Documente Academic
Documente Profesional
Documente Cultură
Under Guidance of
Mr. Anil Dang (Sales Manager)
Submitted By
Rakesh Kumar Joshi (MBA IIIrd Sem.)
INDEX
Preface Acknowledgement Introduction Historical background of Mohan Meakin Ltd. Organizational Structure Structure of Sales Department Lucknow Unit of Mohan Meakin Ltd. Parent units of Mohan Meakin Ltd. Product Profile Products of Mohan Meakin Ltd. Liquor (Brief Outline) Distribution System Channels of Distribution Joint Ventures Top Ten International Players of Liquor Industries. Competitors Profile Sales Promotion (Concept) Project Objectives Limitations
Research and Methodology Consumers Response Conclusion Quality Control Findings and Recommendations Bibliography Graphical Representation of Datas Consumers Questionaire Retailers Questionaire
PREFACE
The summer training project work has an objective to make management student familiar with real life business situation and give an opportunity to the student to understand the theoretical concept of marketing in practical way.
I am extremely happy to present the report before my respected teacher. The. project report entitled to me is "Product Preference and Consumer Behavior Of Liquor in Lucknow City".
As the liquor market in India is growing at rate of 30% approximate. The competition is selling together day to day. This situation of tough competition and entry of foreign companies in India promoted me to do the project work on this restricted trade of liquor.
The project work was a great challenge for me. It gave me an opportunity to collect and analyse the entire situation.
In the project work I have drawn zonal break up. It includes the preface given by the retailers regarding sales. I have also analysed the 'selling, packaging and consumption of liquor and their perception towards.
He who drinks get drunk, He who gets drunk falls asleep, He who falls asleep doesnt sin, So let us all drink and go to heaven
And when I am dead, dont burry me at all Just pickle my bones in alcohol An amphara of wine at my heart and feat, And then I am sure my bones will keep.
These lines are form goseinny and undergo astrix and Caesar and gift.
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any work would be incomplete unless we mention some of these persons, as an expression of gratitude who made it possible, who's constant guidance and encouragement served as become light and crowned our efforts and success. This has been a great opportunity for me to undergo my summer training project in Mohan Meakins Ltd. (Lucknow). I wish to express my sincere gratitude to Mr. Anil Dang (Marketing & Sales Manager, Mohan Meakins Ltd. for providing this opportunity to pursue the project. My understanding of this subject has been affected most significantly to my project guide Mr. Santosh Kumar Srivastava(Area Sales Manager) & Mr. Mohit Sharma (Area Sales Executive) who provide me his expert advice, inspiration & moral support inspite of his busy schedule. I am also very much thankful to the staff members of the Mohan Meakins Ltd. I learned so many things about marketing & other things related to Liquor industries. It has been the great experience for me to work with them. With this, once again, I would like to give thanks & my best wishes to everyone on Mohan Meakins Ltd.
INTRODUCTION
The use of alcohal as a drink is an old aged story in India as it appears that the techniques for fermentation and distillation was available in the Vedic times. It was then called 'SOMA RASA' and was used not only for invigorating effect but also in worship. Today rot only has the consumption of alcohal been continued but also it is an integral part of the ayurvedic system of medicine. CAREW and Co. Ltd. for the manufacture of RUM set up the first distillary'in the country at Kanpur in 1805 for the army. The technique of fermentation and distillation and blending of alcoholic beverages was developed in our country on the lines of practices adopted overseas practically and particularly in Europe. The distillery industry today consists broadly of two parts. one Potable liquor and Industrial liquor. The potable distillery producing Indian made Foreign Liquor and Country Liquor has a steady but limited demand with a growth rate of about 8% per annum. The Industrial alcohal distillery, an the other hand is showing a declining trend because of high prices of Molasses which is used as substrate for production alcohal. The alcohal produced is being utilized in the ratio of approximately 52% for Potable and the balance 48% for the Industrial use. Over the years the Potable liquor industry has shown remarkable results in the production of quality spirits. The utilization of Ethyl alcohal or Ethanol now popularly known as alcohal for industrial use is a recent phenomenan and its importance came into being towards the end of the second world war, with protection being granted to sugar industry in 1932 . A large number of sugar factories were established in the
country, particularly in Maharashtra and U.P. were irrigation facilities existed for cultivation of sugarcane. This increase resulted in accumulation of molasses, which resultantly caused unmanageable enviournmental problems. At that time the demand for molasses was almost insignificant and the sugar mill's had to incurred some expenditure on removal of this bye-product i.e molasses. For resolving these problems a joint committee of U. P. and Bihar was constituted to explore the possibilities of developing alcohal based industry for the purpose of utilization of molasses. The committee in its report recommended the establishment of distilleries for production of alcohal utilizing molasses as substrate. They also recommended that alcohal produced by the distilleries should be admixed with petrol to supplement motor fuel. The production of alcohal did not only help in solving the rroblems of disposal of molasses. but it also filled up the gap in the demand and the supply of the motor spirit. As the substantial quantity of alcohal after meeting its requirement for manufacture of gasonal alcohal was diverted for the production of alcohal based chemical in different part of the country. The utilization of alcohal for this purpose progressed steadily and a substantial quantity of alcohal produced in the country is now being utilized for the manufacturing of solvents and intermediaries Till a few back a little more then 50% alcoha! produced in the country was being utilized for production of alcohal based chemical but after the decontrol of molasses in the year 1993 for production of chemicals, dyestuff, synthetic rubber, polymer and plastic etc has received a setback.
The company traces its history back to the year 1855, when a brevery was set up at Kasauli by Mr. Edward Dyer and Messro Dyer and company. During the same century another contemporising gentleman named H.G. Meakins, who come from a well known brewing family at Burrton -on- Tent founded Meakin and company. He bought the Shimla and Kasauli Breveries and Dalhausi. Ranikhet, Chaktrata, Darjeeling and built other at Kirkee. Both the firms E. Dyers and co and Meakin and co. continued their activities in separate unit, under the second decade of the 20th century when the two firms joined hands and a new firm was formed under the name of Dyer-Meakin and company in 1935. When Burma separated from India, the company was reformed with its Indian associates under the name and style of Dyer-Meakins Breveries Ltd. The company changed hand in 1950 when its control and management were taken over by the Late 'Padamshree' winner N.N. Mohan as its Managing Director who set up an ambitious Industrial Estate. drive its nomenclature from the name of the founder Late 'Padamshree' winner N.N. Mohan. To mark the contribution of Mohan's, the company name was changed from Dyer's Meakins Ltd. to Mohan Meakins Breveries Company Ltd in 1967. On the passing away of N.N. Mohan in 1969 his eldest son Col. V.R. Mohan took over as Managing Director of the company. He introduced a number of new products that are brand leaders ever today. During his entrepreneurship, he promoted Mohan Gold Water Breveries at Lucknow, Mount Shivalik Breveries at
Chandig8rh cmd Mohan Rocky Spring Water Breveri.es Ltd at Khapoli. Co!. V.R. Mohan was the mayor of Lucknow city. He was also elected as the member of Rajya Sabha in 1972. In the 70th, the manufacturing activities of the company were diversified into other fields under the dynamic leadership of Brig Kapil Mohan (VSM), who become the M.D. of company in 1973 after the tragic death of his elder 'brother Co!. V.R. Mohan. Brig. Kapil Mohan promoted projects of Breveries, Distilleries and Glass factories in Nepal, Bhutan and Kenya prov!ded technical expertise to several Breveries and Distilleries in India. He with his spiritual power supports the cause of worker's welfare and worker's participation in the management of the company. In the year 1982 the word Breveries was dropped from the name of the company to remove the impression that the company is engaged only in Beer marketing. Lucknow Distillery is one of the manufacturing units of Mohan Meakins Ltd. It was set up by the Dyer-Meakin and co. in the historic city of Lucknow situated on the perennia. river Gomti The distillery is housed in the building built about 400 years back by the Nawab of Awadh. It is worth mentioning that Mohan Meakins has provided technical expertise to : 1. 2. 3. The Mohan Gold Water Breveries Ltd. , Lucknow. Mohan Rocky Spring Water Breveries Ltd, Maharashtra. Mount Shivalik Breveries Ltd., Punjab.
4. 5. 6. 7. 8.
Arots Breveries Ltd., Andhra Pradesh Nagaland Distilleries Ltd., Nagaland. Mohan Breveries and Distilleries Ltd., Chennai. Shivalik Kinema Private Ltd., Gwalior. Maharastra Distilleries, Nagpur.
A saga that began over a century and quartar ago continues on its path of service to its nation with dedication, courage and unflinching commitment to quality. Over the year the company has embraced modernity and adapted to changing times. Yet its basic value remains the same.
ORGANISATION STRUCTURE
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BOARD OF DIRECTORS
1. Managing Director Brig. (Dr.) Kapil Mohan, VSM (Retd.)., Ph.D. 2. 3. 4. Executive Director Mr. Rakesh Mohan Dy. Managing Director Mr. Hemant Mohan Financial Director Mr. P.D. Goswami F.C.A., F.C.S. 5. Directors Mr. Vinay Mohan Mr. L.K. Malhotra Mr. J.K. Jain 6. Secretary Mr. H.N. Handa B.Com. , F.C.A., F.C.S., A.M.C.I.A. (London) 7. 8. Bankers Punjab National Bank Auditors A.F. Fergusan & Co. Chartered Accountants New Delhi. 9. Solicitors
J.B. Dada Chanji & Co. New Delhi. 10. Registrar & Transfer Agent M/s Beetal Financial & Computer Service (P) Ltd. Service (P) Ltd. 321-S, Chirag, Delhi Near Shahed Bhagat Singh College, New Delhi-110017 11. Registered Office Solan Brewery P.O. (Shimla Hills) Himanchal Pradesh 173214.
S T A F F
D1 D2 D3 D4 D5
HIERARCHY
SALES MANAGER SALES SUPERVISOR SALES PERSONNEL
Mohan Nagar
Technical Collaboration Units of India Tamil Nadu Andhra Pradesh Maharashtra Punjab Madhya Pradesh Haryana Goa Kerala Distillery, Brevery, Botting Liquor Bottling Distillery, Brevery, Botting Liquor Bottling Liquor Bottling Liquor Bottling Liquor Bottling Liquor Bottling
OUTSIDE OF INDIA
Bhutan Nepal Kenya 3 units of Distillery and Liquor Bottling 2 Liquor Bottling unit of Brevery Distillery, Liquor Bottling.
COLLABORATION
France Larson Company
Kenya
OTHER AREAS OF PRODUCTION Besides sprit Mohan Meakin diversified its product its product range, which is noted below :Fruit Juice Breakfast Food Mineral Water Vinegr Gold Coin Apple Juice Mohans Corn Flakes Golden Eagle Mineral Water Mohans Synthetic Vinegar
The company also exports leather goods, textile and garment besides Whisky, Rum and Beer.
PRODUCT PROFILE
Every liquor company is based on the alcohal fermentation process, where alcohal is the end product of the ethanal fermentation process. Alcohal drinks are a mixture of alcohal or spirit water and minor ingredients known as congeries. The organic name of alcohal is ethyl alcohal .It is a hydroxy! derivative of hydrocarban with basic elements as Carbon, Hydrogen, Oxygen and chemical formula is C2HsOH . The Indian liquor industry can be ana lysed by segmenting its into 3 parts:Country Spirit, Indian Made Foreign Liquor, Foreign Liquor.
Country Liquor:This is unorganized sector and occupying about 71 % Liquor market. Country spirits are disilled, mixes or unmixed with spices or other ingredients in very small quantities 4s to import taste and aroma. These are known under different names in different areas of country such as: PACHWAL THAROAH CHERAGAM WEST BENGAL PUNJAB TAMIL NADU AND KERALA
Indian Made Foreign Liquor :In this category products are Whisky, Brandy, Rum, Gin and Vodka. The developing country like India where petroleum resources are limited utilization of agriculture waste products for development of industries are the significant importance. Sugar industries in this country are second bigger, thousand of tones of molasses containing large quantities of sugar are available in the products.
Foreign Liquor :
In India this names used exclusively for liquors which are imported into the country. This may include various brands of Scotch, Whiskies, French Brandy, Gin, Rum, Vodka, Beer etc. PRODUCTS OF MOHAN MEAKIN LIMITED 1. ALCOHALI PRODUCTS Whiskies Beer Golden Eagle Beer Golden Eagle Deluxe Larger Gold larger Beer (Herbal Beer) Gymkhana Premium Larger Asia 72 Entre upper Strong Black Knight Super Strong Solan No. 1 Special larger Old Monk Deluxe Solan No. 1 Extra Strong Black Knight Deluxe Gurus Special Guru Super Strong Guru Extra Strong Big Ben London Meakins 5000, 10,000 Sun Bird , Lion Larger.
Solan Impericals Summer Hall Colones Special Colonels Premium Golden Eagle Diplomat Deluxe Black Knight Solan No. 1 Kings Castle Meakins John Wyte Old masters Knight Rider M.M.B. Solan No. 117
Rum Old Monk Gold Reserve Old Monk Supreme Old Monk XXX Old Monk White Rum Tusker Black Beauty Stud Rum Tripple Crown.
Brandy Doctors Reserve No. 1 Golden Eagle MMB Black Brandy Brandy DM Doctor Resume No. 1
Vodka
Kalpansky Vodka
Gin
Big Ben London Dry Gin MMB Gin Orange Gin
LIQUORS IN INDIA
Competition and Companies
Liquor market is one of complex market today. The market is optimally saturated by large number of companies pouring their brands in market, leading to customer's likes, dislikes & in turn creating competition among the brands of a particular range. The buyer in liquor market has considerable responsibilities. He has to try to reconcile a vast range of available brands from a wide range of companies & consumer tastes Integrity & strengths of character are essential attributors in addition to the buyer's skill, experience of knowledge of the brands he buys. It is presumed that Indian market demand about 3 crore cases of liquor brands every yea;-. However, exact data is no? available. The liquor made in India is known as Indian made Foreign Liquor (IMFL), besides its country liquor marketing is also operating in which raw wine is sold for poor & backward communities. Govt. controls these markets up to some extent & the retailers share rest of the responsibilities. There is no evident competition & particular company in country liquor market. The rates are fixed &y the Govt. & it is sold on this fixed prices only. The market has a very high sale of beer, which is its maximum sale in summer. There are a number of breveries making beer, including one most famous company Mohan Gold Water Ltd. Haryar,a The alcohaiic contents vary with different beer.
Categories
Lager Beer Extra Strong Beer Super strong Beer 3-5% 5-8% 8 - 10%
Alcohoalic Content
More stiff competition among the major companies IS recorded in IMFL brands. There are about six major companies. which are supplying their products in all India market. The competition & activities are mainly concerned among these companies. The major companies are : Jagajit Industries Ltd. U.B. No.1 (McDowell & Co.) Shaw Wallace & Co. Mohan Meakin & Co. Khodey's Distilliries Herbertson's Ltd. New Delhi Madras Kolkata Mohan Nagar Banglore Mumbai
The companies are manufacturing almost all ranges in IMFL liquor & enjoying good reputation & sales. Besides all companies the wholesale owners having their own retail shop are also fighting neck to neck to with that of other most of the places. The effects of the competitions, companies range from better scheme salesman's incentives. better distribution, more stoking of the products to better credit facilities & good relation with the retailers. Each Co. tries to be better of in all regards so that its sale may become optimum
The competition in different ranges among satisfactory selling brands may be analysed :
Prestigious Brands
Peter Scot Whisky McDowell (P) Royal Challenge Whisky Highland Queen Aristocrat (P) Khodey's Distillery U.B. NO.1 Shaw Wallace & Co. Mohan Meakin's Ltd. Jagajit Industries
The brand selling maximum is McDowelis NO.1 and a reason for this is its lower price in comparision to other brands. The sale of this range is lower then that of the other ranges because of its high prices.
Cheap Range
Due to different in the excise duty and sales tax in different states the price of liquor vary in a great deal. The liquor considered to be cheap range in a segment may up to the middle range In another segment. However, the cheapest IMFL, is also sold in the segment and so this range sometimes divided as : Upper Cheap Range: Middle Cheap Range; Lower Cheap Range: Binnie Range. imperial Satranj Baba Mistress. Victor, Duke etc.
The sale within these ranges varies from market to market Middle Range The sale of this range is quite high in some parts of the country. This range is cheaper than semi-prestigious and forward by lower middle class mainly. The brands available are Bonnie Scot Whisky Old in Whisky Hayward's Fine Whisky Red Knight Whisky Jagajit Industries Shaw Wallace and Co. Khoday's Distillery
Gin :
Almost all the major companies in different ranges manufacturing Gin. In semi-prestigious range Aristocrat Gin is sold maximum by both Dry Gin and Forben Gin. Gin also available in the cheaper range, any Gin can be sold in the market. since that particular range's customers hardly ask for a name However the position Bonnis's Gin is exceptionally good.
Rum :
There are a good %age of consumers who have a larger appetite of rum. The market is full of different brands supplies by different companies in different ranges. Old Monk Rum Hercules XXX Rum Capt. Henry Rum Mohan Meakin Ltd. Khodey's Distillery Jagajit Industries Ltd.
Brandy:
Brandy is either for consumers for medical purpose or is liked by a few selected consumers. There are many markets where Brandy is sold almost in negligible amount. A few brandies available in market are: Aristocrat Brand Golconda Brandy Honey Bee Brandy Jagajit Industries Ltd. Shaw Wallace and Co U.B. NO.1
Intact in all these country plenty of sugarcane is grown and the quality is best suited for Rum Spirit. GIN : Gin is popular distilled liquor. It is sweetened or unsweetened grain spirit flavoured with essential oil of jumper berries. Is is from these that Gin desire's its main flavour In addition some other products including Angelica and Anise, Corrinder's Line, Lemon orange Peel Liquor Cardamom Bitter Almond etc. are also being used. While the major sources of flavours remains jumper berries. Other constituents Are added to give it is kick and taste. BEER : Beer is a breverage made by fermentation of extracts obtained from carbohydrates rich material barley. Among other carbohydrates rich material, barley has properties which land to easier malting and subsequent extraction of fermentable product. Beer cans broadly classified as : (1) Lager Beer (2) Ale
Lager beer are so named because they are laggered or stored after fermentation in cold store house. This process leads to clarification and flavour development 'Jf the final product. In the process of manufacturing these Beers, Yeast, which is settles to the bottom fermented beer. Also on the other hand are top fermented Beers where Yeast that is added floats on the top during fermentation and is removed either by skimming or sucking.
VODKA : Vodka is the spirit resulting out of distillation at very high proof. This result into virtual non-existence of flavour in the resulting spirit which is naturally even after distillation required for probability No flavour can be noticed. Vodka is neither matured nor flavoured.
DISTRIBUTION SYSTEM
Here the company keeps only the units to sell. A distributor or whole seller firstly pays excise duty in the area office. Obtain the necessary permit unit and then place order according to his requirements to the company. These wholeseller are also in fix number as licence holders. These are called TL2 (A) Rs 45 per alcohalic litre. This amount is departed by L T2 to the excise office to get lease order FT-2 demand for 1000 bottles for 650 ml . Each first we concert it into alcohalic litre. 650 ml x 1000 botties = 650000 /1000 = 650 Rs 45 per litre total charge of 650.45 = Rs 29.25000 LT2 sells to retailers and bars. The stock of L T2 is under control of excise office. When L T2 is supplied to the retailers or bars then excise charge is taken as Wenfee to release to its retailers. Then retailers are called as L T2 . Wholeseller supplies in bars also which excise department licences. The distribution channel is: Producer Wholeseller Retailer Bars and Restaurants
CHANNELS OF DISTRIBUTION
Mohan Meakin is a very large organization and has wide range of products. The success of Mohan Meakin is closely related to its strong channels of distribution. Company is selling its products in every part of the country. There it has the countrywise distribution network. The company adopted the non - integrated indirect type of distribution channel. Therefore each member of the channel is in separate business identity, seeking I to maximize in its own profit. Alcohalic products are excisable items controlled by the, govt. Channel members of distribution of the company also works under the rules and regulations of the govt. It is very necessary and compulsory for the every channel member to take the licence from the govt. to perform his or her function. Government gives following five types of licences : FL 1 is given to wholeseller. FL 2 is given to semi wholeseller of distribution. FL 3 is given to products unit. FL 4 is given to Bar holders. FL 5 is given to retailers. FL F.L 1 CSO consumer Or Manufacture Depot --Canteen store -- Customers Dept. of Army (CSO)
In this type of channel distribution, first two members of the channel are common to the previous channel But the next number is different. Here the Bars which have FL5 licence and Canteen Store Dept. of Army are the third and the final number of the distribution channel. In case of bars the agent of depot of wholeseller or depot delivers the required quantity of products to the; CSD of the Army. Final delivery of the final product to the CSD so done by the depot agent Then the product is sole to the qualified buyer from CSD. Sometimes manufacturer directly supplies the products to the bars. Company also exports its products through Export House Delhi. After sale tax excise taxes accounts for the maximum revenue for the state govt. The main part of the excise revenue comes from the licence free which govt. has imposed on various alcohalic products. The distribution channel adopted by the company is:FL3 FL 1 FL2 FL5 Consumer
Manufacturer Wholeseller Dealers or Retailers Consumers Or depot semi wholesaler This is the type of distribution channel of the company to supply tne finished product. In this channel of distribution manufacturing unit which has FL 3 licence supplies the product to the next channel members i.e wholeseller or depot who have FL 1 licence. Company have 35 such depot situated at different places of the country in
such a way that the whole country is covered. Depots are also in separate business identity. A person who is not the employee of the company runs it But the works according to the contract with the company. They have their own agents who book and fulfill the orders of the next channel member. The next channel member is called district wise dealers They also possess the FL2 licence. They have to work in the fixed territory Dealers takes the products from the proceeding channel members in still a bigger asserted lot but net as big as the wholeseller. And then supply 10 the following channel member of his territory in smaller lot. Retailers or FL5 licence holders are the final channel members of the company's distribution channel. After buying the product to ultim3te buyer in still smallasserted lots to suit individual buyers requirements. Company supplies its product to bars and CSD of Army also For this purpose the company adopts another channel of distribution, which is as following :
FL 1 Depot FL 4 Bars
Consumer Consumers
JOINT VENTURES
Mohan Meakin Limited has don joint ventures with vanous companies in order to promote its products in the country and abroad. Some of its joint ventures till date are with : 1. Me Donald and Muir Ltd Edwinburgh, Scotland (U.K). A separate joint venture 'company has been corporate under^ the name Me Donald Mohan Distilleries Ltd. with Head Office New Delhi. 2. Miss Bizzard and Rogers International (World largest liquor manufacturer) located in France for the purpose the bottling distribution and marketing of the Larson Cognac. In present to the economic liberalization policy, Mohan Meakin has explored other strategic tie pups with international Alcohalic Beverages manufacturers for the purpose of not only introducing international brands in the Indian Market but also to export products through their distribution network internally.
COMPETITORS PROFILE
There are three other players in the fields of alcohalic beverages. They are :
Alcohalic products :
Whisky Beer : : Royai Challenger, Director's Special, Old Tavern etc. Haywards 2000, Ha /wards 5000 etc.
Alcohalic Products :
Whisky Beer : : Mc Dowell, Bagpiper, Gold Railand, Kingfisher Kalyani, Black Label
Govt controlled in Tamil Nadu, Karnataka, Delhi 3. Kerala, Gujarat, Manipur, Mizoram & Nagaland are enforcing prohibition. States following the open market mode give good average to the IMFL marketing company to choose the distributor -and to determine pricing. In case of distribution by govt. and through auction powerful distributors exert influence on the margins of the manufacture. Brand-pull plays an important role forcing companies to go in for surrogates. Liquor companies have (;ome out with a self regulatory code (Karnik Code) for liquor aovertisement after some liquor ads drew the wire of Information & Broadcasting Ministry. This code imposes strictures surrogate advertising and timing of the liquor advertising slots. The Beer and the IMFL cater to different segments The lowincome groups in the urban areas and in the rural areas consume country liquor, Middle and Highincome groups of both urban as well as rural areas prefer the IMFL. Govt. controls the pricing and distribution of country liquor. In certain states, distribution of MFL is also controlled. The demand for Bee: is increasing steadily The market for Beer lies mainly in the urban centers. Draught Beer is popular in Mumbai and Bangalore where a large number of pubs are operating. During 1998-99 alcohalic be'verages worth Rs. 870 million were exported, where as in 1980-31 the figure was only Rs. 6 million. The main markets are the UK the USA. the Middle East Australia, Germany and France. Beer and Rum constitutes major part of India alcohal exports An Indian company is even successfully exporting sparking wines, having set up a 100 % export oriented unit for this purpose.
SALES PROMOTION
Concept :It is an action with increase the volume of sales. Many management experts and scholars have defined in promotion their way and experiences; Philip Kotlerr Says; Sufes promotion consists of a wide variety of promotional tools designed to stimulated earlier and stronger market response. They include tools for consumer promotion (sample, coupans, money refund, price off trading stamps, demonstration), trade promotion (buying allowance. free goods, push money, cooperative advertisement), sales force promotion (bonus contests, sales rules). Sales promotion efforts are directed at final consumer and are designed to motivate, persuade and remind them of the goods and services that are offered. Sales person adopts several technique for sales enhancement.
Objective :
Sales Promotion objective is consists with marketing objectives. However, they may vary with the 3 type of target market and points of channel. Me Carthy says; "The objective of sales promotion are to Inform. persuade or remind consumers of the company's Marketing Mix" In spite of the several objective there are three aspects,
Informing :Informing is to educate the consumers about the products. They must have aware about product offered by the producers. They must be informed of a new product and told that the new product work better than all other existing products. Persuading :Sales person persuade consumer to buy products. They develop or reinforce a favourable set of attitudes and influence their buying behaviour they supply comparative information on various products so that consumer may be willing to purchases the product Remindings: Leads the firms to reinforce the previously. satisfactory behaviour of the customer Reminding the consumer of their past satisfaction will persuade them to say with the product and prevent them from shirting to competitors.
PROJECT OBJECTIVE
Any project must have clear CUT objective and also it must be effective. The main objective of the project is to tell that where are and where you have to go. if the objective is clear started and understood, then half of the problem is solve. Keeping the view in mind the main objective of the report is as follows: To give idea about the market size of the liquor in the city and zonal break up of sales figure in each category of consumption. The expectation from the liquor company by retailers. Under what condition retailer will help in pushing up the sale of the particular company's product. What are the consumer preferences In the consumption of liquor? What are the promotional techniques applied by other companies and Mohan Meakin Ltd. How the consumer come to know about the brand of liquor? What are the other techniques applied to push its sales. How much sales promotion techniques companies are effective in the market.
LIMITATIONS
The limitations of project work are as follows : The study is limited because every people is not the consumer of liquor. Geographically. it is very difficult to cover each and every person who consumes the liquor It is a restricted trade. It is specially treated as a bad habit. The Government also poses different type restrictions on this trade. The retailers do not want to reveal real data about sales. Sometimes they are afraid of our intentions and do not believe surveyors like us. The study is based on primary data only.
The study is only on the figure of regional demand because the demand and sales in different categories of liquor have different demand and sales pattern in different seasons.
The number of retail shops of liquor are limited in a city so as it was practically impossible to have a big sample size. Also consumer's behaviour and attitude comes in the way of survey.
Survey :
The process of selecting information from people Personal interview is mainly the formal data collection either may be structured or unstructured, direct or indirect.
Observation :
This process is nothing but recording information about people and their behaviour without asking any specific questions. PROBLEM IDENTIFICATION : On making the initial survey on sales promotion strategy applied by the company; it was found that medium range brand is popul3r among consumers. But it was found that non of the brand of Whisky of Mohan Meakin is popular and highly reliable among consumers. Though it is loaded in its Old Mank Rum that is most popular but always in short supply. So I found that by selling and marketing medium range whisky of the company is the main problem and I decided to survey on this range of whisky in the market. QUESTIONAIRE METHOD : In survey mode of data collection is Through questionnaire Questionnaire is used as structured, standerdised format of data collection to record urban response to
question if it is utilized. When population is large generally questionnaire is used to record consumers awareness, attitude, opinions and present behaviour and to make. interview to sales person and consumer. PRACTICAL ASPECT : Our research methodology in survey method is to obtain the expensive and clear data to separate questionnaire which were constructed for sales person. They are interviewed about the sales promotion method applied by the other companies. Second was consumers questionnaire in which consumer's work was interviewed about the drinking pattern and weather they are aware of any sales promotion scheme; used by the company. RESEARCH DESIGN : There are generally two types of research design; Exploratory Research Descriptive Research I have used exploratory research to discover the new promotion strategy to enhance the market of Mohan Meakin liquor products
DATA COLLECTION METHOD : This method is used to collect data in the form of primary sources as the need of the project. In Lucknow city I have make survay through my formatted questionnaire SAMPLING PLAN : I have surveyed 25 retails outlets end 110 consumers for collec~ing my data to make my work simple.
During the field operation I took all possible efforts to minimize the errors. So wrong information cautions >ire taken at every step of the questionnaire and sufficient time was given to respond.
Consumers Response
Consumer belonging to the age group : Age 15-30 30-45 45-60 60- above No. of People 41 37 22 10 %age 37.27 33.63 20.00 11.00
Interpretation :Most of the consumers are about 15-30 years old who prefers whisky that is about 37.27%.
Most of the consumers of whisky belongs to the middle and higher income group (34.54%).
Interpretation: Most of the consumers influenced by the name of the product (50.9%).
Analysis of Occupation:
Age Employed Business Unemployed Retire No. of People 30 16 55 9 %age 27.27 14.54 50.00 8.18
Interpretation: Most of the consumers of liquor product come to know about the brand name through their friends (39.09).
Analysis of Occupation :
Age Employed Business Unemployed Retire Interpretation: The result shows that most of the Whiskly users belongs to unemployed group (50%). No. of People 30 16 55 9 %age 27.27 14.54 50.00 8.18
Media Performance:
Age Television Cinema Audio Magazine Newspaper Interpretation: According to the data most of the users influence by television and magzine (45.4% and 22.72%). No. of People 50 10 10 25 15 %age 45.4 9.09 9.09 22.72 13.63
CONCLUSION
In my study on sales promotion of whisky of Mohan Meakin Ltd., 1 have come to know the following conclusions :
Mohan Meakin Ltd. manufactures different brand of whisky as Black Knight, Diplomat Deluxe, Solan No117, . Company manufactures other alcohalic products as Rum, Gin, Beer, Brandy I Vodka and non alcohalic juice.
The company has a market share of the Indian alcohalic market. The main selling product of the company is Old Monk (Rum) which is of short supply, mainly in CSD. Company has the nice staff in its all organization. Company has no marketing department in its sales department.
QUALITY CONTROL
After making the people aware about the Mohan Meakin range of whiskies, the next: steps to make the qualities of the whiskies Lip to the requirment by the consumer e.g In case of the Solan Not whisky most of the consumer do not preferred it by its poor taste in all the other ranges of whiskies of Mohan Meakin. It is important for company to remain in touch with consumer constantly for feedback related to their product. Sales force personnel to keep the company abreast of the activities of its competitors so that the counter strategies can be formulated and launched at the right time and place. This method will help the company to increase their brand awareness so there is a better interaction between the consumer and company personnel. After production and bottling of alcohal there are several decisions taken relating to the products : 1. Branding :- Brand means a term. sign, symbol, design or a mix there have used to identify the product of are company and to distinguished it from the competitive produCts. Mohan Meakin believes in multibrand for its product. It means that the company develops more then one brand in the same product category There are several reasons to adapt the brand for its product it means that the company develops more then one brand in the same product category. There are several reasons so adapt the multibrand strategy,
The first and main reason to adapt this strategy is that the company produces the alcohol of different strength, so different brand name are required for each strength of alcohal
The organization has several manufacturing units in different part of the country and the different units produces the same products. So different brands are required to preserve the separate identity of the unit. This is the second reason to adapt the multibrand.
2.
Bottling:- Alcohal is liquid in nature. Hence. bottles are required to contain it. These bottles are made of glass and have beautiful shapes. The bottle's holding the alcohal is the product immediate container and the primary package. For bottling the company has fully automatic, semi automatic, and manual machines. At automatic machines, the company bottles the Old Monk Rum, the market leader and on semi automatic, the company bottle the Diplomat Deluxe.
3.
Labeling :- It is very important to label the products. Mohan Meakin also labeled its products very efficiently. Company develops and designs its label; it is a piece of paper attached to the primary bottle, it contains a lot of information about the product, regarding strength of the alcohal, promotion appeal. brand name, companies or breveries name price, symbol, quality is written on the lable of the particular company.
4.
Packaging :- A package is a wrapper or container in which a product is enclosed and sealed. The package of the Mohan Meakin's alcohalic products includes the two level of packaging i.e primary packaging and secondary packaging. The primary package is that in which the particular brand of the company is kept. This contains the label and the total information about the company. The material or package that protects the primary package is the secondary package. This provides the additional protection to the primary package and bottles. The package are according to the weight and size of the product
5.
Pricing :- Price of the product is the value of the product attributes expressed in monetary terms which consumers pay or expected to exchange. Pricing of the alcohalic products largely depends on the govt. policies. Alcohalic products are fully excisable items. The top management set prices of company's alcohalic products: several factors are taken into account by the company s top management while setting the price. But product cost is the main constituent. Company use the mark up pricing method. Companj chooses this method because it wants enough return on the investment end efforts
6.
Marketing:- It is to bring out the product in to the market through several distribution channels; and to introduce to the consumer through advertising, publicity and sales promotion.
Company has 35 depots all over the India and then many dealers and retailers are liked to it. For sales promotion company has many funds for advertisement market research and publicity.
Sponsoring some important event like national championship of any sports to nake the promotion of the company. This type of promotion also creates a good image of the company as once done by Director's Special of Shaw Wallace on sponsoring the cricket match between India and England.
The most important way of promotion is the display of The posters and dangles of the brand of the Mohan Meakin at the retail shop. The display
must be eye catching as it is the final way to attracting a consumer towards its products. These all promotional scheme will definitely help the company to increase the market share.
BIBLIOGRAPHY
The following books and periodicals , articals from various newspapers, web based newspapers, websites have been consulted for writing up to this project. Books : Marketing research (Dr. D.D. Sharma) Research Methodology (Dr. Elhanse) Consumer Behaviour (Leon, Leslie Lazer) Periodicals Business India Business World Websites and Web Zones http ://www.hinduonline.com www.google.com www.thedistillary.com surf.quick.to/www (for achieves etc.) (for searching etc.) (for alcoholic references) (for searching to search engine)
31%
35% 30% 25% 20% 15% 10% 5% 0% Taste Strength Brand Name Price 0% Packaging 8%
Easy available
Percentage
7%
Black Knight
Solan No. 1
Colonels Special
Percentage 100% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Alcoholic Non-Alcoholic Mineral Water Snakes 20% 7% 9%
Percentage
19% 4%
55% 22%
For enjoyment
Forget Sorrow
Percentage
47%
27%
24% 20%
Very Popular
Popular
Average
Non-Popular
Percentage
17%
3%
53% 27%
Poor
Average
Good
Above
Inference : It has proved to be the least popular brand among the major brand of whiskies of Mohan Meakin Ltd., Only 18 out of 40 respondents have ever tasted it out of which 63% found its taste poor, a mere 3% found its taste above average and a neglibible 2% found its taste to be good.
Percentage
24% 46%
28%
2%
Poor
Average
Good
Poor
Inference : It is the non popular brand. It has the least popularity percentage. Only 18 out of 110 respondents have tasted it out of which 58% found its taste poor, 35% found its taste average, 2% found its taste average and 30% founded the poor taste. Many of the consumers were of the opinion the this brand has no market and they have never heard it of its name.
Percentage
11%
7%
48%
34%
Poor
Average
Good
Poor
Inference : It is also not the popular brand of whisky of Mohan meakin Ltd. Only 48% out of 110 found its taste poor, 11% found its taste to be average, and only 7% of respondents found its taste to be good. This brand is having a rought taste thats why it is popular among army personals. So this brand is mainly supplies supplies to CSD.
Percentage
40% 35% 30% 25% 20% 15% 10% 5% 0% Above Poor Good 13% 24% 25%
36%
Average
Inference : Most of he respondent were of the opinion that they choose the Black Knight as substitutes when his favorites brand is not available. It shows the low popularity %age of 36%.
CONSUMERS QUESTIONNAIRE
Name : Occupation : 1. 2. Age : Monthly Income :
Which brand of whiskies do you often use ? You preferred the brand because of : (a) Quantity (d) Avaialbility (b) Brand (e) Others (c) Price
3.
Give me your opinion about the brand of whisky that you know kindly the following brands ; (a) Very good (d) Poor (b) Good (c) Average
4.
Which product category of liquor do you used ; (a) Rum (d) Beer (b) Whisky (e) Vodka (c) Gin
5.
From where did you come to know about the brand of whisky that you purchase ? (a) Advertisement (c) Friends (b) Co-workers (d) Relatives
6.
Approximately how bottle of whisky you have used last month ; (a) 0-5 (b) 5-10 (c) 10-15 (d) 15- above
7. 8.
Which media do you prefer most ? What is the main reason of having whisky ? (a) Enjoyment (b) For giving company to friends (c) To celebrate some special occasion (d) Any other
9.
What is you opinion about the price of different Mohan Meakin Brands of whiskies; (a) Quite costly (b) Costly
Retailers questionnaire
Retailer Name : Shop Address 1. 2. 3. 4. 5. 6. 7. 8. 9. Which category of liquor do you deals in : Which brand and type of whisky do the consumers wants the most ? Which brand of whisky do you consider is the best? Please tell about the order of important whisky selling ? Which liquor company representatives visits on the shops ? Have you got any gifts or incentives from company? How many times they gifted you in the year ? Do you prefer to sell mohan Meakin products ? You would sell product if you get ? (a) Free Gift (c) improved Quality (b) Incentives (d) Low price.