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BACARDI ’ S STRATEGIES

FOR THE INDIAN MARKET

Business Strategy 1
News Article we
referred to…

Business Strategy 2
Introduction to Indian
Alcohol Industry

Business Strategy 3
Factors Contributing to
Growth

Business Strategy 4
Barriers to Growth

For New Players

Business Strategy 5
Market
Share
United spirits with about 60 % of market share in
IMFL is the undisputed leader.
Radico Khaitan who entered the IMFL space some
8 years back has already cornered 12 % market
share
Other players include Mohan Meakin (9%), Jagatjit
(8.5%), etc.
International players
Pernod Richard,
Remy Cointreau
Diageo Business Strategy 6
Business Strategy 7
Bacardi Limited – An
Introduction
C o m p a n y fo u n d e d in S a n tia g o d e C u b a in
1862

O n e o f th e la rg e st sp irits co m p a n ie s in th e
w o rld w ith p re se n ce in o ve r 1 0 0
co u n trie s

H e a d q u a rte re d in H a m ilto n , B e rm u d a

Pro d u ct p o rtfo lio in clu d e s m o re th a n 2 0 0


b ra n d s a n d la b e ls o f ru m , vo d ka , w h isky ,
g in a n d te q u ila

M a n u fa ctu rin g fa cilitie s in 3 1 p la n ts a ro u n d


th e w o rld

Po p u la r b ra n d s in clu d e B a ca rd iR u m , G re y
G o o se V o d ka , B o m b a y S a p p h ire G in a n d
D e w a r’ s B le n d e d S co tch W h isky
Bacardi Martini India
Limited
E n te re d In d ia n m a rke t in 1 9 9 8
7 6 : 2 4 JV fo rm e d b e tw e e n B a ca rd i
lim ite d a n d G e m in iD istille rie s to
e n te r In d ia n m a rke t
E xtre m e ly b u llish o n g ro w th
p ro sp e cts in In d ia
P la n s to in tro d u ce a n u m b e r o f its
g lo b a lb ra n d s in In d ia
V o d ka – E risto ff a n d 4 2 B e lo w
Fla vo re d V o d ka – S lo e B e rry a n d
B la ckb e rry
W in e – M a rtin i
Lo o kin g a t o p p o rtu n itie s to a cq u ire
b ra n d s in In d ia
Some recent news items of
Bacardi
 “We have been an acquisitive company
traditionally. And we are now in the market to buy out
brands, and that includes India"
 - Company President and CEO Seamus
McBride to Economic Times
 February 25, 2009


“The world’s largest privately held liquor maker,
Bacardi Ltd, is scouting for potential brand acquisitions
in India and expanding its sales and marketing team to
tap anticipated growth in the local spirits market.”
 - Livemint.com, Feb 16 2009

• Business Strategy 10
Some recent news items of
Bacardi
 “In a bid to tap the growing demand for premium
international spirits in India, global spirits major Bacardi
Martini plans to introduce more brands from its
international portfolio here.”
- Business Standard October 10, 2008
-
-
-
-
• “Bacardi Ltd, the name synonymous with white spirits, is
setting its eye on the Indian whisky market with the
launch of its high-end renowned single malt Scotch
whisky brands such as Dewars and Aberfeldy, thanks to
the raising disposable income of the Indian liquor
consumers.”
 - The Financial
Business Strategy Express, December 24, 11
2008
Strategies
Acquisitions and Buyouts
Buying Brands throughout the country
In talks with Vijay Mallya’s United Spirits to take stake
Market Penetration
Sales around 1 million cases, way behind French giant
Pernod Ricard and even Diageo in India, even after a
decade
Establishing presence in smaller cities, which contribute
70% of total liquor sale
Introduction of major global brands in India
Product Development
Flavoured Vodka
Locally made Martini
Taking up of Whisky Brands
Introduction of new products
Business Strategy 12
The Implications- Hic Hic
Hurray..!!
Thank you! Hic!
Business Strategy 14
Group No 2
 Abhishek Shah – GMAY08IB084
 Kumar Anurag – GMAY08IT021
 Raghuram Gupta – GMAY08WM133
 Shruti Gosavi – GMAY08WM144
 Uday Jain – GMAY08IT053
 Vijay Radhakrishnan – GMAY08IB109

Business Strategy 15