Digeo take over Of USL

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Business Policy & Strategic Management Prof B.K. Kumar 1/44 LIQUOR INDUSTRY (UNITED SPIRITS LTD) Competitor - Diageo RATAN KUMAR T

Transcript of Digeo take over Of USL

  1. 1. RATAN KUMAR T1/44
  2. 2. STATUTORY WARNING - Consumption of Liquor is injurious to health 2/44
  3. 3. INDUSTRY India is currently 3rd largest market for Branded Alcohol Beverages inthe world Indian Spirits Industry accounted for an estimated 13% of the globalspirits volumes in calendar year 2011 Industry life cycle (growing market) Whisky, Rum and Brandy being a dominant 95% of the market 3/44
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  6. 6. PRODUCTS Vodka & Gin Wine Rum Whisky Scotch Brandy6/44
  7. 7. PRICE Vodka & Gin - 200 - 1500 Wine - 100 - 4000 Rum 800- 3000 Whisky 100 - 3000 Scotch- 500 - 4000 Brandy- 800 - 3000 7/44
  8. 8. PROMOTION F1 Entertainment Sponsoring Fashion events Go Green Initiatives Offers8/44
  9. 9. PHYSICAL EVIDENCE For expensive level people prefer going to five star hotelsand pubs For medium level bars Manufacturing Units Local Shops Outlets9/44
  10. 10. UNITED SPIRITS LTD Company Mission -Driven by the passion to be themost admired global leader in the spirits industry Proud owners of 22 million liquor brands. USL has a global footprint with exports to over 37countriesMarket leaders with 122.75 million cases in a year. 5 year growth rate 12% - 13% Besides Whyte & Mackay and Bouvet Ladubay being100% subsidiaries of USL 10/44
  11. 11. Products SCOTCH WHISKYWHISKY Black Dog Reserve Scotch Whisky Black Dog Deluxe Scotch Whisky Black Dog Centenary Scotch WhiskyBAGPIPER WHISKY Bagpiper gold Directors special Haywards 5000 McDowells Green Label McDowells No.1 Signature Premier 11/44
  12. 12. ProductsBRANDYGIN VODKA Honey Bee Blue Romanov John Exshaw ribbon White Mr ShahMischiefBrandy Vladivar vodka12/44
  13. 13. Place Madhuloka retail outlets Total Spiritz Local wine shops Malls 13/44
  14. 14. Promote Sports Promotion Entertainment Industry Internet 14/44
  15. 15. People 15/44
  16. 16. Process Green Initiatives Royal Challengers Bangalore Service Delivery Sustainability16/44
  17. 17. Physical Evidence UB city ( corporate office) For expensive level people prefergoing to five star hotels and pubs For medium level bars Youth prefers going for pubs Outlets ( e.g. madhuloka, Spirits,Total mall ) 17/44
  18. 18. Financial Performance18/44
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  21. 21. SWOT 21/44
  22. 22. Strength Largest Spirit company By volumes sales 59% Market Share In local Market Market leader Strong Sponsorship Distribution proficiency22/44
  23. 23. WEAKNESS Less differentiation, too many players Not on too many routes as compared to competitors Still has to establish itself on internationaldestinations Collateral23/44
  24. 24. Opportunities Expand by rising per capita consumption Premium sing its product segment24/44
  25. 25. THREAT Operating business internationally opens them to the possibilities of currency value fluctuations that can lead to losses. Managing the financial conditions in todays economy 25/44
  26. 26. Competitors Diageo Sab Millers26/44
  27. 27. DIAGEO Diageo plc is a British multinational alcoholic beveragescompany headquartered in London, United Kingdom. It is the worlds largest producer of spirits and a major producerof beer and wine Diageo was formed in 1997 from the merger of Guinness andGrand Metropolitan. Diageo owned Pillsbury until 2000 when it was sold to GeneralMills. In February 2011 Diageo agreed to acquire the Turkish liquorcompany Mey Icki for US$2.1 billion. In November 2012 Diageo agreed to acquire a 53.4% stake in theIndian spirits company United Spirits for 1.28 billion. 27/44
  28. 28. Products Scotch Whisky Vodka Rum Wine & Champagne 28/44
  29. 29. Place North America Latin America Europe Asia Africa29/44
  30. 30. Promotion F1 (Mc Laren) Entertainment Sponsoring Fashion events30/44
  31. 31. PriceProducts UB Pricing Diageo PricingVodka374775Whisky J&B 1150 1483 31/44
  32. 32. People Dr. Franz Humer Chairman,Diageo Paul Wash CEO Deirdre Mahlan CFO Ivan Menezes COO32/44
  33. 33. Process TQM Cost related campaigns & Initiatives Community Involvement & environment Trust 33/44
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  35. 35. Diageo Revenue13.54%33.26% North America 27.58%Latin America Asia11.58% Europe 14.04%Africa 35/44
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  37. 37. CUSTOMERS (7 P) Price Place Promotion Physical evidence Process Product People37/44
  38. 38. PLACE UB City (head office) Madhuloka Malls Pubs & bars38/44
  39. 39. Products SCOTCH WHISKYWHISKY Black Dog Reserve Scotch Whisky Black Dog Deluxe Scotch Whisky Black Dog Centenary Scotch WhiskyBAGPIPER WHISKY Bagpiper gold Directors special Haywards 5000 McDowells Green Label McDowells No.1 Signature Premier 39/44
  40. 40. ProductsBRANDYGIN VODKA Honey Bee Blue Romanov John Exshaw ribbon White Mr ShahMischiefBrandy Vladivar vodka40/44
  41. 41. PRICEBagpiper Whisky Bagpiper Gold - 500 Directors Special -400 Gold Riband - 1000 Haywards - 2000 Green Label - 800 Honey Bee - 600 John Exshaw - 1000 Mr Shah Brandy - 1200Gin Blue Ribbon - 1500Vodka Romanov -120041/44
  42. 42. PROMOTION Offers Parties Advertisement in pubs Brand ambassador42/44
  43. 43. PHYSICAL EVIDENCE For expensive level peopleprefer going to five starhotels and pubs For medium level bars Local shops Outlets ( e.g.madhuloka, Spirits, ) 43/44
  44. 44. PEOPLE Employees Supply chain member Brand ambassador Researcher Customers44/44
  45. 45. PROCESS Go green issues Cycling rally for players Bangalore royal challengers Arranging BMTC buses for match commuters 45/44
  46. 46. Merger between USL & Diageo46/44
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