Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 2
DECLARATION
I hereby declare that the research work embodied in this dissertation entitled, consumer preference towards beer brand in Bangalore under the guidance and supervision of Prof. Sumithra Sreenath M.P.Birla Institute of Management, Bangalore.
I also declare that this dissertation has not been submitted to any university/ institution for the award of any Degree/ Diploma.
Place: Bangalore (Mr. Mohan Kumar.S) Date : 15-6-2005 Reg No:03XQCM6062
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 3
CERTIFICATE
I hereby certify that the research work embodied in this dissertation entitled Consumer Preference Towards Beer Brand in Bangalore has been undertaken and completed by Mr. Mohan Kumar.S under the guidance and supervision of Prof. Sumithra Sreenath, M. P. Birla Institute of Management, Bangalore.
Place: Bangalore (Dr. N. S. Malavalli) Date: 15-6-2005 Principal
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 4
CERTIFICATE
I hereby certify that the research work embodied in this dissertation entitled Consumer Preference Towards Beer Brand in Bangalore has been undertaken and completed by Mr. Mohan Kumar.S under my guidance and supervision .
I also certify that she has fulfilled all the requirements under the covenant governing the submission of dissertation to the Bangalore University for the award of MBA Degree. Prof. Sumithra Sreenath
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 5
LIST OF GRAPHS
Sl.No Title Page No. 1 Indian beer market 2 Contribution by segment 3 EBITA components of performance 4 EBITA margin by segment 5 Habit of beer drinking 6 Often preferred beer drink 7 Preference of the place to have beer 8 Awareness of brands 9 Brand awareness by different fields 10 Alcohol content 11 Ideal beer attributes 12 Basis of choice 13 Quantity of beer purchase 14 Need of the advertisement 15 Kind of the beer Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 6
16 Monthly expenditure LIST OF TABLES
Sl.No Title Page No. 1 Habit of beer drinking 2 Often preferred beer drink 3 Preference of place to have beer 4 Awareness of brands 5 Brand awareness by different fields 6 Alcohol content 7 Ideal beer attributes 8 Basis of choice 9 Quantity of beer purchase 10 Need of the advertisement 11 Kind of the beer 12 Monthly expenditure
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 7
EXECUTIVE SUMMARY
Breweries and distilleries industry is one of the steadily growing industries in the market and beer is a major product of any liquor industry. Since time immemorial, beer consumption as becomes the part of human life. Nowadays any parties and social gathering will not be complete without the beer on the menu
The Indian beer market has been growing rapidly over the last 10 years, due to the positive impact of demographic trends and expected changes, like: increasing income level, changing changing lifestyles, so Many of global players are entering the Indian beer sector to get the benefit of the profit wave of the beer sector in India.
There was only a few studies conducted in this product category highlighting behavioral aspects and consumers preferences for the product. Beer is unique in particular reference to its consumption because of its wide variety of brands and high volume of consumption. This study will be precedence for the subsequent studies, which could be undertaken in this category. This study elicits various opinions attitudes, views of consumer preferences towards beer brands. A Thorough research is done for making various observations and finally drawing the recommendation for beer industry as a whole.
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 8
OBJECTIVES OF THE STUDY
S To understand preference of consumer towards beer brands. S To study the awareness and usage of different beers. S To make market based suggestions for furthering the growth of the beer industry.
RESEARCH METHODOLOGY
Research design: descriptive and analytical in nature Data sources: primary data and secondary data Research approach: survey method Research instruments: questionnaire Contact methods: personal Sampling methods: simple sampling . Findings
One of the important finding of the study is the most of the beer drinkers are youngsters and they start alcohol drinking with the beer and they slowly move to other drinks like whisky, rum and other alcohol drinks. The market for the beer is good and it is growing steadily, the increased earning capacity of the youngsters is one of the reasons.
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 9
Design of the study
Statement of the problem
Success of the business depends upon the preferences / attitudes/perception of the consumers of that particular product. Beer industry is also same .in order to make a through inquiry into the attitudes of beer drinkers this study was undertaken.
Need of the study
Consumers are the live wire for survival of any product or any organization. Beer industry has no exception to this, there is a cut throat competition among the producers of the beer .it is reported that the alcoholic products are confronting lot of problems in marketing their products with regard to consumer awareness, brand loyalty, quality price and competition .in order to arrive at concrete remedies to all the maladies there is an eminent need to conduct an in-depth study.
Scope of the study
The scope of the present study is confronted to understanding preferences of consumers towards beer brands in Bangalore.
Methodology
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 10
The methodology of present study consists of data collection from primary and as well as secondary sources.
Primary data
Primary data was collected through a structured questionnaire, which was self administered by the researcher on beer drinkers and pubs and wine stores.
Secondary data:
Secondary data about industry profile and other details was collected from the different company websites and journals.
Research instruments:
The required information was collected with the help of well- designed and structured questionnaire.
Research design:
The research design is descriptive and analytical in nature.
Population for the study:
The population for the study includes the beer drinkers bars and wine stores.
Sampling procedure and size: Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 11
The sample size of 80 beer drinkers and around 20 bar, wine stores are selected
Limitations
S Despite all the earnest efforts made by the investigator the required information was not forthcoming due to the reason that some of the respondent hesitate to give required information S No generalization as such, to the consumers preferences towards beer as study was only limited to only to 100 respondents.
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RESEARCH METHODOLOGY
TYPE OF RESEARCH
The type of research adopted for the project is descriptive research. Descriptive research embraces a large proportion of marketing research. The purpose is to provide an accurate snapshot of some aspect of the market environment. Using questionnaires and interviewing the respondents conducted the survey. The information thus gathered constituted primary data and secondary data.
Primary data
These are the data, which are collected by the researchers for the first time. In this research the primary data has been collected by a study, which is specifically designed to fulfill or find out solutions to the problems. This data is original in character, which is obtained by a questionnaire by keeping in view the various type of customers. A copy of the questionnaire is enclosed in the end of the report as apart of the annexure.
Secondary data
Data, which are already assembled, are called secondary data. The data may Be available within the company or the firm. Secondary data provides a starting point for the researchers and offers the advantage Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 13
of low cost and ready availability. The researcher collects the required data from books, journal records of the organization and the Internet.
SAMPLING TECHNIQUE
In this study random sampling was used to collect data. Random sampling Methods are those in which every item in the universe has a known chance, or Probability of being chosen for the sample. This implies that the selection of sample items is independent of the person making the study, i.e. the sampling operation is controlled so objectively that the items will be chosen strictly at random.
Random sampling does not depend upon the existence of detailed information about the universe for its effectiveness. And it also provides estimates, which are essentially unbiased and have measurable precision.
SAMPLE SIZE
The sample size will be drawn from a population who are likely to be aware of the product. In this study of Market Analysis of The Ready To Eat Packaged Foods, the sample size was taken as 60 in case of customers and 15 for retailers. Sample size is an important determinant while adopting a sampling technique.
SAMPLE DESCRIPTION
The study was conducted taking sample from both the customers and the Retailers. The customer sample taken was 60,and the retailers were 15. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 14
The customers come under the age group of 20-60, which consists mainly of females because they have more influence in the purchase of this product. Majority are graduated, and fall in the monthly income group of 5000-15000.
INSTRUMENTATION TECHNIQUE
A list of questions pertaining to the survey was prepared under this study. The questionnaires were distributed to the retailers at the outlets and informations were collected from customers through personal interviews.
The data collected through questionnaires are coded and tabulated. Various diagrammatic presentations like pie chart, bar diagram, column diagrams, graphs & tables were used to represent the information obtained, to the reader in an understandable manner.
ACTUAL COLLECTION OF DATA
In this research data was collected by survey based on Questionnaires Schedule & Personal Interview. The questionnaire was based ion specific components of brand awareness, brand loyalty and finally the different attributes of the product. The other methods used to collect information were Magazines, Management Journals, Annual Reports & Internet. Utmost care must be exercised in collecting data because they form the foundation of the analysis.
TOOLS USED FOR TESTING HYPOTHESIS
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By hypothesis, we mean a statement about the population parameters. Hypothesis testing deals with a procedure, which accepts or rejects the hypothesis. There are two types of hypothesis.
1. Null Hypothesis:- It states that there is no significant difference between the sample value and population vale. This means that the observed difference is due to the random fluctuations. Ho denotes the null hypothesis.
2. Alternate Hypothesis: - In case the null hypothesis is rejected, we should have an alternate hypothesis to accept. Alternate hypothesis is denoted by Ha.
TYPE OF ERRORS
While testing hypothesis there are four possible combinations between the population value and sample value. The four combinations are:
1. Hypothesis is true and test accepts it. 2. Hypothesis is true and test rejects it. (Type 1 Error). 3. Hypothesis is false and test accepts it. (Type 2 Error). 4. Hypothesis is false and test rejects it.
LEVEL OF SIGNIFICANCE
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It is nothing but the probability of rejecting a true hypothesis. It represents the level of risk; the experiment is ready to take in rejecting a true hypothesis and is denoted by . 1 - gives the level of confidence of the experiment in taking the decision. It is always preferable to keep the level of significance at low percentage. It means that we should not reject a true hypothesis. represents the risk of accepting a false hypothesis. 1 is called the power of test.
ACCEPTANCE REGION
This represents the region within which the calculated value of the statistics must lie to accept the null hypothesis. If calculated value lies in this region then the null hypothesis will be rejected.
HYPOTHESIS TESTING PROCEDURE (STEPS):
1. We set up a null hypothesis denoted by Ho. This means there is significant difference between sample value and population value. In Case if Ho is rejected, we must have an alternate hypothesis HA. So we set up an alternate hypothesis. 2. Select the level of significance. 3. Select an appropriate distribution for the test, which is known as test statistics. The distribution generally used are normal distribution, student t distribution, Fishers F distribution or Chi square 2 Distributions. 4. Calculate the necessary values from the given data for the test. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 17
5. Make conclusions for testing. If calculated value is less than the tabulated value, Ho is accepted; else Ha is accepted rejecting Ho.
Test for Specified proportion (infinite ppulation)
In case of attributes we can only find out the presence or absence of a particular characteristics. The sampling of attributes may, Therefore, be regarded as the drawing of samples from a population whose members possess the attribute A or not A.
Large population (n>30) Ho: p = P
HA: p P
Z cal = p-P PQ n
p = Sample Proportion p = Population Proportion n = sample size Q = 1 - P Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 18
INTRODUCTION
INDIAN BEER INDUSTRY
The Indian beer sector has seen a hectic merger and acquisition activity recently with 12 breweries changing hands in the last 3 years. However, this is not the end of the consolidation wave in the Indian industry. Rather, some of the largest beer players across the world are still eyeing India with a view to gaining a share of the countrys rapidly growing beer consumption. An attractive beer market The Indian beer market was estimated to be 6.7 million hectoliters (hl) in 2002-03. As seen in figure 1, beer consumption has been growing rapidly at a CAGR (Compound Annual Growth Rate) of 7 per cent over the last 9 years, while growth in 2002-03 was 11 per cent. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 19
Indian growth rates compare favorably with the global beer industry, which grew by about 2.6 per cent in 2001-02 Apart from providing strong growth, India also provides attractive profit margins due to the consolidated nature of the industry a comparison between China and India, for example, reveals that the Chinese beer market is marked by intense competition, with several players being marginalized. In China there are about 400 brewers, of which the top 10 account for only 45 per cent of the market. This has resulted in low profit margins for the Chinese beer players. In contrast, the top two beer players in India account for about 75 per cent of beer sales in India and the industry stands a chance to see more consolidation in the near future. The effect of this consolidation can be seen in the fact that beer prices in India rarely go down with the competitive pressures of new product or brand launches. In the past, whenever beer prices have gone down, it has been due to either the lowering of duties by the government or the deregulation of distribution (leading to lower margins for the Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 20
distribution channel partners). In neither scenario have the margins or revenues of beer manufacturers been affected. Growth prospects for the beer industry in India The Indian beer market has been growing rapidly over the last 10 years, due to the positive impact of demographic trends and expected changes, like: Rising income levels: India is home to nearly one-sixth of the global population and is one of the most attractive consumer markets in the world today. Various research studies have shown that a rise in the income levels has a direct positive effect on beer consumption. The National Council for Applied Economic
Research (NCAER) projects Indias very rich, consuming and climbers classes to grow at a CAGR of 15 per cent, 10 per cent and 2 per cent respectively. With this growth in income levels, Indian beer consumption is expected to continue growing, at the very minimum, at the growth rates witnessed in the last decade. Changing age profile: As a consequence of the high birth rates prevalent until the 1990s, a large proportion of the Indian population is in the age group of 20-34 years. This age group is the most appropriate target for beer marketers. This population trend will give a further boost to the growth of beer consumption in India. 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 Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 21
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. Reduction in beer prices: The Indian consumer typically values an alcoholic beverage on the basis of its kick factor versus its price. The following two factors therefore, affect the market for beer. Firstly, as most states do not have a differential tax structure based on the alcohol content, strong beer...
SURROGATE ADVERTISING
Liquor companies advertise their drinks in the form of surrogate advertisements. In this type of advertisement, a product other than the banned one is promoted using an already established brand name. Such advertisements or sponsorship help in brand building and contribute to brand recall. The product shown in the advertisement is called the (surrogate). The surrogate either resembles the original product or could be different product all together. But using the established brand of the original product. The sponsorship of sports/cultural/leisure events and activities using liquor brand name also falls in the category of surrogate advertising.
Recent changes in surrogate advertising laws
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In June 2002, the Information and Broadcasting (I&B) Ministry of India ordered leading television (TV) broadcasters to ban the telecast of two surrogate ads of liquor brands McDowells NO.1 and Gilbeys green label the ministry also put some other brands Smirnoff vodka, Haywards 5000, royal challenge whiskey and kingfisher beer on a watch list the surrogates used by these advertisements ranged from audio cassettes, CDs and perfumes to golf accessories and mineral water.
By august 20002 the I& B ministry had banned 12 advertisements. Leading satellite TV channels including Zee, SONY, STAR and Aaj Tak were issued show-cause notices asking them to explain their reason for carrying surrogate liquor advertisements. The channels were asked to adhere strictly to the cable Television Regulation Act 1995 (Cable TV Act, 1995). As a result, Zee and STAR stopped telecasting the advertisements; Aaj Tak and Sony soon followed suit. In addition, the I&B Ministry hired a private monitoring agency to keep a watch on all advertisements for violations of the Act.
These developments led to heated debates over the issue of surrogate advertising by liquor companies. Though the liquor companies involved protested strongly against the I&B Ministrys decision, they had no choice, but to comply with the regulations. Analysts remarked that the governments policy was hypocritical. One said, On the one hand they allow these socially bad products to be manufactured and sold (in order to garner revenues) and then they deny the manufacturers the right to propagate knowledge of their products in order to drive sales.
Meanwhile, the government also seemed to be in dilemma. On the one hand, it had to encourage the sales of liquor and tobacco because they were the highest taxed sectors of the Indian economy. On the other hand, Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 23
there were also the need to take high moral ground and reduce the consumption of such products.
Theoretical background
Brand management
The first thing to recognize when we talk about brands is that they are not just names, terms symbols designs or combinations of these, although it is true say that such things differentiate certain products and companies from others.
The strong brand apparently says more about itself than the product lurking behind it. The brand forms an independent embodiment of the relationship between the seller and the buyer and what they expect from one another. That makes the brand a very important catalyzing element in the formation of strategy. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 24
The additional ingredient that makes successful brands is personality the brand can project a certain personality. Marketers have used personality variables to segment markets. They endow their products.
Brand image
A product is something that is made in a factory; a brand is something that is brought by a customer; a product can be copied by a competitor; a brand is unique; a product can be quickly outdated; a successful brand is timeless. --By Stephen king ---wppgroup, London.
Brand image creates value principally by projecting an image. While they may be based on an extraordinary product, these brands are distinguished from the competitors because buyers see them as offering a unique set of association or image. Brand image are often created in categories where products are relatively undifferentiated or quality is difficult to evaluate (I.e. wines, medical or consulting services) or where under such circumstances, images attached to the brand add value in terms of distinguishing it from other brands by serving them as a badge informing others the one group. Membership or accomplishments in either case it is the set of images attached to the brand that define the brands uniqueness and create symbols that are highly valued by buyers.
Brand image may be created in many ways as
By adding product features that evoke images; Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 25
By making emotional connection with buyers; By associating a brand with particular types of users; and/or By clever advertising campaigns.
Brands are successful because people prefer them to ordinary products. In addition to the psychological factors already mentioned, brands give consumers the means whereby they can make choices and judgments.
Based on the experiences customers can rely on chosen brands to guarantee standards of quality and service, which reduces the risk of failure in purchase. Smart companies now responsive to the criticisms, in real time and of making sure the brand is consistent and is as good as it can be wherever it shows up, and even after the sale has been made .the
tools the sales people use to sell it, public efforts and follow up customers service all must reflect brand values impart a consistent brand image
SEGMENTATION MARKETING
The first step in developing a segmentation strategy is to select the most appropriate base on which to segment the market.
Geographic Segmentation
In this, the market is divided by the location. The theory behind this strategy is that people who live in the same area share some similar needs and wants and that these needs and wants differ from those people living in other areas.
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Some regional consumption differences can be accounted for by climate. At the same time marketers have observed divergent consumer purchasing patterns among urban, suburban and rural areas. For example if I consider my project case, it is seen that many urban people beer when compared to other rural areas.
Demographic Segmentation
Demographic characteristics such as age, sex, marital status, income, occupation and education are most often used as the basis for market segmentation.
In my study, income, education and occupation plays a major role in consumer preference for beer. Education, income and occupation tend to
be closely correlated in almost a cause-and-effect relationship. Insights on media preferences tend to support the close relationship among income, education and occupation.
Psychological / psychographics segmentation
Psychological characteristics refer to the inner or the intrinsic qualities of the individual consumer. Consumers may be segmented in terms of their needs and motivations, personality, perceptions, learning, level of involvement and attitudes. Psycho graphic research focuses on the measurement of activities, interests and opinions. On their most common form, psycho graphic studies use a battery of statements designed to identify relevant aspects of a consumers personality, buying motives, interests, attitudes, beliefs and values.
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Sociocultural Segmentation
Social class is a potential market segmentation variable. The concept of social class implies a hierarchy in which individuals in the same class generally have the same degree of status, while members of other classes have either higher or lower status. Studies have shown that consumers in different social classes vary in terms of values, product preferences and buying habits.
Use related segmentation
Awareness status encompasses the notion of consumer awareness, interest level or buyer readiness. Marketers have to determine whether potential consumers are aware of the product, interested in the product or
need to be informed about the product. Particularly many people are not aware of difference between granite and marble. So the marketers should make them to understand the product and its characteristics and in what way it is better to other ceramic products.
MOTIVATION
It is the driving force within individuals that impels them to action. This driving force is produced by a state of uncomfortable tension, which exists as the result of an unsatisfied need. All individuals have needs, wants and desires. The individuals subconscious drive to reduce need induced tension results in behavior that he or she anticipates will satisfy needs and thus brings about a more comfortable state.
Motivation is a highly dynamic construct that is constantly changing in reaction to life experiences. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 28
Needs and goals are constantly changing. Needs are never fully satisfied. New needs emerge as old needs are satisfied. Success and failure influence goals. Substitute goals.
According Marlows hierarchy of needs, consumer preference for granite will come under egoistic needs. Inwardly directed ego needs reflect an individual needs for self-acceptance, for self esteem, for success, for independence, for personal satisfaction. Outwardly directed ego needs include the needs for prestige, for reputation, for status, for recognition from others.
PERCEPTION
It is the process by which individuals select, organize and interpret stimuli into a meaningful and coherent picture of the word; perception has strategy implications for marketer, because consumers make decision based on what they perceive, rather than on the basis of objective reality.
Just as individuals have a perceived self-image as a certain kind of person, so, too, do products and brands have images (i.e. symbolic meanings) for the consumer? The perceived image of a product or service (i.e. positioning) is probably more important to its ultimate success than are its actual physical characteristics.
Perceived quality
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Consumers often judge the quality of a product or service on the basis of a variety of informational cues; some are intrinsic to the product (e.g.; color, size, flavor, aroma) while others are extrinsic (e.g. price, store image, brand image, service environment).
In choosing the granite products consumers always use its characteristics such as sustenance against wear and tear, hardness, colors and patterns.
In absence of direct experience or other information consumers often rely as an indicator of quality.
Price / Quality Relationship
Price is considered to be an indicator of quality. One of the dangers of sales pricing for retailers is that products with lower prices may be interpreted as reduced quality.
Consumers imaginary exte nds beyond perceived price and store image to the producers themselves. Manufacturers who enjoy a favorable image generally find that their new product accepted more readily than those of manufacturers with less favorable or neutral images.
The marketers should concern with actual consumer purchasing patterns, with consumers beliefs and opinions concerning their brands and competing brands, and with knowing how important the product is to the consumer. Developing a highly consistent market share of brand-loyal Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 30
consumers is the ultimate goal of marketing strategy. Discovering how consumers learn about brands and become attached to certain brands assist markets in achieving this goal.
Brand equity
Brand equity refers to the inherent value a brand name has in the market place. Marketers are consolidating their brands to enhance brand equity and to encourage brand loyalty in the face of proliferation of private brands. For marketers, the purpose of understanding how consumers learn is to teach them that their brand is best, and to develop brand loyalty.
The consumers search for alternatives is influenced by self-image, interpersonal influences and attitudes.
Each individual has a perceived self-image (or multiple images) as a certain kind of person with certain traits, habits possessions, relationships, and ways of behaving. Consumers frequently attempt to preserve enhance alter or extend their self-images by purchasing products or services and shopping at stores believed to be consistent with the relevant self-image and by avoiding products and stores that are not.
Attitude
It is a learned predisposition to behave in a consistently favorable or unfavorable way with respect to a given object (e.g. a product category, a brand, a service, an advertisement, a retail establishment).
The attitude towards-the-ad models examine the influence of advertisements on the consumers attitudes towards the brand. Internal Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 31
variables like social, cultural, family, communication and persuasion are explained below.
Social class
It is usually defined by the amount of status that the members of a specific class posses in relation to members of other classes. Social class membership often serves as a frame for the development of consumer attitudes and behavior.
Research has revealed social class differences in clothing habits, home decoration, leisure activities and savings, spending and credit habits. Thus astute marketers tailor specific product and promotional strategies for each class target segment.
Occupation is a widely accepted and probably the best-documented measure of social class, it implies occupational status.
Marketers frequently think in terms of specific occupations when defining a target market for their products.
Education is another commonly accepted approximation of social class standing. Generally speaking, the more education a person has, the more likely is his pay and can afford for any expensive product such as granite flooring for his house.
Culture
Culture is defined as the sum total of learned objects, values and customs that serve to regulate the consumer behavior of members of a Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 32
particular society. Culture is dynamic and gradually and continually evolves to meet the needs of society. It is learned as a part of social experience.
Family
Family is a major influence on the consumption behavior of its members; it is also the prime target market for most of the products and product categories. The members of a family assume specific roles and tasks in their everyday functioning. Such roles and tasks extend to the realm of consumer purchase decisions.
Marketers are interested in the relative amount of influence that a husband and a wife when it comes to a family consumption choices. Most husband-wife influence studies classify family consumption decisions as
husband dominated, wife-dominated, joint and automatic. Studies that have examined both the extent and nature of husband-wife influence in family decisions have found that such influence is fluid and likely to shift, depending on the specific product or service, the family structure orientation, and the specific stage in the decision making process.
Communication
Communication is defined as the transmission of message from a sender to a receiver through a channel or medium of some sort. It is a bridge between marketers and consumers and between consumers and their socio-cultural environments.
Consumers decision to purchase or reject a product is the moment of final truth for the marketer. It signifies whether the marketing strategy has Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 33
been wise, insightful and effective or whether it was poorly planned and missed the mark. Thus marketers are particularly interested in the consumers decision-making process. For a consumer to make a decision, more than one alternative must be available.
COMPANY PROFILE
Here is the company profiles of major liquor companies in India
SHAW WALLACE
As one of India' s foremost liq uor manufacturers and exporters with a host of brands that have captured the imagination of alcohol consumers in the country and abroad, we believe it is superior quality that effectively defines and underlines our primary goals.
For the last 116 years, we have carefully cultivated and abided by a rock solid character that has been synonymous with a tradition of excellence setting and upholding the highest standards is it in the manufacture of our products or in our customer focus. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 34
It is our philosophy that one can and need not settle for anything less than the very best. To that end, our customers in India and abroad are treated to a medley of only the finest selection of alcoholic beverages lovingly brewed and packaged under our label.
The world is our playground. Catering to the myriad tastes of liquor lovers in different parts of the globe forms an irresistible challenge that we have risen to time and time again. In the years to come, we at Shaw Wallace aim to explore and conquer potential markets across the world, besides increasing our domestic production in keeping with the ever- growing demand for our products within India.
One can strive for perfection -- but we know there' s a realm that exists beyond. That' s the corne r the members of our organization are taught to reach out for. With a doctrine that stresses on consistent innovation and improvement, we at Shaw Wallace intend to meet and surpass the most stringent standards of international quality in liquor manufacture and export.
As the future dawns on us, we intend carving our very own niche in every nook and cranny of the globe making Shaw Wallace the first name in alcoholic beverages the world over . . .
Our Mission:
To become India' s larges t and most profitable Alcoholic Beverages Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 35
Company and become a global player by delivering the best standards of quality and customer satisfaction
Brands
Shaw Wallace and Co, while constantly creating and unveiling new brands to tap fresh markets, is also aware of the importance of maintaining the impeccable quality and equity building of its existent brands.
Shaw Wallace and Company Limited is perhaps one of the few members of the alcohol and beverages industry in India which reports a sale of 11 liquor bottles every second. While the organization is safely entrenched as one of the liquor giants of the country and by far one of the most promising players in the international arena, Shaw Wallace continues to speak the language of change and development in keeping with changing tastes and trends.
With a view to keep up with the demands of the consumer, Shaw Wallace has re-launched many of its old products like Antiquity, Royal Challenge, Director' s Special (DSP), DSP Black, and Old Tav ern Whisky sprucing them up with revolutionary new packaging. White Mischief vodka and London Lime gin have also undergone a revamp and a re- launch.
From the international portfolio, Shaw Wallace, in association with Kyndal, unveiled a plethora of new products being introduced for the first time in India. The range includes Findlaters, one of Scotland' s most well - known Scotch brands, Vladivar vodka, Veba, UK' s fastest growing ready to drink low strength alcohol beverage and Papillon. A range of Shaw Wallace Bottled in Origin French Wines including red, white and Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 36
sparkling wines and Golden Mist, a range of red and port wines have also been introduced to cater to the the budget conscious Indian consumer.
History It all began with 5 breweries in South India. The oldest of which, Castle Breweries, dated back to 1857. United Breweries, as these breweries were named in 1915 has come a very long way. Soon afterwards, the sight of bullock carts carrying huge barrels or ' Hog' s heads' containing beer became a household sight. These carts wheeled their way to the customers, including British troops, living in and around Madras, Bangalore and the Nilgiris. Almost immediately, the Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 37
Brew from UB became a favorite, especially with the British troops. So began the history of Beer in India. And the history of Beer Division of United Breweries! The company was bought by late Mr. Vital Mallya in 1947, and since then has never looked back. Today each one of the 32,000 Beer outlets in India sells one brand or the other from United Breweries.
CORPORATE PROFILE
The beginnings of what is today The UB Group are rooted in the flagship company, United Breweries Limited, (UBL) also referred to as the Beer Division. Led by Mr. Kalyan Ganguly, President & Managing Director, it has a 40% market share in the country
McDowell Alcobev Pvt Ltd., (MABL), is the new Joint Venture Company in which UB and Scottish & Newcastle of the UK have a 40% stake each, and Mr. Ravi Jain, Managing Director of the company and his team has a 20% stake.
United Breweries Limited, the flagship company of the UB Group, has an association with the brewing dating back over five decades, starting with 5 breweries in South India in 1915. From bullock cart-loaded barrels or ' hogsheads' of frothing ale, the Beer busine ss as gone on to become the undisputed ' king' in the Indian beer market. Here, innovative, creative and aggressive marketing is complemented by a strong distribution network. A management focused on building brand equity on one hand and exploiting it to the hilt on the other. A concerted emphasis on quality. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 38
The Division today boasts an impressive spread of 11 own and 15 contract manufacturing facilities throughout the Country. Quality and hygiene are the key elements of the United Breweries' manufacturing philosophy. To this end, the Central Scientific Laboratory (CSL), headquartered at Ban galore sets standards for all its breweries. Quality Management Systems laid out along the lines of ISO 9000 are strictly adhered to, controlling quality at every stage of production, from raw materials to the end product. Also, besides controlling the production process, the CSL analyses the Company' s beer taken off market shelves all over the Country, the competition' s beers and beers across the wo rld. These beers are tested as per the standards laid down by the European Brewery Convention on 40 different parameters. By these standards, United Breweries' beers don' t just equal, but even surpass, several Dutch and American beers. Its flagship brand 'Kingfisher', has achieved international recognition consistently, and has won many awards in International Beer Festivals. Kingfisher Premium Lager beer is currently available in 52 countries outside India and leads the way amongst Indian beers in the International market. It has been ranked amongst the top 10 fastest growing brands in the UK.
In addition, UBL has also entered into mutli-faceted strategic alliance with Scottish & Newcastle Plc (S&N), an international brewery major, with $6 billion in revenue and a market capitalization of $5.4 billion. This alliance, apart from having a joint venture in India, will allow S&N to market it International brands like Kronenbourg in India, while UBL will utilize S&N' s global network to further glob alize its Kingfisher.
UBL's leading brands
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 39
Kingfisher Premium
Kingfisher Strong UB Export Lager London Pilsner UB Premium Ice Positioned for the young and trendy customers launched in 330 ml frosted bottles in 1998, its unique refrigeration process gives beer a clean, crisp and strong taste
Launched in 1969-70 No.2 lager beer in India Largest selling Lager Beer brand in East India
MABL brands
Sand Piper Lager- A refreshing mild beer with a distinct look and personality. Positioned as a brand of the youth.
Zingaro Strong Beer A strong beer that makes one lose his inhibitions
Mission Statement
To be the recognized leader in our target markets To be the preferred employer wherever we operate To recognize the value of our human assets To be the partner of choice for customers, suppliers, and other creators of innovative concepts
PRODUCTION Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 40
Quality and hygiene are the key elements of the united breweries manufacturing philosophy. To this end, the central scientific laboratory (CSL) at their headquarters at Bangalore is manned by highly qualified scientists and equipped with sophisticated instrumentation. The CSL sets standards for all its breweries. A manual has been developed laying down quality management systems on the lines of ISO 9000. So quality is controlled at every stage of production, from raw materials to the end product. Besides controlling the production process, the CSL analyses the company' s beer taken off market shelves all over the country, the competition' s beers and beer s across the world. These beers are tested as per the standards laid down by the European Brewery Convention on 40 different parameters with particular attention paid to apparent extract, bitterness, color, diacetyl, ethanol, foam stability and haze. By these standards, United Breweries' beers don' t just equal, but surpass several Dutch and American beers
SABmillar COMPANY
The South African Breweries Limited is a holding company invested in and taking management responsibility for a portfolio of businesses, principally engaged in meeting beverage consumers' needs. Beer is the major profit contributor, but an important balance is provided by interests in carbonated soft drinks and other complementary beverages, supplemented by strategic investments in hotels, gaming and selected mass consumer services
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 41
Largest South African industrial company on the Johannesburg Stock Exchange Over 80 000 people employed throughout the Group Market capitalization exceeds R50 billion Fifth largest brewer in the world Products compete internationally in over 40 countries R25 billion invested in total assets Group beverage sales total 60 million hectoliters
FINANCIAL SUMMARY
During the year and the previous year, the group made a number of acquisitions and increased its shareholdings in several subsidiaries. As disclosed in note 29, these acquisitions, with the exception of the acquisition of the Miller Brewing Company in July 2002, were material to individual business segments, but they were not material to the group as a whole. All operations are continuing.
There is no material difference between the results disclosed above and those disclosable on an unmodified historical cost basis.
GROUP OPERATING PERFORMANCE
All of our businesses performed well over the year, and the overall portfolio delivered excellent results. Total lager beer volumes increased 18.9% to 137.8 million hectoliters (hls), and organic lager volumes grew by 3.7%, with growth in all the businesses. Millers performance is Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 42
noteworthy in that the decline in the early part of the year was replaced by growth in the second half, leading to year on year organic volume growth. Europe and Central America recorded organic lager growth of 7.5% and 5.3% respectively and Beer South Africa recorded a third consecutive year of growth, with volumes up 3.4% to 25.3 million hls. Total group beverage volumes of 173.9 million hls were 15% above last years 151.4 million hls (organic growth 3.3%). Turnover, including share of associates, increased by 41% (organic growth 20%, and organic, constant currency growth was 8%).
Earnings before interest, taxation, amortization of goodwill and exceptional items (EBITA) increased 49% to US$1,893 million, and organic, constant currency EBITA increased by 22%, with double digit increases in all of our businesses. EBITA comprises profit before interest and tax (US$1,579 million) before goodwill amortization (US$355 million) and before exceptional items (net credit US$41 million). Information on our operating results by region is set out in the segmental analysis of operations, and the disclosures accord with the manner in which the group is managed. SABMiller believes that the reported profit Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 43
measures before exceptional items and amortization of goodwill provide additional and more meaningful information on trends to shareholders and allow for greater comparability between segments.
The groups aggregate pre -exceptional EBITA margin improved to 15.0% from the prior years 14.1%, with margin enhancement in most businesses as volumes increased and productivity was improved. Beer South Africa retained its EBITA margin at 26.6%, having absorbed launch costs and higher ongoing marketing costs of the new premium brands
introduced during the year, and while Europe increased organic EBITA margin, the reported margin was impacted by the lower current margins of Peroni and Dojlidy. Margins improved in North America as our turnaround programme started to deliver results, and in Central America, reflecting management action to improve our brand portfolios and increase operating efficiencies. Margins at OBI and Africa & Asia improved, continuing the trend of recent years. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 44
The reported turnover for the year ended 31 March 2003 has been restated following the adoption of FRS 5 Reporting the substance of transactions, application note G revenue recognition. The change reduced each of turnover and net operating costs by US$128 million for the year ended 31 March 2003 in respect of the following segments US$65 million in North America and US$63 million in Europe. The reclassifications related to freight costs and distribution costs, respectively. Had the 2004 financial results been prepared on the previous basis, the impact would have been to increase turnover by US$178 million (US$100 million in North America and US$78 million in Europe). There was no
impact on EBITA in either year, however the adjustment does increase the groups reported EBITA margin by approximately 20 basis points. The group recorded net exceptional costs within operating profit of US$26 million, comprising Miller restructuring costs of US$13 million; a US$5 million impairment charge in relation to FMB assets at Miller; US$6 million of reorganization costs in Central America; and US$6 Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 45
million costs associated with the closure of the water bottling plant in the Canary Islands, partially offset by a reversal of US$4 million of the Tumwater brewery closure costs at Miller. Exceptional profits of US$67 million were recorded after operating profit and comprised surplus on the pension fund of a disposed operation of US$47 million; profit on the disposal of trademarks in Appetizer of US$13 million, and the groups share of the profit on disposal of Castels CSD business and brands in Morocco of US$6 million and a brand in Angola of US$1 million. This compares to prior year exceptional costs within operating profit of US$70 million, comprised within Miller of Tumwater brewery closure and impairment costs of US$35 million and integration costs of US$23 million and Central America reorganization costs of US$12 million. A profit of US$4 million on partial disposal of the groups holdings in the Hotels and Gaming group was recorded after operating profit. Net interest costs increased to US$188 million, a 15% increase on the prior years US$163 million. This increase is due primarily to the increase in borrowings incurred regarding the acquisitions undertaken in the last two years, together with the effects of the higher interest rates payable on the fixed debt issued during the year. Interest cover, based on pre- exceptional profit before interest and tax, has improved to 8.2 times. The groups profit before tax increased 81% to US$1,391 million, reflecting the constituent changes referred to above.
The effective tax rate, before goodwill amortization and exceptional .items, is 34.3%, broadly in line with the prior year excluding the 2003 exceptional deferred tax credit. While there is virtually no change in the rate compared to the prior year, the tax charge has increased as a result of higher profits earned, partly offset by impacts of various tax-saving measures introduced during the year. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 46
Mohan Meakin History Of Company YEAR EVENTS 1934 - The Company was Incorporated at Simla Hills.
The Company was formed to take over the business in India of Dyer Meakin & Co. Ltd., which went into voluntary liquidation in September. The Company' s object is to manufacture beers, I.M.F. spirits, abrasive products, yeast, malt extract, fruit juices, carbon-di-oxide gas etc. Presently, the Company is engaged in the production of alcoholic products-whiskies, rums, brandies, vodka, gins and beers and non- alcoholic products - juice, vinegars, extracts, mineral and water and breakfast foods. The company exports alcoholic products, textile fabrics and made-ups, leather garments and consumer durables. 1951 - 1,62,063 Bonus shares issued in the prop. 1:1. 1957 - The Company took over the business of the National Sand Paper Mills (India) Ltd., at Ghaziabad, which was engaged in the manufacture of abrasive products. Its Sword brand abrasives were popular in the market. 1958 - 81,040 Right shares issued at par in the prop. 1:4. 1959 - 1,62,066 right shares issued at a prem. of Rs.2 in prop. 2:5. 1962 - 5,67,232 bonus shares issued in the prop. 1:1. 1965 - 81,033 bonus shares issued in prop. 1:14 upto 31.3.1996, in August 1966, 12,15,497 bonus shares issued in prop. 1:1.
1966 - With effect from 1st November, the name of the Company was changed from Dyer Meaking Breweries Ltd., to Mohan Meakin Breweries Ltd. The name was again changed to Mohan Meakin Ltd., in 1980. 1967 - Mysore Fruit Products Ltd., a Government of Karnataka undertaking became a subsidiary of the Company with effect from 24th March. 1968 - In June, 24,30,994 bonus shares issued in prop. 1:1. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 47
1970 - In August, 36,46,491 bonus shares issued in prop. 3:4. 1975 - The Company entered into a technical collaboration with Tashi Commercial Corporation for bottling of IMFL spirits in Bhutan. This plant was commissioned in November 1976. The Company entered into technical and financial collaboration with Suva Co-operative Association Ltd., for setting up a modern bottle manufacturing glass factory in Fiji. A new company under the name Mohan Fiji Glass Manufacturing Ltd., was registered in Fiji for this purpose. 1978 - Negotiations were in final stages with Zupack Gesellscahft MBH, Darmstadt, West Germany for setting up of a factory in India for the manufacture of packing machines and packaging materials. This packaging system would ensure hygienic and pilfer proof packaging would replace cans and bottles for filling of juices, dairy products, oils and lubricants etc. Management of another distillery in Eastern Bhutan at Samdrupjongkhar was taken over and production was started there. A technical assistance agreement was entered into with Galot Industries Ltd., Nairobi, Kenya for setting up a distillery and glass bottle-making factory in that country. A new company under the name Mohan Meakin Kenya Ltd., was registered in Nairobi. Approval of the Indian Government was received to invest upto 20% of the equity capital amounting to Rs.8 lakhs in the Kenya Company.
The Company entered into technical collaboration agreements with Artos Breweries Ltd., at Ramachandrapuram in Andhra Pradesh and M.P. Beer Products (P) Ltd., at Indore for the supply of know-how to those companies. 1979 - An agreement was signed with the West Germany collaborator. A new company was registered under the name Mohan Zupack Ltd., and was registered in Delhi. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 48
The Royal Government of Bhutan took over the production of potable liquors throughout the country. The Company was providing technical and managerial know-how and marketing of the products. A project report was also submitted to set up a beer-manufacturing factory. A plant for bottling Indian Made Foreign Liquors was added in M.P. Beer Products (P) Ltd. 1982 - Activities in the liquor field in Bhutan were expanded with the addition of Samchi distillery. A new brand of whisky under the name "SPECIAL COURIER" was introduced in Bhutan which was reported to have compared with Scotch Whisky. 1983 - Mohan Breweries and Distilleries Ltd., Chennai with whom the Company had a technical collaboration, obtained a licence for the manufacture of beer. Mohan Breweries & Distilleries Ltd., also set up a plant for bottling IMFL production which was in progress. The Company signed MOU with Macdonald & Muir Ltd. Edinburgh, Scotland (U.K) a Separate Joint Venture company was incorporated under the name and style of Macdonald Mohan Distillers Ltd. The Company also entered into a Memorandum of Understanding with Marie Brizard & Rogers International for the purpose of bottling and marketing of various liquors. Under the proprietary brand name of Marie Brizard. For this purpose a separate joint venture company was floated and the company signed a MOU with Larsen' s S.A. one of the worlds top
five cognac and French Brandy Manufacturers, for the purpose of bottling, distribution and marketing of Larsen' s cognac. 1986 - Though turnover declined only marginally, margins declined steeply due to an increase in fuel and power costs, steep rise in U.P. export pass fee, and high costs involved in promotional activities. The glass containers unit of Mohan Meakin (Kenya) Ltd., was commissioned in May. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 49
1987 - A new company under the name of Mohan Hokke Ltd., was promoted by the Company with Japanese collaboration. 1988 - As at 31st March, the Company held 91.9% of the equity capital (1,29,800 No. of equity shares of Rs.10 each) of this subsidiary. The Company finalized arrangements to dispose of the entire shareholdings in the subsidiary company to Audikeshavulu and his nominees. 1991 - Profitability, suffered due to the necessity of giving rebates and incentives but for which even the turnover would have declined. The Company issued 5,00,000 -14% secured non-convertible debentures of Rs.100 each. These are redeemable at a prem. of 5% after the expiry of 7 years from 5th December. 1994 - New products viz. Highland Queen and 5-year-old Scotch whisky was launched. 1995 - The profits were also lower due to higher sales production and incentive schemes to combat the un-healthy market conditions. Two popular brands namely Highland Queen and Grand Reserve Whisky were launched in the Indian Market. - The Company entered into a collaboration with Kerala State Small Industries Development & Employment Corporation Ltd. (SIDECO), for putting up a hand tools and fasteners complex at Athani in Trichur district of Kerala State. - A new company under the name SIDECO MOHAN TOOLS KERALA LTD., was to hold 49% of the capital and Sideco was to hold 51% SIDECO
Mohan Tools Kerala Ltd., was to act as a mother unit for about 40 guaranteed engineer enterpreneurs. Work was going on as per schedule
Skol Breweries
History Of Company YEAR EVENTS 1969 - The Company was incorporated on 25th September, at Mumbai. The company was promoted Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 50
by Shaw Wallace and Co. Ltd. The promoters also obtained licence free of cost from SKOL in the Company' s title. The object of the company is to manufacture beer. 1971 - Allotted 3,32,500 No. Of equity shares to promoters and 1,50,000 No. of equity shares to SICOM. 4,05,000 No. Of equity and 30,000 pref. shares offered to the public. 1974 - The beer was marketed under the brand name ` HAYWARDS' . 1982 - 3,60,000 bonus equity shares issued in the prop. 2:5. 1983 - Pref. shares redeemed on 20th May 1984. 1984 - The Company concluded a technical agreement with Brauerel A. Hurlimann A.G. of Switzerland and Allied Lyone PLC of U.K. for the manufacture of non-alcoholic beverage and export quality larger beer respectively. 1988 - 7,56,000 Bonus equity shares issued in prop. 3:5. 1989 - The Company launched Drought Beer in Mumbai city on trial basis, which was well received in the market. 1990 - As at 31st March, the Company' s land and buildings were revalued and the net surplus of Rs 73.17 lakhs arising out of it was credited to the revaluation reserves. 1991 - Sales were adversely affected because of high rate of excise duty and extended winter season in Maharashtra, which was the major market for the company' s beer. Profits came under pressure mainly on account of increased interest and depreciation charges. 1992 - The widespread riots during December and January 1993 and consequent depressed market condition particularly in Mumbai and the subsequent transporters' strike in July all affected both production and sales. During the year under review, sales were affected due to high rate of excise duty and extended winter season in Maharashtra. 1993 - As at 31st March, some of the Company' s fixed assets viz., lan d, buildings, plant and machinery and electrical installations were revalued Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 51
and the net surplus of Rs 7.78 crores arising out of it was credited to the revaluation reserve. 1995 - 20,16,000 Bonus equity shares issued in prop. 1:1. The Research & Development unit is having the most modern laboratory whereby regular Research & Development is carried out in the brands, checking the input materials and research on new brands. The production was affected in the first quarter of the current year due to shortage of water. 1996 - The Compay has decided to manufacture can beer by importing automatic canning line of 200 CPM capacity. New technology is being used to reduce the air content in the beer so that the quality of the beer produced from the brewhouse is of the finest quality. 1997 - Skol Breweries Ltd. (SBL) was promoted by Shaw Wallace and Company Ltd. and started its brewing operations in February 1974 under the brand name Haywards. The company had a chequered relationship with its unions in the past with a lockout being declared at its plant in 1984 which lasted for ninety-five days. SBL launched draught beer on a trial basis in FY 1989-90, which was well received in the market. The company declared 1:1 bonus issue consequent to which its equity capital increased from Rs.2.02 crore to Rs.4.03 crore.
SBL is in the process of installing an automatic canning line at its plant with a capacity of 200 CPM. New technologies are being introduced to up-grade the taste of beer-quality to international standards by reducing the air-content in its beer. 1998 - Auto blow down system has been installed for saving steam energy. Modernized Refrigeration Plant is being set up. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 52
Water saving device has been installed at various points to monitor water usage. Lower capacity air compressors were installed wherever requirement of the air is low. 1999 - The Company has a Superannuation Scheme for which the contributions as provided in the scheme are paid to the trustees of the scheme and are charged to the revenue. 2000 - The Company decided to issue 36,11,000 No. of equity shares of Rs. 10 each at a premium of Re. 1 per share on preferential basis to Overseas Transport Co. Ltd. 2002 Board approves to increase the authorised capital by Rs.50 mn by issuing preferential shares to Shaw Wallace Properties. Appoints Mr. Vidhya Manohar Chabria as the Chairperson of the company. Board approves for the allotment of shares to share holders of the company and other companies. BOD approves for the scheme of amalgamation of the company with Morkutir Investments and Trading Co. Ltd. Board approves for delisting of equity shares of the company from BSE.
MYSORE BREWERIES
History Of Company YEAR EVENTS 1970 - The Company was incorporated. The company manufactures beer like ale, draught, porter & layer. 1978 - During the year the company introduced a new brand viz "7 Star Super Strong Lager Beer". The company also manufactures well known and popular brands of beer viz pals, Pals Premium, Knockout, Cobra, etc. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 53
The company is in collaboration with M/s CEREKEM of Denmark. 1981 - MBL set up Pals Distilleries to produce whiskies and other alcoholic beverages 1991 - The company has acquired the shares of the Company "MBL Property Developers Pvt. Ltd." and the latter became the subsidiary of the company. The Company exported seafoods & beer during the year under reference. Efforts are being made to increase the export. 1993 - The Company has been granted a Letter of Intent by Ministry of Industry, Government of India for establishing a brewery in Nalgonda District of Andhra Pradesh. The Directors have formed a New Company in the name and style of MBL (AP) Breweries Ltd. The Company' s subsidiary is M/s. Pals Distilleries Limited, M/s. Pals Food & Beverages Limited and MBL Property Developers Ltd. 1994 - During the year, Andhra Pradesh Government has taken over the liquor trade and formed a Corporation to market the IMFL products in the State. During the year under reference, the Company has issued Bonus Shares in the ratio of 1:1 by capitalising the entire balance of Capital Reserve Account and part of the amount from General Reserve Account aggregating to Rs.54,03,000/-.
1996 - The MBL (AP) BREWERIES LTD, group company has received the extension of its brewery licence in Andhra Pradesh upto November. The KIADB had allotted about 5 acres of land at Kunigal Industrial area, Kunigal. The manufacture of Beer is done with in-house know-how and there is no technology absorption involved. Shri G.NARAYANASWAMY & Shri K.P.SANKARAN Retires by rotation and being eligible they offer themselves for re-appointment. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 54
MBL set up an Rs.1.0 crore mineral water-bottling plant (capacity: 20,000 bottles/days) at Koonigal Hills close to Bangalore city in March 1996. 1997 - During the year, the Company has declared Bonus Shares in the ratio of 1:1 by capitalizing the part of the amount from General Reserve Account aggregating to Rs.1,08,06,000/-. The Company continues to produce the mineral water with the brand name "STREAM" and the product is well received by the market. The Company has come out in the month of May with a public issue of 29,75,000 No. Of equity shares of Rs.10/- each at a Premium of Rs.15/- per share. The Paid-Up capital after the public issue is Rs.6,30,25,000/-. Shri T. Shamanna, Chairman of the Board of Directors of the Company passed away in the early hours of 15th August. He was one of the Directors since the inception of the Company and was Chairman of the Company from the year 1988. Mysore Breweries Ltd. (MBL) sells its beer under the cobra, Pals and Knockout brand names. MBL operates with an installed capacity of brewing 2,50,000 hectoliters of beer. MBL has a distribution agreement with Maison Caurette - one of the major importers of UK for its brands.
1999 - Mysore Breweries Ltd (MBL) has launched a strong beer under the brand name ` Palisade' in the United States. The beer was introduced in both northern and southern California. The lager is being manufactured at Riva Breweries in Belgium under a technical tie-up with MBL. 2000 - The Bangalore-based Mysore Breweries has launched its premium brand beer -- Bengal Premium Lager -- in the UK market. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 55
Mysore Breweries Ltd managing director KP Balasubramaniam has been asked to step down by the new owners of the company, South African Breweries
ANALYSIS AND INTERPRETATION
1) Table1: Table showing beer-drinking habit.
Particulars Respondents Percentage Daily 20 20 Weekly 48 48 Monthly 16 16 Occasionally 16 16 Total 100 100 Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 56
GRAPH NO.1 The habit of beer drinking 20 48 0 10 20 30 40 50 60 1 particulars P e r c e n t a g e
INFERENCE:
This table clearly shows that 10% of the consumers consume beer daily, 38% of the consumers consume beer weekly, 16% of the consumer consume beer monthly and 16% of the consumers consume beer Occasionally
2) Table2: Table showing more often preferred beer drink
Particulars Respon dents Percent age Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 57
Pint 25 25 Knockout 25 25 Kingfisher 30 30 Hay wards 10 10 Royal Challenge 10 10 Total 100 100
INFERENCE: From the table it is clear that 25% of the consumers are aware of the pint, 25% of the consumers are aware of knockout brand , 30% of consumers are aware of hay wards 5000 ,and 10% of them are aware of royal challenge .
3) Table3: Table showing preference of place to have beer
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 58
Particulars Res pon dent s Perc enta ge At home 10 10 Bars/Pubs 56 56 Clubs 12 12 Social gathering 22 22 Sporting events 0 0 Total 100 100
GRAPH NO.3 10 56 12 0 10 20 30 40 50 60 Percentage 1 2 Perticulars Preference of place to have beer At home Bars / Pubs Clubs Social gathering/parties Sporting event INFERENCE: Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 59
This table shows that 10% of them will have it in the home, 56% of them prefer to have it in bars/pubs, 12% of them will prefer to have in clubs and 20% of them will like to have in social gathering. 4) Table4: Table showing awareness of the brands
Particulars Respondents Percenta ge Pint 25 25 Knockout 25 25 Kingfisher 30 30 Hay wards 10 10 Royal Challenge 10 10 Total 100 100
GRAPH NO.4 Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 60
More often prefered beer drink 25 25 30 22 23 24 25 26 27 28 29 30 31 1 Particulars P e r c e n t a g e Pint Knockout Kingfisher Haywards 5000 Royal challenge
INFERENCE: From the table it is clear that 25% of the consumers are aware of the pint, 25% of the consumers are aware of knockout brand, 30% of consumers are aware of haywards 5000 ,and 10% of them are aware of royal challenge .
5) Table5: Table showing awareness of beer brands from different fields
Particulars Respo ndents Perce ntage Sponsored events 15 15 Family/frien ds 25 25 Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 61
ds Advertising 10 10 Tried it yourself 50 50 Total 100 100
It can be noticed that 15% of the consumers are aware of the brands through Sponsored events, 25% of the consumers are aware of the beer brands through family and friends, 50% of the consumers are aware of the beer brands through trying themselves, 10%of the consumers are aware of the beer brands through Advertising. 6) Table6: Table showing alcohol content preferred by drinkers
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 62
PARTICUL ARS
Respond ents Percenta ge Non alcoholic 6 6 Less than 3% 20 20 Bet 3% to 6% 46 46 More than 6% 28 28 Total 100 100
GRAPH NO.6 6 111 20 46 28 0 5 10 15 20 25 30 35 40 45 50 Percentage 1 2 3 4 5 6 Particulars Alcoholic content in beer Non alcoholic Less than 3 3% to 6% More than 6%
INFERENCE:
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 63
From the table it is clear that 6% of the consumer will like non alcoholic beer, 20% of the consumers will like beer with less than 3 % alcohol, 46% of the consumer will like beer with alcohol content between 3% and 6% and only 28% of the consumers will like the beer with more than 6%.
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 64
INFERENCE:
From the table it is clear that 65% of the consumers think that flavor will be one of the deciding factor while choosing the beer, 25% of the consumers think that Image will be one of the deciding factor while choosing the beer, 5% of the consumers think that Price will be the deciding factor while choosing the beer, 5% of the consumers think that Alcohol content will be the deciding factor.
8) Table8: Table showing basis on which drinkers will select beer
Particulars Respon dents Percent age Taste/flavor 42 42 Price 24 24 Alcohol percentage 34 34 Total 100 100
GRAPH NO.8 Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 65
It can be observed from the table that 42% of the consumers will buy the beer because of the taste, 24% of the consumers will buy because of price. And 34% of the consumers will buy on the basis of the alcohol percentage.
9) Table9: Table showing the quantity of beer purchase from the shop/store
Particulars Respon dents Percent age Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 66
dents age Single can/bottle 78 78 6 pack 22 28 12 packs 0 0 24 case 0 0 Total 100 100
GRAPH NO.9 Quantity of beer purchased 78 22 0 0 0 10 20 30 40 50 60 70 80 90 1 Particulars P e r c e n t a g e Single bottle/can 6 packs 12 packs 24 case
INFERENCE: It is clear from the table that majority i.e., 78% of the consumers will buy single bottle or can and only 22% of the consumers will buy 6packs of beer.
10) Table10: Table showing characteristics of an ideal beer
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 67
INFERENCE: From the table it is clear that 35% of the consumer say that ideal beer depends upon the taste, 30% of the consumer say the it depends on the alcohol percentage, 2% of the consumers feel it depends on the calories of the beer, 3% of the consumers feel that it depends on the carbohydrates and 30% of the consumers feel that it depends on the price of the beer. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 68
11) Table11: Table showing that whether drinkers need the advertisement as source to know about the brands
Particulars Respondents Percenta ge Yes 30 30 No 70 70 Total 100 100
GRAPH NO.11 70 30 0 10 20 30 40 50 60 70 Percentage 1 Particulars Necessity of advertising No Yes
INFERENCE:
From the table it is clear that 70% of the customers feel that advertising is not necessary to know about the beer brands and only 30% Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 69
of the consumers feel that advertising is necessary to know about the beer brands.
12) Table12: Table showing kind of beer preferred
Particulars Respondents Percenta ge Light 46 46 Domestic 30 30 Imported 24 20 Total 100 100
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 70
INFERENCE: From the above table it is clear that 46% of the consumers prefer light beer, 30% of the customer prefer domestic and only 24% of the consumer will prefer imported beer.
13) Table13: Table showing monthly amount spent on beer.
Particulars Respondents Percenta ge 100 to 300 62 62 300 to 600 28 28 600 to 1000 4 4 Above 1000 6 6 Total 100 100
GRAPH NO.13 Monthly expenditure on beer 62 28 6 4 0 10 20 30 40 50 60 70 1 Particulars P e r c e n t a g e 100 to 300 300 to 600 600 to 1000 Above 1000
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 71
INFERENCE: From the above table it is clear that 62% of the consumers will spend 100 to 300 monthly on beer, 28% of the consumers will spend 300 to 600 monthly on the beer, 6% of the consumers will spend 600 to 1000 and 6% of the consumers will spend above 1000 monthly on beer.
SUMMARY AND CONCLUSION
SUMMARY OF FINDINGS This chapter consists of findings that are analyzed on the basis of data from the previous chapter
S Majority of the beer drinkers are in the age group of 22 to 27 ages.
S It is found from the study that drinkers spend around 100 t0 300 rupees on beer monthly
S Majority of the consumers responded are from the middle class S From the survey it is found the respondents are aware of the products by trying it themselves. S Brand image plays a major role in the buying decision of beer. S It is found from the study that alcoholic drinkers start their drinking habit from beer and slowly moves towards other alcoholic drinks. S Majority of the respondents rate alcohol content, flavor price are the important while making purchasing decision. S Majority of the respondents will buy the beer in the single bottle or can and only few prefer in 6 packs S Majority of them feel 3% to 6% of alcohol is good for the beer. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 72
S Majority of the respondents will usually have the beer in bar rather in homes. S Majority of the respondents feel that the taste will make the difference between ideal beer and the other beer. S Majority of the respondents will have beer once in week or twice in the week but they do not drink they beer daily.
RECOMMENDATIONS This project is the study of consumer preference beer brand in the bangalore city The main objectives of the study are To understand preferences of consumer towards different beer brands To understand the awareness and usage of different beer brands among people of the Bangalore To make market based suggestions for furthering the growth of beer industry.
Considering the various findings arrived at in the course of the study, the following recommendations are made to encounter the maladies.
1] In the present situation there are number of brands but the price is little bit high so the price of the beer should be such that it is affordable.
2] As the majority of the market is young professional beer companies should produce the beer which suits them 3] as majority of the beer drinkers are moderate low alcohol content so it advisable to have the alcohol content in the beer between 3% to 6%. Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 73
4] as there is restriction regarding the advertising of alcohol products in India the company has to use surrogate advertising effectively. 5] Usually beer drinkers are the beginners of alcohol drinkers and most of the time majority of drinkers will shift to other alcohol drinks so it advisable To beer companies to introduce new drinks so as to retain them in same beer segment.
Consumer preference towards beer brand MPBIRLA INSTITUTE OF MANAGEMENT 74