consumer behaviour towards consumption pattern of beer...

CONSUMER BEHAVIOUR

The liberalization and global operation of businesses have given an

opportunity to the customers/ consumers to select one out of various

similar products available in the market. The global trend in the market has

affected the consumer's behavior to a great extent, whether it is a case of

seller operating in international, regional, local level or a case of

consumers involved in purchasing consumable/ industrial products. Due to

globalization of business and liberalized policies of the government the

auto industry has witnessed a major selling prospect. Many multinational

companies have entered to fray, turning the market place into a virtual

battlefield. Today consumers have many options and are much better

equipped with information to choose from these available options. The

consumer now exhibits a totally different behavior what they used to do in

a regulated market.

The existence of any business is due to unfulfilled needs and

wants of the consumer. To fulfill needs of consumer, products/services are

introduced in the market by business organization. So, a thorough

knowledge of consumers and understanding of their behavior is must for a

meaningful existence of any organization.

Consumer behavior can be defined as “the decision process and

physical activity engaged in when evaluating, acquiring, using or

disposing of goods and services.”1An understanding of consumer behavior

is of critical importance to all person engaged in any form of marketing

activity. This understanding enables the marketers to find behavior of

consumers, to influence their behaviors and to manipulate the influencing

variables to gain advantage.

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The growth in the size of companies and markets has given birth

to the marketing research and consumer behavior that has become one of

the focal points of marketing. This is being researched very widely. The

products are designed to fit into consumers' perception. The products are

distributed as per the consumers' convenience and advertised to

communicate consumers and ultimately influence their behavior in favor

of its offers. Since the stakes in the business are very high, competition is

too stiff and failure of the business is too risky. Therefore, it is desirable to

assess the consumers’ behavior and their preferences in order to remain

competitive in the market.

The consumer’s buying patterns, according to researchers, is an

area for in-depth study for suggesting different useful marketing strategies.

In the present era, the information technology is growing at very fast rate.

This has created tremendous competition in the market. The enhanced

importance of consumers' behavior, in the recent development of

information system, has provoked an interest in examining the

buying/subscribing pattern of two-wheelers by consumers.

Consumer Behavior in the Present Perspective

The knowledge of consumer behavior is a fairly important aspect,

both from the viewpoint of the academician’s theoretical interest and the

practical applicability that it has for the marketing practitioners. In the

modern concept of marketing, the only rationale for the firm's existence is

believed to be the consumer's satisfaction that it provides. The importance

of consumer behavior was well recognized by the social and management

scientist. The father of our nation, Mahatma Gandhi recognized the

importance of the customers. He said, “A customer is the most important

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visitor on our premises. He is not dependent on us. We are dependent on

him. He is not an interruption in our work. He is the purpose of it. He is

not an outsider on our business. He is a part of it. We are not doing him a

favor by serving him. He is doing a favor by giving us an opportunity to

do so.”2 Therefore, it is of vital importance that the knowledge of "what

makes the consumer to think" and what consequently would contribute to

his satisfaction, is at the disposal of marketer.

The fast changing business environment has provided many

inputs (in terms of both the product package and emotional images built

into them) that influences buyers' behavior and keeps consumer

preferences in a constant state of flux. The information revolution and

intensifying competition places a large amount of solicited information at

the consumer's disposal before buying a product. The informational inputs,

advocating the merits of each branded goods influence the buyers decision

to a great extent. There are various other factors that influence the

consumer behavior may also be the topics of interest from the marketer

point of view.

Model of Consumer Behaviou r

In earlier times, marketers could understand consumers well

through the daily experience of selling to them. But as firms and marketers

have grown in size, many marketing decision makers lost direct contact

with their customers and now have turned to consumer research.

The market stimuli consists of the four Ps, product, price, place and

promotion . Other stimuli include major forces and events in the buyers

environment such as economic, technological, political and cultural. All

these stimuli enter the buyer's black box, where they are turned into a set

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of observable buyer responses such as product choice, brand choice, dealer

choice, purchase timing and purchase amount.

Factors Influencing Consumer Behaviour

Consumer behavior is affected by a host of variables, ranging

from personal motivation, needs, attributes and values, personality

characteristics, socio-economics and cultural background, age, sex,

professional status to social influences of various kind exerted by family,

friends, colleagues and society as a whole. The combination of these

various factors produced a different impact on each one of us as

manifested our different behavior as consumer.

Psychological factors such as individual consumer needs and motivations, perceptions, attitudes, the learning processes and personality characteristics are the similarities, which operate across different types of people and influence their behavior. Amongst the social influences affecting behavior, we can classify the influence of family, friends, leaders and the social clause to which the consumer belongs

Factors Influencing Consumer Behavior

Cultural Factors: Cultural factors exert the broadest and deepest

influence on consumer behavior. The marketer needs to understand the

role played by the buyers' culture, sub culture and social class.

(a) Culture: It is the most basic cause of person's wants and behavior.

Human behavior is largely learned. Growing up in a society, a child learns

basic value, perceptions, wants and behavior from the family and other

important institutions.

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(b) Sub-Culture: Each culture contains smaller sub-cultures or groups of

people with shared value systems based on common life experiences and

situations. Sub-cultures include nationalities, religions, racial groups, and

demographic regions. Many sub-cultures make up important market

segments, and marketers often design products and marketing programs

clubbed to their needs. These factors will effect the consumer’s food

preferences, clothing choices, recreation activities and career goals.

(c) Social Class: Social classes are the society's relative permanent and

ordered divisions whose members share similar value, interests and

behaviors. Social class is not determined by a single factor such as income,

but is measured as a combination of occupation, income, education, wealth

and other variables. Social class shows distinct product and brand

preferences in areas such as clothing, home furnishings, leisure activities

and automobiles.

Social Factors: Consumer's behavior is also influenced by social factors

such as consumer’s small groups, family and social roles and status.

Keeping these factors in to consideration, the marketers and companies

should design the market strategies for better response from consumers.

(a) Reference Groups: A person's behavior is influenced many small

groups. The primary groups are such as family, friends, neighbors and co-

workers. Secondary groups are such as, religious groups, professional

associations and trade unions. The reference groups are the groups that

serve as direct or indirect points of comparison or reference in forming a

person's attitude or behavior. People often are influenced by reference

groups that they do not belong to.

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(b) Family: Family members can strongly influence buyer behaviour. We

can distinguish between two families in the buyer's life. The buyer's

parents make up the family of orientation. Parents provide a person with

an orientation towards religion, politics and economics and a sense of

personal ambition, self worth and love.

“The family of procreation”- The buyer's “spouse and children”

have a more direct influence on every day buying behavior. This family is

the most important consumer buying organization in the society, and it has

been researched extensively. Marketers are interested in the roles and

relatives influence of the spouse, and children on the purchase of large of

variety of products and services.

(c) Role and status: The person's position in each group (such as family,

clubs and organization) can be defined in terms of both “role” and

“status”. A role consist of the activities that people are expected to

perform according to the persons around them. Each role carries a status,

which reflects the general esteem given to it by society. People often

choose products that show their status in the society.

1.5.3. Personal Factors: The buying decision of consumer/ buyer is also

influenced by personal characteristics such as buyer's age and life-cycle

stage, occupation, economic situation, life style and personality and self

concept.

(a) Age and Life-Cycle stage: The consumers change the goods and

services they buy over their life times. Tastes in food, clothes, furniture

and recreations are often age related. Buying is also shaped by the stage of

the family life cycle. Marketers should pay attention to the changing

buying interests that might be associated with these adult passages.

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(b) Occupation: A person's occupation affects the goods and services

bought. Blue-collar workers tend to buy more work clothes, whereas

white-collar workers buy more suits and ties. Marketers try to identify the

occupational groups that have an above average interest in their products

and services.

(c) Economic Condition: The economic condition of buyer normally

affects the product choice and buying decision. Marketers of income

sensitive goods closely watch trends in personal income, savings and

interest rates. If economic indicators point to a recession, marketers can

take steps to redesign, reposition and reprise their products.

(d) Life Style: As the time changes, the life style of the people also

changes. Life style is a person's pattern of living as expressed in his or her

activities, interests and opinions. Life style captures something more than

the person's social class or personality. It profiles a person's whole pattern

of acting and interacting in the world.

1.5.3 (e) Personality and Self Concept: Everyone has a distinct

personality and it influences his or her buying decision. Personality refers

to the unit psychological characteristics that lead to relative consistent and

lasting responses to one's own environment. Personality can be useful in

analyzing consumer behavior for certain product or brand choices.

A person's self-concept also influences the buying decision. In order

to understand consumer behavior, the marketers must first understand the

relationship between consumer self-concept and possessions. Then, the

buying decision can be made oriented towards the particular product.

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Psychological Factors: The buying decision and behavior of consumer for

a particular product is also influenced by four major psychological factors.

These are motivation, perception, learning and beliefs and attitudes. The

same are explained in the following headings:

(a) Motivation: “The motivation is an inner state that mobilizes bodily

energy and directs it in selective fashion towards goals usually located in

the external environment.”4 A person has many needs at a given time.

Some are "biological" arising from states of tension such as hunger, thirst

or discomfort. Others are “psychological” arising from the need for

recognition, esteem or belonging. Marketers do their best to motivate the

buyers and attract them for a particular product. Thus, the motivation helps

in influencing the buying decision of buyer to a great extent.

(b) Perception: It is the process by which people select, organize and

interpret information to form a meaningful picture of the world.

Motivation makes the persons ready to buy the item, and perception makes

the person mentally ready for selecting a particular brand of item.

Marketing managers make efforts, so that the buyers get confirmed to buy

that item or services.

(c) Learning: Learning describes changes in individual's behavior arising

from experience. Learning occurs through the interplay of drives, stimuli,

cues, responses, and reinforcement. The practical significance of learning

theory for marketers is that they can build up demand for a product by

associating it with strong drives using motivating cues and providing

positive reinforcement.

(d) Beliefs and Attitudes: Through doing and learning, people acquire

their beliefs and attitudes. These in turn, influence the buying behavior of

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consumers. A “belief” is a descriptive thought that a person has about

something. An “attitude” describes a person's relatively consistent

evaluations, feelings, and tendencies towards an idea or object.

The marketers are interested in the beliefs that people formulate

about specific products and services, because these beliefs make up

product and brand images that affect buying behavior.

1.6 Consumers’ Decision

In the present context, the consumers get many information at hand

due to the information revolution. Media (electronic and print), TV, Radio

and satellite communication have made easy to consumers to choose the

best products available in the market for their use. The marketers have to

play a key role in attracting the potential buyers in favor of their products.

The buying decision varies as per the information available with the

consumer before buying a particular product. Information available

through Internet with the help of cable TV has created a new dimension in

making decision before the buying any product. Thus, the decision of

buyers depends a lot on the information available with the buyers.

Making a decision to buy any item is a rationale and conscious

process in which the consumer evaluates each of the available alternatives

to select the best among them. Each decision, one makes, involves an

elaborate mental exercise and a degree of active reasoning, though on the

surface, it may not always seems to be so.

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Stages in the Buyers’ Decision Process

In making a purchase decision, a consumer normally goes through

the following five stages:

(a) Problem Recognition: The buying process starts with the buyer

recognizing the need or problem. This need occurs for replacing an old

item with new one because of its poor performance, perishable stage or not

able to fulfill the requirement. It may happen for household items, official

use items, industrial or agricultural implements. Thus, the marketers must

understand how and when consumers make choices and they can facilitate

those types of products available in the market.

(b) Pre-Purchase Information Search: This is of two types:

(I) Internal Search: It refers to recalling relevant information stored

in the memory.

(ii) External Search: It refers to the deliberate and voluntary seeking of

new information regarding the product/brand under consideration.

Evaluation of Alternatives: The buyer's final decision for purchasing

depends on product attribute, the relative importance of each attribute to

the consumer, brand image, attitudes towards the different brands or

alternatives under consideration. This stage of the buying decision process

gives the marketer a relative importance attached to each attribute by

various consumer segments, altering beliefs and attitudes about his own

brand, and calling attention to neglect product attributes.

(a)Purchase Decision: After calculating everything, buyer takes

decision to buy that item. At the last stage also, the buyer's decision

can be influenced by giving some special price discount and attract

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the buyer towards the product. In this, marketer plays a very crucial

role.

(e) Post Purchase Decision: After purchasing the item, the buyer

finds that the performance and utility matches up to his expectation.

The satisfaction will reinforce the buyer's perceived favourable

image of the brand, which is likely to be extended to the entire range

of products manufactured by the company. A satisfied customer is,

thus, a very powerful source of influence for potential customers.

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The self explanatory block diagram about the aforesaid discussion follows: 5

Problem Recognition

Information Search

Evaluation of Alternative

Purchase Decision

Post purchase behavior Stages in Buyer’s Decision Process Thus, one can now appreciate the many individual

characteristics and factors affecting on consumer behavior. The

information technology which has attained new dimensions in the recent

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past has sufficiently influenced the consumer's behavior especially in the

field of brand selection and buying patterns. The markets some times face

difficulties for motivating and influencing the buyer's decision in favor of

a particular product.

The consumer's choice results from the complex interplay of

culture, social, personal and psychological factors. Although, many of

these factors cannot be influenced by the marketer, they can be useful in

identifying interested buyers and in shaping products and appeals to better

serve their needs.

Organizational buying Vs. Consumer buying

Marketing theory traditionally splits analysis of buyer or customer behavior into two broad groups for analysis –Consumer Buyers and Organizational Buyers. Consumer buyers are those who purchase items for their personal consumption.Organizational buyers are those who purchase items on behalf of their business or organization.In contrast to consumers, organizational buyers represent those “buying goods and services on behalf of an organization for the purpose of the furtherance of organizational objectives” (Lancaster, 1999). Before highlighting some of the differences between the two, however, it is important to caution against over stressing the differences. For instance, you may come across some authors who argue that buying goods on behalf of one’s employers makes buyers more caution and rational than when purchasing consumer goods privately. Come of the features of organizational buying which is different from the consumer buying can be summarized as :

Setting for Buying: For consumers, the buying unit is within the household, whereas for the organizational buyer, the setting is within the firm. This means as an industrial marketer targeting the organizational

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buyer, one must take account of factors such as buying procedures, levels of authority, and so on, factors not relevant in consumer marketing.

Technical/Commercial Knowledge: You will see that usually, the organizational purchaser will be a trained professional, more knowledgeable than the average consumer purchaser. This can often necessitate a completely different sales approach.

Contact with Buyers/Distribution Channels: You will find that organizational markets are usually more geographically concentrated than consumer markets. Factors such as proximity to available labor, raw materials, and transportation facilities often dictate an industry’s location. In addition, compared to consumer markets, there can be far fewer potential customers. Taken together, these variables mean that you, as an industrial marketer must normally maintain far more direct and personal contact with his or her potential clients.

Number of Decision-Makers: Normally in consumer purchasing, the number of people involved in the decision making process can be very small; i.e. an individual, a couple, a family, etc. In organizational buying, however, a great many people can be involved in the purchasing process. This can mean differences in both the number of people marketing communications must attempt to convince and that quite different decisions might emerge as a result of group dynamics than might initially be anticipated on the basis of individual discussions.Derived Demand: Organizational buyers often continually adjust their buying decisions on the basis of projected sales figures, buying more units when forecast sales are higher. The result can be a sort of “pendulum effect”, with a knock-on effect throughout the buying chain as each chain member adjusts it’s buying patterns accordingly.

Reciprocal Demand: Sometimes, a buyer can also be a seller at the same time. A software company producing a package for an insurance company, for instance, might also purchases its insurance services from what is effectively one of its own customers. Both companies want to sell to each other, affecting each other’s eventual buying decisions to a varying degree. As we can see, there are subtle differences between consumer and organizational forms of buying.

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Differences in Organizational Transactions

• Buying specialists are often used. It is usually seen that organizations often employ people who are professional purchasing agents. Just as sales agents are professional specialists at finding organizations that need the products that their employer produces, purchasing agents are specialists are professional specialists at finding what their employer needs. Whatever stereotypes you might have from experiences with salespeople in consumer sales, any negative stereotypes of salesperson behavior probably would not be appropriate in dealing with professional buyers.

• Often use multiple buying responsibilities. A household purchaser is often the sole decision maker. Making a sale toan organization, however, often requires selling to several entities within the buying center. For example, you might be using a desktop computer at work, but the decision as to what specifications were needed might have been set by someone in the computer department, the decision to buy might have been made by your department manager, bids taken by someone in the purchasing department, and the final authorization made by the company president.

• Often use multiple suppliers. It is often desirable to have a long-term relationship with more than one supplier, even if a second supplier has higher prices for otherwise similar terms and conditions. If problems in quality or delivery are experienced with a supplier, production can still be maintained if the second supplier can be used to replace the first. The ideals of a cozy, trusting relationship that has been promised with strategic alliances in the popular business literature does not always work if it leaves one party vulnerable as a sole supplier or buyer.

• More likely to require exact specifications. A household purchaser might select a particular model of desktop computer for no other reason than it has a pleasing color. An organizational purchaser is more likely to set specifications regarding processor speed, memory, hard drive size, and such before taking bids on price.

• Often lease equipment and space. As a household consumer, you would probably prefer to own your own car, furniture, and home. These are things that represent personal expression, status, and wealth. Your objectives as a business manager, however, are very different. You might

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prefer to lease public warehouse space to provide the flexibility to change locations when the market demands, to lease trucks so that you can leave the problems of maintenance and disposition to someone else, etc.

• More frequently employ competitive bidding and negotiation. Household consumers (especially those of us in urban settings) are more likely to accept as final a price that is placed on a product in a retail setting or to accept a price that is given to us by a service provider. As a business manager, your employer is more likely to require that you accept, say, three bids for a service or to negotiate various terms and conditions associated with product specifications, delivery, and price.

Users: If you are a secretary, you might have had the experience of arriving to work one day to find a new typewriter on your desk, whether or not you even wanted it. A salesperson would not call on you if you had no influence over what product was purchased. However, if you and your co-workers submit numerous complaints about missing or problematic features of the new replacements, the salesperson might be faced with a very expensive customer service problem to solve. A user is the end consumer of a product.

• Influencers: Perhaps in this case, the office manager was consulted with regard to features or specifications to set in the purchase of new typewriters. Although the office manager might have no decision-making authority with regard to the purchase, whatever specifications s/he requests could be used without change in making the purchase. A salesperson might need to be aware of these influencers - a special trick is to get the influencer to write a specification list that happens to match the seller’s product features! An influencer is someone who has influence over what is purchased.

• Deciders: In this case, some middle manager, ignorant of the needs of secretaries, might have made the decision as to when and what to purchase. The point of this statement is that the marketer or seller must be aware of how it is that decisions are made and often must focus some or all efforts at whomever it is that makes decisions in the organization. Note, however, that decision-making authority does not necessarily mean that this person exerts any influence on what is purchased. The company president might be the only person who signs all purchase requisitions, and therefore has ultimate decision authority, but might otherwise merely

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sign some requisitions without question or involvement. A decider is someone who ultimately has authority if or what to purchase.

• Buyers: The final purchase transaction might be left to a purchasing agent who otherwise has no involvement in decision-making. A sales agent for an office equipment supply house might help an organization to decide what brand of typewriters would be best, but that organization could then allow the purchasing agent to find the best deal on that brand, and the best deal with regard to price might come from a competing office supply house. A responsibility of salespeople, then, is often to maintain good, trusting, and long-term relationships with the purchasing agents in prospective buying organizations, whether or not they have purchased in the past. A buyer is someone who arranges thetransaction.

• Gatekeepers: Why do salespeople often give secretaries little gifts of chocolates or flowers or an occasional free lunch? A secretary can be nice or nasty in passing information in either direction. The prospective buyer’s secretaries can be helpful in providing names, telephone numbers, and office hours of key members of a buying center in an organization. They can also be helpful in passing messages from the salesperson to members of the organization. A gatekeeper could include anyone in the organization who can control the flow of information. Some books use the term Decision Making Unit to describe the notion of the buying center, and some additionally include the entity of initiator. An initiator would be a person who initiates the idea or a purchase. Note that the idea of the Buying Center is conceptual - there is no such department in any organization!

Application of Consumer Behavior: The consumer behavior has a

number of applications in the following areas of marketing:

Analyzing market opportunity: Study of consumer behavior helps in

identifying needs and wants which are unfulfilled. This is done by

examining trends in income, consumer’s life styles and emerging

influences. As I have taken case study of buying pattern of beers by the

consumers of Lucknow city so by studying trends in income, consumers’

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life style, their preferences, and other related issues will give opportunity

for marketers for assessing the demand for the two-wheelers.

Selecting the Target Market: The study of consumer trends would reveal

distinct group of consumer with very distinct need and wants. Knowing

who these groups are, how they behave, how they decide to buy, enable

the marketer to market product/services specially suited to their needs. By

studying consumer behavior, the marketer can plan and can segment the

prospects in a effective manner. He would position his in that locality in

which people can afford to pay easily.

Determining the Product Mix: Today most of the companies

manufacturing the two-wheelers produces the variety of brands in order to

meet the diverse need of the consumers. The knowledge of consumer is

most useful in determining the product mix and place the product in a

better and effective way.

Determining the Price of the Product: the decision related to price is a

critical factor for the management. To decide price, the manufacturer has

to choose that price level which maximises sales revenue. In a free market

economy where there is a tough competition in the market, manufacturer

try to gain competitive edge through setting different price policy.

Actually only thorough knowledge of consumer behaviour in actual

buying situation that marketer can hope to find answer to these issues.

Determining the Promotional Strategies: Marketer can plan promotional

strategies by knowing target consumer, their location, media to which they

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have access, their preferred media and role played by advertising in

influencing purchase decision.

Marketing Research is a vehicle through we can obtain information about

present and potential customer’s behavior, their reaction and prospective

about marketing. Learning more about the consumer and marketing is the

heart of marketing research. The objective of this study is to know about the

consumer’s perception & preference towards Beer of MML.

‘Beer’ it self has a niche in the market. A certain age group people use to

drink for the shake of just showing which some people take it just as a

substitute to whisky and do not Jan as that of whisky. The Beer industry is

developing with speed of app. 15%. The Mohan Meakin enjoys a good

position in the Beer Market by launching Meakin 10000 The coming up of

Multinational in the filed has made it tough for the company to capture the

same market share as it was enjoying few decades ago. Since thirty years

put now seeing the current requirements the company decided to change its

old pattern and planned to walk with the Traits. This study contains the

about the reaction of consumers towards the Beer. The target consumers are

there figured and the area for research is also sound and through it.

Through the proper & throughout research of the company & its

external environment the SWOT, Conclusion and Recommendation are

concluded with proper marketing strategies. This research study is

taken in NCR area.

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This research training helped me in getting more practical and enhanced my

awareness level of consumer oriented towards buying a product of liquor of

“Mohan Meakin Ltd.”.

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Chapter 2

COMPANY PROFILE Review of previous literature

COMPANY PROFILE

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An Englishman named Edward Dyer from the UK who set up the first-ever

brewery in 1855 at Kasauli, India and brought to “Hindootan” the first thrills

of Modern beer. Riding on the ware of his successful venture, Dyer set up

breweries in the old Simla and Solan(U.P), Lucknow and Mandalay(Burma).

During this time another like minded Englishman H.G. Meaking, who haild

from a brewer’s family in Burton-on-treat, decided to set up shop on the sub-

continent and therafter founded the firm Meakins & co. He purchased the

old Simla and Kasalui breweries and constructed others at Dalhosie,

Ranikhet, Chakrata, Darjeeling and kirkee.

Both these firms E.Dyer & co. and Meakins & co. continued separate

business dealing up till the 1920’s. During World War I, when importing

beer was a hard risk, the two firms supplied cheap, but good quality beer to

the thirsty subcontinent. Huge quantities were sent overseas, like the Egypt,

where soldiers more than welcomed reasonably priced beer.

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After the first World War in 1953 the two were firms merged and formed

Dyer Meakin Co. The name and style recharged after reconstruction of the

Co. with the Indian asserts named Dyer Meakin Breweries Ltd.

As if being fashioned by history, the company once again went through

landmark change when two years after Indian Independence in 1949, the

management was taken over by the last N.N. Mohan. The company asserts

and profits register a manifold increase under a dynamic stewardship of N.N.

Mohan to mark the contribution of Mohan the company name changed from

Dyer and the name was Mohan Meakin Breweries Ltd. In 1967.

In 1969 Mr. N.N. Mohan passed away & reins of the bursting conglomerate

feel into the hands of both his sons, Col. V.R. Mohan and Brig. Kapil

Mohan, and under his stewardship the Company saw vast growth. Assisted

by their father’s vision they laid the foundation for the Mohan Nagar

industrial complex (Near Delhi on G.T. Road) which began production in

1962 and comprised of production activities such as a distillery, brewery,

cold storage Unit, ice factory, malt extract Unit, food products Unit,

breakfast food Unit and glass works etc.

The first brewery is established for the purposed to simply quality spirit to

the drinking people at kasuali. They found good quality of water of natural

spring at koral peak above the village known as solan therefore, the beer

making was shifed from kausli to solan that is company conducted survey.

During the probation years in the seventies the company acquired a number

of units which were on the average of collapse. Some of the more notable

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ones were Artos Brewery in Andhra Pradesh, Mysore, Fruit Products

Limited in Bangalore and Nagaland Distillery in Nagaland. These Units

were made highly productive within a short span of time. The cultivation of

‘hops’ an important ingredient in beer manufacture, was for the first time in

India, undertaken by the Company in Jammu & Kasmir. In keeping with the

times, Mohan Meakins also entered the international market in a big way

and began export of beverage to countries such as the U.S.A. U.K., Japan &

the nation of Western Europe and the Middle East.

The company also began export of manpower and technical know how

overseas especially where collaboration existed. A distillery and glass

factory was set up the Meakins personal at Nairobi, Kenya, and breweries

were set up in Nepal and Bhutan.

Apart from liquor, the other Meakin products which began to view for

good quality profile were Mineral water, Cornflakes, Mango Nectar and

Apple juice. Brig. Mohan was also instrumental in promoting a new

venture called SIDECO Mohan Tool Kerla Ltd. Which was a Meakin’s

project in collaboration with the Kerla State Industry & Employment

Corporatrs. A bottling plant at Bhankarpur(near Chandigarh)and

Collaboration with South Indian parties for sale of IMFL Brands were

among other steps company took in ordet to consolidate its market

position. It was this transformative inclination that lead the Company

to rename itself in 1980 as Mohan Meakin Litmited.

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Production of beer by Indian Breweries is 75 million cases(12 bottles of 750

ml) or 47 millions, & 15% to 17% beer market cover by Mohan Meakin Ltd.

A few last words on Mohan Nagar, virtually a township equipped with its

own hospital, schools staff quarters. Most officers working with Mohan

Meaking have seen at least twenty years of Service and these are surely

many morts to come. They sear loyalty to the company & its head and point

to the fact that cordial relations between the entire working staff, numbering

5,000 are the backbone of Meakins stability.

PARENT UNITOF

MOHAN MEAKIN LIMITED

The registered office of Mohan Meakin Limited is situated at solan in H.P. and its manufacturing and bottling centers are located at:

Solan H.P. : Distillery, Brewery and Bottling

Kasauli H.P. : Distillery

Lucknow U.P. : Distillery, Brewery, Glass Unit

Mohan Nagar U.p. : Distillery, Brewery, Glass Unit, Bottling & Fruit juice Unit

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SISTER CONCERNS COMPANIES

A. IN INDIA

1) Mohan cold water Brewery Ltd. Lucknow.

2) Mohan Rocky Spring Water Breweries Ltd. Maharashtra.

3) Mount Shivalik Breweries Ltd. Punjab.

4) Astob Breweries Ltd. A.P.

5) Nagaland Distilleries Ltd. A.P.

6) Mohan Breweries & Distilleries Ltd. Madras.

7) Shivalik Kenima Pvt. Ltd. Gwalior.

8) Golden Drink Pvt. Ltd. Gwalior.

9) Sidco Mohan Kerla Ltd. Kerla

10) Mohan Chemicals & Dyers Ltd. Kerla.

11) Mysore Fruit Product Ltd. Mysore.

12) Mohan Sharmik Udyog Ltd.

13) Mohan Zupack Ltd.

14) Maharashtra Distilleries Nagpur.

27

B. OUT SIDE INDIA

The Mohan Meakin Ltd. Has provided technological know how

machinery and trained personal to set up projects as follows:

1) The company has helpers to set up distillery under the Arug Welfare

project in Bhutan.

2) The company has established a Brewery in collaboration with

Himalayan Breweries Ltd. At Katmandu (NEPAL).

3) In Kenya Mohan Meakins (KENYA) Ltd. have a distillery and a Glass factory.

28

COMPETITION

Today’s world is the world of Competition. In every field there is

competition, the success of any company or product is also largely

depends upon competition. At present scenario customer became aware

about the market, he has full knowledge of the market.

Competition provides a good quality of product to the customers. If a

company wants to survive itself he will have to face through-cut

competition. In liquor industry there is also competition. The increasing

awareness and exposure to wines among consumers and the removal of

quantitative restrictions in 2001 has been a big boost to the wine industry. It

saw the emergence of new companies like Future Wine and Spirit Brand (P)

Ltd (FWSB), set up recently by two non-resident Indians (NRIs) from USA.

The consumption of liquor is growing at 20 per cent per annum. ‘Beer’ consumption in the country is slated to treble in the next ten years with the

segment for strong beer segment registering high growth. It boasts of a

growth of 25 per cent per year. The increasing awareness and exposure to

wines among consumers and the removal of quantitative restrictions in 2001

has been a big boost to the wine industry.

The major Competitors of Mohan Meakin Ltd. Products are below: -

29

United Breweries:

In 1898, UB Group was established with the name of McDowell’s. The

company is going to continues to be India’s no. 1 spirits company. The

market share of the company is 36% in the spirits industry with growing.

1) Shaw Wallence:

In 1886 Shaw Wallence is established in Calcutta. SWC is one of the

leading spirits and Beer Company in the country with brands like Royal

Challenge, Director’s Special and Hawards 5000. The market

share of the company is 15% in the spirits industry.

2) Jagajit Industry:

Jagatjit Industries is owned and managed by Bhai Mohan Singh. It has one

of the largest distilleries in the country located at Kapurthala in Punjab. The

company's main market is in the Northern part of the country. Aristocrat and

Bonnie Scot are its two leading brands. The company also manufactures and

markets malted food drinks. Besides the Kapurthala plant, the company has

3 other plants in UP located at Noida, Sahidabad and Sikandarabad. The

company has a 9% market share in the Indian liquor market.

30

There are other such company which are in Keeping in view the day to day

increasing competition in the field & to meet the demand of the customer’s

more efficiently and effectively, the company has used easy and simply

way of distribution channel to reach the product directly to the customer.

PRODUCT PROFILE

1) BEER

Meakins 10000Golden EagleGolden Eagle Deluxe PremiumBlack knight Super StrongSolan No.1 Extra StrongSolan No. 1 Super StrongGymKhanaGolden Eagle Herbal BeerAsia 72 Mild BeerLion Beer

2) WHISHKY

Solan No. 1 Malt WhiskySummer HallColonel’s Special Malt WhiskyGolden EagleDiplomat Deluxe Malt WhiskyBlack Knight Malt WhiskyKing CastleCellar 117M.M.B. WhiskyOld Master

31

3) RUMS

Old Monk SupremeOld Monk Gold ReserveOld Monk White RumBlack BeautyOld Monk XXX Rum

4) BRANDIES

Triple CrownGolden EagleDoctor’s Reserve No.1DMM.M.B.

5) GINS

Big Ben LondonM.M.B.

6) JUICE

Mohan’s Gold Coin Apple JuiceGold Reserve Mixed Fruit Juice

7) Vodka

Kaplansky Vodka

8) MINERAL WATER

Golden Eagle Mineral WaterMohan’s Mineral Water

32

9) BREAKFAST FOODS

Mohan’s New Life Corn FlakesMohan’s Wheat Porridge

10) VINEGARS

Mohan’s Pure Malt VinegarMohan’s Synthetic Vinegar

11) EXTRACTS

Brewer’s Yeast Malt’s Extract

12) OTHER FOOD

PickleJam & Jelly

13) EXPORT PRODUCTS

BeersRumsWhiskyBrandyGin

33

THE LIQUOR INDUSTRY IN INDIA

Despite step-motherly treatment from the government by way of exorbitant

taxes and negative policy decisions, the liquor industry has managed to stay

afloat and is on the verge of tremendous growth. Achal Dhruva does an in-

depth analysis...

The Indian brewing industry has been on a roll for the past many years,

despite bans by some state governments and an unfavorable policy

environment. Despite declining trends worldwide, the Rs 5,000 crore Indian

liquor industry has been growing rapidly and multinational companies with

unremitting regularity innundate the Indian market with new brands. This

trend has been fostered to a great extent by the removal of quantitative

restrictions.

34

The overall growth of the liquor industry has been reflected by the findings

of International Wine and Spirit Records (IWSR), an UK-based research

organization, which states that India took over US as the largest whisky

consumer two years ago and the consumption is growing at 20 per cent per

annum. IWSR also places India in third position worldwide in the spirits

segment. Beer consumption in the country is slated to treble in the next ten

years with the segment for strong beer segment registering high growth.

Besides these traditionally strong segments i.e. beer, whisky and other

spirits, India has a potentially huge market for wines and pre-mixed drinks

or Ready To Drink (RTDs).

35

Raising A Toast:

While the wine industry accounts for less than one per cent of the alcohol

and spirits industry in India, it boasts of a growth of 25 per cent per year.

The wine market in the country is estimated at 2 million bottles, including

wine made in Goa, a quantum jump from six lakh bottles in 1997.

There has been a huge influx of foreign wines in the past few years with top

international wine companies like Ernest and Julio Gallo (California), Veuve

Clicquot Ponsardin (French), Cranswick Estate (Australia), Nelson Creek

(South Africa), Lost Horizons (South Africa) Riunite (Italy) introducing

their top selling brands in the Indian market. The entry of so many

international foreign players has also aided the spurt in sales of foreign

wines, which increased from 13,500 bottles in 1997 to approximately 50,000

last year.

The increasing awareness and exposure to wines among consumers and the

removal of quantitative restrictions in 2001 has been a big boost to the wine

industry. It saw the emergence of new companies like Future Wine and

Spirit Brand (P) Ltd (FWSB), set up recently by two non-resident Indians

(NRIs) from USA. FWSB introduced fruit flavoured wines for the first time

in the country. Even established liquor companies like Radico Khaitan Ltd

have jumped on the wine brandwagon by tying up with Ernest and Julio

Gallo for distributing their brands in India.

36

However, according to H R Ahuja, senior vice-president, FWSB, “Though

the removal of quantitative restrictions has been a welcome move, the

government has levied additional custom duty to protect the domestic

market. Hopefully in this year’s budget the government will reduce the duty.

There is no threat to the domestic players as there is enough scope for all

players to grow. In fact the medium range wine below Rs 450, mostly

produced by the domestic players has recorded the highest growth.”

37

Echoing similar sentiments, Amar Jog, junior vice-president, Chateau

Indage, said, “There is enough scope for growth and more players will enter

the fray which is good for the industry.” Domestic companies like Chateau

Indage, Grover Wines and recent entrant Sula Wines have all done

exceedingly well.

38

Jog stated that a survey recently conducted by Ernst & Young indicated that

Indage constitutes 91 per cent of the wine industry in India. “Domestic

wines are now sold internationally which is a clear indicator of the quality.

Our wines are being sold in more than 300 restaurants in Paris alone. Soon

we shall be launching a wine in New York,” said Jog.

However, in his opinion the main pitfall faced by the domestic market is that

under international banners we may have very mediocre quality wines

coming in at very cheap rates. “This would definitely affect the domestic

wine market as we cannot match those prices and could give the market a

wrong turn. Apart from the Indian wineries, the consumer would also lose in

terms of the quality of wine available to him,” stated Jog.

Education of the consumer is the answer to this problem and most

companies have adopted it as part of their marketing strategy and as a means

of facing competition.

Jog said, “We initiated the concept of wine education in India and it is an

ongoing process. Besides taking care of the initial curiosity, an average wine

drinker knows what he or she is looking for. Besides, one has to provide

Value For Money (VFM) products as it is no secret that our market is

extremely VFM driven. Also the quality and type of wine is important,

growing the right kind of wine to suit the Indian palate.”

39

Domestic players have been around for two decades producing quality

wines, according to R Vazirani, vice- president sales, Radico Khaitan

Limited. In his opinion the availability of international wines will only foster

the growth of the small wine market in the country. Vazirani cited the

examples of Chile and Australia to elucidate this point. "A few years ago

these two nations were importing new world wines but today they are the

leading exporters," stated Vazirani.

Pre-mixed drinks or Ready To Drink (RTDs), introduced in the Indian

market in 2001 has great potential for growth. Bacardi Martini India Ltd

(BMIL) made a foray into the RTD alcoholic beverage segment last year

with the launch of Bacardi Breezer. The company, which is a 74:26 joint

venture between Bacardi and Gemini Distilleries introduced Breezers (a

40

fruit flavored drink with 4.8 per cent alcohol content) in three flavors - lime,

cranberry and orange, available in 330 ml bottles priced at Rs 40. Starting

with Delhi, Maharashtra and Goa, Bacardi Breezer will be distributed

nationally in a phased manner.

Globally, Breezer is available in many flavors, which includes watermelon,

cranberry, orange, lime, pineapple, peach, lemon and ruby grape fruit.

Breezer is currently available across 30 countries in the world with UK as its

biggest market. The brand stormed the UK in 1993 after tasting success in

the US and induced widespread consumer shift from pints of lager and white

wine. It was positioned as a credible alternative to beer.

According to Val Smith, chairman, IWSR, the market of RTDs in Britain is

10 million cases. “RTDs in the European market have eaten into the beer

sales by 10-15 per cent and the US beer market has also been hard hit. RTDs

will

41

be a success in India as worldwide it has done favourably in countries with

hot climate,” stated Smith. Targeted at the youth, RTDs has found favour

with those in the clubbing habit and also with women drinkers. Both

Baccardi Breezers and Romanov Shots introduced in five flavours (330 ml

bottles at Rs 40) are quite popular in the metros.

The reason for the success of RTDs in a short span of time is the value for

money factor and the perception of not being a hard drink. With the alcohol

content as low as mild beers it has a huge market amongst the youth. The

fruit flavoured taste is also an advantage compared to the bitter taste of beer.

“RTDs are making a mark world over and are creating new consumers. The

fears that RTDs will eat into the beer market are uncalled for as they are

targeting a totally different class and age group,” opined R Vazirani, vice

president sales, Radico Khaitan Limited.

Smith felt that RTDs offer a huge opportunity for major breweries in the

country to tap this segment as they can produce and distribute it easily.

While international brands like Bacardi Breezer and Smirnoff Ice are world

leaders even local brands in some countries have done exceedingly well like

Umex in Mexico. The tequila producer registered sales of 4 million cases in

just two and half years. Predicting a phenomenal growth in the next five

years with American breweries alone looking at a 80 million to 300 million

growth, Smith however feels that heavy taxation by the governments

worried about teens taking to drinking, may kill the RTD market.

42

THREE CHEERS FOR BEER

Despite being placed 39th in the world rankings, the beer market in India

with 5.6 million bottles is the most emerging market and is set for rapid

growth in the coming decade. USA with 232, China with 219 and Germany

with 107 million bottles is placed first second and third respectively. With

85 million potential beer drinkers set to be added in the next ten years, the

market will see penetration levels increase from 11 to 20 per cent.

According to Dr Mohan Krishna, deputy general manager-strategic

planning, Shaw Wallace Breweries Limited, factors like rising incomes,

changing lifestyles and removal of market distortions will fuel the growth of

the beer market. He informed that the strong beer is currently the largest and

43

fastest growing segment currently enjoying 61 per cent share while the mild

beer segment has 39 per cent share. While the mild segment has witnessed a

fall from 66 per cent in ’93-94, the strong beer segment has seen a growth

from 34 per cent in 93-94.

The three main reasons for the rise in strong beer segment, according to Dr.

Krishna, is that it gives greater intoxication (helps one get a kick), more

value for money (high kick for lower price) and in summer consumers prefer

to drink chilled strong beer instead of hard liquor. Consumption of strong

beer is pegged at 75 per cent in smaller towns and cities compared to 65 per

cent in metros and bigger cities. Studies according to Dr Krishna predict that

the mild segment will be placed at 21 per cent and the strong beer segment at

79 per cent of the total beer market in India by year 2011-12.

44

A host of international beer brands have entered the Indian market over the

past few years in the mild beer segment like Becks, Fosters, Corona, San

Miguel, Cobra, Castle Lager. Among these Fosters has made the biggest

impact. Among the Indian brands in the mild segment Kingfisher of United

Breweries, Royal Challenge from Shaw and Wallace are amongst the most

popular brands. Kingfisher has also made its impact abroad. Smith felt that

Indian strong beers were really good and comparable with the international

brand. He said that there was great potential in marketing Indian strong

beers, especially in France and United Kingdom. “The French are interested

45

in stocking novel beers and Indian strong beers could find place in

restaurants in Paris and London along with Japanese, Chinese and Kenyan

beer. The marketing trick to sell Indian beers abroad is to have a very

definite Indian identity as consumers should identify the product with

India,” stated Smith.

46

Whisky WISE

Whisky is the largest segment of the liquor industry in the country. India

today is the largest consumer of whisky overtaking USA two years ago,

according to the IWSR study. According to Smith, domestic whisky growth

is concentrated in India with the other big market Japan registering a fall.

The Indian Made Foreign Liquor (IMFL) and scotch segments is pegged at

79.5 million cases in India with 2.5 million cases in premium and above, 7

million cases in prestige and above, 31 million cases in regular and 39

million cases cheap and medium categories.

IMFL is split into categories, the first Rs 150 and above which constitutes

the bread and butter for the industry accounting for 92 per cent of whisky

industry profits and roughly 52 per cent of the volume while the second

category is the Rs 90-140 price range accounting for 42 per cent of volumes

but contributing just 8 per cent of the whisky industry profits. However this

category helps mop up volumes in big markets like Tamil Nadu and Andhra

Pradesh. The mid-segment has shown the maximum growth with brands like

8 PM whisky from the stable of Radico Khaitan Limited entering the Limca

Book of Records for selling more than a million cases in its launch year.

However, domestic players face a threat from international players with the

expected total removal of quantitative restrictions by 2004-2005. Already

47

quite a few international companies have entered the Indian market. “We

will have to face the challenge and improve our product and packaging. It

should be turned into an opportunity to offer our customers more value for

money,” said Vazirani.

While all whisky in India is made from molasses the question often raised is

why doesn’t the Indian whisky manufacturers switch over to grain based

whisky? According to Jim Murray, author of Complete Guide to Whisky,

the Indian barley can offer the most intensely attractive spirit to taste.

Murray’s guess is that it is being consumed by the breweries that produce

beer. The reason for all whiskies having a molasses base is that India is one

of the largest producers of sugar cane in the world and molasses is a cheap

by-product of the sugar industry. The liquor companies purchase this as the

source material for conversion to alcohol and all that they have to do is to

add whisky essence and a little color to market it as whisky.

Murray said that some of the liquor companies do not even convert the

molasses into alcohol. They simply purchase the pure spirit. “The local

demand is so high that liquor companies cannot afford aging and whatever

aging take place is the time lag between bottling and casking. The average

price is in the region of Rs 175 to Rs 500 (USD 3.57 to USD 10.20). There

are some better varieties available from Rs 300-Rs 650. Since the local

whisky is available at such low prices, the masses do not care for real

48

Scotch, which is any way astronomically priced. More so when the kick is

same for whatever whisky it is,” says Murray.

On the other hand, due to the burgeoning elite class in cities like Delhi and

Bombay, the awareness and demand for deluxe whisky is increasing and

already international companies like Seagram’s, UDV are entering the

Indian market. There are representative offices of many of the well-known

foreign brands and there have been some joint ventures.

Among the other spirits like rum, vodka, gin, brandy etc rum followed by

vodka has done better than the rest in the Indian market. While the defense

canteen sales are one of the biggest markets of dark rum, white rum has seen

a marked growth. Flavored rum which is very popular in the US, Brazil,

Caribbean and Philippines is now being introduced in India. Indian brands

like Old Monk, Contessa Rum, Celebration are popular. Smith feels that

Indian dark rum is really good and comparable to international brands. In his

opinion Indian dark rum has good export potential. According to the IWSR

study, growth of Vodka has been mainly restricted to Russia.

DIFFEREENT DUTIES ON LIQUOR

1) Excise Duty

2) Export Pass Fee

49

3) Vend Fee

4) Sale Tax/Surcharge

5) License Fee

6) Toll Tax

7) Brand/Label Fee

8) Permit Fee

9) Transportation Fee

10) Import Pass Fee

11) Additional Duty

12) Distillery/Brewery License Fee

13) Bottling Fee

14) Litterage Fee

15) Assessment Fee

16) Franchise Fee

50

DISTRIBUTION SYSTEM

A. FOR RETAILORS

Order slip sent on the behalf of the wholesaler

Goods delivered

Order slip sent to Excise Officeand Pay Excise Duty

Goods delivered

B. FOR C.S.D.

COMPANY

WHOLESALER EXCISE OFFICE

RETAILORS

COMPANY

51

Order slip sent on the behalf of the C.S.D.

Goods delivered

Order slip sent to Excise Office

Goods delivered

C. FOR BARS

C.S.D. DEPOT EXCISE OFFICE

UNIT CANTEEN

CONSUMERS

COMPANY

52

Order slip sent on the behalf of the Bar Holder

Goods delivered

Order slip sent to Excise Officeand Pay Excise Duty

BAR EXCISE OFFICE

RESTURANT

53

SWOT ANALYSIS

SWOT ANALYSIS

54

Organization performs swot (Strength, Weakness, Opportunity, Threats) analysis to identify and evaluates their competitive position.

STREGTHS:

1) The company has excellent distribution system.

2) The company has build a strong image among the customers.

3) The company has an excellent distribution system.

4) The company experiences excellent Brand loyalty for its Products from the customers.

5) The company has made its Packaging attractive which lures the cus-tomers and consequently the products are favorite among the cus-tomers.

WEAKNESSES

1) Some products have high prices as compared to the other products.

2) The company branches are not spread through out the region; as a re-sult load of the work at the regional offices are tremendous.

3) The company pays less attention towards advertisement.

4) The brewery of the company is old and not up to expectation of modern times.

OPPORTUNITIES

1) India has a vast potential market, which the company can get hold up.

55

2) The company can prove to be major threats for its competitor’s if it increases its marketing efforts.

3) MML should concentrate on the premium segment market.

THREATS

1) The major threat that company faces is from its competitors who are introducing products with more features at lower cost backed by ag-gressive promotional schemes to attract buyer.

2) The new packaging style introduce by the company for the beer i.e. in Tin is posing threat to the existing bottle packing system.

3) The arrival of the MNC is a major serious threat for the company.

PRESENT SCENARIO

56

“Scotch is not a mass product any where in the World. What the scotch

player will not say but do realize it that the scotch market in India is even

not self sustaining.”

While the wine industry accounts for less than one per cent of the alcohol

and spirits industry in India, it boasts of a growth of 25 per cent per year.

The wine market in the country is estimated at 2 million bottles,

includingine made in Goa, a quantum jump from six lakh bottles in 1997.

Jog stated that a survey recently conducted by Ernst & Young indicated that

Indage constitutes 91 per cent of the wine industry in India. “Domestic

wines are now sold internationally which is a clear indicator of the quality.

Our wines are being sold in more than 300 restaurants in Paris alone. Soon

we shall be launching a wine in New York,” said Jog.

At present, the domestic liquor industry is protected by high effective import

duties. These duties are likely to decline over the medium term and would

lead to entry of international majors.

Whisky is the largest segment of the liquor industry in the country. India

today is the largest consumer of whisky overtaking USA two years ago,

according to the IWSR study. According to Smith, domestic whisky growth

is concentrated in India with the other big market Japan registering a fall.

The Indian Made Foreign Liquor (IMFL) and scotch segments is pegged at

79.5 million cases in India with 2.5 million cases in premium and above, 7

57

million cases in prestige and above, 31 million cases in regular and 39

million cases cheap and medium categories.

The ‘Beer’ market is witnessing flurry of launches from the MNC’s by

having their collaborations done with the Indian partners. These

collaborations done by then are in two ways either share of profits or

technical partnership. Even scotch, the attempt now is stable all price ends.

Companies are launching scotch brands at premium regular and economy

ends.

58

FUTURE PROSPECTSAs far as the industry players are concerned, they are very optimistic about

future. The reason are very evident, a growing middle class with increasing

purchasing power, hanging life styles, changing social attitudes and above

all the large population. All these reasons are enough for the industry to be

upbeat about the future. Although whisky will continue to dominate, the

emphasis will be on the low alcohol drinks and white drinks.

In ‘Beer market the future is seem of Strong Beer. The three main reasons

for the rise in strong beer segment, according to Dr. Krishna, is that it gives

greater intoxication (helps one get a kick), more value for money (high kick

for lower price) and in summer consumers prefer to drink chilled strong beer

instead of hard liquor. Consumption of strong beer is pegged at 75 per cent

in smaller towns and cities compared to 65 per cent in metros and bigger

cities. Studies according to Dr Krishna predict that the mild segment will be

placed at 21 per cent and the strong beer segment at 79 per cent of the total

beer market in India by year 2011-12. According to the study report this is

say that 7-8 persons out of 10 like to alcoholic product. Thus it can be say

that the future of this can be bright and successfully.

The liquor industry in India is highly regulated with production, distribution,

advertising and marketing having to comply with various government

regulations. In addition, the liquor industry is subject to a high level of

taxation. The levels of regulation and taxation vary from State to State;

certain States have even enforced a policy of prohibition. The import of

59

liquor is also subject to a high import duty (at present, the effective duty is

over 300%). A significant feature of the Indian liquor industry is the

presence of a large illegal market selling both smuggled as well as illicitly-

distilled liquor.

The IMFL industry in India is estimated at nearly 84 million cases and is

growing at 8% per annum. Consumption is largely skewed towards whisky

which accounts for over 60 % of the market. Brandy accounts for 21%, rum

for 14 % and Whites (Gin, Vodka, others) for 5 %. Besides, there is a large

unorganized sector in the Indian liquor industry, consisting of local country-

liquor manufacturers. Within the IMFL segment, whisky and rum are the

largest segments, accounting for 60% and 16% of total IMFL volumes

respectively. Although the liquor industry worldwide is either stagnating or

witnessing negative growth, India's IMFL market is growing at 8-10% per

annum; currently, the country accounts for nearly 6% of the world's spirit

consumption.

The Indian liquor industry is characterized by intense competition among the

major domestic companies: Shaw Wallace, McDowell's, Herbertson's,

Mohan Meakins, Jagatjit Industries, and RKL. This would further intensify

competition, especially in the premium segment.

60

Chaptor3 OBJECTIVES

61

OBJECTIVES

It is said that the well defined objective is half attained. In order to

make sure that a proper research has been taken ensures defining clear

cut objectives and outline is a prerequisite. The research objectives of

the study are:-

To determine the Market position of Beer produced by Mohan

Meakin Ltd.

To determine the perception of consumer towards beer of Mohan

Meakin Ltd.

To know the market share of Mohan Meakin Ltd. Regard to beer

only.

To determine the competitors of Mohan Meakin Ltd.

To analyzing the market expansion in future.

62

Chaptor4 RESEARCH METHODOLOGY

63

RESEARCH METHODOLOGY

This research was conducted to find out the awareness of the customers towards the beer brands of MML.Research refers to the systematic method consisting of enacting the problems, collecting that facts or data, analyzing them and reaching certain conclusion either in the form of generalization for some theoretical formulation. The research conducted by me is Exploratory Research.

Exploratory Research : - This type of research is Qualitative and Quantitative. Qualitative refers to the character of data or the process by which the data are gathered. The researcher here tries to identify the potential opportunities. But the research conducted here is designed to help to choose among the various courses of action. This research is conclusive. In this study a decision is made to select one course of action. The hypotheses which is already established is in the market.

Statistical Method has been used by me to collect the data. The data has been collected by interviewing the best unit.

DATA is a collection of raw information based on certain facts and figures. It is collected on a number of ways mainly Primary and Secondary source. In this research the data is collected form Primary source

Sampling: - The data was to be collected only from the Consumers and Retailers. A questionnaire was prepared and interviewing with Retailers and Consumers. On the bases of questionnaire conclusive research has been done, which tells us the degree to which the product varies with user’s characteristics like age, sex, income, etc. This research helps together facts.

No. of Samples used in the Survey = 100 Sampling used to find unit of Survey- Probability sampling Unit

For Retailer – Liquors ShopFor Consumer – Drinking ‘Beer’s

Area of Research Study: - Luckno

64

Chapter 5Findings of research

65

Drinking habbit of consumers

• As per the investigation at beer shops and model shops I have found that-

• 89% people who are coming to beer shops are consuming beer.

• 11% people who are coming to beer shops and model shops do not consume beer.

66

Quality preference of consumers

0%

10%

20%

30%

40%

50%

60%

Strong Mild Both

Qualityprefeence

As per the investigation at beer shops and model shops I have found that-58% people who are coming to beer shops and modal shop prefer strong beer.24% people who are coming to beer shops and model shops prefer mild beer18% people who are coming to modal shop and beer shop or beer bars are choosing either strong or mild beer depending on the availability.

67

Awareness of MML

0%10%20%30%40%50%60%70%80%90%

100%

Yes No

Awareness

As per the investigation at beer shops and model shops I have found that-99% people who are coming to beer shops and modal shops are aware about the brand name of MMLOnly 2% people who are coming to beer shops and model shops are not aware about MML

68

Quality preference of consumers

0%10%20%30%40%50%60%70%80%90%

100%

Strong Mild Both

Qualityprefeence


• 58% people who are coming to beer shops and modal shop prefer strong beer.

• 24% people who are coming to beer shops and model shops prefer mild beer

• 18% people who are coming to modal shop and beer shop or beer bars are choosing either strong or mild beer depending on the availability.

69

Brand preference in strong beer segment

0%10%20%30%40%50%60%70%80%90%

100%

Haw

ards 5000

Meakins 10000

Kingfisher

Fosters

Golden eagle

Strongbeer


• 38% people who are coming to beer shops and modal shop prefer Hawards 5000 strong beer.

• 21% people who are coming to beer shops and model shops prefer Meakins 10000 strong beer

• 33% people who are coming to modal shop and beer shop or beer bars prefer Kingfisher strong beer.

• 4% people who are coming to modal shop and beer shop or beer bars prefer Golden Eagle strong beer. and

• Rest of 4% people prefer Fosters strong beer depending on the availability.

70

Brand preference in Mild beer segment

0%10%20%30%40%50%60%70%80%90%

100%

Kingfisher

Fosters

Others

MildBeer


• 83% people who are coming to beer shops and modal shop prefer Kingfisher mild beer.

• 11% people who are coming to beer shops and model shops prefer Foster mild beer while

• 6% people who are coming to modal shop and beer shop or beer bars prefer other available mild beer..

71

Factors influencing purchase

0%10%20%30%40%50%60%70%80%90%

100%

Taste

Price

Brand nam

e

Packaging

Other factors• As per the investigation at beer shops and model shops

I have found that-• 42%% people who are coming to beer shops and modal

shop prefer taste of beer.• 15% people who are coming to beer shops and model

shops prefer price of beer• 23% people who are coming to modal shop and beer

shop or beer bars prefer brand name means they are very much brand loyal.

• 9%% people who are coming to modal shop and beer shop or beer bars prefer packaging of beer. and

• Rest of the 11% people prefer other factors that influence the purchase.

72

Rating of MML

0%10%20%30%40%50%60%70%80%90%

100%

Good

Satisfactory

PoorRatings


• 25% people who are coming to beer shops and modal shops says rating of MMlL is good.

• 62% people who are coming to beer shops and model shops says rating of MML is Quite satisfactory.

• 13% people who are coming to modal shop and beer shop or beer bars says it is poor.

73

Consumption frequency at a time

0%10%20%30%40%50%60%70%80%90%

100%

1 bottle

2 bottle

>2 bottleConsumptionfrequency


• 56% people consume one bottle at a time.

• 22% people consume two bottle at a time.

• 22% people who are coming to modal shop and beer shop or beer bars consume more than two bottles/can at a time.

74

Moment preference for consumption

0%10%20%30%40%50%60%70%80%90%

100%

With friends

In sad mood

in happy mood

no reason


• 47% people consume beer in a party/with their friends.

• 12% people consume beer when they are sad.

• 29% people drink beer when they are in a good or happy mood.

• 11% people did not given any reason for drinking beer.

75

Place preference for consumption


• 4% people consume beer in their homes.• 33% people consume beer in modal

shops and restaurants.• 53% people drink beer in bars and pubs

while• 10% people drink beer in open space.

76

Sex wise consumption of beer

Age wise consumption of beer


• 98% people consume beer are male.• Only 2% people consume beer in modal

shops and restaurants are female.

77

Marital Status of consumers


• 9% people consume beer are between age group of 14-18years.

• 26% people consume beer in modal shops and restaurants are between age group of 18-21 years.

• 28% people consume beer in modal shops and restaurants are between age group of 21-25 years.

• 34% people consume beer in modal shops and restaurants are more than 25 years old.

78


• 52% people consume beer are married.• Only 2% people consume beer in modal

shops and restaurants are unmarried.

79

Chapter 6 Conclusion

CONCLUSION

80

The study which has to be taken concludes that the product of MML is satisfactory product for the consumers. The sale of MML is average rather that Good. According to the previous study report of Business Today, MML stand at 3rd rank in the Beer market.

The following are conclusion:-

A. CUSTOMERS

1) The awareness of MML is good to the consumer .

2) Strong Beer is much consume rather than Mild Beer.

3) Taste of Beer attracts most consumers while taking a Beer.

4) Consumers prefer Bottled Beer.

5) Most of the consumers feel happy after consuming Beer. They feel relaxed after consuming Beer.

6) In U.P. consumer take Beer for Enjoy.

7) According to some consumer the Golden Eagle has no proper taste, but their strong beer is doing well.

8) In strong Hawards-5000 & in Mild Golden Eagle is more preferred by the consumers.

9) No attractive scheme is offered by the MML.

10) Consumers are not Brand loyal; they change their loyal according to availability.

B. RETAILERS:-

Two most preferred Brands are Kingfisher and Hawards- 5000.

81

1) Hawards & other Brands expenditure on advertisement is much more the MML Brands

2) Some Retailers do not feel happy while selling the MML product, due to not attractive scheme & helped by consumer and they are attracted towards condition of environment in and around the Retail shops.

BIBLIOGRAPHY

82

Books:

1. C.R. Kothari, RESEARCH METHODOLOGY , Wishwa Prakashan

Jaipur, 1990.

2. Prof. P.C. Tripathi, Human Resource Development, Sultan Chand

and Sons, New Delhi, 1st Edn., 1997.

3. Dr. C.B. Gupta, Human Resource Management, Sultan Chand &

Sons, Educational Publisers, New Delhi 1st Edn., 1996.

4. Gupta, S.P., Stastical Methods, 9th Revised Edn., 1997, S, Chand &

Sons, New Delhi

5. Thakur C.P. and K.C. Sethi, Industrial Democracy: Some Issue and

Experience, Shri Ram Centre for Industrial and Human Resource :

New Delh 1973.

6. Virmani B.R. Worker Participation in Management , Macmillan

Company of India Ltd, New Delhi 1978

7. Chandra S. Grievance Procedure: A survey of Practice of India ,

Administrative Staff College of India, Hyderabad 1968.

Journals:

1. Davis, William L. (1993). Performance appraisal: How extension

agents view the system. Journal of Extension. Winter, Vol. 31 (4): 15-

17.

2. Hejazi, Y. (1988). Extension agent's job attractions. Iranian Journal

of Agricultural Science. Vol. 18 (3-4): 27-38.

3. Gani, A. (1998). Appraising the performance appraisal systems.

Indian Journal of Training and Development. Vol. 28 (2): 60-70.

83

4. Jabeen, Shagufta (1997). Satisfaction of performance appraisal in

private and public organization. HRD News Letter. July-Aug. 1997. p.

7-10.

5. Muralidhar, S. (1993). Employee performance appraisal. Excellence

in supervision. Vol. 9 (4): 146-150.

6. Patterson, Thomas F. (1987). Refining performance appraisal. Journal

of Extension. Winter. p. 165-18

7. Riggs, Kathleen. (1993). Job satisfaction in Extension. Journal of

Extension. Vol.31 (2): 23-28.

8. Singh, D.P.N. and Singh, Ashok Kumar. (1990). Employee's

performance appraisal - where it can lead to? Paribandh, Oct. 1990 -

Mar. 1991. p. 10-15.

Websites:

1) www.hrfolks.com2) www.google.com

84

Annexure

85

Questionnaire1) Do you drink Beer?

yes No

2) How often do you drink Beer?Occasionally Regularly

3) What type of Beer is consumed by you?Strong Mild Both

3(A.) Which Brand is preferred by you in Strong…………….?3(B.) Which Brand is preferred by you in Mild………………?

4) What are most determinates factor affect you while purchasing Beer?Taste Brand Name Price Other

5) Have you heard about Mohan Meakin Ltd. Yes No

6) What do you feel about the rating of MML’s Products?Good Satisfactory Poor

7) How much Beer is consumed by you within one time?1Bottle 1-2Bottle >2Bottle

8) You drink Beer usually when you are In the Party/with friendsIn sad momentIn HappyNo reason

9) Does the retailer force you to purchase other Beer in the absence of demanded Beer?Yes No.

108

10) You like to consume the Beer atHomeBar/PubsRestaurant/modal shopsOpen Space

11) Do you want to give any suggestion to MML for their product?if yes then Please …………….

12) Personal InformationName: _______________________________________Address: _______________________________________ Sex: _______________________________________Age: _______________________________________Marital status: _______________________________________Occupation: _______________________________________

Thank you very much for your kind co-operation.

109

B. FOR RETAILORS:

1) How many Brands of Beer is sold by you?……………..

2) Which type of Beer is mostly demanded by the consumer? Strong Mild Both

3) Which Brand in Mild Beer is mostly demanded………………

4) Which Brand in Strong Beer is mostly demanded………………

5) How much quantity of Beer sold by you of MML daily?<10 cases10-20cases>20cases

6) Which Brand of MML has good sale in the Market?Golden EagleMeakin10,000Gold LagerOther

7) Do you satisfied with the distribution system of the MML?Yes No

8) Do you think that promotional expenditure helps to boost sales?Yes No

9) Do you think that sales can be affected by providing scheme to you and consumers?Yes No

110

10) Biggest competitors of MML in the market.……………….

11) Does the company representative visit your outlet regularly?Yes No

12) Do you want to give any suggestion to MML for improvement?if yes, then ………………………..

13) Personal InformationShop Name:Address:

Consumer behaviour towards consumption pattern of beer brand by the consumers of Lucknow city

Research Guide

111

ACKNOWLEDGEMENT

112

Preface

In the changed business scenario, where organizations are required to compete globally, benchmarks have also become global, organization survival and excellence requires not only meeting the targets, but also setting up of global standards. In the present scenario, to achieve world class excellence or even surpass them depends upon the efficiency marketing scenario of the company, which is the most important for any organization.

The quest of productivity, quality and speed has spawned a remarkable number of management tools and techniques. Total quality management, bench marking, and Time based competition. Out servicing partnering, reengineer, change management of feeling the gap between the originations and the consumer, on the bases of market research are conducted by the big organizations.

Today’s world is a world of competition. The concept of marketing is totally has been changed, in every field customer became aware, now the market is customer oriented. The prime motive of the company should be customer delight hence to survive and achieve higher goals.

Beer is one of the alcoholic products. ‘Beer’ it self has a niche in the market. A certain age group people use to drink for the shake of just showing which people take it just as a substitute to Whisky and do not Jan as that of whisky.

Alcoholic products are excisable item, which is controlled by the Government. The Government earns much money from Alcoholic product due to much excise duty on Alcoholic product. The liquor company work under the rule and regulations of the Government. It is very necessary and compulsory for distributors of alcoholic to take license from the Government.

113

Present study is aimed with objectives to

To determine the Market position of Beer produced by Mohan

Meakin Ltd.

To determine the perception of consumer towards beer of Mohan

Meakin Ltd.

To know the market share of Mohan Meakin Ltd. Regard to beer

only.

To determine the competitors of Mohan Meakin Ltd.

To analyzing the market expansion in future.

The Project Report consists of six chapters and selected

bibliography. The first three chapters include as Introduction to

consumer behaviour, review of previous literature which include

company profile, competitors list, product list, company’s

strategies, market position etc. and objectives of study. Research

methodology and research design of the Study is presented in fourth

chapter. Fifth chapter includes research findings and chapter six

contains conclusions and limitations of the dissertation. It is hoped

that the Project Work will be able to achieve its stated objectives.

114

CONTENT SHEET

ACKNOWLEDGEMENT

DECLARATION

PREFACE

List of Tables

TOPIC PAGESFrom – To

1

2.

3.

4

5.

6.

Introduction to Consumer Behaviour

Review of Previous Literature

Objectives of the study and Research Methodology

Analysis of Survey Results.

Conclusions and Suggestions.

Bibliography

Annexure

1-21

22-60

61-64

65-76

77-79

80-81

VIII-IX

X

115

Lists of TablesS.No INDEX Page No.

1 Age wise classification of respondents 772 Sex wise classification of respondents 783 Marital status 794 Education level wise classification of respondents 805 RESIDENTIAL BACKGROUND 816 Classification of respondents on the basis of family size 82

7 Monthly income of the respondents 838 Present nature of industry 84

9 Job profile of the employees 8510 Category of employment 8611 Nature of job in the organization 8712 Importance of job in the organization 88

13 Matching of job with salary 89

14 Association of Respondent’s perception about matching of their job with their educational qualification

90

15 Provision for financial incentives 91

16 Type of incentive 92

17 Kind of incentives 93

18 Prefernce of incentive 94

19 Satisfaction with the kind of incentive 95

20 Suggestion for incentive 96

21 Utilisation of professional capability 97

22 Degree of Association of Employee's educational qualification and utilisation of their professional capability

98

23 Willingness to work outside lucknow 99

116

24 Degree of Association of respondents age and their willingness to work outside Lucknow

100

25 Reason of not working outside lucknow 101

26 Interest of organisation in the welfare of its employees 102

27 Degree of Association of provision of financial incentive for the good job done and interest of organisation in the welfare of employee's

103

117

BIBLIOGRAPHY

Books:

8. C.R. Kothari, RESEARCH METHODOLOGY , Wishwa Prakashan

Jaipur, 1990.

9. Prof. P.C. Tripathi, Human Resource Development, Sultan Chand

and Sons, New Delhi, 1st Edn., 1997.

10.Dr. C.B. Gupta, Human Resource Management, Sultan Chand &

Sons, Educational Publisers, New Delhi 1st Edn., 1996.

11.Gupta, S.P., Stastical Methods, 9th Revised Edn., 1997, S, Chand &

Sons, New Delhi

12.Thakur C.P. and K.C. Sethi, Industrial Democracy: Some Issue and

Experience, Shri Ram Centre for Industrial and Human Resourc :

New Delh 1973.

13.Virmani B.R. Worker Participation in Management , Macmillon

Company of India Ltd, New Delhi 1978

14.Chandra S. Grivence Procedure: A survey of Practice of India ,

Administrative Staff College of India, Hyderabad 1968.

Journals:

9. Davis, William L. (1993). Performance appraisal: How extension

agents view the system. Journal of Extension. Winter, Vol. 31 (4): 15-

17.

10.Hejazi, Y. (1988). Extension agent's job attractions. Iranian Journal

of Agricultural Science. Vol. 18 (3-4): 27-38.

118

11.Gani, A. (1998). Appraising the performance appraisal systems.

Indian Journal of Training and Development. Vol. 28 (2): 60-70.

12.Jabeen, Shagufta (1997). Satisfaction of performance appraisal in

private and public organization. HRD News Letter. July-Aug. 1997. p.

7-10.

13.Muralidhar, S. (1993). Employee performance appraisal. Excellence

in supervision. Vol. 9 (4): 146-150.

14.Patterson, Thomas F. (1987). Refining performance appraisal. Journal

of Extension. Winter. p. 165-18

15. Riggs, Kathleen. (1993). Job satisfaction in Extension. Journal of

Extension. Vol.31 (2): 23-28.

16. Singh, D.P.N. and Singh, Ashok Kumar. (1990). Employee's

performance appraisal - where it can lead to? Paribandh, Oct. 1990 -

Mar. 1991. p. 10-15.

Websites:

1) www.hrfolks.com2) www.google.com

119

Chapter 1

Consumer Behaviour

120

consumer behaviour towards consumption pattern of beer...

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