project shailesh (liquor)
TRANSCRIPT
Doing training was really an opportunity before me and when I could convert my theoretical
knowledge into practical and of real world type. Fortunately, the company I got is a true
follower of the various principles of management and also is the one of the good company in
its segment of the industry. The working environment that I was being provided was
extraordinary and helped me a lot in delivering my work properly and with full potency of
mine.
I did my summer training in the United Spirits Ltd, where I found all the professionals are
very much committed to their work as well as they were all professionals enough. This
helped me a lot in getting a good deal of exposure. As I had to consult the Manager and
assistant manager, I felt myself, in the beginning, in a bit problem. But the cooperation of my
superiors at the work induced confidence in me to deal with my problems. But the
cooperation of my superiors at the work induced confidence in me to deal with my problems
whenever they came.
Since I had to complete my project within a limited time frame, this made me experience the
actual stress of the workplace. The way the boss supported me and his other subordinates was
a good example of coordination and good manager. This shows that in the corporate world
the superior officer should not only take care of the target fulfilled but also the behavioural
aspect of the subordinates.
Working with the colleagues was a great experience as I came to know that how a person can
work as a team in a multifarious industry to achieve the organizational goal. Many a times,
while working, I had to sacrifice my personal feelings and inspirations just to keep the
organizational interests in my mind by giving it the top most priority. Indeed, I always tried
to do justice with my duties even at the cost of my personal life for the time being. But this
could be a success, as I got continuous support from my guide as well as other officers &
colleagues.
So, at last I would like to thank my institution for providing me with the opportunity to do
summer training, I am also grateful to the United Sprits Ltd for providing me all the
assistance in completing my project.
Contents
1. Acknowledgement………………………………………………4
2. Declaration………………………………………………………5
3. Executive Summary…………………………………………….6
4. USL at a glance………………………………………………….7
5. Government Policies of Liquor Sector………………………..14
6. Introduction to Liquor Industry……………………………….15
7. Market Analysis…………………………………………………16
8. Brand Management In Liquor Industry……………………….18
9. Wines In India……………………………………………………21
10. Market Analysis Of Wines………………………………………22
11. Product and Brand Management For Wines…………………..26
12. Brand Equity Pyramid…………………………………………..28
13. Marketing Mix……………………………………………………30
14. Literature Review………………………………………………...33
15. Objective of the Study……………………………………………38
16. Research Methodology……………………………………………38
17. Data analysis and interpretation…………………………………40
18. Findings ……………………………………………………………65
19. Limitations of the Study And Recommendation………………...66
20. Bibliography……………………………………………………….67
21. Annexure ...........................................................................................
ACKNOWLEDGEMENT
Preservation, inspiration and motivation have always played a key role in the success of any
venture. In the present world of competition and success, training is like a bridge between
theoretical and practical working; willingly I prepared this particular Project. First of all I
would like to thank to thank Mr. Rrjesh Phanda (GM) for granting me permission to
undertake the training in their esteemed organization.
I express my sincere thanks to Mr Ajay Chandel (Project Guide) & others faculty members,
for their valuable suggestion and making this project a real success.
I also thank to Mr Rajesh Phanda (GM). Mr Sandeep Kalra (Sr Branch Manager),Mr Vivek
Jain(head of Marketing) Mr Sanjay Manchanda (ASM) MR Shailendra (ASM) and other staff
of who devoted their valuable time by helping me to complete my project.
Last but not least, my sincere thanks to my parents and friends directly or indirectly who
helped me to bring this project into the final shape.
Shailesh Tiwari
DATE:-
Executive Summary
Perceptual mapping has been used as a strategic management tool for about thirty years. It
offers a unique ability to communicate the complex relationships between marketplace
competitors and the criteria used by buyers in making purchase decisions and
recommendations. Its powerful graphic simplicity appeals to senior management and can
stimulate discussion and strategic thinking at all levels of all types of organizations.
Perceptual maps may be used for market segmentation, concept development and evaluation,
and tracking changes in marketplace perceptions among other uses. In the late Nineteenth
Century, Angus McDowell set out from the scenic Northern lands of Gaelic Britannica. The
purpose was to make available the products of the industrial revolution to thousands of
expatriate Britons serving the Empire in various parts of the globe. It was this spirit of
adventure that launched McDowell & Company in India. Perceptual mapping of different
liquor brands have been taken for the study because it is very essential for every company to
know that what the customer think about the brand and what are the attributes that attracts
customer attention. For this I have taken various factors for purchase intention on five point
Likert scale and also analyzed socio economic status of the respondents and correlated with
the kind of liquor they take and how frequently they drink. The sample size was 200 and data
was collected through one to one interaction. The data analysis was done by using Microsoft
Excel. Findings have suggested that The factor influencing purchase decision were
packaging, price, taste, availability, brand image, manufacturing process, manufacturing
place, manufacture reputation and promotional scheme. Out of these factor price, taste, brand
image and promotional schemes were found to be most important factor for purchasing liquor
brands. However other factor like manufacturing place and manufacturing process was not
very much known by consumer Out of 5 companies which were taken into consideration for
the rating of the best company in for, taste, quality and promotional schemes most of the
respondents were in favour of United Spirit and Seagram’s. The best company for this
variable was united spirit. The best company Scotch and premium whisky was United Spirits
and the second best company was Seagram’s. United Spirits and Seagram’s were found to be
the best value provider companies.
USL AT A GLANCE
In the late Nineteenth Century, Angus McDowell set out from the scenic Northern lands of
Gaelic Britannica. The purpose was to make available the products of the industrial
revolution to thousands of expatriate Britons serving the Empire in various parts of the globe.
It was this spirit of adventure that launched McDowell & Company in India.
It had its origins in a warehouse near Fort St.George in Madras (now Chennai), which in
those days was a major trading centre of the British Empire.
In 1951, McDowell became the prime acquisition of the United Breweries Group. Under the
able guidance of the founder of the UB Group, Late Mr. Vittal Mallya the company became
the first to manufacture Indian substitutes to foreign liquor .A new term - IMFL (Indian Made
Foreign Liquor) was coined. Since then, McDowell has been the indisputable market leader
as one of the largest fast moving consumer goods companies in the country.
The Name
The name „McDowell‟ originally came from the Gaelic word „Macdougall‟. „Dubh gall‟
means dark stranger, possibly to distinguish the dark haired Danes from the fair-haired
Norwegians. Angus McDowell, after whose name McDowell & Company Limited came into
being, was a squire of the Dougall ancestry.
He started a firm - McDowell, in the northern islands of Gaelic Britannica, which was
marketing the finer products of the Industrial Revolution to the Britons staying in various
corners of the empire.
In India, McDowell had its warehouses situated about a mile to the north of Fort St.George in
Madras.
From being one of the first names to be associated with the import of wines and spirits into
India as early as in 1898, McDowell has now grown to become the country’s undisputed
leader in the spirits market.
USL CORPORATE BACKGROUND
United Spirits Limited (USL) – the INR 4000 crore (USD 1 billion) spirits arm of the UB
Group – is India’s largest and world’s third largest spirits company. USL was earlier
McDowell and Company Limited. Besides Whyte and Mackay and Bouvet Ladubay being
100 % subsidiaries of USL, the company has a portfolio of more than 104 brands, of which
16 are millionaire brands* (selling more than a million cases a year) and enjoys a strong 59%
market share for its first line brands in India.
United Spirits‟ brands have won the most prestigious of awards across flavours, ranging from
The Mondial to International Wine and Spirit Competition (IWSC) to International Taste and
Quality Institute (ITQI); a total of 84 awards and certificates (as of December 2007).
The Company is known to be an innovator in the industry and has several firsts to its credit
such as the first premixed gin, the first Tetra pack in the spirits industry in India, first single
malt manufactured in Asia and the first diet versions of luxury whisky and vodka in India.
USL has a global footprint with exports to over 18 countries. It has manufacturing and
Bottling units in 67 locations across the country and in Nepal and supported by a robust
Distribution network to deliver its products to customers located anywhere in India. USL has
a committed 6000 strong workforce spread across its offices and distilleries in the country.
USL represents the merged entities of erstwhile McDowell & Co. Limited, Phipson Distillery
Limited, United Spirits Limited, Herbertsons Limited.
CHAIRMAN’S NOTE
It has been another extraordinary year for McDowell – a year which will be remembered not
only for the significant organic growth in the market but also for various bold initiatives that
have led to a number of acquisitions taking the combined UB Group’s Spirits Division to the
second place among the world’s largest spirits companies.
It is with particular pride that I am able to share the historic moment on June 14th, 2005,
when finally, McDowell was able to complete its acquisition of majority shares in Shaw
Wallace & Company which has, for long, been our traditional rival in the market place. The
coming together of these two spirits companies heralds a new era for the industry and for the
consuming public as we prepare to offer consumers greater choice than ever before while
averaging the combined strengths of marketing, distribution and manufacturing to produce
and sell our products more efficiently than ever before.
While the acquisition of Shaw Wallace stands out, particularly given the hard fought battles
that went on behind the scenes, a number of other strategic moves were initiated, all of which
will contribute to your Company’s pre-eminence in the days to come.
This acquisition clears the way for a complete integration of Herbertsons‟ operations with
that of McDowell and other companies of UB‟s spirits business. It has long been our dream
to build up a consolidated United Spirits entity. In pursuance of this goal, McDowell also
exercised its Call Option on the balance 15% shares in Triumph Distillers & Vintners Pvt.
Ltd. You will recall that TDV comprised the Indian business of Diageo, the world’s largest
spirits company.
I have mandated leading Merchant Bankers and other Advisors to take forward the
integration of the various spirits companies so that value to all stakeholders can be
maximized.
India is going through an unprecedented period of business confidence on the back of
sustained growth across all sectors. With nearly 100 million people to reach legal drinking
age in the next decade and the opening up of job opportunities, particularly in the services
and export sectors, I believe that our industry is set to see vigorous growth. The young
citizens of India are plugged into a virtual global economy and share many of the attitudes of
their age profile in the developed world. 10
Economies of scale and economies of purchase will work towards a structural upward shift in
the profitability of our business. Similarly, increased negotiation strength vis-à-vis our often
monopolistic customers will also be helpful in this regard.
All the momentous events of the year cannot eclipse the sterling performance of your
Company’s brands in the market place. Three of our brands, all under the McDowell’s No. 1
umbrella, have made it to the top 100 global alcohol brands by retail value. McDowell’s No.1
Whisky sold 5.5 million cases, McDowell’s No.1 Celebration Rum achieved 5.04 million
cases and McDowell’s No. 1 Brandy reached 4.8 million cases. Additionally, Bagpiper
Whisky – a brand of our Subsidiary.
Herbertsons sold a historic volume of 7.9 million cases making it 1st among the 4 UB Group
brands in the list.
However, I cannot underplay the challenges associated with the integration of two entities
that have fought against each other for so many years and have evolved under different
cultures.
In conclusion, I wish to thank the Board of Directors, Employees, Suppliers, Customers, and
Bankers and of course, you Shareholders for your consistent support to our Company.
Dr Vijay Mallya
Chairman
MISSION STATEMENT
“To be the most admired global leader in the spirits industry by creating unique high quality
brands for consumers, driven by highly motivated employees and supported by best-in-class
processes and continued innovations. United Spirits is and will continue to be responsible
towards its stakeholders and the society.”
Introduction to liquor industry
1. Alcoholic Beverage in India
Alcohol consumption is generally frowned upon in India even though we find reference to
intoxicating substances like “somarasa” in the ancient religious texts. Over the past years
there has been a significant change in alcohol consumption trends. Alcohol has become one
of the commonly consumed intoxicating substances in India. It has won increasing social
acceptance among other groups, urban males being the prime example. It is easily available
and widely used, especially at festivals such as Deepawali and Holi. At the moment the use of
alcohol is infrequent among women who also tend to resist the habit among male family
members. Between 15 and 20 per cent of Indian people consume alcohol. The past decade
has seen a significant increase in the consumption of alcohol. The number of drinkers has
increased from one in 300 to one in 20. Annual sales of alcoholic beverages are growing by
about 20 percent annually. Indian liquor brands have registered significant growth in recent.
The varieties of alcohol manufactured for consumption in India are: 1. Beer
2. Country Liquor
3. Indian Made Foreign Liquor (IMFL)
4. Wines
2. MARKET ANALYSIS
India can boast of an upwardly mobile young population with a propensity to spend. The
country has one of the youngest populations, with around 50% citizens below 25 years. With
a free media and increasing exposure to western influences India has become part of the
Globalized economy
.The Indian alcoholic beverage market has been growing rapidly over the last 10 years.
Consumption of beer has jumped 51% from 70 million cases in 2002 to 105 million cases in
2006 while consumption of Indian made foreign liquor (IMFL) grew 53% to 115 million
cases during the period. This increase is due to the positive impact of demographic trends and
expected changes, like:
1. RISING INCOME LEVELS
Because of the economic reforms since 1991 there has been a significant increase in the
income levels. Rising income levels have been seen as generally favourable to the alcoholic
beverage industry.
2. CHANGING AGE PROFILE
A large proportion of the Indian population is in the age group of 25-34 years. This age group
is the most appropriate target for alcoholic beverage marketers. Many global players are
planning to enter the Indian beer sector and they realize that a partnership with a local player
is important to establish a successful presence in India in a short time frame
.3. CHANGING LIFESTYLES
A deep-seated traditional social aversion to alcohol consumption has been a traditional
feature of the Indian society. However, as urban consumers become more exposed to western
lifestyles,
through overseas travel and the media, their attitude towards alcohol is relaxing. Social habits
are undergoing a transformation as mixed drinks are becoming more popular. The greatest
evidence of this trend is the increase in beer consumption among women. More and more
women are consuming beer – the penetration in metropolitan areas is almost twice as high as
the penetration in other large cities – implying that the greater tolerance towards alcohol
consumption in metropolitan areas facilitates the consumption of beer. With increasing
urbanization, this acceptance is only going to rise.
All these factors combined make the scenario very promising for beer industry and are 'in
sync' with their strategy for India.
India is a big and growing market with a weakness for spirits, especially whisky. This is not
surprising considering that in the wake of the reforms, as the social transformation gathered
momentum and global consumption patterns get increasingly assimilated, the country's moral
fabric is loosening. Drinking liquor has rapidly gained acceptance and is no more taboo --
even among the conservative middle-class but whose attitudes have changed with improved
standard of living has improved. Liquor companies have been quick to latch on to this trend.
In fact, the youth, women and middle-class overlapping segments – are being targeted by the
liquor companies looking for growth.
Strong beer (alcohol content in excess of 5 per cent), a category non-existent in developed
countries, has been growing at about 15 per cent in India for t he last two years, and already
accounts for 55 per cent of beer consumption. This trend is slated to continue. Thus, there is
significant latent demand and vast scope for growth in liquor consumption, both in the urban
and prosperous rural areas, once the e regulatory environment is relaxed. A little noticed
factor pertains to the gradual, but pronounced, shift of liquor consumers to the organized
sector. The Indian market has traditionally been inclined towards the unorganized sector,
which accounts for two-thirds of the liquor consumption in India. However, maturing tastes
and preferences are making the Indian liquor market more brand-led. This should promote
growth in the organized sector.
3. BRAND MANAGEMENT IN LIQUOR INDUSTRY
Building a strong brand for alcoholic beverage products has had a significant impact on sales
and profitability. Alcohol is a product which is not evaluated on functional features, it is a
product that is subjectively evaluated and hence branding is essential. For companies to
differentiate building a strong brand is a must.
In India, creating a strong lasting umbrella brand for the various products is crucial as there is
a restriction on promotion of alcoholic beverages. For example: Vijay Mallya’s King Fisher
products cannot be advertised however through other promotional activities, the King fisher
brand is promoted as the “king of good times”. SABMiller, for instance, sells a mineral water
called Royal Challenge, not coincidentally the name of one of its lagers.
3.1. Surrogate Advertisements
Advertisements have a strong influence in our life. We like them because they provide
information and create awareness about the market. But many times, some advertisements are
accused of misleading people. When such accusations are proved, some advertisements are
scrapped off from media. Such instances have been reported in the advertisements endorsing
alcoholic drinks and cigarettes. Hence the Government had imposed a ban on advertisements
of these products in the media in the year 2002.
As a reaction to the directive of Government, the liquor & tobacco majors sought other ways
of endorsing their products. They have found an alternative path of advertising through which
they can keep on reminding their liquor brands to their customers. They have introduced
various other products with the same brand name. Launching new products with common
brand name is known as brand extension, which can be carried out for related products (eg:
Kingfisher Airlines and Kingfisher Beer). In this case, the companies launch other products
with the same brand name for the purpose of reminding their old customers. Heavy
advertising is done so that the customers do not forget their liquor & tobacco brands, for
which advertisements are banned. The advertisements for such new products are placed under
the category of "Surrogate Advertisements". Their only objective is to compensate the losses
arising out of the ban on advertisements of one particular product (i.e. liquor). This is a
loophole challenging the Government's action.
The liquor industry is a prominent player in this game. Few surrogate advertisements shown
in print, electronic and outdoor media are - Bagpiper soda and cassettes & CDs, Hayward’s
soda, Derby special soda, Gilbey green aqua, Royal Challenge golf accessories and mineral
water, Kingfisher mineral water, White Mischief holidays, Smirnoff cassettes & CDs,
Imperial Blue cassettes & CDs, Teacher's achievement awards etc. These products bear
exactly the same brand name and logo, which we had seen earlier in liquor advertisements. It
was little surprising to know that liquor giants like McDowell's and Seagram's have entered
into new segments like cassettes & CDs, mineral water, sports accessories etc. Later it was
found that the basic aim of these surrogate advertisements was to promote their liquor brands
like beer, wine, vodka etc. This brand extension is an act of bypassing the advertisement ban.
Between April and June this year, three liquor ads which were termed as 'surrogate' by the
consumer complaints council (CCC) of ASCI, have been withdrawn. In case of a few other
advertisements which ASCI felt were surrogate, assurance of compliance is awaited from the
advertiser. Among the ads which were withdrawn, is United Breweries' Kingfisher Premium
ad which showed a visual depiction of a dancing couple with "packaged drinking water"
written in fine print. ASCI felt that the visual and the headline ("the night rocks") did not bear
any relevance to the product advertised - packaged drinking water. In the absence of specific
information, ASCI felt the advertisement appeared to be a surrogate advertisement for a
liquor brand. Another ad which was withdrawn after being declared surrogate was from
Diageo India. The complaint against this ad was that while it mentioned the brand name
'Johnnie Walker', it talked about CDs and cassettes, which bears no relation to the product or
service being promoted. ASCI upheld the complaint against the advertisement, which was
subsequently withdrawn. Similar was the outcome of United Spirits' Antiquity advertisement.
Though the ad stated "indulge in Blue Antiquity", it mentioned CDs and cassettes without
showing any visual depiction of the same. After ASCI's decision that it was indeed a
surrogate advertisement, the advertiser informed the watchdog about the temporary
suspension of the campaign as regards new ads. The existing advertisements of Blue
Antiquity have been withdrawn. Complaints against Seagram India's Royal Stag ("Make it
large") and Chivas Regal (which mentioned CDs and cassettes in fine print) were also upheld
by ASCI. The complaint against Seagram's Royal Stag ad was that it showed photographs of
sports personalities, though the line "make it large" has a connection
with alcoholic drinks. In absence of any visual depiction of cricket gear, and the mention of
the brand name 'Royal Stag', the complainant felt that the advertisement was a surrogate ad
for a liquor brand. One of the Chivas Life ads mentioned "ice fishing in Alaska". The
complaint against the ad was that while it mentioned CDs and cassettes in the fine print, there
was no visual depiction of the same.
The industry segment has its own standpoint in defence. The liquor lobby claims that
everything is in accordance to the Government regulations. They clarify that they have
stopped showing liquor advertisements and they are free to use the brand name for any other
products. Even the Confederation of Indian Alcoholic Beverages Companies (CIABC)
advertising code maintains that advertisement of products (real brand extensions) by the
liquor industry must be allowed
3.2. Positioning Strategy of the Market Leader
UNITED BEVERAGES Group owned by Mr. Vijay Mallya uses different strategies to
position its product in market. It has 60 % market share in Indian wine market. Its brand
Kingfisher has itself 25% share in market.
- Wine a Part of food
We can see in this ad it is written that, food tastes better with KINGFISHER. So, if you want
add taste to your food you have to take Kingfisher. They have positioned the product as a part
of dinner or lunch as we take water after food, take wine.
- Taste of an International Brand
Kingfisher has been positioned as international brand in the mind of customers, so if they
drink it they should feel that it is not any local liquor, it is an international wine, taken by all
across the world. - Positioning by Packaging
Kingfisher it is available in the packs, in which cold drinks are available, so it can be
positioned as substitute for cold drinks, when a person is tired, or want drink some for
energy, he can take the beer.
* KINGFISHER a Synonym of Style
As we can see in this ad also, it is written that, „drink your KINGFISHER in style‟. So if a
person is stylish, he will definitely go for this brand.
* Brand Positioning by Mr. Vijay Mallya
Vijay Mallya, it owner also does different kind of advertisement and publicity shows to
promote and position its brand as a different one in comparison with other brands. In one Ad,
he is shown with some young girls, so it gives a message, if a person wants same fun he
should take that brand. He also represents his generation which over 45, so, don’t let at that
stage also Take Kingfisher and Keep on Batting on front foot in life with enjoy and style.
4. WINES IN INDIA
Wine is an alcoholic beverage made by fermentation of grapes or grape juice. Global market
for wine is estimated at 25 billion liters. Compared to other countries, wine manufacture and
consumption in India is insignificant. This is attributed to earlier period of prohibition in the
country and higher price compared to spirits like whisky and brandy manufactured in the
country, referred to as Indian Made Foreign Liquors (IMFL). However, over the last few
years Indian wine industry has been steadily growing over the last ten years. Wine is
gradually becoming a part of urban Indian life style. Rising incomes of Indian population,
changing demography and exposure to new culture is adding to the higher consumption. The
market for wine is expected to grow at over 20 % per annum. The wine industry is both
competitive and challenging. It exhibits the characteristics of the consumer packaged goods
(CPG) industry –aggressive brand building supported by large advertising and event budgets,
combined with high manufacturing costs. But a key differentiation in the wine industry is the
relatively higher packaging costs– glass bottles, labels, foils etc. So a key challenge for
industry is maintaining lower costs were to control the cost of expensive packaging inputs.
Another challenge for the company was to manage the distribution of the finished goods.
Eighty percent of wine consumption in the country is confined in major cities such as
Mumbai (39%), Delhi (23%), Bangalore (9%) and Goa (9%). 22
There are new players entering the Wine playing field and India can now boast 3-4 large
Wine manufacturers with capacity of about a million cases per year. 2008 has been great year
for Indian Wine manufacturers as Indian Wines have won awards and acclaim in Europe and
U.S. Indian Wines however still are not very well accepted and there is still a resistance to
“Made in India” label. The real challenge for winemakers in India is to develop a domestic
market. Consumption of Wine when we compare it with the other alcoholic beverages is very
small. The younger segments are not drinking nearly as much wine – those aged 18-24
represent only 6% of wine consumed. They are spoilt for choice –a proliferation in alternative
purchase decision. There has been an explosion in the RTD (Ready to Drink) market and the
options available for many varied markets. The young customers are very focused on „brand‟
– they are „brand‟ savvy. They are open to brand promises, indeed look for Brands as a way
of making the choices they make all the time. Focusing on brand strengthening within these
key markets of tomorrow will be vital. While it is likely that young people of today will
gradually grow their wine consumption, it is by no means assured. Ensuring that a smooth
transition into wine consumption is possible will involve making wine easily accessible to the
average alcohol consumer, who may generally find making alternative selections such as beer
or RTDs easier.
5. MARKET ANALYSIS OF WINES
Both the Indian wine market and the indigenous wine industry are in their nascent stages, but
growing by leaps and bounds. Fifteen years ago there was no locally made wine that was
drinkable. Now there are three significant wine makers, all family-owned businesses, the
Chougules, the Grovers and the Samants. There is also great interest in wine makers from
France, Italy, Australia, South Africa, America, and Chile to enter the Indian market. The per
capita consumption of wine in India is only 9 ml, compared with 400 ml in China. Since the
two countries are often placed in the same economic bracket, this is being interpreted as a
huge latent demand in India.
During the year 2007-08, the total annual production of wine in India was 6.214 million
litres, out of this 5.4 million litres was produced in Maharashtra alone. This is a very small
fraction as compared to world’s annual production of 32,000 million litres. The country also
imports 72,000 wine cases (9 litres/case) in a year where 32,000 cases are bottled in origin
and remaining 0.36 million litres are imported in bulk flexi bags and subsequently bottled by
Indian wineries. The biggest consumption up to 80% is however confined to major cities like
Mumbai (39%), Delhi(23%), Bangalore (9%) and the foreign tourist dominated state of Goa
(9%), where as Rest of India has only 20% consumption. Some Indian wine makers have also
started importing foreign made wine and bottling and selling it here in India. Among the
importers; ITDC (Indian Tourism Development Corporation), Sansula, Brindco and E&J
Gallo predominate. There is a huge potential in Indian market itself. For export market, the
increasing popularity of Indian cuisine is an automatic opening. With more and more
professionals visiting India on regular basis, and the fact that Indian wine exports are going
up every year, word is getting spread very fast creating awareness of Indian wines in
International market.
5.1. MARKET POTENTIAL
The per capita consumption in India is only 0.07 litre/person/year as against 60-70 litres in
France and Italy, 25 litres in US and 20 litres in Australia and even China has 0.4 litres. The
Indian market is way behind major wine drinking countries. Consumption for Wine in India
is also very low when we compare it with the consumption of other alcoholic beverages like
Beer, Whiskey, and Rum etc. Given the healthy status and growth of alcohol beverage
industry on the whole there is tremendous potential for Wine. There has been much debate
about the precise number of potential consumers in India’s wine market. About half of the
Indian population meets the minimum drinking age of 25 years; however, that number is
greatly increasing as the Indian population matures. This maturity creates an opportunity for
younger generations to acquire a taste for wine, breaking from a tradition of hard liquor.
Although many Indian religions encourage abstinence from alcohol, few have formally
banned its use. Three Indian states maintain prohibition laws and others have set strict
regulatory measures on alcohol sales. On the conservative side there are about 24 million
potential Wine consumers, on the more realistic side the number goes up to 74 million. 24
5.1.1. TRENDS FACILITATING WINE GROWTH IN INDIA
- Increasing disposable incomes in the „shining‟ Indian economy.
- Changing life styles
- An increasing number of professionals coming back to work in India
- A growing awareness of the health benefits of wine Perception of wines as being up-market
and sophisticated - Low alcohol: entry into corporate boardrooms
- Wine is in fashion and probably the latest beverage that is “IN‟.
- Wine has started enjoying the patronage of hi-flyers and top notch in society.
- More acceptable to women
- Wine Clubs in Key cities
5.2. Market Segmentation
The Indian Market largely can be classified into two Segments
- Domestic
- Foreign Tourists
In the domestic market it is important to note that the majority of India’s population is rural.
Most of India’s poor reside outside of developed areas. Large, densely populated cities;
however, account for most of India’s middle and upper classes and therefore for the majority
of wine consumption in India. 25
5.2.1. AGE SEGMENTATION
The median age in India is about 25 years old, this demonstrates the fact that half of the
Indian population is not yet old enough to drink, and one quarter of the population is under 10
years old. In the coming years, 10 percent of the current population comes of legal drinking
age, bringing with them new views of wine which could influence them away from hard
liquors. The strength of India is in its youth who are familiarizing themselves with the world
beyond their borders.
5.2.2. Other Demographics – Income and Education
Income The gross national income (GNI) for India has risen to $800 per capita as recorded in
2006. This number, however, is greatly skewed because of the outliers in both extreme
wealth and poverty.
Education The education levels in India correlate with estimates for potential consumers.
Those 24 million who have attained college level degrees make up the majority of potential
wine consumers. The remaining 160 million or so who have finished secondary school
complete the bulk of the rising middle class of India.
Tastes, Preferences, and Presentation
The tastes and preferences of the Indian population err towards still wines, and more
specifically, table wines. Though a market exists for champagne and sparkling wines, these
varieties sell at a much lesser rate than the still wines. In general, slightly sweet wines and the
varietals of Sauvignon Blanc and Chenin Blanc are fairly popular and also pair well with
typical Indian dishes. Similarly, rose and blush have been projected as good fits for the Indian
market; however, the majority of sales have stayed on traditional still red and white wines. In
regards to presentation, wine producers have two different demographics in the Indian market
upon which to focus: the upper class and the general consumer. While the upper class prefers
the classic presentation, i.e. real cork, full bottle size, and dry red and white wines, the
growing consumer class in India gravitates towards approachable wine packaging, i.e. screw
caps, half bottle sizes, and sweet wines. 26
5.2.3. CURRENT CONSUMERS
- Senior executives, successful business people, high ranking officials, politicians.
- People with rich traditional background, i.e. “old money”.
- People who have had International Exposure and have travelled the world.
- Wine collectors, purchase from wine merchants (London, Tokyo, Singapore, HK)
- Can own some of the best wine collections in the world.
- Consume wines at fine dining restaurants, at home.
6. Product and Brand Management in Wine
6.1. Product
There are basically three types of wine:
- Table Wines (Still wines)
Table wines, also known as still or natural wines, are produced in many different styles and
make up the majority of wines on the market. Traditionally consumed as part of a meal, table
wines contain between 10 and 14 percent alcohol and are further classified by their colour,
sugar content, and the variety and origin of the grapes that were used. Most table wines are
fermented until they are dry i.e., all the grape sugar has been turned to alcohol by the yeast.
Slightly sweet or off-dry wines are made by stopping the fermentation before all the sugar is
gone or by adding grape juice back to the wine afterwards.
- Sparkling Wines
- Fortified wines
Depending on the grape variety and wine-making technique, wines can be white, red, or pink
in colour. In the Still wine or table wine category the Indian market is divided mainly into
two major 27
Categories: - White wines
- Red wines
Further all the wines available in the above categories are divided in following three
categories: - Domestic Indian Wine
This is the wine, which is produced from Indian grapes and bottled in India by the domestic
wineries. - Foreign Bulk Wine Bottled in India
Few large domestic producers import bulk wine and bottle it in India.
- Foreign Wine Bottled in origin
More than 200 brands are currently available in this category that are Imported by Domestic
players, Importers and Foreign players.
Wines are categorized using a number of different methods. Sometimes they are grouped into
different categories by grape variety, region of origin, by colour, by the name of the wine
maker or viticulturalist, or by production technique.
Product Life Cycle for Wine in India
Thus the real challenge for winemakers in India is to develop a domestic market, and that is
where the problem arises. There are a lot of myths associated with Wine - People believe
wine and curry do not go well.
- Traditionally wine lovers around the world have some kind of a mental block against Indian
wines. They are just not comfortable with the Made in India tag." - Confusion about storage
and usage.
7. A New Brand
As part of this project we have studied macro, micro aspects of the Wine industry and market.
We have also studied the brands that exist currently. From our study the following facts come
to 28
Light: - Huge potential of Wine market in India
- One or Two recognizable brands.
- Lack of clear brand positioning.
- None of the brands is targeting the young Wine consumers.
Brand Equity Pyramid
7.1. Target Segment
Consumers belonging to Generation X
- Aged 25 – 40
- Young professionals
- More open to western culture, while remaining true to their heritage
- Ready to experiment
- Spend on credit
7.2. Positioning
There no single sentence that defines our positioning statement. However, this matrix defines
our positioning perfectly.
Confident Stylish Creative
Original Innovative Challenging
Exciting Different Independent 29
7.3. Branding Activity
- Presence in Hotels
India is the home of some of the finest hotels and resorts in the world. Every major hotel
group is present in Asia and has an aggressive growth plan in the region. Indian groups are
now expanding in Europe and the US as well (Peninsula, Shangri-La, Mandarin, Oberoi, and
Taj). Hotels and resort is a key channel to develop the wine culture as windows of the
western way of living. Hotels will purchase wine from all origins and from all price points:
from house wines to sommelier list.
- Presence in Trendy Bars
Trendy bars offer similar type of entertainment experience as in Europe. These are places to
see and be seen, where trends are made, where east meets west. It is a key channel for
communicating with younger consumers. Good opportunity for new world wines. - Press
Activities
Improve awareness through well documented press articles. Inviting wine maker to the
market or the journalist to the winery.
- Merchandising
- Improve awareness through visibility at the point of sales.
- Especially relevant off trade: mass and specialized retail.
- More efficient if coupled with tasting or brochure distribution.
-Wine Displays at Point of Sale
- Wine exhibitions
4. Marketing Mix
One of the primary reasons for the low consumption of wine is consumer awareness. It is one
of the primary purposes of a marketer to spread awareness about their products as well as
educate the consumers about their products. Unfortunately promotion of alcoholic beverages
has been prohibited by the Government of India, so the marketer has to look to innovative
ways of promoting their brands using surrogate marketing.
According to Theodore Levitt, a marketer is a “mixer of ingredients”. Based on the target
market and positioning, marketing mix is presented here:
7.5. Product
If you haven’t got the product right all your branding effort will be in vain. When it comes to
Wine, the product is not just about the intensity of flavour, complexity, balance, texture and
length of flavour, it also includes the bottle, the label, the closure, and cases. Following are
some of the aspect of product that is planned:
- Caters to both Red wine & White wine drinkers
- High Quality
-Designer style bottle
- Packaging…..attractive capsules…the way it had been bottled…
- Wine Name will be aspiration & lifestyle based
7.6. Pricing
Quality Strategy: High quality with medium Price
Price Objective: Product Quality Leadership
Demand: Limited at beginning stage. So there is inelastic demand
Estimating Cost: Major costs will be grapes plantation, Sales Promotion & Advertising 31
Pricing Strategy
Pricing Method: In the beginning pricing method will be Going Rate Pricing so it shall be a
medium priced product and will help in Rapid Penetration. Pricing strategy will be partially
influenced by the prevailing prices in the market as ours is a new launch and our target
segment is young professionals who are new entrants to this category. So this kind of pricing
strategy will help our product to gain penetration.
7.7. Place
Key Point of Sales is
- Hotels
-Restaurants - Retail stores & super markets.
-Duty free shops
- Wine shops
Taking the logistics and transport activities slowly in our own hands. (Part of Forward
Integration strategy). It will help us in reducing the transportation time & cost. We will also
have better control of the quality of the product as norms for storage and transportation can
be followed.
7.8. Promotion
Direct advertisement and promotion in print and electronic media is not permitted in India so
we have to look for other methods of promotion. As wine is an asp rational product that is
often linked to a lifestyle of individuals. The following methods will help us in promoting our
product: -Celebrity Endorsement/Surrogate advertisement
- Wine tasting sessions at Page 3 parties.
- Sponsor a Social Evening.
- Offer an occasional WINE TOUR
- Freebies
- Wine exhibitions
- Improve awareness through visibility at the point of sales
- Especially relevant off trade: mass and specialized retail
- More efficient if coupled with tasting or brochure distribution
- By-the-glass promotion: the essential tool to develop the consumption of premium wines in
India - Can be supported by promoters in some restaurants/clubs
- Food Pairing: still nascent but very promising
- Improve awareness through well documented press articles
- Inviting wine maker to the market or the journalist to the winery Activities like wine tours,
sponsoring social evening etc will help us in positioning our Brand as an lifestyle product. It
will also generate awareness and induce curiosity among the target segment to try wine over
other alcoholic products.
Review of literature
Hooley, G. J(Jan. 1979) has studied perceptual mapping for product positioning in his article
“Perceptual Mapping for Product Positioning: A Comparison of Two Approaches” and has
stated that Multivariate techniques for market segmentation and product positioning can be
used by applying one of 2 approaches to the formulation of a perceptual map. The first
approach uses individuals' judgments of brand attributes which have been obtained through
earlier, qualitative research. The judgments are analyzed by using multiple discriminant
analysis to distinguish attributes between brands. The perceptual map's dimensions are
suggested by the attributes. The second approach is based on direct judgments of similarity
between brands which have been measured by ranking or rating pairs of brands. If the model
is to be of practical value to management, perceptions must be related to behavior or intended
behavior. This can be achieved by superimposing individuals' ideal points on the brand map.
Using brand attributes alone for mapping purposes may not lead to an operationally useful
model of consumer perceptions because of the existing possibilities of omitting important
attributes and including irrelevant attributes. Choosing the appropriate type of multiple
discriminant analysis is important if the model is to be of any use. The multidimensional
scaling method offers an alternative approach. It is the most costly and cumbersome but does
not have the inherent drawbacks.
Fassino and Michael J(.Jan 6, 1984) have given New Approach Eliminates Inherent
Shortcomings of Perceptual Maps and have stated that Perceptual maps illustrate market
segmentation by representing positions of a group of competing products relative to the basic
criteria consumers use when evaluating these products. The usefulness of conventional
perceptual mapping is limited by: 1. a special/geometric representation of data that is not
always the best way to communicate a relationship, 2. inability to show trends, and 3. the
possibility of overstating similarities/differences or representing relationships ambiguously.
A new approach to perceptual mapping, was developed to overcome these inherent
shortcomings. Similarity trees (SIMITREE) represents the distance between products in
terms of paths or trees. The more similar the products are judged, the shorter the paths are
that connect them. Initially, all products are equidistant from each other, but are pulled apart
or pushed closer together by their differential association with the various product features.
SIMITREE provides new insights into relative strengths and weaknesses of products in the
marketplace. 34
Michel J. ( Apr 1987)has studied that what people think about the products in his article
“Find Out How Your Product Is Viewed” and has stated that Before customer can make
choices, they must first perceive that: 1. alternatives exist, 2. products are somehow different,
and 3. the ways in which products differ are important. There are a set of powerful techniques
for modeling this primary and important phase of the choice/preference process. The
procedures, known as perceptual mapping, share 2 allied goals: 1. to determine the basic
attitudinal dimensions physicians or consumers use in differentiating products, and 2. to
locate precisely the relative position a set of branded or potential products occupies on these
basic dimensions.
Hauser, John R., and Koppelman, Frank S.( Nov 1979) have given Alternative Perceptual
Mapping Techniques in their article “Alternative Perceptual Mapping Techniques: Relative
Accuracy and Usefulness” and have stated that Perceptual mapping has been widely used in
marketing to: 1. analyze market structure, 2. design new products, and 3. develop advertising
strategies. However, theoretical arguments have developed and empirical evidence has
emerged which indicate that factor analysis is superior to discriminant analysis and similarity
scaling, which are the current techniques used. Factor analysis provides more accurate
predictive ability. It also facilitates managerial interpretability and ease of use.Factor analysis
is likely to be superior in developing measures of consumer perceptions in categories where:
1. the number of products in the average consumer's evoked set is relatively small, 2. there is
variation in the way consumers perceive products in the category, and 3. qualitative research
has identified a set of attributes likely to represent the product category. The results of a
single theoretical and empirical comparison may spur the need for continued research to
identify whether factor analysis is always superior or, if not, under what conditions the
alternative mapping techniques should be used.
Johnson, and Rick. (march 1988) have analysed Perceptual Mapping in their article
“Adaptive Perceptual Mapping” and have concluded that In marketing, most perceptual
mapping studies have the following objectives: 1. to learn how products in a class are
perceived with respect to strengths, weaknesses, and similarities with each other, 2. to find
out what potential buyers want, and 3. to learn how to produce or modify a product to
maximize its appeal to the target population of potential buyers. The Adaptive Perceptual
Mapping (APM) System from Sawtooth 35
Software can provide researchers with a useful interview tool divided into several distinct
sections. APM allows a market simulation using factor analysis to create a product space for
each separate respondent, containing product perceptions and ideal point. Respondents'
distances are changed to shares of preference, which in turn are aggregated over respondents
to produce the "base case" in which products are currently perceived. A series of simulations
in which products are repositioned in various ways then can be performed to achieve useful
marketing estimates.
Zaichowsky et al (july 2010) have studied the ways of Managing industrial brand equity in
their article “Managing industrial brand equity: Developing tangible benefits for intangible
assets” and have stated that Young and Rubicam's (Y&R) BrandAsset Valuator® (BAV),
commonly used to assess brand equity in consumer markets, was applied to assess the brand
health of an industrial B2B supplier. Customers were asked questions about perceived
esteem, relevance, knowledge and differentiation of the company to find its strengths and
weaknesses. The results were then plotted to reveal the overall customer perception of the
company and also its competitors. Through this plot, the strategic direction how to improve
the brand equity of the company became clear. Evidence suggests that the BAV can be used
in industrial markets to assess the brand equity of the firm.
Ashton A. S. et al.(July 2010) have stated “The relationship between perceived value and
intention to purchase” in their article Hotel restaurant dining: The relationship between
perceived value and intention to purchase” and have concluded that Restaurants affiliated
with the hotel industry play an important role in increasing revenue and responding
effectively to customer expectations. This paper examines how perceived value relates to
intention to purchase (ITP) in the context of hotel restaurant dining using a quantitative
approach involving multiple regression analysis. In addition, the findings indicate that there
are three significant key variables that positively contribute to ITP: perceived brand image,
perceived quality and perceived sacrifice (both monetary and non-monetary price)
Ziqi Liao and Xinping Shi. (2009) have explored consumer perceptions of Internet-based e-
retailing in a highly concentrated retail market environment in their article “ Consumer
perceptions of internet-based e-retailing: an empirical research in Hong Kong” and have 36
incorporated market and social factors to examine consumer attitude and behavioral intention
to use Internet-based e-retailing based on the survey data collected from individuals in Hong
Kong. The empirical results suggest that perceived usefulness and perceived ease of use have
positive impact on consumer attitude towards e-retail business. The easily accessible local
retail market and the concern about risk in the virtual environment significantly affect
consumer attitude and behavioral intention to use e-retailing. However, consumers may
consider using e-retailing if they are influenced by particular social groups. Future research
can be carried out along similar contextual dimensions to explore consumer behavior and
critical success factors of e-retail business in different geographical environments and social
contexts. The present findings have theoretical and practical implications for managing and
developing e-retail business.
Nan Kwon K et al (2008) have investigated the effect of perceived product characteristics on
private brand purchases and have stated that the effects of perceived product characteristics
(i.e. involvement, product type, and switching cost) and consumer value consciousness on
private brand purchase intent. A college student sample was surveyed to measure product
characteristic perceptions for six product categories and to evaluate private brand purchase
intent. Analysis of covariance was conducted for hypothesis testing. Support existed for the
significant effects of all three product characteristics on the intent to purchase private brands.
A moderating effect by value consciousness on the product type (search versus experience)
emerged. It is critical that retailers identify appropriate product categories as they develop
private brands. Private brand marketing strategies should be designed to reduce the level of
product involvement and switching cost, and to increase consumer perception of search
properties. The research is one of the few studies to test the effects of product characteristics
extensively and to provide related marketing implications
Yang, Xiaojing (2006) has investigated the impact of perceived advertising creativity in his
article “The impact of perceived advertising creativity on ad processing and response” and
have stated that For the cognitive route, perceived advertising creativity activates an open-
minded approach of information processing (heightened desire to postpone closure), which in
turn leads to fewer negative statements and more curiosity statements about the brand.
Accordingly consumers' brand attitude is more favorable and their intentions to view the ad
again and purchase are enhanced. For the affective route, the positive affect engendered upon
viewing 37
creative ads affects downstream ad processing and response variables by (1) indirectly
affecting consumers' desire to postpone closure (2) directly transferring to brand attitude and
intention to view the ad again.
Research objective
1. To analyze the factors influencing the purchase of liquor brands.
2. To study that if there is an significant relationship between monthly income and frequency of drinking and age group and kind of liquor
3. To analyse the attribute based position of liquor brand in the mind of consumers.
Research methodology
Research type –descriptive research
Secondary data Sources
The information has been gathered from authentic and reliable sources like Government agencies, Trade associations, Trade journals, Industry portals Newspapers, Company websites.
Primary data source
Primary data was collected by one to one interaction with the customers in Golf Club, SR Bar and Awadh Gymkhana Club At Lucknow.
Sampling Method
Convenience sampling.
Sample Size
The sample size of 100 respondents have been taken for the study
Data Analysis Method
The methods of Historical Trend Analysis, and industry Analysis, SPSS factor analysis, ANOVA, Discriminant analysis and Microsoft Excel analysis have been used.
Data analysis and interpretation
ANOVA
frequency of drinking
Sum of Squares df Mean Square F Sig.
Between Groups 153.295 4 38.324 40.877 .000
Within Groups 89.065 95 .938
Total 242.360 99
Interpretation and findings
Statement-to find out if there is any significant relationship between monthly income and
frequency of drinking.
Monthly income- monthly income coded as 1 for less than 10000, 2 for 10000-20000, 3 for
20000 -30000, 4 for 30000-40000 and 5 for more than 40000.
Frequency of drinking- frequency of drinking was coded as 1 for daily, 2 twice a week, 3
for once a week, 4 for twice a month and 5 for once a month.
Null hypothesis-there is no significant relationship between monthly income and frequency
of drinking.
Alternate hypothesis-there is a significant relationship between monthly income and
frequency of drinking.
Findings- the value of F arrived at through the F-test is 40.877 and its significance is
0.000whch s less than .05 ( because I have taken 95% confidence level)
Inference- As 0.000<.05, the null hypothesis cannot be accepted and I infer that there is an
significant relationship between monthly income and frequency of drinking.
ANOVA
kind of liquor
Sum of Squares Df Mean Square F Sig.
Between Groups 80.710 3 26.903 39.900 .000
Within Groups 64.730 96 .674
Total 145.440 99
Interpretation and findings
Statement-to find out if there is any significant relationship between age group and kind of
liquor
Age group. Age group coded as 1 for less than 25 years, 2 25-35years, 3 for 35-45 and 4 for
45 and above.
Kind of liquor- Kind of liquor coded as 1 for regular whisky, 2 for premium whisky, 3 for
scotch whisky, 4 for vodka and 5 for beer
Null hypothesis-there is no significant relationship between age group and kind of liquor
Alternate hypothesis-there is a significant relationship between age group and kind of
liquor.
Findings- the value of F arrived at through the F-test is 39.900 and its significance is
0.000whch s less than .05 ( because I have taken 95% confidence level)
Inference- As 0.000<.05, the null hypothesis cannot be accepted and i infer that there is an
significant relationship between age group and kind of liquor
Factor analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy..623
Bartlett's Test of
Sphericity
Approx. Chi-Square 247.288
df 91
Sig. .000
Kaiser-Meyer-Olkin Measure of Sampling Adequacy is .623 that is more than .5 that reveals
that sampling was adequate.
The Scree plot refers the stage 1 of the factor analysis that to decide how many factors to be
extracted from the data. As per thumb rule all factors with Eigen value of one or more should
be extracted. From the above Scree plot it is evident that 6 factor are having Eigen value 1 or
more than 1 that has been extracted.
Total Variance Explained
Comp
onent
Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 2.943 21.024 21.024 2.187 15.621 15.621
2 1.596 11.401 32.425 1.859 13.281 28.903
3 1.462 10.439 42.865 1.586 11.328 40.231
4 1.284 9.168 52.033 1.406 10.043 50.274
5 1.076 7.688 59.721 1.196 8.540 58.813
6 1.015 7.247 66.968 1.142 8.155 66.968
Extraction Method: Principal Component
Analysis.
Rotated Component Matrixa
Component
1 2 3 4 5 6
1.packaging as a factor of influence
.083 .182 -.310 .070 -.710 .134
2.price as a factor of influence
-.315 .444 -.494 -.113 .219 -.040
3.availability as a factor of influence
.847 .096 -.104 -.001 .208 -.011
4.taste as a factor of influence
.854 -.186 -.024 .606 .205 -.049
5.alcohol content as a factor of influence
-.216 -.203 .253 -.059 .013 .677
6.brand image as a factor of influence
-.093 .037 .794 -.019 .023 .037
7.manufacturing place as a factor of influence
.134 -.458 -.534 -.050 .023 .236
8.brand ambassador as a factor of influence
.082 .341 .715 .324 .016 .235
9.promotonal schemes as a factor of influence
.081 .370 .199 -.636 .243 .240
10.manufacturer reputation
-.153 .082 .091 . 846 -.231 .081
11.waiter's advise -.442 .051 .390 .009 .497 .025
12.friend's suggestion -.037 -.767 -.002 .091 .111 .005
13.hang over .315 -.261 .025 .277 -.120 -.744
14.timing of drinking and purchase
-.502 .644 .091 .115 .042 .068
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 10 iterations.
Interpretation and findings
Looking at Rotated Component Matrix that availability and taste have loading of .847
and .744 this suggest that factor one is the combination of availability and hangover and that
can be interpreted as taste convenience.
Now factor 2 friends suggestion and timing of drinking have loading of .767 and .644 this
suggest that factor two is the combination of a friends suggestion and timing of drinking and
that can be interpreted as party time.
For factor 3 brand image and brand ambassador have loading of .794 and .715 this suggest
that factor three is the combination of brand image and brand ambassador and that can be
interpreted as branding elements.
For factor 4 manufacturer’s reputation is having loading of .846 this suggest that factor four
is manufacturer’s reputation and that can be interpreted as reputation of manufacturer.
For factor 5 packaging is having loading of .701 this suggest that factor five is packaging and
that can be interpreted as product look.
For factor 6 alcohol content and hangover have loading of .774 and .677 this suggest that
factor six is the combination of alcohol content and hangover and that can be interpreted as
consumption effect .
This is evident from above interpretation that out of 14 factors considered initially, 6 are the
above mentioned main factors that influence the purchase of liquor product. And from the
Total Variance table it constitutes 66.9% of cumulative variance.
Discriminant Analysis
Tests of Equality of Group Means
Wilks' Lambda F df1 df2 Sig.
taste of the product .780 41.914 2 297 .000
brand image of the products
.376 246.173 2 297 .000
promotional schemes .281 379.517 2 297 .000
availability of the brand .425 201.216 2 297 .000
Standardized Canonical Discriminant Function Coefficients
Function
1 2
taste of the product .190 -.247
brand imageof the products
.453 -.650
promotonal schemes .774 .067
avalablity of the brand .293 .900
Functions at Group Centroids
brand names
Function
1 2
white and Mickey -2.937 -.210
teachers 50 1.815 -1.231
Black dog 1.122 1.441
Unstandardized canonical discriminant functions evaluated at group means
X Y
taste of the product0.24557
80.07191
7
brand image of the products0.44554
20.43342
9
promotional schemes0.63938
60.47012
9
availability of the brand0.43864
5-0.89674
black dog-0.81292
0.240016
teachers 50 0.00035 -0.48034
White and Mickey0.81256
70.24032
6
PRECEPTUAL MAP
-4 -3 -2 -1 0 1 2 3
-1.5
-1
-0.5
0
0.5
1
1.5
2
Series2
Black Dog
White and Mickey
Teacher's 50
promotional Scheme
availability
Brand image
Taste
Interpretation and findingsThe perceptual map has been prepared for the three brands namely Black Dog, Teachers 50
and White and Mickey .the attributes that has been selected were brand image, taste,
availability and promotional schemes. Standardized Canonical Discriminant Function
Coefficients and Functions at Group Centroids were taken on two co ordinates. Function 1
was taken on x axis and 2 was taken on y axis the above graph represents the vectors for each
attributes brand image, taste, availability and promotional schemes. These vectors represent
the effect of discriminating on each dimension. Longer arrow pointing more closely towards
given group centroid that is the brand name represents the variables are most strongly
associated with that particular group (brand). As from the graph Black Dog, Teachers 50 and
White and Mickey have their unique position on the map. On the same map value of
attributes have been plotted. From the above graph it is clear that Black Dog seems to be
stronger in promotional schemes and availability, Teacher’s 50 seems to be strong in brand
image and taste while White and Mickey seems to be weak in all the attributes.
Suggestions
1. Company should consider age group and monthly income of the customer before
launching a new product or to reposition existing products in the market.
2. White and Mickey should be given special consideration.
Questionnaire
Hello Sir,
I am Shailesh Tiwari , doing a research on perceptual mapping of different
liquor brands. Would you like to answer some question? It will hardly take 10
minutes .
Great , now my questionnaire starts with…..
1. Your name?
…………………………………………………………………………………………
……………………..
2. Age group
Below 25 years
25 to 30 years
35 t0 40 years
40 to 45 year
Above 45 years
3. Educational qualification
School level
Undergraduate
Postgraduate
Professional
4. Your monthly income
Less than 10000,
10000 to 20000,
20000 to 30000,
30000 to 40000,
More than 40000
5. Your occupation
Private sector employee
Public sector employee
Self-employed
Student
6. How often do you drink?
Daily,
Twice in a weak,
Once in a weak,
Twice in a month,
Once in a month
7. Which kind of liquor do you often take?
Regular whisky Premium whisky Scotch whisky Vodka
Beer
8. From where do you get know about liquor brands?
From wine shops From friends and relatives From banners
and posters
9. Please rate the influence of following factors on your purchase of liquor
brands.
(Most important 1 to least important 5 )
Packaging
Price
Availability
Taste
Alcohol content
Manufacturing place
Manufacturing process
Brand ambassador
Brand image
Promotional schemes
Manufacturer’s reputation
Friends suggestion
Time of purchase and consumption
Hangover
11. Please rate the brand i.e Black Dog, Teachers 50 and White and Mickey on
availability, Taste, Brand image and Promotional schemes (1 for very good, 2
good, 3 neutral, 4 bad, 5 very bad)
Availability brand image taste promotional scheme
Black Dog
White and Mickey
Teacher’s 50
Thank you very much for your co-operation. Have a wonderful evening.