MohanKumarS-03114-Consumer Preference Towards Beer Brand

8/12/2019 MohanKumarS-03114-Consumer Preference Towards Beer Brand

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Consumer preference towards beer brand

MPBIRLA INSTITUTE OF MANAGEMENT 1

CONSUMER PREFERENCE TOWARDS BEER BRAND IN

BANGALORE

A DISSERTATION

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF MBA

DEGREE OF BANGALORE UNIVERSITY.

BY

A.MOHAN KUMAR.SREG.NO-03XQCM6062

UNDER THE GUIDANCE OFProf.Sumithra Sreenath

M.P.BIRLA INSTITUTE OF MANAGEMENT

ASSOCIATE BHARATIYA VIDYA BHAVAN.

BANGALORE-560001


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DECLARATION

I hereby declare that the research work embodied in this

dissertation entitled, consumer preference towards beer brand

in Bangalore under the guidance and supervision of Prof.

Sumithra Sreenath M.P.Birla Institute of Management,

Bangalore.

I also declare that this dissertation has not been submitted

to any university/ institution for the award of any Degree/

Diploma.

Place:Bangalore (Mr.Mohan Kumar.S)

Date :15-6-2005 Reg No:03XQCM6062


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CERTIFICATE

I hereby certify that the research work embodied in this dissertation

entitled Consumer Preference Towards Beer Brand in Bangalore has

been undertaken and completed by Mr. Mohan Kumar.S under the guidance

and supervision of Prof. Sumithra Sreenath, M. P. Birla Institute of

Management, Bangalore.

Place: Bangalore (Dr. N. S. Malavalli)

Date: 15-6-2005 Principal


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CERTIFICATE

I hereby certify that the research work embodied in this dissertation

entitled Consumer Preference Towards Beer Brand in Bangalore has

been undertaken and completed by Mr. Mohan Kumar.S under my guidance

and supervision .

I also certify that she has fulfilled all the requirements under the covenant

governing the submission of dissertation to the Bangalore University for the

award of MBA Degree.

Prof. Sumithra Sreenath

Place: Bangalore (Prof. Sumithra Sreenath)

Date: 15-6-2005


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LIST OF GRAPHS

Sl.No Title Page No.

1 Indian beer market

2 Contribution by segment

3 EBITA components of performance

4 EBITA margin by segment

5 Habit of beer drinking

6 Often preferred beer drink

7 Preference of the place to have beer

8 Awareness of brands

9 Brand awareness by different fields

10 Alcohol content

11 Ideal beer attributes

12 Basis of choice

13 Quantity of beer purchase

14 Need of the advertisement

15 Kind of the beer


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16 Monthly expenditure

LIST OF TABLES

Sl.No Title Page No.

1 Habit of beer drinking

2 Often preferred beer drink

3 Preference of place to have beer

4 Awareness of brands

5 Brand awareness by different fields

6 Alcohol content

7 Ideal beer attributes

8 Basis of choice

9 Quantity of beer purchase

10 Need of the advertisement

11 Kind of the beer

12 Monthly expenditure


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EXECUTIVE SUMMARY

Breweries and distilleries industry is one of the steadily growing

industries in the market and beer is a major product of any liquor industry.

Since time immemorial, beer consumption as becomes the part of human

life. Nowadays any parties and social gathering will not be complete

without the beer on the menu

The Indian beer market has been growing rapidly over the last 10

years, due to the positive impact of demographic trends and expected

changes, like: increasing income level, changing changing lifestyles, so

Many of global players are entering the Indian beer sector to get the

benefit of the profit wave of the beer sector in India.

There was only a few studies conducted in this product category

highlighting behavioral aspects and consumers preferences for the

product. Beer is unique in particular reference to its consumption because

of its wide variety of brands and high volume of consumption.

This study will be precedence for the subsequent studies,

which could be undertaken in this category. This study elicits

various opinions attitudes, views of consumer preferences towards

beer brands. A Thorough research is done for making various

observations and finally drawing the recommendation for beer

industry as a whole.


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OBJECTIVES OF THE STUDY

To understand preference of consumer towards beer brands.

To study the awareness and usage of different beers.

To make market based suggestions for furthering the growth of the beer

industry.

RESEARCH METHODOLOGY

Research design: descriptive and analytical in nature

Data sources: primary data and secondary data

Research approach: survey method

Research instruments: questionnaire

Contact methods: personal

Sampling methods: simple sampling

.

Findings

One of the important finding of the study is the most of the beer

drinkers are youngsters and they start alcohol drinking with the beer and

they slowly move to other drinks like whisky, rum and other alcohol

drinks.

The market for the beer is good and it is growing steadily, the increased

earning capacity of the youngsters is one of the reasons.


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Design of the study

Statement of the problem

Success of the business depends upon the preferences /

attitudes/perception of the consumers of that particular product. Beer

industry is also same .in order to make a through inquiry into the attitudes

of beer drinkers this study was undertaken.

Need of the study

Consumers are the live wire for survival of any product or any

organization. Beer industry has no exception to this, there is a cut throat

competition among the producers of the beer .it is reported that the

alcoholic products are confronting lot of problems in marketing their

products with regard to consumer awareness, brand loyalty, quality price

and competition .in order to arrive at concrete remedies to all the maladies

there is an eminent need to conduct an in-depth study.

Scope of the study

The scope of the present study is confronted to understanding

preferences of consumers towards beer brands in Bangalore.

Methodology


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The methodology of present study consists of data collection from

primary and as well as secondary sources.

Primary data

Primary data was collected through a structured questionnaire,

which was self administered by the researcher on beer drinkers and pubs

and wine stores.

Secondary data:

Secondary data about industry profile and other details was

collected from the different company websites and journals.

Research instruments:

The required information was collected with the help of well-

designed and structured questionnaire.

Research design:

The research design is descriptive and analytical in nature.

Population for the study:

The population for the study includes the beer drinkers bars and

wine stores.

Sampling procedure and size:


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The sample size of 80 beer drinkers and around 20 bar, wine stores

are selected

Limitations

Despite all the earnest efforts made by the investigator the required

information was not forthcoming due to the reason that some of the

respondent hesitate to give required information

No generalization as such, to the consumers preferences towards beer as

study was only limited to only to 100 respondents.


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RESEARCH METHODOLOGY

TYPE OF RESEARCH

The type of research adopted for the project is descriptive research.

Descriptive research embraces a large proportion of marketing research.

The purpose is to provide an accurate snapshot of some aspect of the

market environment. Using questionnaires and interviewing the

respondents conducted the survey. The information thus gathered

constituted primary data and secondary data.

Primary data

These are the data, which are collected by the researchers for the

first time. In this research the primary data has been collected by a study,

which is specifically designed to fulfill or find out solutions to the

problems. This data is original in character, which is obtained by a

questionnaire by keeping in view the various type of customers. A copy of

the questionnaire is enclosed in the end of the report as apart of the

annexure.

Secondary data

Data, which are already assembled, are called secondary data.

The data may Be available within the company or the firm. Secondary

data provides a starting point for the researchers and offers the advantage


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of low cost and ready availability. The researcher collects the required

data from books, journal records of the organization and the Internet.

SAMPLING TECHNIQUE

In this study random sampling was used to collect data. Random

sampling Methods are those in which every item in the universe has a

known chance, or Probability of being chosen for the sample. This

implies that the selection of sample items is independent of the person

making the study, i.e. the sampling operation is controlled so objectively

that the items will be chosen strictly at random.

Random sampling does not depend upon the existence of detailed

information about the universe for its effectiveness. And it also provides

estimates, which are essentially unbiased and have measurable precision.

SAMPLE SIZE

The sample size will be drawn from a population who are likely to

be aware of the product. In this study of Market Analysis of The Ready To

Eat Packaged Foods, the sample size was taken as 60 in case of customers

and 15 for retailers. Sample size is an important determinant while

adopting a sampling technique.

SAMPLE DESCRIPTION

The study was conducted taking sample from both the customers

and the Retailers. The customer sample taken was 60,and the retailers

were 15.


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The customers come under the age group of 20-60, which consists

mainly of females because they have more influence in the purchase of

this product. Majority are graduated, and fall in the monthly income group

of 5000-15000.

INSTRUMENTATION TECHNIQUEA list of questions pertaining to the survey was prepared under this

study. The questionnaires were distributed to the retailers at the outlets and

informations were collected from customers through personal interviews.

The data collected through questionnaires are coded and tabulated.

Various diagrammatic presentations like pie chart, bar diagram, column

diagrams, graphs & tables were used to represent the information

obtained, to the reader in an understandable manner.

ACTUAL COLLECTION OF DATA

In this research data was collected by survey based on

Questionnaires Schedule & Personal Interview. The questionnaire was

based ion specific components of brand awareness, brand loyalty and

finally the different attributes of the product. The other methods used to

collect information were Magazines, Management Journals, Annual

Reports & Internet. Utmost care must be exercised in collecting data

because they form the foundation of the analysis.

TOOLS USED FOR TESTING HYPOTHESIS


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By hypothesis, we mean a statement about the population

parameters. Hypothesis testing deals with a procedure, which accepts or

rejects the hypothesis. There are two types of hypothesis.

1. Null Hypothesis:- It states that there is no significant difference between

the sample value and population vale. This means that the observed

difference is due to the random fluctuations. Ho denotes the null

hypothesis.

2. Alternate Hypothesis:- In case the null hypothesis is rejected, we should

have an alternate hypothesis to accept. Alternate hypothesis is denoted by

Ha.

TYPE OF ERRORS

While testing hypothesis there are four possible combinations

between the population value and sample value. The four combinations

are:

1. Hypothesis is true and test accepts it.

2. Hypothesis is true and test rejects it. (Type 1 Error).

3. Hypothesis is false and test accepts it. (Type 2 Error).

4. Hypothesis is false and test rejects it.

LEVEL OF SIGNIFICANCE


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It is nothing but the probability of rejecting a true hypothesis. It

represents the level of risk; the experiment is ready to take in rejecting a

true hypothesis and is denoted by . 1 - gives the level of confidence of

the experiment in taking the decision. It is always preferable to keep the

level of significance at low percentage. It means that we should not reject

a true hypothesis. represents the risk of accepting a false hypothesis. 1

is called the power of test.

ACCEPTANCE REGION

This represents the region within which the calculated value of the

statistics must lie to accept the null hypothesis. If calculated value lies in

this region then the null hypothesis will be rejected.

HYPOTHESIS TESTING PROCEDURE (STEPS):

1. We set up a null hypothesis denoted by Ho. This means there is

significant difference between sample value and population value. In

Case if Ho is rejected, we must have an alternate hypothesis HA. So we

set up an alternate hypothesis.

2. Select the level of significance.

3. Select an appropriate distribution for the test, which is known as test

statistics. The distribution generally used are normal distribution, student

t distribution, Fishers F distribution or Chi square 2

Distributions.

4. Calculate the necessary values from the given data for the test.


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5. Make conclusions for testing. If calculated value is less than the tabulated

value, Ho is accepted; else Ha is accepted rejecting Ho.

Test for Specified proportion (infinite ppulation)

In case of attributes we can only find out the presence or

absence of a particular characteristics. The sampling of attributes

may, Therefore, be regarded as the drawing of samples from a population

whose members possess the attribute A or not A.

Large population (n>30)

Ho: p = P

HA: p P

Z cal = p-PPQ

n

p = Sample Proportion

p = Population Proportion

n = sample size

Q = 1 - P


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INTRODUCTION

INDIAN BEER INDUSTRY

The Indian beer sector has seen a hectic merger and

acquisition activity recently with 12 breweries changing hands in

the last 3 years. However, this is not the end of the consolidation

wave in the Indian industry. Rather, some of the largest beer

players across the world are still eyeing India with a view to

gaining a share of the countrys rapidly growing beer consumption.

An attractive beer market

The Indian beer market was estimated to be 6.7 million

hectoliters (hl) in 2002-03. As seen in figure 1, beer consumption

has been growing rapidly at a CAGR (Compound Annual Growth

Rate) of 7 per cent over the last 9 years, while growth in 2002-03

was 11 per cent.


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Indian growth rates compare favorably with the global beer

industry, which grew by about 2.6 per cent in 2001-02 Apart from

providing strong growth, India also provides attractive profit

margins due to the consolidated nature of the industry a

comparison between China and India, for example, reveals that the

Chinese beer market is marked by intense competition, with

several players being marginalized. In China there are about 400

brewers, of which the top 10 account for only 45 per cent of the

market. This has resulted in low profit margins for the Chinese

beer players. In contrast, the top two beer players in India account

for about 75 per cent of beer sales in India and the industry stands

a chance to see more consolidation in the near future. The effect ofthis consolidation can be seen in the fact that beer prices in India

rarely go down with the competitive pressures of new product or

brand launches. In the past, whenever beer prices have gone down,

it has been due to either the lowering of duties by the government

or the deregulation of distribution (leading to lower margins for the


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distribution channel partners). In neither scenario have the margins

or revenues of beer manufacturers been affected.

Growth prospects for the beer industry in India

The Indian beer market has been growing rapidly over the

last 10 years, due to the positive impact of demographic trends and

expected changes, like:

Rising income levels: India is home to nearly one-sixth of the

global population and is one of the most attractive consumer

markets in the world today. Various research studies have shown

that a rise in the income levels has a direct positive effect on beer

consumption. The National Council for Applied Economic

Research (NCAER) projects Indias very rich, consuming and

climbers classes to grow at a CAGR of 15 per cent, 10 per cent

and 2 per cent respectively. With this growth in income levels,

Indian beer consumption is expected to continue growing, at the

very minimum, at the growth rates witnessed in the last decade.

Changing age profile:As a consequence of the high birth rates

prevalent until the 1990s, a large proportion of the Indian

population is in the age group of 20-34 years. This age group is the

most appropriate target for beer marketers. This population trend

will give a further boost to the growth of beer consumption in

India.

Changing lifestyles: A deep-seated traditional social aversion

to alcohol consumption has been a traditional feature of the Indian

society. However, as urban consumers become more exposed to

western lifestyles, through overseas travel and the media, their

attitude towards alcohol is relaxing. Social habits are undergoing a


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transformation as mixed drinks are becoming more popular. The

greatest evidence of this trend is the increase in beer consumption

among women. More and more women are consuming beer the

penetration in metropolitan areas is almost twice as high as the

penetration in other large cities implying that the greater

tolerance towards alcohol consumption in metropolitan areas

facilitates the consumption of beer. With increasing urbanization,

this acceptance is only going to rise. Reduction in beer prices: The

Indian consumer typically values an alcoholic beverage on the

basis of its kick factor versus its price. The following two factors

therefore, affect the market for beer. Firstly, as most states do not

have a differential tax structure based on the alcohol content,

strong beer...

SURROGATE ADVERTISING

Liquor companies advertise their drinks in the form of surrogate

advertisements. In this type of advertisement, a product other than the

banned one is promoted using an already established brand name. Such

advertisements or sponsorship help in brand building and contribute to

brand recall. The product shown in the advertisement is called the

(surrogate). The surrogate either resembles the original product or could

be different product all together. But using the established brand of the

original product. The sponsorship of sports/cultural/leisure events and

activities using liquor brand name also falls in the category of surrogate

advertising.

Recent changes in surrogate advertising laws


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In June 2002, the Information and Broadcasting (I&B) Ministry of

India ordered leading television (TV) broadcasters to ban the telecast of

two surrogate ads of liquor brands McDowells NO.1 and Gilbeys green

label the ministry also put some other brands Smirnoff vodka,

Haywards 5000, royal challenge whiskey and kingfisher beer on a

watch list the surrogates used by these advertisements ranged from audio

cassettes, CDs and perfumes to golf accessories and mineral water.

By august 20002 the I& B ministry had banned 12 advertisements.

Leading satellite TV channels including Zee, SONY, STAR and Aaj Tak

were issued show-cause notices asking them to explain their reason for

carrying surrogate liquor advertisements. The channels were asked to

adhere strictly to the cable Television Regulation Act 1995 (Cable TV

Act, 1995). As a result, Zee and STAR stopped telecasting the

advertisements; Aaj Tak and Sony soon followed suit. In addition, the

I&B Ministry hired a private monitoring agency to keep a watch on all

advertisements for violations of the Act.

These developments led to heated debates over the issue of surrogate

advertising by liquor companies. Though the liquor companies involved

protested strongly against the I&B Ministrys decision, they had no

choice, but to comply with the regulations. Analysts remarked that the

governments policy was hypocritical. One said, On the one hand they

allow these socially bad products to be manufactured and sold (in order

to garner revenues) and then they deny the manufacturers the right to

propagate knowledge of their products in order to drive sales.

Meanwhile, the government also seemed to be in dilemma. On the

one hand, it had to encourage the sales of liquor and tobacco because they

were the highest taxed sectors of the Indian economy. On the other hand,


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there were also the need to take high moral ground and reduce the

consumption of such products.

Theoretical background

Brand management

The first thing to recognize when we talk about brands is that they

are not just names, terms symbols designs or combinations of these,

although it is true say that such things differentiate certain products and

companies from others.

The strong brand apparently says more about itself than the product

lurking behind it. The brand forms an independent embodiment of the

relationship between the seller and the buyer and what they expect from

one another. That makes the brand a very important catalyzing element in

the formation of strategy.


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The additional ingredient that makes successful brands is

personality the brand can project a certain personality. Marketers have

used personality variables to segment markets. They endow their products.

Brand image

A product is something that is made in a factory; a brand is

something that is brought by a customer; a product can be copied by

a competitor; a brand is unique; a product can be quickly outdated; a

successful brand is timeless.

--By Stephen king ---wppgroup,

London.

Brand image creates value principally by projecting an image.

While they may be based on an extraordinary product, these brands are

distinguished from the competitors because buyers see them as offering aunique set of association or image. Brand image are often created in

categories where products are relatively undifferentiated or quality is

difficult to evaluate (I.e. wines, medical or consulting services) or where

under such circumstances, images attached to the brand add value in terms

of distinguishing it from other brands by serving them as a badge

informing others the one group. Membership or accomplishments in either

case it is the set of images attached to the brand that define the brands

uniqueness and create symbols that are highly valued by buyers.

Brand image may be created in many ways as

By adding product features that evoke images;


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By making emotional connection with buyers;

By associating a brand with particular types of users; and/or

By clever advertising campaigns.

Brands are successful because people prefer them to ordinary

products. In addition to the psychological factors already mentioned,

brands give consumers the means whereby they can make choices and

judgments.

Based on the experiences customers can rely on chosen brands to

guarantee standards of quality and service, which reduces the risk of

failure in purchase. Smart companies now responsive to the criticisms, in

real time and of making sure the brand is consistent and is as good as it

can be wherever it shows up, and even after the sale has been made .the

tools the sales people use to sell it, public efforts and follow up customers

service all must reflect brand values impart a consistent brand image

SEGMENTATION MARKETING

The first step in developing a segmentation strategy is to select the

most appropriate base on which to segment the market.

Geographic Segmentation

In this, the market is divided by the location. The theory behind this

strategy is that people who live in the same area share some similar needs

and wants and that these needs and wants differ from those people living

in other areas.


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Some regional consumption differences can be accounted for by

climate. At the same time marketers have observed divergent consumer

purchasing patterns among urban, suburban and rural areas.

For example if I consider my project case, it is seen that many urban

people beer when compared to other rural areas.

Demographic Segmentation

Demographic characteristics such as age, sex, marital status, income,

occupation and education are most often used as the basis for market

segmentation.

In my study, income, education and occupation plays a major role in

consumer preference for beer. Education, income and occupation tend to

be closely correlated in almost a cause-and-effect relationship. Insights on

media preferences tend to support the close relationship among income,

education and occupation.

Psychological / psychographics segmentation

Psychological characteristics refer to the inner or the intrinsic qualities

of the individual consumer. Consumers may be segmented in terms of

their needs and motivations, personality, perceptions, learning, level of

involvement and attitudes. Psycho graphic research focuses on the

measurement of activities, interests and opinions. On their most common

form, psycho graphic studies use a battery of statements designed to

identify relevant aspects of a consumers personality, buying motives,

interests, attitudes, beliefs and values.


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Sociocultural Segmentation

Social class is a potential market segmentation variable. The concept

of social class implies a hierarchy in which individuals in the same class

generally have the same degree of status, while members of other classes

have either higher or lower status. Studies have shown that consumers in

different social classes vary in terms of values, product preferences and

buying habits.

Use related segmentation

Awareness status encompasses the notion of consumer awareness,

interest level or buyer readiness. Marketers have to determine whether

potential consumers are aware of the product, interested in the product or

need to be informed about the product. Particularly many people are not

aware of difference between granite and marble. So the marketers should

make them to understand the product and its characteristics and in what

way it is better to other ceramic products.

MOTIVATION

It is the driving force within individuals that impels them to action.

This driving force is produced by a state of uncomfortable tension, which

exists as the result of an unsatisfied need. All individuals have needs,

wants and desires. The individuals subconscious drive to reduce need

induced tension results in behavior that he or she anticipates will satisfy

needs and thus brings about a more comfortable state.

Motivation is a highly dynamic construct that is constantly changing

in reaction to life experiences.


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Needs and goals are constantly changing.

Needs are never fully satisfied.

New needs emerge as old needs are satisfied.

Success and failure influence goals.

Substitute goals.

According Marlows hierarchy of needs, consumer preference for

granite will come under egoistic needs. Inwardly directed ego needs

reflect an individual needs for self-acceptance, for self esteem, for success,

for independence, for personal satisfaction. Outwardly directed ego needs

include the needs for prestige, for reputation, for status, for recognition

from others.

PERCEPTION

It is the process by which individuals select, organize and interpret

stimuli into a meaningful and coherent picture of the word; perception hasstrategy implications for marketer, because consumers make decision

based on what they perceive, rather than on the basis of objective reality.

Just as individuals have a perceived self-image as a certain kind of

person, so, too, do products and brands have images (i.e. symbolic

meanings) for the consumer? The perceived image of a product or service

(i.e. positioning) is probably more important to its ultimate success than

are its actual physical characteristics.

Perceived quality


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Consumers often judge the quality of a product or service on the basis

of a variety of informational cues; some are intrinsic to the product (e.g.;

color, size, flavor, aroma) while others are extrinsic (e.g. price, store

image, brand image, service environment).

In choosing the granite products consumers always use its

characteristics such as sustenance against wear and tear, hardness, colors

and patterns.

In absence of direct experience or other information consumers often

rely as an indicator of quality.

Price / Quality Relationship

Price is considered to be an indicator of quality. One of the dangers ofsales pricing for retailers is that products with lower prices may be

interpreted as reduced quality.

Consumers imaginary exte nds beyond perceived price and store

image to the producers themselves. Manufacturers who enjoy a favorable

image generally find that their new product accepted more readily than

those of manufacturers with less favorable or neutral images.

The marketers should concern with actual consumer purchasing

patterns, with consumers beliefs and opinions concerning their brands and

competing brands, and with knowing how important the product is to the

consumer. Developing a highly consistent market share of brand-loyal


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consumers is the ultimate goal of marketing strategy. Discovering how

consumers learn about brands and become attached to certain brands assist

markets in achieving this goal.

Brand equity

Brand equity refers to the inherent value a brand name has in the

market place. Marketers are consolidating their brands to enhance brand

equity and to encourage brand loyalty in the face of proliferation of private

brands. For marketers, the purpose of understanding how consumers learn

is to teach them that their brand is best, and to develop brand loyalty.

The consumers search for alternatives is influenced by self-image,

interpersonal influences and attitudes.

Each individual has a perceived self-image (or multiple images)

as a certain kind of person with certain traits, habits possessions,

relationships, and ways of behaving. Consumers frequently attempt topreserve enhance alter or extend their self-images by purchasing products

or services and shopping at stores believed to be consistent with the

relevant self-image and by avoiding products and stores that are not.

Attitude

It is a learned predisposition to behave in a consistently favorable or

unfavorable way with respect to a given object (e.g. a product category, a

brand, a service, an advertisement, a retail establishment).

The attitude towards-the-ad models examine the influence of

advertisements on the consumers attitudes towards the brand. Internal


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variables like social, cultural, family, communication and persuasion are

explained below.

Social class

It is usually defined by the amount of status that the members of a

specific class posses in relation to members of other classes. Social class

membership often serves as a frame for the development of consumer

attitudes and behavior.

Research has revealed social class differences in clothing habits,

home decoration, leisure activities and savings, spending and credit habits.

Thus astute marketers tailor specific product and promotional strategies

for each class target segment.

Occupation is a widely accepted and probably the best-documented

measure of social class, it implies occupational status.

Marketers frequently think in terms of specific occupations when

defining a target market for their products.

Education is another commonly accepted approximation of social

class standing. Generally speaking, the more education a person has, the

more likely is his pay and can afford for any expensive product such as

granite flooring for his house.

Culture

Culture is defined as the sum total of learned objects, values and

customs that serve to regulate the consumer behavior of members of a


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particular society. Culture is dynamic and gradually and continually

evolves to meet the needs of society. It is learned as a part of social

experience.

Family

Family is a major influence on the consumption behavior of its

members; it is also the prime target market for most of the products and

product categories. The members of a family assume specific roles and

tasks in their everyday functioning. Such roles and tasks extend to the

realm of consumer purchase decisions.

Marketers are interested in the relative amount of influence that a

husband and a wife when it comes to a family consumption choices. Most

husband-wife influence studies classify family consumption decisions as

husband dominated, wife-dominated, joint and automatic. Studies that

have examined both the extent and nature of husband-wife influence in

family decisions have found that such influence is fluid and likely to shift,

depending on the specific product or service, the family structure

orientation, and the specific stage in the decision making process.

Communication

Communication is defined as the transmission of message from a

sender to a receiver through a channel or medium of some sort. It is abridge between marketers and consumers and between consumers and

their socio-cultural environments.

Consumers decision to purchase or reject a product is the moment of

final truth for the marketer. It signifies whether the marketing strategy has


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been wise, insightful and effective or whether it was poorly planned and

missed the mark. Thus marketers are particularly interested in the

consumers decision-making process. For a consumer to make a decision,

more than one alternative must be available.

COMPANY PROFILE

Here is the company profiles of major liquor companies in India

SHAW WALLACE

As one of India' s foremost liquor manufacturers and exporters with a

host of brands that have captured the imagination of alcohol consumers in

the country and abroad, we believe it is superior quality that effectively

defines and underlines our primary goals.

For the last 116 years, we have carefully cultivated and abided by a

rock solid character that has been synonymous with a tradition of

excellence setting and upholding the highest standards is it in the

manufacture of our products or in our customer focus.


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It is our philosophy that one can and need not settle for anything less

than the very best. To that end, our customers in India and abroad are

treated to a medley of only the finest selection of alcoholic beverages

lovingly brewed and packaged under our label.

The world is our playground. Catering to the myriad tastes of liquor

lovers in different parts of the globe forms an irresistible challenge that we

have risen to time and time again. In the years to come, we at Shaw

Wallace aim to explore and conquer potential markets across the world,

besides increasing our domestic production in keeping with the ever-

growing demand for our products within India.

One can strive for perfection -- but we know there' s a realm that

exists beyond. That' s the corner the members of our organization are

taught to reach out for. With a doctrine that stresses on consistent

innovation and improvement, we at Shaw Wallace intend to meet and

surpass the most stringent standards of international quality in liquor

manufacture and export.

As the future dawns on us, we intend carving our very own niche in

every nook and cranny of the globe making Shaw Wallace the first name

in alcoholic beverages the world over . . .

Our Mission:

To become India' s largest and most profitable Alcoholic Beverages


35/74



Company and become a global player by delivering the best standards of

quality and customer satisfaction

Brands

Shaw Wallace and Co, while constantly creating and unveiling new

brands to tap fresh markets, is also aware of the importance of maintaining

the impeccable quality and equity building of its existent brands.

Shaw Wallace and Company Limited is perhaps one of the few

members of the alcohol and beverages industry in India which reports a

sale of 11 liquor bottles every second. While the organization is safely

entrenched as one of the liquor giants of the country and by far one of the

most promising players in the international arena, Shaw Wallace continues

to speak the language of change and development in keeping with

changing tastes and trends.

With a view to keep up with the demands of the consumer, Shaw

Wallace has re-launched many of its old products like Antiquity, RoyalChallenge, Director' s Special (DSP), DSP Black, and Old Tavern Whisky

sprucing them up with revolutionary new packaging. White Mischief

vodka and London Lime gin have also undergone a revamp and a re-

launch.

From the international portfolio, Shaw Wallace, in association with

Kyndal, unveiled a plethora of new products being introduced for the first

time in India. The range includes Findlaters, one of Scotland' s most well-

known Scotch brands, Vladivar vodka, Veba, UK' s fastest growing ready

to drink low strength alcohol beverage and Papillon. A range of Shaw

Wallace Bottled in Origin French Wines including red, white and


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sparkling wines and Golden Mist, a range of red and port wines have also

been introduced to cater to the the budget conscious Indian consumer.

Manufacturing units

Breweries

Uran, Navi Mumbai

Sica, Pondicherry

Doburg, Satara, Maharashtra

Paradeep, Orissa

Haryana

Sangareddy, A.P.

Meerut, U.P

UNITED BREWERIES

History

It all began with 5 breweries in South India. The oldest of which,

Castle Breweries, dated back to 1857. United Breweries, as these

breweries were named in 1915 has come a very long way.

Soon afterwards, the sight of bullock carts carrying huge barrels or

' Hog' s heads' containing beer became a household sight. These carts

wheeled their way to the customers, including British troops, living in and

around Madras, Bangalore and the Nilgiris. Almost immediately, the


37/74



Brew from UB became a favorite, especially with the British troops.

So began the history of Beer in India. And the history of Beer Division of

United Breweries!

The company was bought by late Mr. Vital Mallya in 1947, and since

then has never looked back. Today each one of the 32,000 Beer outlets in

India sells one brand or the other from United Breweries.

CORPORATE PROFILE

The beginnings of what is today The UB Group are rooted in the

flagship company, United Breweries Limited, (UBL)also referred to as

the Beer Division. Led by Mr. Kalyan Ganguly, President & Managing

Director, it has a 40% market share in the country

McDowell Alcobev Pvt Ltd., (MABL), is the new Joint Venture

Company in which UB and Scottish & Newcastle of the UK have a 40%

stake each, and Mr. Ravi Jain, Managing Director of the company and his

team has a 20% stake.

United Breweries Limited, the flagship company of the UB Group,

has an association with the brewing dating back over five decades, starting

with 5 breweries in South India in 1915. From bullock cart-loaded barrels

or ' hogsheads' of frothing ale, the Beer business as gone on to become the

undisputed ' king' in the Indian beer market.

Here, innovative, creative and aggressive marketing is complemented

by a strong distribution network. A management focused on building

brand equity on one hand and exploiting it to the hilt on the other. A

concerted emphasis on quality.


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The Division today boasts an impressive spread of 11 own and 15

contract manufacturing facilities throughout the Country.

Quality and hygiene are the key elements of the United Breweries'

manufacturing philosophy. To this end, the Central Scientific Laboratory

(CSL), headquartered at Ban galore sets standards for all its breweries.

Quality Management Systems laid out along the lines of ISO 9000 are

strictly adhered to, controlling quality at every stage of production, from

raw materials to the end product. Also, besides controlling the production

process, the CSL analyses the Company' s beer taken off market shelves all

over the Country, the competition' s beers and beers across the world.

These beers are tested as per the standards laid down by the European

Brewery Convention on 40 different parameters. By these standards,

United Breweries' beers don' t just equal, but even surpass, several Dutch

and American beers.

Its flagship brand 'Kingfisher', has achieved international recognition

consistently, and has won many awards in International Beer Festivals.

Kingfisher Premium Lager beer is currently available in 52 countries

outside India and leads the way amongst Indian beers in the International

market. It has been ranked amongst the top 10 fastest growing brands in

the UK.

In addition, UBL has also entered into mutli-faceted strategic alliance

with Scottish & Newcastle Plc (S&N), an international brewery major,

with $6 billion in revenue and a market capitalization of $5.4 billion. This

alliance, apart from having a joint venture in India, will allow S&N to

market it International brands like Kronenbourg in India, while UBL will

utilize S&N' s global network to further globalize its Kingfisher.

UBL's leading brands


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Kingfisher Premium

Kingfisher Strong

UB Export LagerLondon Pilsner

UB Premium IcePositioned for the young and trendy customers launched

in 330 ml frosted bottles in 1998, its unique refrigeration process gives

beer a clean, crisp and strong taste

Launched in 1969-70

No.2 lager beer in India

Largest selling Lager Beer brand in East India

MABL brands

Sand Piper Lager- A refreshing mild beer with a distinct look and

personality. Positioned as a brand of the youth.

Zingaro Strong BeerA strong beer that makes one lose his inhibitions

Mission Statement

To be the recognized leader in our target markets

To be the preferred employer wherever we operate

To recognize the value of our human assets

To be the partner of choice for customers, suppliers, and other creators of

innovative concepts

PRODUCTION


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Quality and hygiene are the key elements of the united breweries

manufacturing philosophy. To this end, the central scientific laboratory

(CSL) at their headquarters at Bangalore is manned by highly qualified

scientists and equipped with sophisticated instrumentation. The CSL sets

standards for all its breweries. A manual has been developed laying down

quality management systems on the lines of ISO 9000. So quality is

controlled at every stage of production, from raw materials to the end

product.

Besides controlling the production process, the CSL analyses the

company' s beer taken off market shelves all over the country, the

competition' s beers and beers across the world. These beers are tested as

per the standards laid down by the European Brewery Convention on 40

different parameters with particular attention paid to apparent extract,

bitterness, color, diacetyl, ethanol, foam stability and haze. By these

standards, United Breweries' beers don' t just equal, but surpass several

Dutch and American beers

SABmillar COMPANY

TheSouth African Breweries Limitedis a holding company invested

in and taking management responsibility for a portfolio of businesses,

principally engaged in meeting beverage consumers' needs. Beer is the

major profit contributor, but an important balance is provided by interests

in carbonated soft drinks and other complementary beverages,

supplemented by strategic investments in hotels, gaming and selected

mass consumer services


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Largest South African industrial company on the Johannesburg Stock

Exchange

Over 80 000 people employed throughout the Group

Market capitalization exceeds R50 billion

Fifth largest brewer in the world

Products compete internationally in over 40 countries

R25 billion invested in total assets

Group beverage sales total 60 million hectoliters

FINANCIAL SUMMARY

During the year and the previous year, the group made a number of

acquisitions and increased its shareholdings in several subsidiaries. As

disclosed in note 29, these acquisitions, with the exception of the

acquisition of the Miller Brewing Company in July 2002, were material to

individual business segments, but they were not material to the group as a

whole. All operations are continuing.

There is no material difference between the results disclosed

above and those disclosable on an unmodified historical cost basis.

GROUP OPERATING PERFORMANCE

All of our businesses performed well over the year, and the overall

portfolio delivered excellent results. Total lager beer volumes increased

18.9% to 137.8 million hectoliters (hls), and organic lager volumes grew

by 3.7%, with growth in all the businesses. Millers performance is


42/74



noteworthy in that the decline in the early part of the year was replaced by

growth in the second half, leading to year on year organic volume growth.

Europe and Central America recorded organic lager growth of 7.5% and

5.3% respectively and Beer South Africa recorded a third consecutive year

of growth, with volumes up 3.4% to 25.3 million hls. Total group

beverage volumes of 173.9 million hls were 15% above last years 151.4

million hls (organic growth 3.3%). Turnover, including share of

associates, increased by 41% (organic growth 20%, and organic, constant

currency growth was 8%).

Earnings before interest, taxation, amortization of goodwill and

exceptional items (EBITA) increased 49% to US$1,893 million, and

organic, constant currency EBITA increased by 22%, with double digit

increases in all of our businesses. EBITA comprises profit before interest

and tax (US$1,579 million) before goodwill amortization (US$355

million) and before exceptional items (net credit US$41 million).

Information on our operating results by region is set out in the segmental

analysis of operations, and the disclosures accord with the manner in

which the group is managed. SABMiller believes that the reported profit


43/74



measures before exceptional items and amortization of goodwill

provide additional and more meaningful information on trends to

shareholders and allow for greater comparability between segments.

The groups aggregate pre -exceptional EBITA margin improved to

15.0% from the prior years 14.1%, with margin enhancement in most

businesses as volumes increased and productivity was improved. Beer

South Africa retained its EBITA margin at 26.6%, having absorbed launch

costs and higher ongoing marketing costs of the new premium brands

introduced during the year, and while Europe increased organic EBITA

margin, the reported margin was impacted by the lower current margins of

Peroni and Dojlidy. Margins improved in North America as our

turnaround programme started to deliver results, and in Central America,

reflecting management action to improve our brand portfolios and increase

operating efficiencies. Margins at OBI and Africa & Asia improved,

continuing the trend of recent years.


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The reported turnover for the year ended 31 March 2003 has been

restated following the adoption of FRS 5 Reporting the substance of

transactions, application note G revenue recognition. The change

reduced each of turnover and net operating costs by US$128 million for

the year ended 31 March 2003 in respect of the following segments

US$65 million in North America and US$63 million in Europe. The

reclassifications related to freight costs and distribution costs, respectively.

Had the 2004 financial results been prepared on the previous basis, the

impact would have been to increase turnover by US$178 million (US$100

million in North America and US$78 million in Europe). There was no

impact on EBITA in either year, however the adjustment does increase the

groups reported EBITA margin by approximately 20 basis points.

The group recorded net exceptional costs within operating profit of

US$26 million, comprising Miller restructuring costs of US$13 million; a

US$5 million impairment charge in relation to FMB assets at Miller;

US$6 million of reorganization costs in Central America; and US$6


45/74



million costs associated with the closure of the water bottling plant in the

Canary Islands, partially offset by a reversal of US$4 million of the

Tumwater brewery closure costs at Miller. Exceptional profits of US$67

million were recorded after operating profit and comprised surplus on the

pension fund of a disposed operation of US$47 million; profit on the

disposal of trademarks in Appetizer of US$13 million, and the groups

share of the profit on disposal of Castels CSD business and brands in

Morocco of US$6 million and a brand in Angola of US$1 million. This

compares to prior year exceptional costs within operating profit of US$70

million, comprised within Miller of Tumwater brewery closure and

impairment costs of US$35 million and integration costs of US$23 million

and Central America reorganization costs of US$12 million. A profit of

US$4 million on partial disposal of the groups holdings in the Hotels and

Gaming group was recorded after operating profit.

Net interest costs increased to US$188 million, a 15% increase on the

prior years US$163 million. This increase is due primarily to the increase

in borrowings incurred regarding the acquisitions undertaken in the last

two years, together with the effects of the higher interest rates payable on

the fixed debt issued during the year. Interest cover, based on pre-

exceptional profit before interest and tax, has improved to 8.2 times. The

groups profit before tax increased 81% to US$1,391 million, reflecting

the constituent changes referred to above.

The effective tax rate, before goodwill amortization and exceptional

.items, is 34.3%, broadly in line with the prior year excluding the 2003exceptional deferred tax credit. While there is virtually no change in the

rate compared to the prior year, the tax charge has increased as a result of

higher profits earned, partly offset by impacts of various tax-saving

measures introduced during the year.


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Mohan Meakin

History Of Company YEAR EVENTS 1934 - The Company was

Incorporated at Simla Hills.

The Company was formed to take over the business in India of

Dyer Meakin & Co. Ltd., which went into voluntary liquidation in

September. The Company' s object is to manufacture beers, I.M.F. spirits,

abrasive products, yeast, malt extract, fruit juices, carbon-di-oxide gas etc.

Presently, the Company is engaged in the production of alcoholic

products-whiskies, rums, brandies, vodka, gins and beers and non-

alcoholic products - juice, vinegars, extracts, mineral and water and

breakfast foods.

The company exports alcoholic products, textile fabrics and made-ups,

leather garments and consumer durables.

1951 - 1,62,063 Bonus shares issued in the prop. 1:1.

1957 - The Company took over the business of the National Sand Paper

Mills (India) Ltd., at Ghaziabad, which was engaged in the manufacture of

abrasive products. Its Sword brand abrasives were popular in the market.

1958 - 81,040 Right shares issued at par in the prop. 1:4.

1959 - 1,62,066 right shares issued at a prem. of Rs.2 in prop. 2:5.

1962 - 5,67,232 bonus shares issued in the prop. 1:1.

1965 - 81,033 bonus shares issued in prop. 1:14 upto 31.3.1996, in August

1966, 12,15,497 bonus shares issued in prop. 1:1.

1966 - With effect from 1st November, the name of the Company was

changed from Dyer Meaking Breweries Ltd., to Mohan Meakin BreweriesLtd. The name was again changed to Mohan Meakin Ltd., in 1980.

1967 - Mysore Fruit Products Ltd., a Government of Karnataka

undertaking became a subsidiary of the Company with effect from 24th

March.

1968 - In June, 24,30,994 bonus shares issued in prop. 1:1.


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1970 - In August, 36,46,491 bonus shares issued in prop. 3:4.

1975 - The Company entered into a technical collaboration with Tashi

Commercial Corporation for bottling of IMFL spirits in Bhutan. This plant

was commissioned in November 1976.

The Company entered into technical and financial collaboration with

Suva Co-operative Association Ltd., for setting up a modern bottle

manufacturing glass factory in Fiji. A new company under the name

Mohan Fiji Glass Manufacturing Ltd., was registered in Fiji for this

purpose.

1978 - Negotiations were in final stages with Zupack Gesellscahft MBH,

Darmstadt, West Germany for setting up of a factory in India for the

manufacture of packing machines and packaging materials. This

packaging system would ensure hygienic and pilfer proof packaging

would replace cans and bottles for filling of juices, dairy products, oils and

lubricants etc.

Management of another distillery in Eastern Bhutan at Samdrupjongkhar

was taken over and production was started there.

A technical assistance agreement was entered into with Galot Industries

Ltd., Nairobi, Kenya for setting up a distillery and glass bottle-making

factory in that country. A new company under the name Mohan Meakin

Kenya Ltd., was registered in Nairobi. Approval of the Indian Government

was received to invest upto 20% of the equity capital amounting to Rs.8

lakhs in the Kenya Company.

The Company entered into technical collaboration agreements with

Artos Breweries Ltd., at Ramachandrapuram in Andhra Pradesh and M.P.

Beer Products (P) Ltd., at Indore for the supply of know-how to those

companies.

1979 - An agreement was signed with the West Germany collaborator. A

new company was registered under the name Mohan Zupack Ltd., and was

registered in Delhi.


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The Royal Government of Bhutan took over the production of

potable liquors throughout the country. The Company was providing

technical and managerial know-how and marketing of the products. A

project report was also submitted to set up a beer-manufacturing factory.

A plant for bottling Indian Made Foreign Liquors was added in M.P. Beer

Products (P) Ltd.

1982 - Activities in the liquor field in Bhutan were expanded with the

addition of Samchi distillery. A new brand of whisky under the name

"SPECIAL COURIER" was introduced in Bhutan which was reported to

have compared with Scotch Whisky.

1983 - Mohan Breweries and Distilleries Ltd., Chennai with whom the

Company had a technical collaboration, obtained a licence for the

manufacture of beer.

Mohan Breweries & Distilleries Ltd., also set up a plant for bottling

IMFL production which was in progress.

The Company signed MOU with Macdonald & Muir Ltd. Edinburgh,

Scotland (U.K) a Separate Joint Venture company was incorporated under

the name and style of Macdonald Mohan Distillers Ltd.

The Company also entered into a Memorandum of Understanding with

Marie Brizard & Rogers International for the purpose of bottling and

marketing of various liquors. Under the proprietary brand name of Marie

Brizard. For this purpose a separate joint venture company was floated

and the company signed a MOU with Larsen' sS.A. one of the worlds top

five cognac and French Brandy Manufacturers, for the purpose of

bottling, distribution and marketing of Larsen' s cognac.

1986 - Though turnover declined only marginally, margins declined

steeply due to an increase in fuel and power costs, steep rise in U.P. export

pass fee, and high costs involved in promotional activities.

The glass containers unit of Mohan Meakin (Kenya) Ltd., was

commissioned in May.


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1987 - A new company under the name of Mohan Hokke Ltd., was

promoted by the Company with Japanese collaboration.

1988 - As at 31st March, the Company held 91.9% of the equity capital

(1,29,800 No. of equity shares of Rs.10 each) of this subsidiary.

The Company finalized arrangements to dispose of the entire

shareholdings in the subsidiary company to Audikeshavulu and his

nominees.

1991 - Profitability, suffered due to the necessity of giving rebates and

incentives but for which even the turnover would have declined.

The Company issued 5,00,000 -14% secured non-convertible debentures

of Rs.100 each. These are redeemable at a prem. of 5% after the expiry of

7 years from 5th December.

1994 - New products viz. Highland Queen and 5-year-old Scotch whisky

was launched.

1995 - The profits were also lower due to higher sales production and

incentive schemes to combat the un-healthy market conditions.

Two popular brands namely Highland Queen and Grand Reserve Whisky

were launched in the Indian Market. - The Company entered into a

collaboration with Kerala State Small Industries Development &

Employment Corporation Ltd. (SIDECO), for putting up a hand tools and

fasteners complex at Athani in Trichur district of Kerala State. - A new

company under the name SIDECO MOHAN TOOLS KERALA LTD.,

was to hold 49% of the capital and Sideco was to hold 51% SIDECO

Mohan Tools Kerala Ltd., was to act as a mother unit for about 40

guaranteed engineer enterpreneurs. Work was going on as per schedule

Skol Breweries


incorporated on 25th September, at Mumbai. The company was promoted


50/74



by Shaw Wallace and Co. Ltd. The promoters also obtained licence free of

cost from SKOL in the Company' s title. The object of the company is to

manufacture beer.

1971 - Allotted 3,32,500 No. Of equity shares to promoters and 1,50,000

No. of equity shares to SICOM. 4,05,000 No. Of equity and 30,000 pref.

shares offered to the public.

1974 - The beer was marketed under the brand name ` HAYWARDS' .

1982 - 3,60,000 bonus equity shares issued in the prop. 2:5.

1983 - Pref. shares redeemed on 20th May 1984.

1984 - The Company concluded a technical agreement with Brauerel A.

Hurlimann A.G. of Switzerland and Allied Lyone PLC of U.K. for the

manufacture of non-alcoholic beverage and export quality larger beer

respectively.

1988 - 7,56,000 Bonus equity shares issued in prop. 3:5.

1989 - The Company launched Drought Beer in Mumbai city on trial

basis, which was well received in the market.

1990 - As at 31st March, the Company' s land and buildings were revalued

and the net surplus of Rs 73.17 lakhs arising out of it was credited to the

revaluation reserves.

1991 - Sales were adversely affected because of high rate of excise duty

and extended winter season in Maharashtra, which was the major market

for the company' sbeer. Profits came under pressure mainly on account of

increased interest and depreciation charges.

1992 - The widespread riots during December and January 1993 and

consequent depressed market condition particularly in Mumbai and the

subsequent transporters' strike in July all affected both production and

sales.

During the year under review, sales were affected due to high rate of

excise duty and extended winter season in Maharashtra.

1993 - As at 31st March, some of the Company' s fixed assets viz., land,

buildings, plant and machinery and electrical installations were revalued


51/74



and the net surplus of Rs 7.78 crores arising out of it was credited to the

revaluation reserve.

1995 - 20,16,000 Bonus equity shares issued in prop. 1:1.

The Research & Development unit is having the most modern laboratory

whereby regular Research & Development is carried out in the brands,

checking the input materials and research on new brands.

The production was affected in the first quarter of the current year due to

shortage of water.

1996 - The Compay has decided to manufacture can beer by importing

automatic canning line of 200 CPM capacity.

New technology is being used to reduce the air content in the beer so that

the quality of the beer produced from the brewhouse is of the finest

quality.

1997 - Skol Breweries Ltd. (SBL) was promoted by Shaw Wallace and

Company Ltd. and started its brewing operations in February 1974 under

the brand name Haywards.

The company had a chequered relationship with its unions in the past with

a lockout being declared at its plant in 1984 which lasted for ninety-five

days.

SBL launched draught beer on a trial basis in FY 1989-90, which was

well received in the market.

The company declared 1:1 bonus issue consequent to which its equity

capital increased from Rs.2.02 crore to Rs.4.03 crore.

SBL is in the process of installing an automatic canning line at its plant

with a capacity of 200 CPM. New technologies are being introduced to

up-grade the taste of beer-quality to international standards by reducing

the air-content in its beer.

1998 - Auto blow down system has been installed for saving steam

energy.

Modernized Refrigeration Plant is being set up.


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Water saving device has been installed at various points to monitor water

usage.

Lower capacity air compressors were installed wherever requirement of

the air is low.

1999 - The Company has a Superannuation Scheme for which the

contributions as provided in the scheme are paid to the trustees of the

scheme and are charged to the revenue.

2000 - The Company decided to issue 36,11,000 No. of equity shares of

Rs. 10 each at a premium of Re. 1 per share on preferential basis to

Overseas Transport Co. Ltd.

2002

Board approves to increase the authorised capital by Rs.50 mn by issuing

preferential shares to Shaw Wallace Properties.

Appoints Mr. Vidhya Manohar Chabria as the Chairperson of the

company.

Board approves for the allotment of shares to share holders of the

company and other companies.

BOD approves for the scheme of amalgamation of the company with

Morkutir Investments and Trading Co. Ltd.

Board approves for delisting of equity shares of the company from BSE.

MYSORE BREWERIES


incorporated. The company manufactures beer like ale, draught, porter &

layer.

1978 - During the year the company introduced a new brand viz "7 Star

Super Strong Lager Beer". The company also manufactures well known

and popular brands of beer viz pals, Pals Premium, Knockout, Cobra, etc.


53/74



The company is in collaboration with M/s CEREKEM of Denmark.

1981 - MBL set up Pals Distilleries to produce whiskies and other

alcoholic beverages

1991 - The company has acquired the shares of the Company "MBL

Property Developers Pvt. Ltd." and the latter became the subsidiary of the

company.

The Company exported seafoods & beer during the year under reference.

Efforts are being made to increase the export.

1993 - The Company has been granted a Letter of Intent by Ministry of

Industry, Government of India for establishing a brewery in Nalgonda

District of Andhra Pradesh.

The Directors have formed a New Company in the name and style of

MBL (AP) Breweries Ltd.

The Company' s subsidiary is M/s. Pals Distilleries Limited, M/s. Pals

Food & Beverages Limited and MBL Property Developers Ltd.

1994 - During the year, Andhra Pradesh Government has taken over the

liquor trade and formed a Corporation to market the IMFL products in the

State.

During the year under reference, the Company has issued Bonus Shares in

the ratio of 1:1 by capitalising the entire balance of Capital Reserve

Account and part of the amount from General Reserve Account

aggregating to Rs.54,03,000/-.

1996 - The MBL (AP) BREWERIES LTD, group company has received

the extension of its brewery licence in Andhra Pradesh upto November.

The KIADB had allotted about 5 acres of land at Kunigal Industrial area,

Kunigal.

The manufacture of Beer is done with in-house know-how and there is no

technology absorption involved.

Shri G.NARAYANASWAMY & Shri K.P.SANKARAN Retires by

rotation and being eligible they offer themselves for re-appointment.


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MBL set up an Rs.1.0 crore mineral water-bottling plant (capacity: 20,000

bottles/days) at Koonigal Hills close to Bangalore city in March 1996.

1997 - During the year, the Company has declared Bonus Shares in the

ratio of 1:1 by capitalizing the part of the amount from General Reserve

Account aggregating to Rs.1,08,06,000/-.

The Company continues to produce the mineral water with the brand

name "STREAM" and the product is well received by the market.

The Company has come out in the month of May with a public issue of

29,75,000 No. Of equity shares of Rs.10/- each at a Premium of Rs.15/-

per share. The Paid-Up capital after the public issue is Rs.6,30,25,000/-.

Shri T. Shamanna, Chairman of the Board of Directors of the Company

passed away in the early hours of 15th August. He was one of the

Directors since the inception of the Company and was Chairman of the

Company from the year 1988.

Mysore Breweries Ltd. (MBL) sells its beer under the cobra, Pals and

Knockout brand names.

MBL operates with an installed capacity of brewing 2,50,000 hectoliters

of beer.

MBL has a distribution agreement with Maison Caurette - one of the

major importers of UK for its brands.

1999 - Mysore Breweries Ltd (MBL) has launched a strong beer under the

brand name ` Palisade' in the United States. The beer was introduced in

both northern and southern California.

The lager is being manufactured at Riva Breweries in Belgium under a

technical tie-up with MBL.

2000 - The Bangalore-based Mysore Breweries has launched its premium

brand beer -- Bengal Premium Lager -- in the UK market.


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Mysore Breweries Ltd managing director KP Balasubramaniam has been

asked to step down by the new owners of the company, South African

Breweries

ANALYSIS AND INTERPRETATION

1) Table1: Table showing beer-drinking habit.

Particulars Respondents Percentage

Daily 20 20

Weekly 48 48

Monthly 16 16

Occasionally 16 16

Total 100 100


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GRAPH NO.1

The hab

20

48

0

10

20

30

40

50

60

pa

Pe

rcentage

INFERENCE:

This table clearly shows that 10% of the consumers consume beer

daily, 38% of the consumers consume beer weekly, 16% of the consumer

consume beer monthly and 16% of the consumers consume beer

Occasionally

2) Table2: Table showing more often preferred beer drink

Particulars Respon

dents

Percent

age


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Pint 25 25

Knockout 25 25

Kingfisher 30 30

Hay wards 10 10

Royal

Challenge

10 10

Total 100 100

GRAPH NO.2

30

1111

35

10 10

15

0

5

10

15

20

25

30

35

Percentage

1 2 3 4 5 6 7 8 9

Particulars

Awareness of brand

PintKnockout

Kingfisher

Haywards

Royal challenge

INFERENCE:

From the table it is clear that 25% of the consumers are aware of the

pint, 25% of the consumers are aware of knockout brand , 30% of

consumers are aware of hay wards 5000 ,and 10% of them are aware of

royal challenge .

3)Table3:Table showing preference of place to have beer


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Particulars Res

pon

dent

s

Perc

enta

ge

At home 10 10

Bars/Pubs 56 56

Clubs 12 12

Social

gathering

22 22

Sporting

events

0 0

Total 100 100

GRAPH NO.3

10

56

12

0

10

20

30

40

50

60

Percentage

1 2

Perticulars

Preference of place to have beer

At home

Bars / Pubs

Clubs

Social gatheri

Sporting event

INFERENCE:


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This table shows that 10% of them will have it in the home, 56% of them

prefer to have it in bars/pubs, 12% of them will prefer to have in clubs and

20% of them will like to have in social gathering.

4) Table4: Table showing awareness of the brands

Particulars Respondents Percenta

ge

Pint 25 25

Knockout 25 25

Kingfisher 30 30

Hay wards 10 10

Royal

Challenge

10 10

Total 100 100

GRAPH NO.4


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More often prefered beer drink

25 25

30

22

23

24

25

26

27

28

29

30

31

1

Particulars

Percentage

Pint

Knockout

Kingfisher

Haywards 500

Royal challen

INFERENCE:

From the table it is clear that 25% of the consumers are aware of the pint,

25% of the consumers are aware of knockout brand, 30% of consumers

are aware of haywards 5000 ,and 10% of them are aware of royal

challenge .

5) Table5: Table showing awareness of beer brands from different

fields

Particulars Respondents

Percentage

Sponsored

events

15 15

Family/frien

25 25


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ds

Advertising 10 10

Tried it

yourself

50 50

Total 100 100

GRAPH NO.5

15

11

25

10

50

05

101520253035

404550

Percentage

1 2 3 4 5 6 7

Particulars

Awareness of brand

Sponcered events

Family/Friends

Advertising

Tried by themselves

INFERENCE:

It can be noticed that 15% of the consumers are aware of the brands

through Sponsored events, 25% of the consumers are aware of the beer

brands through family and friends, 50% of the consumers are aware of the

beer brands through trying themselves, 10%of the consumers are aware of

the beer brands through Advertising.

6)Table6:Table showing alcohol content preferred by drinkers


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PARTICUL

ARS Respond

ents

Percenta

ge

Non

alcoholic

6 6

Less than 3% 20 20

Bet 3% to

6%

46 46

More than

6%

28 28

Total 100 100

GRAPH NO.6

6

111

20

46

28

0

5

10

15

20

25

30

35

40

45

50

Percentage

1 2 3 4 5 6

Particulars

Alcoholic content in beer

Non alcoholic

Less than 3

3% to 6%

More than 6%

INFERENCE:


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From the table it is clear that 6% of the consumer will like non

alcoholic beer, 20% of the consumers will like beer with less than 3 %

alcohol, 46% of the consumer will like beer with alcohol content between

3% and 6% and only 28% of the consumers will like the beer with more

than 6%.

7) Table7:Table showing ideal beer attributes

Particulars Respon

dents

Percent

age

Flavor 65 65

Image 25 25

Price 5 5

Alcohol

content

5 5

Total 100 100

GRAPH NO.7

65

25

5 5

0

10

20

30

40

50

60

70

Percentage

1

Particulars

Ideal beer attributes

Flavour

Image

Price

Alcohol content


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INFERENCE:

From the table it is clear that 65% of the consumers think that flavor

will be one of the deciding factor while choosing the beer, 25% of the

consumers think that Image will be one of the deciding factor while

choosing the beer, 5% of the consumers think that Price will be the

deciding factor while choosing the beer, 5% of the consumers think that

Alcohol content will be the deciding factor.

8)Table8:Table showing basis on which drinkers will select beer

Particulars Respon

dents

Percent

age

Taste/flavor 42 42

Price 24 24

Alcohol

percentage

34 34

Total 100 100

GRAPH NO.8


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42

24

34

0

10

20

30

40

50

Percentage

1

Particulars

Basis of choice

Taste

Price

Alcohol percentage

INFERENCE:

It can be observed from the table that 42% of the consumers will buy

the beer because of the taste, 24% of the consumers will buy because of

price. And 34% of the consumers will buy on the basis of the alcohol

percentage.

9) Table9: Table showing the quantity of beer purchase from the

shop/store

Particulars Respon

Percent


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dents age

Single

can/bottle

78 78

6 pack 22 28

12 packs 0 0

24 case 0 0

Total 100 100

GRAPH NO.9

Quantity of beer purchased

78

22

0 00

10

20

30

40

50

60

70

80

90

1

Particulars

Percentage Single bottle/can

6 packs

12 packs

24 case

INFERENCE:

It is clear from the table that majority i.e., 78% of the consumers will

buy single bottle or can and only 22% of the consumers will buy 6packs of

beer.

10) Table10:Table showing characteristics of an ideal beer


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Consumer p

MohanKumarS-03114-Consumer Preference Towards Beer Brand

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Transcript of MohanKumarS-03114-Consumer Preference Towards Beer Brand