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Transcript of Jitesh Project
SHRI RAMSWAROOP MEMORIAL GROUP OF PROFESSIONAL COLLEGES
LUCKNOW
SUMMER TRAINING PROJECT REPORT
ON
“SALES PROMOTION OF LIQUOR BEVERAGES & FRUIT JUICE OF MOHAN MEAKIN LTD.”
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
TO GAUTAM BUDDHA TECHNICAL UNIVERSITY , LUCKNOW
FOR THE SESSINON 2011-12
Under Guidance of : Submitted by:Shilpi mam Jitesh KumarLecturer Management department Roll no:-1012270068SRMGPC,Lucknow M.B.A. 3rd Semester
A CKNOWLEDGEMENT
1
I express my gratitude to all the people who give their help and support for completing the
project on “SALES PROMOTION OF LIQUOR BEVERAGES & FRUIT JUICE OF
MOHAN MEAKIN LTD.”. I take this opportunity to extend my sincere thanks to Mr. Mohit
Sharma (Marketing Officer, Mohan Meakin) & All staff members of Mohan Meakin Ltd. for
sharing his knowledge and guiding us when needed.
From the very beginning to the end of our training period Mr. Ram Shankar yadav (Area
Interpretative) had been a continuous source of inspiration and shared with us his years long
experience of the market, providing to be very fruitful in the completion of this project.
They showed us the very realities of the market and how the market differs from the
theoretical world.
I am also thanking Mrs. Shilpi Bajpai Mam Lecturer of SRMCEM, Lucknow.
At last but not the least I want to thanks my parents and all my teachers & friends for their
valuable co-operation and support, which made the completion of the project easy.
Thanking you Jitesh kumar
M.B.A. 3rd Sem.
SRMCEM
2
PREFACE
In every management institute it is essential to undergo a project in an organization.
It’s my privilege to do a project work in Mohan Meakin Limited, a most reputed distillery in
India.
The summer training projects gives the opportunity to management students to
become familiar with the real life business situation and also gives opportunity to the student
to review their theoretical studies in practical way.
The topic of the project was “SALES PROMOTION OF LIQUOR BEVERAGES
& FRUIT JUICE OF MOHAN MEIKENS LTD.”
The liquor market in India is growing day by day and competition too. Since foreign
companies have also increased their action in India.
These circumstances encouraged me to do the project on this topic. The project work
was the great challenge for me because now I am doing and learning every thing practically.
I surveyed the customer’s requirements and expectations from the product and views
of retailers. I also examined the selling, packaging and consumption of liquor. This project
will really be a successful project if it can throw some light on the areas where Mohan
Meakin can improve.
3
TABLE OF CONTENTS
ORGANIZATIONAL CERTIFICATE COLLEGE CERTIFICATE ACKNOWLEDGEMENT PREPHASE
PART:- I
1. INTRODUCTION 2. HISTORICAL BACK GROUND 3. ORGANIZATIONAL STRUCTURE
I. Organizational ChartII. Board of Director’s
III. Sales staff Structure IV. Lucknow Unit
4. PRODUCT & SERVICES OFFERED- BY ORGANIZATION
5. PRODUCT PROFILE I. Kind of Alcoholic Product
II. Manufacturing Process III. Product LineIV. Introduction of Industry
6. SERVICES I. Distribution Channel
II. Quality Control III. Sales Promotion
PART:- II
7. EXECUTIVE SUMMARY8. PROCESSING AND ANALYSIS OF DATA
I. Objective of ResearchII. Research Methodology & Research Process
III. Detail of Research Design & Data Collection IV. Selection of Survey technique & Joint VentureV. Brand of Various Company
9. RESPONSE OF MARKET SURVEY CONDUCTED DATA ANALYSIS & INTERPRETATION.
I Sales of ProductII Base of Purchase
III Consumer Age GroupIV Analysis of Computation of consumer V Reason for preferring & Particular Product
VI Media Preference of the Consumer
4
VII Reason for Taking Alcohol DrinksVIII Frequency of Drinking
IX Size Preferred by PeopleX Market Strength
10. Limitation 11. Suggestions 12. Conclusion 13. Bibliography14. Anexture
I. Questionnaire Construction II. Questionnaire
15. List of Retailers Shop
5
PART 1
6
INTRODUCTION
Use of alcohol as a drink is not new in India. The techniques for fermentation and
distillation were also available in ancient time. (Vedic time) The products, which had been
used at that time for worshiping was known as “Soma Rasa”.
At present alcohol has its own importance in the Ayurvedic system of medicine
CAREW & Co. Ltd. Set up the 1st distillery for manufacturing of Rum at Kanpur (U.P.)
in 1805 for Army. The techniques of fermentation, distillation and blending of alcohol
beverages were developed in our country are greatly influenced by the practices adopted
overseas practically and particularly in Europe.
At present we can divide the distillery industry in two parts 1st potable (drinkable)
and 2nd Industrial alcohol. The former one producing IMFL (Indian Made Foreign Liquor)
and country liquor has a constant demand with a growth rate of about 8.25 annually.
On the other hand due to the high price of “Molasses” the graph of Industrial alcohol
has a downward bend because Molasses is invariably used as substance for production of
alcohol. The alcohol produced is being utilized in the ratio of approximately 52% for
potable and the approx. 48% for industrial use.
The potable liquor industry has been showing remarkable results in the production of
quality spirits for many years. The Ethyl Alcohol or Ethanol which is popularly known as
alcohol which has been regularly used by the industries had come into existence at the end of
the 2nd World War and sugar industry got protection in 1932 and large no. Of sugar factories
were established in the country, particularly in U.P. and Maharashtra where all facilities for
irrigation were available for cultivation of sugarcane.
There was only one way to solve this problem and that is to develop the alcohol based
industries for the purpose of utilization of Molasses and for the implementation a committee
of U.P. & Bihar was consulted.
7
The committee in its report suggested the establishment of distilleries for the
production of alcohol utilizing molasses as substance. Alcohol can also be mixed with
mineral products (Petrol) to supplement motor fuel so the product of alcohol did not only
help in solving the problems of disposal of molasses but it also bridge the gap in the demand
and supply of motor spirit. As a substantial quantity of alcohol after meeting its requirement
for manufacturer of Gasohol (Gasoline) alcohol was diverted for the production of alcohol
based chemical in different parts of the country. The utilization of alcohol for this purpose
progressed steadily and a substantially quantity of alcohol produced in the country is now
being utilized for the manufactured of solvents (thinner, spirit) and intermediates.
About 50% of alcohol produced in the country was being used for the production of
alcohol based chemicals just few years back but in the year 1993 for production of chemicals,
dyestuff, polymers, synthetic rubber and plastic etc. after the decontrol of molasses.
Mohan Breweries & Distilleries Limited (MBDL) is one of the leading manufacturers
of Indian Made Foreign Liquor & beer products in India. MBDL was incorporated in 1982 in
technical collaboration with M/S Mohan Meakin Ltd, Ghaziabad, India who are amongst the
pioneers in liquor manufacturing with over 100 years of experience. MBDL has also power
generation units, generating power using non-conventional energy sources for their captive
usage.
8
Historical Background
The company traces its history back to the year 1855, when a brewery was set up at
Kasauli by Mr. Edward Messro Dyer@co. During the same century another gentleman
named H.G. Meakin, who came from well known brewing family at Burton-on-Trent
founded Meakin@com. He bought the Shimla@Kasauli Breweries@Dalhousie, Ranikhet,
Chakrata, and Darjeling and built other at Kirkee. Both the firms E.Dyre@com. &
Meakin@com. continued their activities separately until, under the second decade of 20th
century when the two firms joined hands and the new firm was formed under the name Dyer-
[email protected] 1935 when Burma separated from India, the company was reformed with its
Indian associated under the name and style of Dyer-Meakin breweries ltd.
The company changed hand in 1950 when its control and management was taken over
by the late “PADAMSHREE” winner N. N. Mohan as its Managing Director who set up an
ambitious industrial complex at Mohan Nagar, Ghaziabad. The Mohan Nagar industrial
estates drives its nomenclature from the name of its founder late “PADAMSHREE” winner
N.N. Mohan to mark the contribution of Mohan’s the company name was changed from Dyer
Meakin Breweries Ltd. to “Mohan Meakin Breweries Co. Ltd. in 1967.
On the passing away of N.N. Mohan in 1969 his eldest son V.R. Mohan took over as
managing director of the company. He introduced a number of products that are brand leaders
even today. During his entrepreneurship he promoted Mohan Gold water breweries at
Lucknow, Mount Shivalik Breweries Ltd. at Chandigarh @ Mohan Rocky spring water
Breweries at Khapoli. Col. Mohan was the mayor of Lucknow city; he was also elected as
member of Rajya Sabha in1972.
In the seventies, the manufacturing activities of the company were diversified into
other fields under the dynamic leadership of Brig. Kapil Mohan (VSM), who become the
managing director of the co. in 1973 after the tragic death of elder brother Col. V.R. Mohan.
9
Brig. Kapil Mohan promoted projects of breweries, distilleries and Glass factory in Nepal,
Kenya and Bhutan and provided technical expertise to several breweries and distilleries in
India. He with his spiritual power supports the cause of workers welfare and workers
participation in the management of the company.
In the year 1982 the worker “Breweries” was
dropped from the name of the company to remove
the impression that the company is engaged only
in the beer making. Lucknow distillery is one of
the manufacturing units of Mohan Meakin Ltd. It
was set up by the Dyer Meakin@Com. in the
historical city Lucknow on the perennial river “
Gomti ”. The distillery is housed in the building
built about four hundreds years back by the
nawabs of Awadhs. It is worth mentioning that
Mohan Meakin has provided technical expertise
to-
Mohan Meakin Water Breweries Ltd., Lucknow
Mohan Rocky Spring Water Breweries Ltd., Maharashtra
Mount Shivalik Breweries Ltd., Punjab
Artos Breweries ltd., Andhra Pradesh
Nagaland Distilleries, Nagaland
Mohan Breweries & Distilleries, Madras
Shivalik kinema Pvt. Ltd., Patna
Golden Drinks
Pvt. Ltd.,
Gwalior
Maharashtra Distilleries , Nagpur
10
OLD Monk, the world's third largest selling rum brand, is under pressure with sales declining
for two successive years, 2002 and 2003. This comes at a time when its main challenger in
the domestic market, McDowell's Celebration Rum, posted two-digit growth in the same
period to emerge as the fifth largest selling rum in the world, according to the US-based
global drinks digest, Impact International.
The latest figures released by the widely respected Impact International shows that Old Monk
has slipped from 8.2 million cases in 2001 to 7.8 million cases in 2002 and dropped further to
7.2 million cases in 2003. The volume decline from 2001 to 2002 was about 5.5 per cent,
while the slip from 2002 to 2003 accelerated to 6.7 per cent. Old Monk, owned by Mohan
Meakins Ltd, is the third largest selling rum after Bacardi with 19.7 million cases and
Tanduay with 12.9 million cases. Diageo's Captain Morgan comes fourth in the pecking order
followed by McDowell's Celebration Rum.
In fact, Celebration Rum is the fastest growing among the top five rums with annual
depletions vaulting from 2.7 million cases in 2001 to 4.1 million cases in 2003, according to
Impact. This brand from the world's fourth largest spirits marketer, UB Spirits Division,
reported 22 per cent growth to touch 3.3 million cases in 2002 and then bettered it with 24
per cent rise to reach 4.1 million in 2003. Captain Morgan is the only other brand in the top
five to make any impressive gain when its volume sales went up by 9.5 per cent to cross 5.6
million cases in 2003 from 5.1 million cases in the previous year. Bacardi reported a
moderate growth, while Filipino rum Tanduay remained almost stagnant.
Old Monk has been the biggest Indian made foreign liquor (IMFL) brand for many years. The
88-million-cases strong IMFL market is dominated by whisky flavour and Old Monk's
leadership is mainly due to its cult status. It is widely seen as a recruit brand for consumers
upgrading to hard spirits and also enjoys significant clout in the CSD channel meant for
armed forces. If its decline continues unchecked, the brand is in danger of surrendering its top
slot in the IMFL list to UBSPD's Bagpiper Whisky. The industry observers attribute Old
Monk's lacklustre showing to lack of efforts to shore up its sagging brand equity.
"There has been no strengthening of the brand of late even though the residual equity of a
brand like that will be phenomenal," industry observers said. Old Monk is the only spirits
brand to figure in the celebrated ad guru Ian Batley's list of potential Great Indian Brands,
which could tap the $550-billion world market. In recent years, Old Monk, known for its
11
brand strength of toughness, had resorted to audacious price cuts in the State-controlled south
Indian markets to drive volumes.
Established in Calcutta in 1886, Shaw Wallace bears a
legacy that is drenched in the spirit of India for the last
116 years. The company came into existence at a time
when the country was in the thick of its struggle for
freedom against colonialism. It was an era of
cataclysmic change, powered by the crystallization of
the social, political, cultural and economic ideologies
that would define the very future of India.
The Indian Nationalist movement came to the fore under the leadership of W. C. Banerjee in
Bombay barely a few days after Shaw Wallace was founded. If 1886 marked the inception of
the remarkable Rama Krishna Mission by Swami Vivekananda following the demise of one
of the greatest Indian saints, Ramakrishna Paramhansa it also witnessed the release of
Rabindranath Tagore's literary masterpiece Kari-o-Komol. Set against a backdrop of
changing ideas and structures that governed India's germination into an independent entity,
Shaw Wallace after a modest beginning blossomed into one of the forerunners in the alcohol
and beverage industry.
ORGANIZATIONAL STRUCTURE
12
MOTTO OF MOHAN MEAKIN LTD.: -
TRADITION, CRAFTSMANSHIP and INTEGRITY are the three pillars in
which the wide edifice of MOHAN MEAKIN LTD. is standing.
Company Works With a single motto-
“EXCELLENCE WITH ECONOMY”
Meaning of staff for MOHAN MEAKIN family: -
S = Sincerity And Loyalty To Brig. K. Mohan
T = Tact
A = Awareness
F= Fact
F= Figure
TEAM-
T = Together
E = Enthusiasm
A = Absolute Loyalty
M = Motivation
THE GENERAL ORGANISATIONAL CHARTS ARE AS FOLLOWS: -
13
MANAGING DIRECTOR
THE GENERAL MANAGER
REGIONAL SALES MANAGER
AREA SALES MANAGER
SALES SUPERVISOR
14
BOARD OF DIRECTORS
MANAGING DIRECTOR AUDITORSBRIG. (Dr.) KAPIL MOHAN A.F.FERGUSONS & CO.VSM (RETD.) Ph.D. CHARTERED ACCOUNTANTS
NEW DELHI
DY. MANAGING DIRECTOR BANKERSMR. HEMANT MOHAN PUNJAB NATIONAL BANK
EXECUTIVE DIRECTOR SOLICITORSMR. RAKESH MOHAN J.B.DADA CHANJI & CO.
NEW DELHI
FINANCIAL DIRECTOR REGISTRAR & TRANSFER AGENTMR. P.D. GOSWAMI M/S BEETEL FINANCIAL&F.C.A., F.C.S. COMPUTER SERVICE (P) LTD.
NEW DELHI
DIRECTORS REGISTERED OFFICEMR. VINAY MOHAN SOLAN BREWERIES PVT
LTD.MR. L.K. MALHOTRA (SHIMLA HILLS)MR. J.K. JAIN HIMACHAL PRADESH - 173214
SECRETARYMR. H. N. HANDAB.COM, F.C.S., F.C.A.AMCIA (LONDON)
15
STRUCTURE OF BOARD OF DIRECTORS
MANAGING DIRECTOR
Executive Director
Finance Director
Director
Director
Director
Director
SECRETARY
Administration Manager
Production Manager
Materials Manager
Sales Manager
Stores Manager
Packaging Manager
16
STRUCTURE OF SALES DEPARTMENT
Sales department of the company works efficiently and following the flat structure
where at every different stage officers/in charge are placed who are free to do their area of
work.
Mr. Anil Dang is the sales manager of Mohan Meakin Ltd., Lucknow distillery. His
area of work is to supervise and manage the sales of the foreign liquor.
Sales supervision is on the top of the hierarchy of the sales department. Sales
supervision and sales personnel work are under the direct control of the sales manager.
Orders given by sales manager Mr. Dang have to be followed by the department employees.
HIERACHY OF SALES DEPARTMENT
17
SALES MANAGER
SALES PERSONNEL
SALES SUPERVISOR
LUCKNOW UNIT OF MOHAN MEAKIN LTD.
Lucknow Distillery is one of the manufacturing units of Mohan Meakin Ltd. It was
set up by the Dyer Meakin@Co. in historical city Lucknow at the bank of perennial river
“Gomti”. The distillery is housed in building about 400 years back by the Nawabs Of Awadh.
The production capacity of the unit in Lucknow is 48 Lac alcoholic Ltr. per annum @
18000 Ltr. per day. In Lucknow Distillery there are about 900 workers employed. There are
three shifts in each duty of 8 hours and that to in the daytime from 8 to 6 p.m.
18
PARENTS UNITS OF MOHAN MEAKIN LTD.
The registered office is situated at Solan near Shimla in Himachal Pradesh. Their units are
located at: -
SOLAN Distillery, Brewery & Bottling
KASAULI Distillery
LUCKNOW Distillery, Brewery & Bottling
MOHAN NAGAR Distillery, Brewery, Glass Factory and Fruit Product
Unit.
19
TECHNICAL COLLABORATION OF MOHAN MEAKIN LTD. WITH DIFFERENT ORGANISATIONS
INSIDE INDIA
1. Maharashtra Distillery
2. Mohan Gold Water Breweries Ltd.
3. Mount Shivalic Breweries Ltd.
4. Chittor Co-op Ltd.
5. Mohan Rocky spring water, Water Breweries
6. Merry Drinks
7. Golden Drinks Ltd.
OUTSIDE INDIA
1. Himalaya Brewery Ltd.
2. Mohan Meakin Kenya Ltd.
3. Rijal Tansi Industries, Nepal
4. Army Welfare Project, Bhutan
5. Galat Industries Ltd.
6. Zupack Gentistries, Germany
20
PRODUCT PROFILE
Alcoholic drink is a mixture of alcohol, sprit, water and minor ingredients in the
industry as congeners.
Consumable alcoholic water has no flavor, only careful selection of the congeners i.e.,
all substance that is generated during the information of alcohol in the fermentation process
and also in the course of maturation least potable products.
Therefore alcoholic drinks offered the worlds over the blended to provide uniform
blend bouquets palatability. The alcohols drinks have to be known in their present form and
nomenclature owing to the British rules and tradition. During the British time alcoholic
beverage were divided into various groups, which are as under:
COUNTRY MADE
IMFL (INDIAN MADE FOREIGN LIQUOR)
FOREIGN LIQUORS
21
COUNTRY MADE
This is unorganized sector and occupying about 71% of liquor market. Country spirits are
distilled spirits mixes or unmixed with spices or other ingredients in very small quantities to
import taste and aroma. These are known under different names in different areas of the
country.
PACHWAL -------------------- WEST BENGAL
THAORAH -------------------- PUNJAB
VOIA -------------------- ASSAM
CHERAGAM -------------------- TAMIL NADU & KERALA
INDIAN MADE FOREIGN LIQUOR
In this category products are: - Whisky, Brandy, Rum, Gin and Vodka. The developing
countries like India where petroleum resources are limited, utilization of waste products for
development of industries of significant importance. Sugar industries in this country are
second biggest. Thousand of tones molasses containing large quantities of sugar are available
in the product.
FOREIGN LIQUORS
In India this name is used exclusively for liquors, which is important in the country. This may
include various brands of Scotch, Whiskey, French Brandy, Gin, Rum, Vodka and Beer etc.
22
PRODUCTS PORTFOLIO OF MOHAN MEAKIN LTD.
ALCOHOLIC PRODUCTS
RUM: -
Old Monk Supreme
Old Monk Gold Reserve
Old Monk XXX
Old Monk White Rum
Trusker XXX
Black Beauty
Stud Rum
WHISKY: -
Solon No.1
Knight Imperial
Diplomat Deluxe
Summer Half
Colonels Special
Golden Eagle
Kings Castle
Caller 337
Black Knight
M.M.B.
Old Master’s
Crazt House
Black Rose
Blue Bull
23
VODKA: -
Kaplan Sky Vodka
GIN: -
Bin Ben London
M.M.B.
Solver Malt
Black Beauty
Meakin Dry
BRANDY: -
Triple Crown
Golden Eagle
Doctors Reserve No. 1
D.M.
M.M.B.
BEER: -
Golden Eagle Lager
Golden Eagle Deluxe Lager
Golden Lager Beer
Gymkhana Premium Lager
Asia 72 Lager
Black Knight Super Strong
Solan No. 1 Special Lager
Old Monk Deluxe
Lion Lager
24
Stud Beer
Meakin 10000
Extra Strong Beer
25
NON-ALCOHOLIC PRODUCT
JUICE: -
Mohan Gold Coin Apple Juice
MINERAL WATER: -
Golden Eagle Mineral Water
Mohan’s Mineral Water
VINEGARS: -
Mohan’s Pure Malt Vinegars
Mohan’s Synthetic Vinegars
BREAK FAST FOOD: -
Mohan’s New Life Cornflakes
Mohan’s Porridge
Mohan’s wheat porridge
MOHAN MEAKIN EXPORT PRODUCTS: -
Mango Pulp
Mango Slice
Guava Juice
Pineapple Juice
Papaya Cubes
DIFFERENT KINDS OF ALCOHOLIC PRODUCTS
26
WHISKEY: -
Whiskey is the most popular distilled liquor known all over the world. It is sprite made from
starch. Best-known whiskey comes from Scotland.
BRANDY: -
Brandy is generally obtained from fruits, through most commonly used fruits in grapes. The
best quality of Brandy Cognac, which is made in Cognac in France.
RUM: -
Rum is distilled from the fermented juice of sugarcane OR molasses. In such a manner
distillate has the taste aroma and the characteristics generally attribute to Rum.
In India Rum is fast-distilled liquor, there is a general feeling that Rum is more
satisfying and has better food value then any other sprit. They is also sold a comparatively at
a lower price.
GIN: -
It is popular distilled liquor. It is artificial sweetened or unsweetened grain specially flavored
with essential flavors oil of juniper berries.
27
VODKA: -
It is a strong clear alcoholic drink, made from grain, originally from Russia.
BEER:-
Lion Beer is the main brand first sold by Dyer Breweries in the 1840s. Lion was originally an IPA
(India Pale Ale - which makes it the oldest IPA brand still in existence) but the beer style was changed
in the 1960's to a lager. Lion remained the number one beer in India for over a century from the 1840s
until the 1960s. After this another Mohan Meakin brand, "Golden Eagle", took the number one spot
until the 1980s, when Kingfisher became number one. By 2001, Lion sales had declined substantially
and Lion was only available to the Indian Army through the CSD (Canteen Services Department).
Mohan Meakin then entrusted the marketing of their original beer to International Breweries Pvt. Ltd.
The brand has since been relaunched in the north Indian market. With a new label design and
marketing campaign, Lion has established itself once more in the civilian market and is now
expanding into markets across India.
Lion earns a place in history as Asia's first beer brand. Lion's popularity with the British during the
heyday of the Empire led to the start-up of other Lion beers around the world, in New Zealand, South
Africa and elsewhere. Lion remains the number one brand in neighbouring Sri Lanka where Mohan
Meakin had introduced it in the 1880s through their Ceylon brewery.
Australian is another popular 5% above lager distributed by International Breweries (P) Ltd. The 8%
above version is called Max.
Rum :-
Old Monk is a vatted Indian Rum, blended and aged for 7 years (though there is also more expensive,
12 year old version). It is dark, with an alcohol content of 42.8%. It is produced by Mohan Meakin,
based in Mohan Nagar, Ghaziabad, Uttar Pradesh.
It is available in all parts of India. Old Monk is also the third largest selling Rum in the world. Old
Monk has been the biggest Indian Made Foreign Liquor (IMFL) brand for many years.
It is sold in four size variants 180 ml (quarter), 350 ml (half), 750 ml (commonly referred to as a
"khamba" meaning "full bottle"), and a 1 liter bottle.
28
MANUFACTURING PROCESS
The general purpose of making alcohol involves following operation: -
FERMENTATION
The source material like grains, cereals etc are cooked and mashed to reduce starch
into glucose. To this mass a substance know as catalyst is added which are normally are
enzymes.
The resultant product is exposed to atmosphere & chemical reaction take place. This
process is known as fermentation and result into conversion of glucose into alcohol.
C12H22O11 + H2O C6H12O6 + C6H12O6
(FRUCTOSE) (GLUCOSE)
C6H12O6 2 C2H5OH + 2CO2
(GLUCOSE) (ALCOHOL)
Slowly the sugar contains get depleted and alcoholic concentration increase. The
result was found contains a mixture of alcohol, certain by production small qualities known
as congener. E.g. water, unfermented matter dead yeast cells. Fermentation is of two types –
Molasses Malt.
Fermentation is sugar based either of malt or of molasses. At times apples and grapes
are also taken into fermentation. Fermentation has two stages: -
1- Development of yeast
2- Production of alcohol
The quality of alcohol depends upon the quality of yeast. Following things are necessary for making good yeast: -
To ensure that unwanted microorganism should not come in contact with yeast
sterilizing with steam at every stage does this.
29
Proper nutrition is given at every stage by giving adequate doses of sugar
(molasses) phosphate, nitrogen (ammonium soleplate die ammonium phosphate).
Maintaining proper temperature control (32 degrees) so that yeast does not die.
EXTRA NEUTRAL ALCOHOL (ENA): -
The sprite is obtained in a continuous. It is generally known as silent sprite or ENA.
This is normally used for blending with Malt/grape.
Run sprite make what are commonly known as blended product. ENA is also used for
manufacturing type of whiskers/ brandies/ manufacturing of toiletry product like after- save
lotion, cologne and hairdressing.
MATURATION/AGING: -
Malt/Grape/Rum sprite are manufacturing in the batch distillation process. The sprite
formed is harsh and not palatable.
Maturation is approves of keeping the sprite in special tank made of oak wood, While
the actual process of maturation of whiskey is the quite obscure. These are various chemical
changes, which take place. The net result is an improvement of the sprite in terms of bouquet
and palatability. Then this is the final used as it. Incase of the pure product of blended with
sprite from continuous process known as ENA to produce commercial product known as
blended product. The wooded cases are tilled on fortnightly or monthly basis to provide to the
sprite for better maturation.
30
BLENDING: -
In Blending sprit of different ages and quality are mixed to give the desired taste and
aroma, at time caramel is added for the coloring and is added. Blending is an art, which
determines the quality of product the positive aspects are fine blending.
BOTTLING: -
Bottling has the following stages –
1st the bottle are cleaned properly with water to remove foreign element.
The volume-by-volume process does filling.
Filled bottles are screened properly to direct presence of any foreign element, breakage of bottles from top.
31
PRODUCT LINE
Mohan Meakin Ltd. has many brands in each category. The main reason is that
alcoholic products are produced in different strengths of alcohol. So it becomes necessary to
have separate brand names for each strength. The reason behind it is that, so many brand
names of alcohol are the location of different breweries and distilleries at the different places
of the brands.
Besides foreign liquor the company also produce the company liquor (Desi Daru).
Country liquor is also produces the following different weights and size: -
SIZE QUANTITY
Foreign liquor quarts (avg.) 1,000
Quarts 750
Pints 375
Nips 300
Country Liquor Poly Pack 200
Poly Pack 100
Besides alcoholic products the company produces some non-alcoholic products also.
32
OVERVIEW OF INDUSTRY
1. Beer Industry
Among the alcoholic drinks, Beer is quite common and popular in almost every
Country of the World. People of different countries take beer in varying much like a soft
drink in European countries it is just a substitute of water. The alcoholic contents and main
source stuff also keep varying according to the tests of the major part of population of the
particular country although it is a fashion to ask for beer of every origin in every country.
Formulations of beer manufacturing are done with the view of availability of the raw
materials in that particular part of the World where the brewery is proposed to be established.
In most of the parts of the world, barley is universal source of beer extraction. But, beers are
manufactured from Chamomile flowers and powdered gingers etc. as well. The
manufacturing processes and quality control measure can make the beer nutrition, energy
packed and refreshing. Among all the alcoholic drinks beer has become so common. Beer in
the Western countries is the important constituent of daily food. The most important
characteristic of drink is to keep body warm and certain refresh ness throughout the body.
Beer is the dilute alcoholic product. Barley is extensively employed for manufacture of malt
used in brewing and distilling of beer. If we categorize beer, we find four categories as
fallows. 1. Pale Beer Lagers, wheat Beer, Pale ales (Bitter Beer). 2. Dark Beer Dark Lagers,
Porter, Stout, Mils ales (Brown ale) 3. Strong Beer Black Beer, Kafir Beer, Lactic Beer. 4.
Special Beer etc. All above categories are in General. A particular manufacturer, uses, colour
and flavour of his choice. In handy bottles, it is sold in the market. The beer shall be of the
following two types Beer, strong Beer. Beer is drunk primarily as a source of liquid and for
it’s pleasant & refreshing taste, non-the less, its nutritional properties are of great importance.
The calories content of beer is significant but not special high. The calories are provided by
the unfermented, residues and alcohol. Alcohols also replace Carbohydrates, fats, proteins, so
that there may be a gain in body weight. Beer also contributes to mineral requirement of the
body and supplies useful quantities of Vitamin B complex.
A special use of beer is for the control of sodium intake in the treatment of disease
e.g. congestive hearty failure, high blood pressure and certain kidney and liver ailments. Beer
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is a popular beverage all over the world. Though an alcoholic beverage beer is not considered
a hot drink like rum or whiskey as it contains alcohol ranging from only 8 to 9 percent. It is
considered good for health in the sense that being very less in alcoholic content, it is found
effective in improving appetite. The market for beer in India was about 65 mn cases of 12
bottles each and is slated to touch 10 mn cases in 200506, a growth of 23% in a year. There is
very good demand for beer industry. There is very bright good scope for new investment.
Any entrepreneur can enter in this field.
2. Beer Industry (Export Unit)
Beer is a popular beverage all over the world and contains alcohol ranging from 8 to 9
%. It is found effective in improving appetite and is considered good for health. Formulations
of beer manufacturing are done with the availability of raw materials in that particular part
where the brewery is established. Beer units are concentrated in the state of Maharashtra,
Karnataka, U.P. and Goa with no units in Assam, Tripura, Tami Nadu, Gujarat, Orissa,
Rajasthan and Bihar. Keeping in view the tremendous export potential, it would be
worthwhile to explore the possibilities of setting up an export-oriented unit. This can be a
challenging investment for an entrepreneur.
3. Indian Made Foreign Liquor
Indian made foreign liquor basically prepared from ethyl alcohol of different concentration
with added flavour and coloured bottled hygienically. In India there are about 260 units
engaged in the production of alcoholic brandy, whisky, beer & other beverages. The
installed capacity of all those units is estimated of the order of 1400 to 1450 million liters per
annum. India has been exporting alcohol in substantial quantities. The estimated growth rate
of demand is 20% per annum with increase in population and other industrial growth and
consumption. There is good scope for new comers.
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1. Wine from Kinnow Fruits
Kinnow has acquired commercial importance and popularity owing to its success
under varied agro climatic conditions, response to inputs and high economic returns. Its
unique features like gad tree vigor, high fruits yield, excellent fruits quality, higher juice and
wider adaptability. The peel of kinnow fruit contains very high amount of falconoid like
naringin and neohesperdine, which makes them highly bitter. Kinnow fruit juice is
alcoholated with 21 vol % ethanol to fix complex compounds of limonoids such as primary
limonin, flavonoids and naringin and to remove a bitter taste in short time. Kinnow is most
suitable fruit for making the wine. In India now demand of wine is increasing day by day. So
there is good scope for new entrepreneur to enter in this field.
5. Grape Wine
The Indian wine industry is in its nascent stage. The per capita consumption of wine
in India is only 10 ml per annum as against 100 litres per year in Argentina and 65 liters in
the European countries. However, the Indian wine industry has been continuously growing
over the last ten years. Awareness about the benefits of wine drinking is also on the rise and
wine is gradually becoming a part of urban Indian life style. Rising incomes of Indian
population and exposure to new culture is adding to the higher consumption. Wine volume
sales grew by 17% in 2005, keeping up with the pace of growth seen in 2004 to clock reach
4.6 million liters. Value sales of wine were worth just under Rs4.5 billion, which represented
an increase of almost 20% in current terms on the previous year. Despite the rapid growth,
wine sales continued to represent a minor proportion of total alcoholic beverages
consumption in India, and barely measurable per capita consumption. As per the types of
wine consumed, red wine has the largest market share (45% of total wine consumed)
followed by white wine (40%), sparkling wine (13%) and rose wine (2%). Further, the
consumption of wine is unevenly spread across the country as 4 major cities i.e. Mumbai
(40%), Delhi (31%), Goa (8%) & Bangalore (6%) contribute about 85% of total wine
consumption.
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The Indian wine market is mostly dominated by three major players Companies.
Grapes are the key raw material in the production of wines. For wine manufacturing,
uninterrupted supply of grapes is must to ensure smooth production. Hence most of the
wineries have their own vineyards or make arrangements with farmers/growers for supply of
grapes as a backward integration. Recognizing the scope of potential, the Government of
India has put more emphasis on the development of the wine industry. The Maharashtra
Government has announced a series of incentives like nil excise duty and 4% sales tax same
as that of agricultural produce for all the wineries in the state, simplified licensing procedure
for new wineries, winery has been given status of Food Processing Industry, grant of subsidy,
single window clearance system etc. after it classified wine as agro based product. The state
has also established two wine parks, Godavari Wine Park in Nashik and Krishna Wine Park
in Sangli district.
6. Wine Industry
Of these, roughly 25 Distilleries Manufacture IMFL, 32 units distilled country liquor,
and the balance industrial alcohol. About 40 units produce bear. Utter Pradesh, Karnataka,
Tamil Nadu, and Maharashtra account for around 70 per cent of the total production of
alcohol. Among the various IMFL products, whisky occupies the prominent position with a
market share of above 50 percent. Dark rum, brandy, and white spirit account for about 25
per cent, 15 per cent, and 4 to 6 per cent shares, respectively. Raw materials account for
nearly 40 per cent of the total costs of alcoholic beverages. The major raw materials are
molasses, barley, maize, potatoes, grapes, yeast, and hops. Barley is a critical raw material for
the production of bear and accounts for about 75 per cent of the cost of all raw materials. The
trends in exports of wine, spirit, and liquor as well as in exports of beer were highly erratic.
Similar trend was observed in the import of these products. The supply of beer has always
been short of demand. As against the demand of about 800 million liters, the production is
only 453 million liters. Similar has been the case for wines and liquors. The fall in the supply
of these products is largely met by the supply from the unorganized sector. A very small
portion of the demand is furnished by the imports. The growth in production over the years
has hovered at about 5 to 6 per cent, whereas the demand is growing at 10 to 12 per cent per
annum. The ten key manufacturers are the producers of wines, liquors, and spirits in the
36
organized sector having a combined share of about 67 per cent are McDowell & Company,
Balaji Distilleries, Shaw Wallace & Co., Jagatjit Industries, Mohan Breweries & distilleries,
Shiva Distilleries, Maharashatra Distilleries, Pearl Distilleries, Herbert sons and Mohan
Meakin. The ten major beer manufacturers in the organised sector having the combined
market share of about 75 per cent are United Breweries, Mohan Breweries and Distilleries,
Skol Breweries, Balaji Hotels and Enterprieses, Mohan Meakin, Mysore Breweries,
Charminar Breweries, Aurangabad Breweries, Hindustan Breweries, And Bottling and Mount
Shivalik Breweries.
Wine is one of the largely suitable alcoholic beverages, which is generally
manufactured by fermentation of grape juice. Matured ripe grapes are the basic raw material.
It is not available in India throughout the year. There is scarcity of basic raw material. Yeast
is used as fermentation agent. Fermentation period may vary from more then 24 hours. There
is weak effluent produce, which can be properly treated to make as like domestic used water.
Wine technology and designer for designing of plant and machineries are available
indigenously. Most of the machineries are available in India, only yeast separators are
required to import. Packing machine is also requiring to import. Packing should be done by
automatically. There has good market demand of wine. Marketing strategy is good for the
well-known brand items. There should be good-looking label with very good designed glass
bottles required for packing and sealing of the bottle. Bottles are packed in the corrugated box
and store at room temperature before marketing. There are few in organized sectors that are
presently market leaders. There are few well-organized companies engaged in the production
of wine. Now, wine of European countries is also available in Indian market to compete with
the Indian brand. About 20%-30% demands of wine full filled by import.
The basic restrained of wine manufacturer is non-availability of quality raw material
throughout of the year. The alcoholic beverages industry can be classified into four
categories, namely, country liquor, Indian Made Foreign Liquor (IMFL), bears and wines. Of
the total production of alcoholic beverages in the country, bear accounts for about 35 percent.
Country liquor, IMFL, and rectified spirit claim the remaining share. Around 200 distilleries
are in the production of different types of alcoholic products in the country.
Adequate availability of raw materials, improvements in processing and
manufacturing technologies, decontrol of liquor distribution, tax concessions, and above all
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wide publicity of IMFL and beer brands through the media would not only help the industry
in enhancing its production but also in competing the world with its products of international
standards.
38
Investment Opportunity in Beer Industry
Among the alcoholic drinks, Beer is quite common and popular in almost every Country
of the World. People of different countries take beer in varying much like a soft drink in
European countries it is just a substitute of water. The alcoholic contents and main source
stuff also keep varying according to the tests of the major part of population of the particular
country although it is a fashion to ask for beer of every origin in every country. Formulations
of beer manufacturing are done with the view of availability of the raw materials in that
particular part of the World where the brewery is proposed to be established. In most of the
parts of the world, barley is universal source of beer extraction. But, beers are manufactured
from Chamomile flowers and powdered gingers etc. as well. The manufacturing processes
and quality control measure can make the beer nutrition’s, energy packed and refreshing.
Among all the alcoholic drinks beer has become so common. Beer in the Western
countries is the important constituent of daily food. Among the alcoholic drinks, Beer is quite
common and popular in almost every Country of the World. People of different countries
take beer in varying much like a soft drink in European countries it is just a substitute of
water. The alcoholic contents and main source stuff also keep varying according to the tests
of the major part of population of the particular country although it is a fashion to ask for beer
of every origin in every country. Formulations of beer manufacturing are done with the view
of availability of the raw materials in that particular part of the World where the brewery is
proposed to be established. In most of the parts of the world, barley is universal source of
beer extraction. But, beers are manufactured from Chamomile flowers and powdered gingers
etc. as well. The manufacturing processes and quality control measure can make the beer
nutrition’s, energy packed and refreshing.
Among all the alcoholic drinks beer has become so common. Beer in the Western
countries is the important constituent of daily food. The most important characteristic of
drink is to keep body warm and certain refresh ness throughout the body. Beer is the dilute
39
alcoholic product. Barley is extensively employed for manufacture of malt used in brewing
and distilling of beer. If we categorize beer, we find four categories as follows. Pale Beer –
Lagers, wheat Beer, Pale ales (Bitter Beer). Dark Beer – Dark Lagers, Porter, Stout, Mils ales
(Brown ale) Strong Beer – Black Beer, Kafir Beer, Lactic Beer. Special Beer etc. The Indian
beer industry seems to be in upswing mode, as 2006 seems to be the best year as far as the
growth is considered. Last year there was a growth of 20% while in the last five years the
industry registered a growth of 7 to 8% year on year basis. The total beer industry was around
108 million cases in 2005, which crossed 130 million cases in 2006. Industry analysts say tax
and levies on beer are anticipated to fall over the next 2 to 3 years, driving down retail prices
by 25 to 50%. It is estimated that beer will sell for Rs. 15 to Rs. 20 per 330 ml can and Rs. 20
to Rs 30 per 650 ml bottle in the coming year with the reduction tax and levies. In fact,
northern Indian states, which have traditionally shown a preference for hard liquor over beer,
witnessed a jump of more than 100% in beer consumption in 2006 as compared to last year.
The per capita consumption of beer in India is very low as compared to other countries in
Europe and America.
At present the per capita consumption is 0.7 liters per annum, but industry experts
predict that this may rise to around 20 liters in the next 10 years. Considering the expected
increase in consumption and the current growth trends, the future of Indian beer market looks
bright and seems set for continuous double-digit growth in the coming years.
40
WINE FROM GRAPES
Wine is an alcoholic beverage made from the fermentation of grape juice. The natural
chemical balance of grapes is such that they can ferment without the addition of sugars, acids,
enzymes or other nutrients. Although other fruits such as apples and berries can also be
fermented, the resultants “wines” are normally named after the fruit from which they are
Produced (for example, apple wine or elderberry wine) and are generically known as fruit or
country wine.
Others, such as barley wine and rice wine (e.g. sake), are made from starch-based
materials and resemble beer more than wine, while ginger wine is fortified with brandy. In
these cases, the use of the term "wine" is a reference to the higher alcohol content, rather than
production process. The commercial use of the English word "wine" (and its equivalent in
other languages) is protected by law in many jurisdictions. Wine is produced by fermenting
crushed grapes using various types of yeast, which consume the sugars found in the grapes,
and converts them into alcohol. Various varieties of grapes and strains of yeasts are used
depending on the types of wine produced. Wine is one of the largely suitable alcoholic
beverages, which is generally manufactured by fermentation of grape juice. Matured ripe
grapes are the basic raw materials. Wine is used as drinking purpose for special type
alcoholic beverages in parties or any special social function. It can be used as tonic for the
weak health people. There are few well-organized companies engaged in the production of
wine. There is also entry of European countries wine in Indian market to compete with the
Indian brand. It has good market demands. There are about 20% – 30% demands of wine full
filled by importing. Around 200 distilleries are in the production of different types of
alcoholic products in the country. Among the various IMFL products whisky occupies the
prominent position with a market share of above 50%. There is a good scope for new
entrants.
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GROWING OF FRUITS AND MANUFACTURING OF
NATURAL JUICES
India has a strong base in agriculture and provides large varieties of fruits and
vegetables for food processing. However, inadequate cold storage facilities, lack of drying
and packing technology plethora of laws, fragmented supply chain and less exports are some
of the bottlenecks experienced while exploiting the full potential of fruits and vegetables
processing industry.
With an aim to give impetus to this sector, the Indian govt. has taken several steps,
which includes virtual de-licensing of the sector; duty and tax relief measures, setting up of
clusters etc.
Availability of quality fruits and advanced technology for fruit processing has helped
a great deal to boost the production of quality, hygienic fruit products like fruit juice,
concentrates, jam, jellies and fruit slices. There is a good domestic and overseas market for
natural fruit juices. So any entrepreneur can enter into this project.
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MEDICAL ALCOHOL FROM DATE JUICE CONCENTRATE
Date is one of the best fruits, which contains fructose as sugar ingredients, which is
totally fermentable sugar and can be completely converted to ethyl alcohol by fermentation
process. There are few expensive fabricating companies who can design the distillery plants
and fabricate the plants. There is very good demand of medical alcohol. There is much more
demand of it in India also. It is required about 30000000 liters alcohol needed for
Homoeopathic medicine only and again it is required for Allopathic medicine. Few new
entrepreneurs can venture into this project.
IMFL, INDIAN MADE FOREIGN LIQUOR (WHISKEY, RUM, GIN, VODKA AND BRANDY)
Brandies are produced in batch or continuous distillation systems. The pot still or its
variation is universally used in France, where as in the United States both systems are
employed. The batch system produces, a more flavourful product, the continuous system a
lighter, more delicate flavour. There are two types of brandy one is white and other is brown.
White brandy is used for the use by human beings and the brown for other purpose. It is also
used as a preservative for anatomical specimens and as a dehydrated agent in microscopic
technique. Whiskey is an alcoholic distillate. It has a very little application and consequently
almost none is produced. Today, the entire liquor market is estimated to be more than Rs.5,
000 crore.
This has been growing over the years at an average rate of 12-15% per annum.
Whiskey accounted for the largest share in the total IMFL market (about 53%). There is a
good scope for new entrants
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Excise Department
Delhi Liquor License Rules, 1976
These rules may be called the Delhi Liquor License Rules, 1976. These rules shall
come into force at once.
Form Details of Licenses
I -- Indian Made Foreign Liquor
L-1 Wholesale licensee of Indian Made Foreign Liquor
L-1A Wholesale vend of foreign liquor to holders of other licenses only.
L-2 Retail vend of Indian Made Foreign Liquor/Beer.
L-3 Service of liquor in a hotel (to the residents in their rooms).
L-4 It is granted to independent restaurants for service of liquor.
L-5 Service of liquor in a bar/restaurant attached to a hotel.
L-5A Retail vend of foreign liquor in a bar/dining car in a luxury train.
L-6 Retail vend of Indian Made Foreign Liquor in duty free shop.
L-6A Retail vend of foreign liquor in duty free shops off the premises.
L-7 Retail vend of Indian Made Foreign Liquor in a military canteen.
L-8 Retail vend of medicated wines only for consumption "off" the premises.
i. II - Country Liquor
L-9 Wholesale licensee of country liquor.
L-10 Retail vend of country liquor and 50 degree under proof rum for consumption "off" the premises.
ii. III - Denatured & Special Denatured Spirit
L-11 Wholesale and/ or retails vend of denatured spirit to public only.
L-12 Wholesale vend of denatured spirit to trade only.
L-13 Bonded warehouse license for import and storage in bond of denatured spirit for wholesale to trade only.
L-14 Bonded warehouse license for import and storage of in bond of special denatured spirit.
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IV - Rectified Spirit
L-15 Retail vend of rectified spirit to public only.
L-16 Wholesale vend of rectified spirit to trade only.
L-17 Bonded warehouse license for import in bond and storage of rectified spirit for wholesale to trade only.
iii. V – Special
L-18 Extension of hours during which sale is permitted.
L-19 Retail vend of foreign liquor at a club (bonafide or proprietary).
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SOME FACTS ABOUT LIQUOR
Liquor is a liquid intoxicant, deriving its intoxicating potency from the ethyl alcohol
in it. Liquor can be divided into three broad categories, namely Indian Made Foreign
Liquor (IMFL), Beer and Country Liquor. Hard liquors broadly have an alcohol
content of and above 20% and denote Whisky, Rum, Brandy; the white spirits like
Gin and Vodka and also include Country Liquor. Soft liquors have a range of 4-20%
of alcohol and include Beer, Cidar, Wines and Liqueurs.
Liquor making starts with the process of fermentation, followed by brewing or
distillation, latter in case of hard liquors.
Raw material for fermentation usually differs from liquor to liquor and is corn or malt
in case of Whisky, molasses in case of Rum and Country liquor, grapes in case of Brandies
and Wines, any starchy substance for Gin and Vodka and barley for Beer. The raw material
can differ also depending upon the availability or abundance in that area. Eventually it is the
flavour that marks the liquor for its variety as well as quality.
In Indian markets most prominent segment of liquor consumed by the middle classes,
is the Indian Made Foreign Liquor, which covers most liquor, barring beer and
country liquor, and is available in glass or sometimes plastic bottles. Beer is also
available in glasses filled through dedicated taps dispensing what is known as draught
beer. Most Indian beer is Lager that is it can be stored for some time. And all of them
use an herb, known as hops, for flavouring. Liquors from which sugar content has
been chemically reduced are termed as "dry". Country Liquor is generally in the range
of 25% of alcohol and also available in glass bottles only. Wines in India are available
in red or white variety, with pink almost non-existing. Champagne, generally a
ceremonial drink, also known as sparking wine, is generally off-white and is fizzy
because of its carbonation at the time of bottling. Liqueurs are concentrated syrups,
available in myriad flavours, and are usually taken without dilution after major meals.
Do's & Don't As a part of its policy to provide safe and quality liquor to the
consumers in Delhi, the Excise Department has formulated the following do's & don't
which they follow very strictly in regulating and controlling the sale of liquor in the
NCT of Delhi.
46
47
License cannot be granted to: -
Any person who has been declared insolvent by any court in India, who is insane or
who is below 25 years of age.
Any person who has been convicted by a criminal court for any non-bailable offence.
Any person who is not assessed to income tax.
No licensee shall employ any person suffering from an infectious or contagious
disease.
No person shall print or publish in any news paper / book / leaflet for display or
distribute any advertisement or other matter soliciting the use of or offering any
liquor.
L-4 licence for service of IMFL/Beer may only be granted to an independent
restaurant approved by the Department of Tourism of Govt. of India.
The business premises of a licensee shall be kept closed on all dry days.
The hours for the sale of liquor shall be such as may be specified in an order by the
Excise Commissioner.
The licensee shall sell liquor at the price fixed by the Excise Commissioner.
The licensee shall prominently display in front of his shop a signboard showing the
retail price of each brand of liquor to be charged by him.
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No person shall have in his possession any quantity of any intoxicant, knowing the
same to have been unlawfully imported, transported, manufactured, cultivated or
collected, or knowing the prescribed duty not to have been paid thereon.
No licensed vendor shall sell or deliver any liquor or intoxicating drug to any person
apparently under the age of twenty five years whether for consumption by such
person or by another person and whether for consumption on or off the premises of
such vendor.
No person who is licensed to sell any liquor or intoxicating drug for consumption on
his premises shall, during the hours in which such premises are kept open for business
employ or permit to be employed, either with or without remuneration, any man under
the age of 25 Years or any woman in any part of such premises in which such liquor
or intoxicating drug is consumed by the public.
Consumption and service of liquor at public places is completely banned.
Consumption of liquor is injurious to health.
SERVICES
CHANNEL OF DISTRIBUTION
Mohan Meakin Ltd. is a very large organization and has a wide range of products. The source of
Mohan Meakin’s is closely related to its storage channels of distribution. Company is selling its
product in every part of the company. Therefore it has a company wide distribution channel
network.
The company adopted his non-integrated indirect type of distribution channel; therefore
each of the channels is a separated business identify seeking to maximize its own profit.
Alcoholic products excisable items and controlled by the government channel member
who constantly monitor the situation and implement the government rules and regulation
regarding distribution of the production of the company. It is very necessary and compulsory for
every channel member to take the licenses from the government to perform their function.
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DISTRIBUTION SYSTEM
Here the company keeps only the units to sell. A distributor or wholesaler firstly pay the excise
duty in the area office obtaining the necessary permit unit and then place order according to his
requirement to the company. These wholesalers are in fix number as license holders. These are
called FL-2, which pays Rs. 45 per alcohol liters. This amount is departed by FL-2 to the excise
office to get lease order. FL-2 demanded for 1000 bottles for 650 ml each. FL-2 sells it retailers
and bars. The stock of FL-2 is under control of excise office when FL-2 is supplied to the
Retailers and Bars. Excise charge is taken as “WENFEE” to the release to its retailers. These
retailers are called as FL-2. Wholesaler supplies in bars for which excise department also issues
license.
DISTRIBUTION SYSTEM
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PRODUCER
WHOLESELLER
RETAILERS
BARS & RESTAURENT
Retailers measure their weekly requirement & purchase the product from the
distributor after getting the consent of the local excise office. The retailers thus
display the products in his retail outlets and subsequently purchased by the consumer.
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MARKETING SET UP
The marketing department has been set up all the major companies to facilitate distribution and
sales of their product.
Marketing department is usually headed by general manager (Marketing) who is
responsible for the product in whole of the Indian market. He has to operate whole marketing
system of the company with changing pattern in society, consumer demand and competitive
company. Under GM several areas sales manager worked who are responsible for the sales of
product in their reason. They supervise field operation in their region and constantly keep GM
informed about market position.
LIQUOR MARKETING
Goods product has value in them, it is only when they are available to customer who want
them and willing to buy them that assume any value. Marketing of liquor is all-together a
different ball game. Liquor marketers are faced with several restrictions:
1. NO OUT DOOR PUBLICITY: - Advertisement is limited to putting up
banners & poster in retail shops only.
2. LIMITED OUTLETS: - Retail and whole sales are controlled or owned by the
Govt. there are strictly limited area-wise.
3. PRICE RESTRICTIONS: - The Govt. controls price. This restriction the option
of lowering prices in a big to increase sales. Again price restrictions any lead to a fall
in quality as the manufacturing cast of retaining quality may exceed the selling price.
4. NO DIRECT MARKETING: - No door to door selling can be taken up in
liquors like other consumer products.
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5. In the light of the above constraints, liquors can be promoted through the following
strategies only-
6. Advertising brand names through other related products like soda, lime, juice etc.
7. Banners and posters displayed at outlets could be made more eye catching.
8. Sales promotion could be made more effective by giving more catching incentives.
9. Frequent visits of sales personals to retail outlets could also help increase sales.
Companies if any can be rectified faster and early assessment of the products
marketing position can be made, this could be help in the remedying the state of
affairs before it is too late.
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COMPETITORS
Liquor market is one of the complex markets today. The market is optimally saturated
by the large no. Of companies pouring in the markets, leading to customers likes and dislikes
and inter-creating competition among the brand of a particular range.
The buyer in liquor market has considerable responsibilities. He has to try to reconcile
and vast range of companies and customer needs. Integrity and strength of character are
essential attributes in addition to the buyer’s skills, experience and knowledge of the brands
he buys, however extract data is not available. The liquor made in India is known as IMFL,
besides its country liquor market is also operating in which raw mine is solid for the poor and
backwards communities. Government control these markets up to some extend and the
retailers share of the responsibilities.
There is no evident competition and particular companies in country liquor market.
The Govt. fixes the rate and it sold at fixed price only. The market has very high sale of beer,
which has its maximum sale in summer. There are a no. of breweries making beer including
most famous company Mohan Gold Water Ltd. and Haryana Breweries. The alcohol content
varies with different beer.
CATAGORIES ALCOHOLIC CONTENT
Lager Beer 3-5%
Extra strong 5-8%
Super Strong 8-10%
Most stiff competition among the major companies is recorded in IMFL brand. There are
about six major companies, which are supplying their products in all India market. The
competition and activities are mainly concerned amongst these companies and their products.
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THE MAJOR COMPETITIORS COMPANIES ARE: -
1. UNITED BREWERIES
2. HERBESSTON LTD.
3. KHODAYS DISTILLERIES
4. SHAW WALLACE
5. JAGJIT INDUSTRIES
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PROBLEMS IN LIQUOR MARKETING
(IN INDIA CONTEXT)
We very well acquainted with the fact that west is much different from the east. The
belief, the aptitude, the perception, the way of life which they cultivate for from that of us this
happen incase of liquor consumption also. Liquor drinking is not considered as social correct
and called socially unethical. In present day liquor is manufactured in every part of the
country. But advertisement cannot be directly done for the product so all together is a
different game. So due to this reason most of the liquor advertisement is done indirectly for
brand name rather then the product.
Time is changing fast, changing the life style; the way of thinking with the invasion of
the cable the marketing of liquor product has got the fillip. Now companies are adopting the
idea of open advertising of their product in various cable channels like ZEE TV, SONY and
STAR PLUS. As a result the wants and need of people are changing with such factor as
fashion, attitudes, patterns etc. with the influx of many private channels west has now
become more accessible to us and in this atmosphere a sudden transaction from an age-old
value to the new set of norms has been observed. Liquor today is social values to the new set
of norms has been observed. Liquor today is a social value drinking is acceptable now a day
to day even amongst the teenagers the college going student.
However research indicates the lower income group is price sensitive and they do not
care about the brand name, while the high-income groups for premium brand and price really
does not matter.
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CONSUMER APATHY TOWARDS ALCOHOL
Whenever we talk about India (regarding alcohol) we find that in our country
consumption of liquor is not too much frequent. Most of the people feel hesitation in
disclosing their drinking habits. They always want to conceal their likes and dislikes
regarding to liquor. But still it’s true that in India liquor has been in use for the very
beginning of the civilization. Once upon a time India was known as the land obscurity, land
of snake charmers.
In the country, poverty and wealth meet in the middle. How can such a contradiction
survive together? The answer is a strong social fabric bound by tradition
(www.indiatoday.com). Still a profoundly religious country Hindu faith seems it a virtue to
come to terms with one’s own being (www.stategov.in). Spiritual growth surpasses wealth
and power as the former brings the latter too.
The spiritual world is one where we all come together. Scotch has an interesting and
perhaps surprising history. The Irish monk bought the fine art of distillation to Scotland. The
Irish learned it from Spanish. The Spanish learned it from the Arabs and the Arabs learned it
from India. (www.indiatimes.com)
Now whether alcohol is welcome or not that’s another issue. Most parents raised their
kids with the same morals and values that were taught to them by their parents. Indians
traditionally put more emphasis parade on education, while thinking alcohol leads to a
deterrent of ones goals, in life since it sometimes connected to alcoholism but also to other
problems.
Normally the women headed home while the men hit the bars. One day few women
did not go home they armed themselves with chilly powder and broomsticks and then waited
on the village road. When a jeep speed down the mud track carrying the village’s weekly
alcohol supplies they attacked on that and within minutes they had thrown chilly powder into
the driver’s eyes, set fire to the hundreds of the bottles and thrashed the men inside the
57
vehicle with their lives rather allow more alcohol into their village. Soon anti alcohol protest
spread throughout the region.
58
FUTURE OUTLOOK OF LIQUOR INDUSTRY
According to Euro monitor an independent agency based in U.K., while the retail
liquor market is expected to grow by 70% over the next five years, the hawker market (the
liquor sold in hotels and restaurants) is expected to grow by 52% over the same period. Beer,
Wine and White Spirit segments are expected to grow at a faster rate than others. While the
dominance of whiskey is expected to improve with the entry of foreign brands, the market of
Brandy is expected to remain sluggish.
The government restrictions on inter state movement and duties are not expected to
get diluted. With the potential scenario unsettled the Damocles
Sword will never cease to hang over the industry. There may however be same relaxation in
the import duties because of the WTO-GATT commitments.
With the entry of the multinational mainly in the premium segment domestic players
have also formed alliances to bring in well-known foreign players who would otherwise find
the cost of duplicating the marketing network and production facilities very high. The brand
selling maximum is Mc Dowell No.1 and a reason for this its lower price in comparison to
other brands. The sale of this range lower than that of other ranges because of its higher
prices.
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SEMI PRESTIGIOUS BRAND
Aristocrat Whiskey Jagajit Industries Ltd.
Diplomat No. 1 U.B. Group
Bagpiper Herberston’s and Co.
Director Special Shaw Wallace and Co.
Democrat Khoday’s Distilleries
Colonel Special Mohan Meakin Ltd.
CHEAP RANGE BRAND
Due to different in excise duty & sales tax in different states the price of liquor varies
in great deal. Liquor considered to be of cheap range in a segment may to up to the middle
range in other segment.
However the Cheapest IMFL is also sold in the segments & so this range sometimes
divided as: -
Upper Cheap Range Bennie, Range Imperial & MMB
Middle Cheap Range Shatranj Baba
Lower Cheap Range Mistress, Victor & Duke
The sale within this range varies from market to market.
MIDDLE RANGE BRANDS
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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 Whiskey Jagajit IndustriesOld Inn Whiskey
Hayward’s Fine whiskey Shaw Wallace
Red Knight Whiskey Khoday’s Distilleries
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QUALITY CONTROL
After making the people aware about the MM range of whiskies the next step is to make the
quality of the whiskies up to the requirement by the consumer. I have considered it has poor
taste in all the range of the whiskey. Important for company to remain the touch with
consumer constantly for feedback related to their products. Sales force personal to keep the
company Everest of the activities of its competitor’s so that the counter strategies can be
formulated a launched at right time and place.
This method will help the company to increase their brand awareness, as there is better
interaction between the customer and company personal. After production and bottling of
alcohol there are several decisions taken relating to the products: -
(1) BRANDING: -
Brand means name term, sign, symbol, design or a mix they have used to identify the
product of one company and to distinguish it from the competitive products.
Mohan Meakin believes in multi brand for its products. It means that the company
develops more than one brand in same product category. There several reasons to adopt the
brand for its products its means that the company develops more than one brand in the same
product category. These are several reasons to adopt multi brand strategies.
The first and main reason to adopt this strategies is that the company produces the
alcohol of different strengths so different brand names are required for each strength of
alcohol. The organization has several manufacturing units in different parts of the country
and the different units produce the same products. So different brands are required to
preserve the separate identify of the unit. This is the second reason to adopt the multi brand.
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(2) BOTTLING: -
Alcohol is liquid in nature. Hence bottles are required to contain it. These bottles are
of glass and have beautiful shapes. The bottle holding the alcohol is the product immediate
container and the primary package.
For bottling the company has fully automatic, semi automatic and manual. The
company bottles are the Old Monk Rum, the market leader and on semi automatic the
company’s bottle is the Diplomat Deluxe.
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(3) LABELING: -
It is very important to level 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 package bottle. It contains a lot of information about the product regarding the
strength of alcohol in the product, promotion appeal, policy brand, company name, price,
symbol, quantity is written in the label of the bottle. Similar level in the large of the company
also attached to the secondary package.
(4) PACKAGING: -
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A package is a wrapper or container in which a product is enclosed sealed. The
package of the Mohan Meakin’s alcoholic drink includes the two level of
packaging that is primary and secondary package. The material or package that
protects the primary package is the secondary package and discarded when the
product is to be used. Cardboard box containing the bottle of the company’s
alcohol is the secondary package. This provides the additional protection to
primary package and bottles. The packages are also according to weight and size
of the products.
(5) PRICING: -
Price of the product is the value of product attributes expressed in monetary terms
when consume pay or expected to in exchange. Pricing of the alcoholic products largely
depends on the Govt. policies. Alcoholic products are fully excisable items. The top
management sets price of company’s alcoholic product’s several factors are taken into
account by the company’s top management while setting the price. But product cost is the
main constitutes. Company uses the “mark-up pricing method” company chooses this method
because it wants enough returns on the investments and efforts.
(6) MARKETING: -
It is to bring out the products into the market through several distribution channels
and to introduce product to the consumer through advertising, publicity and sales promotion.
Company has 35 depots all over India and many dealers and retailers are linked to it. For
sales promotion company has funds for advertisement, market research and publicity.
So for process the quality control, regular feedback should be taken the consumer and
improvement should be made accordingly.
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SALES PROMOTION
Sales promotion is a key ingredient in marketing campaigns. It consists of a diverse
collection of incentive tools, mostly short term, designed to stimulate quicker and or greater
purchase of particular products or services by consumer or the trade.
Where advertising offers a reason to buy, sales promotion offers and incentive to buy.
Sales promotion includes tools for consumer promotion (samples, coupons, cash refund
offers, price offers, premiums, prizes patronage rewards free trials, warranties, tie in
promotions, point of purchases, displays and demonstration)
Most companies and organization, including manufacturers, distributors, retailers
trade associations and non-profit organizations, use sales promotion tools. As examples of the
last churches often sponsor bingo games, theater parties, testimonial dinners and raffles.
PURPOSE OF SALES PROMOTION:-
Sales promotion tools vary in their specific objectives, a free sample stimulates
consumer trial. While a free management advisory aims at cementing a long terms
relationship with a retailer.
Sales promotion yields a faster and a more measurable response in sales than
advertising does.
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Sales promotion does not tend to yield new, long term buyers in mature markets
because they attract mainly deal- prone consumers who switch among brands as deals
becomes available.
Loyal brand buyers tend not to change their buying patterns as a result of competitive
promotion.
Advertising appears to be capable of depending brand loyalty.
SELECTING THE SALES PROMOTION TOOLS
The promotion planner should take into account the type of market, sales promotion
objectives, competitive conditions and each tool’s cost effectiveness.
Some of the tools are as follows:-
T.V.
Print Media
INFORMATION REQUIRED: -
Information required for getting the accurate conclusive data for this research are-
What is the main source of information?
Number of the major companies operating in the market.
What are the major brands of whisky of these companies in medium range are available in the market.
What are the promotional techniques applied by these companies in medium range are available in market.
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What are the consumers brand and in which income group they fall and their educational and professional background.
68
PART II
EXECUTIVE SUMMARY
Consumption of liquor is not good for health, although there are many liquor
companies in India, which are producing liquors frequently. We can divide the distillery
industry in two parts 1st potable (drinkable) and 2nd Industrial alcohol. The former one
producing IMFL (Indian Made Foreign Liquor) and country liquor has a constant demand
with a growth rate of about 8.25 annually.
Mohan Meakin Ltd. is a company, which is producing different, ranges of liquors not
only alcoholic drinks they are also producing juices, mineral water, vinegar etc.
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Mohan Meakin is famous for some of its product like – OLD MONK XXX RUM,
DIPLOMAT DELUXE WHISKEY and GURU BEER. Most of their products are not
familiar to the users due to lack of advertisement, lesser supply of products.
Liquor market is one of the complex markets today. The market is optimally saturated
by large no. Of companies pouring their brands in market, leading to customer’s likes and
dislikes and in turn creating competition among the brands of particular range. Liquor sales
are also largely driven by brand popularity. To build brand popularity companies have to get
retailers to recommend the brand to end-users.
The brand plays a critical role in building the fortunes of a company. Given that
consumption patterns are more or less static, companies have very few chances to hook a
customer. But once hooked its product volumes are likely to be steady.
IMFL (Indian Made Foreign Liquor) sale in Maharashtra, West Bengal, J&K, Goa,
Orissa, Assam, Meghalaya, Tripura and Arunachal Pradesh is through open market it is by
auction in A.P., U.P., Rajasthan, Bihar, Punjab and Chandigarh and Govt. controlled in
Tamilnadu, Karnataka, Delhi and Kerala, Gujarat, Manipur, Mizoram and Nagaland are
enforcing prohibition.
States following the open market mode giving good average to the IMFL marketing company
to choose the distribution & to determine pricing. In case of distribution by Govt. and through
auction powerful distributors exerts influence on the margins of the manufacturer.
The most vital problem of the Mohan Meakin range of whiskey is that a large market
segment is unaware with their products and some people even don’t know that particular
brand exist in the market, e.g. in case of colonel whisky more than 47% of the market is
unaware of it. So the first and foremost step is to increase the market share to make the
people aware of Mohan Meakin range of Whiskers.
This awareness should be of such type that if one goes for a whiskey he would prefer
to take the MM Brand of whiskey and a wide range of choices must be available.
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OBJECTIVE OF RESEARCH
The objective of research is to identify the marketing plan and to check that which
brand mostly like by the consumer in different segmented criteria.
To find out the factors about liking the particular brand in current scenario as
available market.
Main objective of this research is what are different techniques of sales promotion
applied on different brands by the companies and Mohan Meakin and how much
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these techniques are objective finally compare the result of the companies with
Mohan Meakin.
RESEARCH METHDOLOGY
To meet the specific objective of the problem primary data is collected. Methods for
collecting the primary data are: -
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1. SURVEY: - The process of soliciting information from people by personal
interviewer mailing the format of data collection may be structured or unstructured of
direct or indirect.
2. OBSERVATION: - This process of nothing and recording the information about
people and their behavior without asking specific questions.
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RESEARCH PROCESS
For conducting this research effectively the research has to be conducted systematically in an
already planned direction with the help of a number of steps in a sequence. The type of
research being conducted is applied research. Since it is an attempt to apply the basic
principles of marketing an existing knowledge about Mohan Meakin for the purpose of
solving the problem at hand.
STEPS TO BE CARRIED IN CRONOLOGICAL ORDER ARE
Problem Identification
Research Design
Field Work & data collection
Data analysis and interpretation
Report Presentation
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1- PROBLEM IDENTIFICATION: -
The decision whether to conduct research was already taken by the sales department of
Mohan Meakin the problem was also formulated by them.
2- RESEARCH DESIGN: -
It is the basic framework that provides guidelines for the rest of the research problem. It is the
map or the blueprint according to which research is to be conducted. The research design
specifies the method of data collection and analysis, for this the following have to be defined.
How data will be collected?
Which instrument of data collection would be used?
What sampling plan would be used?
Define the sampling unit?
Asses the relevant existing data?
Decide the sample size?
Decide the sampling procedure?
Decide the sampling method?
Decide the analytical aspect?
3- FIELD WORK & DATA COLLECTION: -
After the research design has been made the actual data collection operation is carried out
this step is also called fieldwork. In this problem relating to not at homes, refusal to
cooperate, bias of interviews, bias of respondents has to be adjusted.
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4- DATA ANALYSIS AND INTERPRETATION: -
Coding the collected data.
Tabulate the data.
Analysis the data using statistical tools.
Interpret the data drawing inferences.
Draw summary and conclusion.
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DETAIL OF RESEARCH DESIGN
It is the framework or plan used to collect and analyze the data to solve the problem we have
at hand. There are three basic types of research design, which we can choose for a research.
2. EXPLORATORY RESEACH DESIGN: - It is used to discover new ideas
and insights; we shall be using this research design.
3. DESCRIPTIVE RESEARCH DESIGN: - This type of research designed is
concerned with determining frequency with which something occurs of how two
variables vary together. Since some of the trends we shall analyze may show
associations. We will use this type of research design.
4. EXPERIMENTAL RESEARCH DESIGN: - It is the process of
manipulating one variable in a controlled environment while holding all other
variables constant in order to establish a casual relationship. Since our environment
cannot be controlled, we will not use this type of research design.
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DATA COLLECTION
PRIMARY DATA COLLECTION: -
The basic means of obtaining primary data will be communication with the agent.
Communication involves the questioning of agents to secure the desired information using
the data collection instrument called “QUESTIONNAIRE” The question will be asked in
writing.
SECONDARY DATA COLLECTION: -
This type of data will be collected from the retailers, books, journals, and newspaper and
from the Internet.
STRUCTURED UNDISGUISED QUESTIONNAIRE: -
This type questions are presented with exactly the same order to all the respondents. The
reason for the standardization is to ensure that all respondents are replying the same question.
The responses to these questions are also standardization. This is accomplished by emptying
fixed alternative Questions in which the responses of the subject are limited to the stated
alternatives.
The greatest advantageous of this are that is simple to administer & easy to tabulate &
analyze. The frame of references in which the respondent is to reply is often obvious from the
alternatives. The question also become clearer as it provides the clemencies in which to frame
the reply which helps assure the reliability of the question.
Over all this type of questionnaire is most productive as replies are well-known
limited in numbers and clear-cut. Thus they are appropriate for securing factual information
and eliciting of opinions about issues on which people hold clear opinion.
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SURVEYS
PERSONAL INTERVIEW: - In this the investigator questions the
respondent in a face-to-face meeting. They can be conducted by going to the
person’s office or home etc. The usual approach for the interviews is to
identify himself to the potential respondent and attempt to secure the
respondent cooperation in may be return down by the interviews. Despite high
costs, the personal can provide critical help of information such as on
knowledge intensions, demographic, characteristics, attitudes, opinions and
lifestyle.
TELEPHONE INTERVIEW: - This is basically done on telephone.
Again set pattern of questions are followed and this can be done more quickly.
MAILING QUESTIONNAIRE: - That’s on Internet.
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SELECTION OF SURVEY TECHNIQUES: -
The survey technique is to be selected keeping in mind the following thing which will help in
successfully conducting the research and helps a lot in preparing the research report. These
factors also suggest the reliability and identity of the report.
COST
SPEED
ACCURACY
AMOUNT OF DATA GATHERED
RESPONSE RATE
FLEXIBILITY
CONTROL
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JOINT VENTURES
Mohan Meakin Ltd. has established joint ventures with various companies in order to
promote its products in the country and abroad. Some of the joint ventures till date are with –
a) Mc Donald & Muir Ltd. Edwin Burgh, Scotland (U.K.). A separate joint venture
company has been corporate under the name Mc Donald Mohan Distillery Ltd. with
Head office at New Delhi.
b) Miss Blizzard and Rogers international (world’s largest liquor manufacturer) under
the brand name of Marie Blizzard for the purpose of bottling and marketing of various
liquors.
c) Larsen S.A. (One of the world’s top five Cognac and Brandy manufacturers) located
in France for the purpose of the bottling distribution and marketing of Larsen Cognac.
In pursuant to the economic liberalization policy, Mohan Meakin has explored other
strategic tie-ups with international alcoholic beverage manufacturers for the purpose of not
only introducing international brands in the Indian market but also to export products through
their distribution network internally.
Mohan Breweries & Distilleries Ltd. (MBDL) is one of the leading manufacturers of
Indian Made Foreign Liquor & Beer products in India. MBDL was incorporated in 1982 in
technical collaboration with M/S Mohan Meakin Limited, Ghaziabad, India who are amongst
the pioneers in liquor manufacturing with over 100 years of experience. MBDL has also
power generation units, generation power using non-conventional energy sources for their
captive usage.
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MAJOR BRANDS OF VARIOUS COMPANIES
Black Knight Mohan Meakin’s Ltd.Diplomat deluxeSolan No.1 Old Monk
High command Show Wallace Co. Ltd., CalcuttaOld TavernDirectors SpecialHaywardsMugal Monarch
Ritz Gold Great Glen Distilleries and breweries Ltd.
Darling Ten Kadia Castle Solon Industries Ltd.Polar BeachPlaza
Bagpiper Herberstan Co. Ltd., Mumbai
Diplomat Mc Dowell Co. Ltd., Madras
Democrat Khodey’s Distilleries, Banglore
Aristocrat Jagjit Industries, Punjab
Golden Crest Saraya Distilleries, Saraya Gorakhpur
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GIFTS OR INCENTIVES GIVEN BY THE COMPANIES
S.NO. MANUFACTURING COMPANY
GIFTS TO CONSUMERS GIFTS TO RETAILERS
1. Mohan Meakin Ltd. Nil Nil
2. Jagajit Industries Key ring, paper soap Torch, Bag, Glass set
3. Mc Dowell’s Co. Ltd. Opener Table Clock, Bag
4. Shaw Wallace Key Ring & Pen Beer Set, Glass set, Playing card
5. Herberston Co. Ltd. Nil Glass, Hanky, Calendar
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RESPONSE OF MARKET SURVEY CONDUCTED DATA ANALYSIS AND INTERPRETATION
SALES OF DIFFERENT KIND OF ALCOHOLIC PRODUCT
Beer 54%Whiskey 24%
Rum 14%Scotch 8%
Interpretation:- In the survey it came out that most people preferred Beer.
Percentage
Beer54%
Whiskey24%
Rum14%
Scotch
8%
Beer
Whiskey
Rum
Scotch
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BASES OF PURCHASE
Method People PercentageBrand Name 46 51%Advertisement 25 28%Shop 11 12%Salesman point of view 08 09%
Interpretation:- Most of the consumer influenced by the Brand Name of the
product.
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CONSUMER AGE GROUP
AGE 15-20 20-35 35-45 45-60PERCENTAGE 19% 47% 21% 13%
Interpretation:- Most of the liquor drinker’s are in age group of 20-35 and a new age
category of 15-20 is emerging.
Company should launch some new category of brand with lesser alcohol
content to cash the opportunity.
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ANALYSIS OF OCCUPATION OF CONSUMERS
OCCUPATION NO. OF PEOPLE PERCENTAGEEmployedBusinessmanUnemployedRetired
4420157
52%23%17%8%
Interpretation:- Most of the liquor drinkers are the employed person i.e., service class
person uses alcohol mostly.
Percentage
52%Businessman
Unemployed
Retired8%
Employed
Businessman
Unemployed
Retired23%
17%
Employed
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ANALYSIS OF INCOME OF CONSUMERS
INCOME NO. OF PEOPLE PERCENTAGE0-50005000-1000010000-15000More than 15000
12253617
13%28%40%19%
Interpretation:- Most of the consumers of alcoholic liquor belong to the 10000-15000.
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REASON FOR PREFERRING A PARTICULAR BRAND
Quality 45%Taste 30%Availability 15%Price 10%
Interpretation:- One of the factors which customers basically considers
while selecting a brand is the quality and availability and price plays lesser role
in deciding a brands.
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MEDIA PREFERENCE OF THE CONSUMERS
MEDIA NO. OF PEOPLE
PERCENTAGE
RADIO/AUDIOMAGAZINENEWSPAPERSOTHERS
209634
22%11%10%57%
Interpretation:- T.V. Media is mostly effect the Consumer buying Behavior.
Percentage
22%
11%
10%57%
Radio/Audio Magazine
Newspapers
Others
Radio/Audio Magazine
Newspapers
Others
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ATTITUDE OF CONSUMERS IN THE ABSENCE OF HIS FAVORITE BRAND
PREFER A DRY DAY 15%GOTO ANOTHER SHOP 31%SWITCH OVER TO ANOTHER BRAND
54%
Interpretation:- Reason for asking this question is to check the consumer’s
loyalty and to classify them into Hard Core, Soft core and Switchers and also to
check how much segment of the market can stick to a brand even incase of its non
availability.
REASON FOR TAKING ALCOHOLIC DRINKS
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FOR ENJOYEMENT 55%TO GIVE COMPANY TO FRIENDS 19%FORGET PAST 22%NO SPECIFIC REASON 04%
Interpretation:- 55% of the customers drink alcoholic liquid just for enjoyment
and there is no specific reason for taking drink4%, taking it to give company to
their friends 19%, Drink it to forget bad past or to enjoy the happy moments
22%.
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FREQUENCY OF DRINKING
PERCENTAGE OF THE RESPONSE
DURATION PERCENTAGE OF THE RESPONSE
Daily 5%After 2-3 days 12%Once in a week 16%Once or twice in a month 26%Occasionally 41%
Interpretation:- Most of the people take drink occasionally and daily drinkers are rare
in number.
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SIZE PREFERRED BY PEOPLE
750 ML (FULL) 20%
375 ML (HALF) 30%
180 ML (QUARTER) 50%
Interpretation:- In the study, most people preferred to take 180 ml bottle. They
were of the opinion that the little quantity suits them and given satisfaction. It is
only when large no. Of friends come together, they purchase 750 ml bottle.
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FINDINGS
The most vital range of Mohan Meakin of whisky, Beer, Rum, Vodka & other fruit juces
and drinking products are there a large market segment is unaware with their products and
some people even don't know that a particular brand exist in the market. The main think is
that to make aware the customer to there brands and there products.
In case of Colonel's Special Whisky more then 47% of the market is unaware of it, so the first
and foremost step to increase the market share is to make the people aware of Mohan Meakin
range of whiskies. The measures that can be done to make the people aware of brand name
are.
To promote the brand name through various media sources like satellite, television,
magazine and novels etc Liquor is not a necessary good, so its advertisement should
be such type that the effect present in the mind for some times. As the advertisement
of the liquor I` banned On National Channel, so the other products like mineral water
and the juices of the same brand must be advertise on the television This can be
simultaneously make the people aware that Mohan Meakin is also preparing
nonalcoholic drink, as presently less then 10% of the people's ears aware of it.
Sponsoring some important event like national championship of any sports to naked
the promotion of the company. This type of promotion also creates a good image of
the company as once clone 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
profit of the company and also the market shares of the company.
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MARKET STRENGTH OF MOHAN MEAKIN LTD.
TOWARDS DIFFERENT CHARACTERISTICS
CHARACTERISTICS MARKET STRENGTHV.HIGH HIGH LOW V.LOW
Distribution Market Share Advertising Competition Growth Rate Pricing Product Quality
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LIMITATIONS OF THE RESEARCH
There was various constraints facing the research project which have limited the degree
of detail of the problem: -
Since the survey was conducted only in Lucknow a narrow view of the role of
Mohan Meakin in U.P. could be obtained.
It was important that the number of questions in the questionnaire do not exceed
due to financial constraints and due to the fact that if the questionnaire was too
long the number of responses would have refused to give a large amount of
time.
Due to lack of secondary data very specific hypothesis could not be formed.
Due to individual differences it could be possible that a respondent did not
understand the question and thus gave a wrong response.
Lucknow is a big city so care has been taken to cover all the areas of the city but
rural areas could not be covered.
Some people also questioned about why the survey has been conducted and
were suspicious about given the information.
Some people had no idea about the brand while they are having liquor.
The consumer does not reveal some time the correct information so basis comes.
The study is Limited because every people are not the consumer of liquor.
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SUGGESTIONS
Although the company is running well and marketing efforts for the sales promotion but
in spite of all that there are following suggestions, which I would like to put for
betterment of Mohan Meakin Ltd., Lucknow.
Since the company brands of whiskey are not very popular so it will be
beneficial for the company to adopt some sales promotion schemes to increase
the sale and to generate the brand awareness in the consumer’s minds.
Company should give some gifts and incentives to retailers because salesman of
retailer play very important role in the sale of alcoholic product and ask the
retailers to display company’s brands on their display. These gifts & incentive
can be in the form of sweater, table clock, wall clock, dinner set, tea set, t-shirts
etc.
Company should also give gifts to the consumers with brands; these gifts can be
in the form of key chains, openers, pens etc.
Company can also give lucky coupons with brands. Since most of the consumer
belong to the age group 20-35 and belong to well educated people so the
company should advertise its brands mostly in newspapers, T.V., magazines etc.
During my research I found out of the competition of Mohan Meakin has a strong
promotional scheme. So beating the competition company must follow strong
promotional schemes for salesman as well as consumers also. Since consumer pay their
attention on taste and quality and packaging of the bottle while making a purchase
therefore company should pay more attention on attractive packaging and quality of
whiskey.
First and foremost important thing is that there must be regular feedback from
the retailers and consumers about the product.
Company should provide special discounts, gifts like attractive glasses to the bar
in order to promote and make the brand popular.
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CONCLUSION
Through my study on Market Analysis of IMFL (Indian Made Foreign Liquor) of
Mohan Meakin Ltd., I have come upon the following conclusion: -
Mohan Meakin manufacturer of different brands of whisky as Black Night,
Diplomat and even other alcoholic as well as non alcoholic products such as: - Rum,
Gin, Scotch, Vodka, Juices, Vinegar and mineral water. The company has 23% of
market share of the Indian alcoholic market.
Main selling product of the company is Old Monk Rum, which is always in short
supply in the market.
Company has a very nice and cooperative staff in its organization. On the basis of
research company should make investment on sales & promotion for his product in the
market to increase the sales of product and to capture the big share of the market.
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BIBLIOGRAPHY
BOOKS: -
Marketing Management, Analysis, Planning, Implementation and controlBy: - Philip Kotler
Marketing Research, Principles, Application and Caseso By: - Dr. D.D.Sharma
Research Methodology By: - Devendra Thakur
Principles Of Marketing By: - Philip Kotler
Statistics for business and economicso By:- R.P. Hooda
JOURNALS: -
The Economic Times Business Today Times of India (Lucknow Edition)
WEBSITES: -
www.hinduonline.net (For Achieves etc.)
www.thedistillery.com (For alcoholic references)
www.upgov.nic.in (For Law References)
www.google.com (For searching information)
www.kingfisherworld.com (For alcoholic references)
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ANEXTURE
QUESTIONNAIRE
In survey method of data collection, questionnaire is a popular means of data collection
instrument. A questionnaire is a structured, standardized format of data collection to record
urban response to questions. It is utilized when population is very large. Generally
questionnaire is used to record consumer awareness attitudes, opinions, prior and present
behavior and to make extensive interviews of salesman & consumers.
ADVANTAGES: -
Versatility
Speed and Cheaper cost
Easy in Communication
Better Control
PROBLEM IDENTIFICATION: -
On making the initial survey on sales promotional strategy applied by the companies it was
found that medium range brands are popular among consumers. But it was found that none of
the Mohan Meakin brand of whisky is popular and highly reliable though it leads in rum, as
its rum Old Monk is extensively popular and always in short supply. So I found out that
selling and marketing of medium range of whisky of the companies is the main problem and
decided to survey only this range of whisky in the market.
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RETAILER’S QUESTIONNAIRE
Name of Shop/Retailer:-..………………………………………………………..
Address:-…………………………………………………………………………..
Contact Number:-…………………………………………………………………
1. What brand you sell most?a) Whiskey ( )b) Rum ( )c) Vodka ( )d) Gin ( )e) Brandy ( )f) Other ( )
2. Which age group you deal most?a) 15-20 ( )b) 20-35 ( )c) 35-45 ( )d) 45-60 ( )
3. Do you sell MML product if not so why? _______________________________
4. What would attract you to sell MML product?a) Free gifts ( )b) Incentives ( )c) Low prices ( )d) Better quality ( )
5. Product is demanded most in__a) Winter ( )b) Summer ( )c) Rainy day ( )d) Festivals ( )
6. What is the market position of MML?
a) Good ( )b) Average ( )c) Poor ( )
7. Which brand of MML you are selling most? ________________________________________________
8. Which liquor company representative visits you frequently? Specify. _________________________________________________
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9. Which company gives you gifts & incentives? Specify. ________________________________________________
10. Have you attend any liquor company’s meetings?a) Yes ( )b) No ( )
11. What did you find them? Informative............................. Entertaining............................. Educational............................. Interesting............................. Can’t say..............................
Date: - …………………
Location: - ……………. Signature
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List of Retailers Shops
Shop Name Owner Name Address
Purani Chungi Suresh Pratap Singh Purani Chungi, Kanpur Road
Purani Chungi Rupesh kumar Purani Chungi, Kanpur Road
Krishna Nagar - Krishna Nagar
Alam Bagh Alam Bagh Near: Bus Adda
Chandan Nagar Chandan Nagar Gate, Alam bagh
Vendhya Chanl Aish Jaiswal Near Vendhya Chal Mandir, Sita Pur Road Lucknow
Viktoria Ganj Om Prakesh Viktoria Ganj, Nakhash
Galla Mandi Raju Jaiswal Near: Galla Mandi, Sitapur Road.
Puraniya Croshing Near; Puraniya Croshing,
Kapoor Thala S. P. Singh Kapoor Thala, Aliganj
Tadhi Puliya Tadhi Puliya Chauraha Kurshi Road.
Madiyava Opp. Petrol Pump, Sitapur Road.
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RESUME
Name: Jitesh kumar Contact number: 7376869023e-mail address: [email protected]
Career Objective: To continue to strive for excellence at job and to have result oriented approach for me and for the growth of the company.
Professional Qualification: Master of Business Administration from Shri Ramswaroop Memorial college of enggeneering and management, lucknow affalited to G.B.T.U. Lucknow (U.P.)
Area of Specialization: Marketing and Finance
Academic Qualification:
BACHOLAR OF ART from C.S.J.M.University, Kanpur.(2010) HSC from U P Board, Allhabad.(2005) SSC from U P Board.Allhabad.(2003)
Trainings or Project:
Name of the organization : MOHAN MEAKIN LTD.
Title of Project: SALES PROMOTION OF LIQUOR BEVERAGES & FRUIT JUICE OF MOHAN MEAKIN LTD.
Duration: 45 days
Extra curricular activities: participate in college level programs
Personal Details:
Date of birth: 10/03/1987
Mother’s name: Smt. Binda devi
Father’s name: Shri Gayadeen
Hobbies: listening music
Permanent address : vill-& post kishundaspur disit- Raebareli (U.P.)
Date:Place: (jitesh kumar)
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