdam Group.

9. Andreasson, S., Allebeck, P. and Romelsjo, A. (2018). Alcohol among young

men: A longitudinal study of Swedish conscripts. British Medical Journal, 296:
1021-1025.

10. Anusree Mitra and John G. Lynch, Jr.; ―Advertising Effects on Consumer
Welfare: Prices Paid and Liking for Brands Selected‖; Kluwer Academic
Publishers, Manufactured in the Netherlands; pp. 19-29; 2016. approaches (3rd
ed.)Thousand Oaks, CA: Sage Publications, Inc.approaches, and realities. Library
and Information Science Research, 30(4)

11. Atkin, C. (2007). Alcoholics beverage advertising: its content and impact. In
Control Issues in Alcohol Abuse Prevention: Strategies for States and
Communities, Advances in Substance Abuse, Suppl. 1, Greenwich, CN: JAI Press
Inc. 267-287. August , 281-292.

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ANNEXURE

5.QUESTIONNAIRE

Q1. HAVE YOU EVER CONSUMED ALCOHOL?

➢ YES
➢ NO
➢ SOMETIMES

Q2. REASON FOR ALCOHOL CONSUMPTION?

 SOCIALIZING
 WORK
 PRESSURE
 LEISURE
 CASUAL DRINKING
 OTHERS

Q3. FREQUENCY OF CONSUMPTION?

 DAILY
 WEEKLY
 MONTHLY
 OCCASIONALLY
 YEARLY
88
Q4. DO YOU USUALLY PREFER BRANDED ALCOHOL?

➢ YES
➢ NO
➢ SOMETIMES

Q5. PLACE USUALLY PREFER FOR ALCOHOL?

 HOME
 PARTY
 BAR CUM RESTAURANTS
 HOTELS
 OTHERS

Q6. TYPE OF ALCOHOL USUALLY CONSUMES?

 WHISKY
 VODKA
 BEER
 RUM
 GIN
 LOCAL ALCOHOL
 SCOTCH
 WINE

89
Q7. FAVOURITE BRAND?

 BUDWEISER
 JACK DANIELS
 MAGIC MOMENTS
 YELLOW TAIL
 JOHNNY WALKER GOLD LABEL RESERVE
 ABSOLUT VODKA
 TUBORG
 CORONA
 OTHERS

Q8. WHAT DO YOU LIKE ABOUT ALCOHOL?

 TASTE GOOD
 IT HELPS TO OVERCOME DEPRESSION
 IT MAKES FEEL RELAXED AND GOOD

Q9. WOULD YOU LIKE TO SWITCHOVER OTHER BRAND OF ALCOHOL?

➢ YES
➢ NO
➢ SOMETIMES

90
Q10. IF YES THEN WHY?

 PRICE
 TASTE
 QUALITY
 AVAILABILITY

Q11. IF NO THEN WHY?

 PRICE
 QUALITY
 TASTE
 AVAILABILITY

Q12. WHAT IMPROVEMENT DO YOU WANT IN YOUR BRAND WHICH

YOU USUALLY CONSUME?

➢ TASTE
➢ PRICE
➢ QUALITY

Q13. WHY DO YOU START CONSUMING ALCOHOL?

 PEER PRESSURE
 CURIOSITY
 INFLUENCE OF AN ADULT
 BECAUSE YOU FELT LIKE IT
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Q14. FACTORS AFFECTING BUYING BEHAVIOUR OF ALCOHOL?

 PRICE
 TASTE
 QUALITY
 ADVERTISEMENT
 PACKAGING
 BRAND NAME

Q15. YOUR BRAND IS SUPERIOR TO OTHER BRAND BECAUSE

POPULARITY

 TASTE
 QUALITY
 PACKAGING
 PRICE

Q16. DO YOU EVER DRIVE AFTER DRINKING?

➢ YES
➢ NEVER
➢ SOMETIMES
➢ SOMETIMES

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Q17. IN THE LAST 3 WEEKS HOW MANY TIMES HAVE YOU HAD
DRINKS AT A SITTING?

 0-1
 1-3
 3-5
 5-7
 MORE THAN SEVEN
 NONE OF THE ABOVE

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