1

INTRODUCTON
The present study is an attempt to conduct a survey on product preference and consumer behavior in Lucknow city. Mohan Meakin is the oldest liquor making company. Presently they supply more of the Uttar Pradesh, Delhi, Maharashtra, and some reason of Eastern and Western part of India. Mohan Meakin Ltd. is producing Indian made foreign liquor (IMFL) as well as country made liquor. The market of Indian made foreign liquor is very hard and vast and also full of competition. All the firm engaged in this industry want to increaser the sales of their brands. Consumer has its own choice; they prefer those brands by which they get satisfaction. In fact the customer continuously displaced different buying behavior depending on what he is buying, with whom, when, where, and why he is buying. Today customer knows exactly what they want and does not stick to particular brand, if they get a better product. Customer is more value conscious these days the factors that drive the consumer behavior today can be very different tomorrow. So as to keep track of their demand behavior has to be consistently monitored.

Today if a company wants to be in the market it has to keep in touch with customer and consistently try to come to the expectations of consumer by launching the new and modifying products.

MARKETING OF LIQUOR (INDIAN CONTEXT)

Marketing and distribution play an important role in industries development. In this sense, the industry can be more or less classified under the FMCG category. Liquor sales are also largely driven by brand popularity. To build brand popularity companies have to get retailers to recommend the brand end- user. The brand plays a critical role in building the fortunes of a company. Given that consumption patterns are more or less static. Companies have few changes to hook a customer. But once hooked to its product volume are likely to be steady. Therefore adopting a, brand-push strategy may be a key success factor. The strength and penetration of the retailing network are the key success factors. As there are curves on advertising liquor through other media, the companies depend almost completely on retailers and other agents. This apart, with the exception of few states, liquor distribution is controlled. Controls can take various forms such as government controls market and actions. Given these factors, companies face a difficult task in managing their supply chain. On the other hand they have to manage the ever increasing demands of wholesalers and retailers, and on the other way they have to manage the red tape and corruption associated with controlled marketed. Here again the difficulties will be acute for new players.

While the India made foreign made liquor (IMFL) sales in Maharashtra, West bangal, Jammu & Kashmir, Goa, Orissa, Assam, Maghalya, Tripura and Arunanchal Pradesh, Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar, Panjab & Chandigarh and government controlled in Tamilnadu, Karnataka, Delhi and Kerala, Gujrat, Manipur, Mijoram & Nagaland are enforcing prohibition. States following the open market mode give good average to the IMFL marketing company to the choose the distributor and to determine pricing. In case of distribution by government and through auction powerful distributors exert influence on the margin of the manufactures. Brand pulls as important role forcing companies to go in for surrogates. Liquor companies have come out with a self regulatory code (Karnik code) for liquor advertising after some liquor ads dew the ire of the information and broadcasting ministry; this code imposes strictures surrogates advertising and timing of the liquor advertising slots.

The beer and the IMFL market have a large number of established companies and brand. The ban on advertising has in practice not acted as a deterrent. The companies have employed noble and innovative method to publicize their products. In India, country and IMFL cater to different segments. The low income groups in the urban areas consumes country liquor middle and high income groups of both urban as well as rural areas prefer the IMFL Government controls pricing and distribution of country liquor. In certain states, distribution of IMFL is also controlled. The demand fpr beer is increasing steadily. The market for beer lies mainly inn the urban centers. Drought beer ids popular in Mumbai & Bangalore, where a large no. of pubs are operating. During 1993-94 alcoholic beverage worth Rs. 370 million were exported. Where as in 1980-81 the figure was only Rs. 6 million. The main market is the UK & US the Middle East Australia, Germany & France. Beer and 4

rum constitute major part of India alcohol export. An Indian company is even successfully exporting sparking wins, having set a 100% export oriented unit for this purpose.

CONSUMER APATHY TOWARDS ALCOHAL

There was a time when India known as the land of snake charmers. The land of mystery. In this country, poverty and wealth meet in the middle. How can such a contradiction survive together? The answer is strongly religious social fabric, bound by tradition. Still a profoundly religious country in Hindu faith deems it a virtue to come to terms with ones own being. Spiritual growth surpasses wealth and power, as the former the brings the later too. The spiritual would is one where all come together. India is a country where all the flavors are strong. Peaking of all flavors Scotch whisky comes to mind doesnt it? Ok, may be not. But do you know where it comes from? Scotch has a interesting and perhaps surprising history. The Irish monks brought Irish learned it from Spanish. The Spanish learned it from Arab. And Arab in turn learned it from India. Imagine that, alcohol in India, as elsewhere, has been around for a while. Wine, for example, has been around since prehistoric times. Now whether alcohol is welcome or not that is another issue. Most parents raise their kids with the same morals and values that were thought to them by their parents. Indian traditionally put more emphasis parade on education, white thinking alcohol leads to a deterrent of ones goals in life, since it is sometimes connected not only to alcoholism, but also to other problems. Dusk was setting in a small village, and the villagers were returning from the fields.

Normally, the women headed home, while the men hit the bars. But one day, the women did not go home. They armed themselves with chili powder and broomstick, and then they waited by the village road. When jeep down to mud tracks, carrying the villages weekly alcohol supplies, they attacked it. Within minutes they through chili powder into drivers eyes, Set fore on the hundred of bottles, and thrashed the man inside the vehicle with their lives rather allow more alcohol into their village. Soon anti alcohol protests spread through out the region. What does this say? These women were outraged by what alcohol in other ways, such as knowing drunk driving victims, alcoholics, and / or what not. Other what Capt. Morgans ship seemed to reach everyones harbor. In 1996, a prohibition in other countries has not been learned. And efforts at enforcement, as well as attempts to curtail infringement or avoid corruption, degenerated into farce. In India alcoholic sales are regulated by the state governments, which get revenue from taking it. But above this, the mind frame instilled in the people of India by the great leaders of the past especially some freedom fighters, still exist today. Theres modal advocate the temperance. Gandhi ji did not believe in losing control of mind and body through ones own will. He also believed in alcohols negative impact on India. Even though alcohol is present in the country, even welcomes in some states, over all, the population does not regard it as a virtue. But it still is a social taboo for young generation.

ALCOHOLIC DRINKS IN INDIA

Alcoholic drink is a mixture of alcoholic, sprit, water and minor ingredients. Consumable alcohol has no flavor, only careful selection of congener i.e. all the substance that are generated during the formation alcohol in the fermentation process and also I the course of maturation leads to palatable products. Alcoholic beverages are divided into following classes on the basis of their production. 1. Country Made 2. IMFL 3. Foreign Liquor Foreign liquor means the liquor, which is produced I foreign countries and is imported in India for sale. IMFL means Indian made foreign liquor. Liquor made in India, which is of foreign origin. This includes liquor such as whisky, rum, gin, beer.

DIFFERENT KINDS OF ALCOHOLC PRODUCTS

WHISKY
It is the most popular distilled liquor known all over the world. It is spirit from starch. Best known whiskies come from Scotland. The production of whisky is along and tedious process. The whisky is a sprit, which is obtained by distillation of malt or cereal grains like maize, rice, rye, barley and malt.

BRANDY
Brandy is generally obtained of fruits, through most commonly used fruit is grape. The best quality of brandy is cognac, which is made in cognac in France.

RUM
Rum is distilled from the fermented juice of sugar cane of molasses. In such a manner distillate has the taste, aroma and the characteristics generally attributed to rum. Best rum comes from west Indies, Cuba, Fiji, India and Mauricio us.

In India, rum is fast emerging as ,most popular of all the distilled liquor, there is generally feeling that rum is more satisfying and has better food value then any other sprite. It is also sold comparatively at low price. Rum is being produced at almost all part of our country. This is generally due to the fact that sugar cane molasses is available in plenty in India. In some place fermented gur is also used to produce rum. Gur gives affine quality of sprite and is increasingly being used in the production of rum.

GIN
It is popular distilled liquor. It is artificial sweetened or unsweetened grain specially flavored with essential flavor of juniper berries

10

Name of the Company

Name:- Mohan Meakins Limited

Head office
REGD OFFICE : SOLAN BREWERY (SHIMLA HILLS)
POST BOX NO.6, DALIGANJ, LUCKNOW-226020 (U.P), INDIA

Branch office
The company is now called MOHAN MEAKIN LIMITED, and has the following units:11

1. Solan brewery 2. Kausli distillery 3. Lucknow distillery 4. Mohan Nagar industrial estate 5. Mohan Nagar bottling point

Historical Background
Mohan Meakin traces back to 1855, when Edward Dyer from UK set up the first ever brewery in India in Kasauli. He set up more breweries at Solan, Shimla, Murree, Rawalpindi, and India Mandalay. from Another and entrepreneur bought the H.G. old Meakin came to Britain shimla and solon

breweries from Dyer and added more at Ranikhet. Dalhousi, Chakrata, Darjiling, and Kirkee. After the First World War the two firms merged and formed Dyer Meakin & Company. In1935, when Burma was separated from India the company was reconstructed with its Indian assets under the name and style of Dyer Meakin breweries Ltd. In 1949, N. N. Mohan took over the management of the company. Under the stewardship, the companies assets and profits registered a manifold increase. To mark the contribution of Mohan, the companys name was changed from Dyer Meakin breweries to Mohan Meakin breweries in 1967. On the death of N. N. Mohan in 1969, his eldest son V. R. Mohan took over as managing director. He introduced a number of new products that are brands leader even today. In the seventies the manufacturing 12

activities of the company were diversified into other fields under the leadership of Br. Kapil Mohan, who become the managing director of the company in 1973. Subsequently the world brewery was dropped in1982.to remove the impression that the company was engaged only in beer making.

From a modest brewry to a premier liquor company has been inspiring voyage. Today, 6 distilleries and 5 breweries from the vanguards of the house, with 6 more units on the drawing board. The three main division of Mohan Meakins are The brewery Division, The spirits division and the food division.

The Brewery Division

The soul of the beer lies in the brewing process. And from careful selection of hops to germination of wheat, the same age-old tradition is maintained. Its priceless wealth is justifiably its heritage.Pioneers of beer in India, Mohan Meakin are masters in the art of brewing.The brewery units sprawling over numerous locations, are indeed a sight to marvel.The technology and stringent quality control synonyms with concern of customer satisfaction. On par with global brands Mohan Meakin labels heralds rich aroma and taste. As extremely invigorating beverages, they are highly favoured by connoisseurs and occasional drinkers alike.

13

The Spirit Division

Mohan Meakin has favorably converted its glorious

legacy into valuable experience as a base. Amply reflected in its status as the nations premier liquor company. With multi location units, impressive integration process and skilled workforce, it has grown with tremendous strength. A good beginning is a job half done. Mohan Meakin spirits and blends have withstood the test of time. Secure as leaders, the groups commitment to excel ensures quality and importantly customer satisfaction. Spirits are extracted, even today, through the acclaimed Scottish Pot-Still method. Left to mature in Oakwood casks, some of many years, the spirits when retrieved are exceptional in both character and bouquet. The R&D section oversees the upkeep of the high

technological standards of the company manned by highly qualified and experienced technical personal Mohan Meakins craftsmanship has no parallel in India.

The Food Division

The food division is one of the success stories of the group. The vast range of its produce satisfy myriad tastes, and has indeed carved a niche in million Indian homes for generations. Stringently processed to capture the essence and flavor, together with rigid quality control, they are highly flavoured and indispensable the world over. As a matter of fact, certain products like Mohans

Cornflakes and Mohans gold coin apple juice are generic to their category. 14

Although

Mohan

started

with

brewing,

the

Kausli

brewery was later shifted to Solan where water of good quality was available from natural springs. A distillery was set up at Kausli in stead. Another distillery was set up in the historic city of Lucknow.

In addition, to meet the increased demand for Mohan Meakin products, an industrial complex was set up in 1960 in Ghaziabad, Near Delhi. I recent times, however, the going has not been very smooth for the company. According to a report in Business Standard (Mohan Meakin on the rocks), the nineties have not kind to Mohan Meakin. Says the report: They flourished as long as there was no competition. UB and Shaw Wallace have been moving fast to make inroads into market. Mohan Meakins principle brands are old Monk rum and Golden Deluxe, Vodka. On other front, the companys joint venture with Glen Morangie--Macdonald Meakinhas made limited headway with its whiskey highland queen and grand reserve. Mohan Meakin is also believed to be talking to international majors for a possible equity tie-up. Eagle beer. Its other Big products Hall Ben include and And Diplomat No. 1 Kempanski Colonels London Special, Dry and Summer Solan

Whiskies,

Gins,

The company is now called MOHAN MEAKIN LIMITED, and has the following units:15

1. Solan brewery 2. Kausli distillery 3. Lucknow distillery 4. Mohan Nagar industrial estate 5. Mohan Nagar bottling point

Solan city, situated on national highway-22 is known for many firsts. Indias first brewery Mohan Meakin Ltd was set up here in 1855 AD. Asias first horticulture and forestry 16

university (named after Dr. Y. S. Parmar) is also located here. Officially the city had declared MASHROOM CITY OF INDIA on September 10, 1997. Besides a largest off season vegetable producer district, Solan is also a commercial district of Himachal Pradesh.

T E C H I N A L C O L A B O R A T I O N U N I T S O UT S I D E I N D I A

BHUTAN

Three units of Distillery and liquor Bottling

NEPAL

Two liquor Bottling unit and Brewery

KENYA

Distillery and liquor Bottling

COLLABORATION
FRANCE SCOTLAND Larsen Company McDonalds Muir ltd.

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A B O UT L U C K N O W
Lucknow's medieval history begins with its elevation to a capital city under the Nawabs of Awadh. The architectural contributions of the Awadh rulers include numerous mosques and palaces; many paintings of these are now maintained at the Art Gallery. Of the monuments standing today, the Bara Imambara, the Chhota Imambara, and the Roomi Darwaza are notable examples, although neglect by the authorities has put them in danger of turning into ruins. The province of Awadh (anglicized to Oudh) was annexed by the British East India Company in 1856, and placed under the control of a chief commissioner. In the Indian Rebellion of 1857 (also known as First War of Indian Independence and the Indian Mutiny), the garrison based at the Residency in Lucknow was besieged by rebel forces. The famous Siege of Lucknow was relieved first by forces under the command of Sir Henry Havelock and Sir James Outram, followed by a stronger force under Sir Colin Campbell. Today, the ruins of the Residency, and the picturesque Shaheed Smarak offer reminiscences of Lucknow's role in the events. 18

During the siege of the Residency, it was the students of La Martiniere College that went ahead to defend the Residency. For the valour that they displayed, La Martiniere College at Lucknow was awarded the battle honours of the British Empire, thus making it the first college to receive such honors.

In 1902, Lucknow was included in the territory of the new United Provinces of Agra and Oudh; it became the provincial capital in 1920 when the seat of government was moved from Allahabad. Upon Indian independence in 1947, Lucknow became the capital of the new Indian state of Uttar Pradesh.

GEOGRAPHY
Situated in the heart of Uttar Pradesh, 500 km south-east of New Delhi, Lucknow is surrounded on the eastern side by Barabanki District, on the western side by Unnao District, on the southern side by Raebareli District and on the northern side by the Sitapur and Hardoi districts. The Gomti River flows through the city, dividing it into the trans-gomti and cis-gomti regions. Some of the tributaries of this river are the Kukrail, Loni, and Beta. The Sai River flows from the south of the city, flows eastwards, and enters the Raebareli District. Lucknow has a warm subtropical climate with a cool dry winter from December to February and a dry, hot summer from April to June. The temperature extremes vary from about 48 C (118.4 F) in the summer to 2 C (35.6 F) in the winter. Fog is 19

common in winter while hot dry winds called Loo blow during the summer. It receives about 101 cm of annual rainfall mostly from the South-West monsoon winds between July and September. Mean monthly temperatures January: 14.7 C June: 32.9 C Lucknow city is located in the seismic zone III with majority of the city construction not being earthquake resistant.

Economy
Biotechnology and IT are the two focus areas to promote economic development in and around the city. Ministry of Science and Technology (India) is setting up a Biotech park[1] in the city. Lucknow is one of the selected cities of the Smart City project of STPI, where IT is being used to promote anglicized to economic development.Chikan, sometimes

'chicken' is an embroidery handicraft which has traditionally been associated with Lucknow, and 'Lakhnawi Zardozi'. IT is being Chikan introduced and to the Chikan are industry the major to increase scale productivity with the help of World Bank[2] funded projects. Zardozi industry small industries in the city. During the period of the nawabs, kite making reached high level of artistry, and is still a major small-scale industry. Sugarcane industries plantations in Uttar and sugar this industries attracted are major Meakin Pradesh; Mohan

Brewery to set up a brewery based on molasses in the city. The city has only few manufacturing units, like, Scooters India, Limited and Tata Motors. City is headquarters of Small Industries Development Banks of India (SIDBI). 20

GOVERNMENT AND POLITICS

Former Prime Minister Atal Bihari Vajpayee is the MP for the Lucknow constituency. There are four major political parties in Lucknow: Bharatiya Janta Party, Indian National Congress, Bahujan Samaj Party, and Samajwadi Party.

TRANSPORT
The major local mode of transport is Bus, Cycle

Rickshaw, Auto rickshaw, Memu Train, Maxi Cab-Tata Sumo and Vikram-Tempo. The fares are very low. Majority of them run on CNG. Buses in the city are run by Lucknow Mahanagar Parivahan Sewa[4] a division of Uttar Pradesh State Road Transport Corporation (UPSRTC). Transport can also be arranged through any of the local travel agents. Lucknow is accessible from the rest of India through air, rail and road. Lucknow has two major Railway Stations. The railway station is at Charbagh.One terminal at charbagh belongs to (Northern Railway) and the second is the one run by North Eastern Railway. Lucknow is a Junction. You can board trains from these terminals for every state of India. Apart from these two terminals, Lucknow has 9 more railway stations viz. Dilkhusa, Gomatinagar, Badshahnagar, Aishbagh, Lucknow City, Daliganj,Manak Nagar,Amausi and Mohibullapur. The first 3 stations caters to broad gauge only whereas the others have meter gauge as well.

21

All

the

stations

are

withing

city

limits

and

are

well

connected with each other via road networks and public road transport. The Lucknow-Kanpur track (72 Kms.) is electrified. Its electrification It is was done when Lucknow New was Delhi, Prime Patna, Minister's Constituency (Shri. Atal Bihari Vajpayee was Prime Minister). directly connected with Calcutta, Mumbai, Varanasi, Allahabad, Dehradun and other major cities by Amausi airport, located around 20 km outside the city. Lucknow's Amausi airport is an international airport and is the 13th online station for Air India. Some international destinations include Dubai, Jeddah and Sharjah. Soon, flights to London and Bangkok are planned to be started. The takeoffs of flights give a very dynamic and enthusiastic scene by viewing it from the adjoining Kanpur Road. There are two inter-state / intra-state bus terminals. One is very near and opposite to the Charbagh Railway Station and ther other is at Qaiserbagh.

DEMOGRAPHICS
Both Hindi and Urdu are spoken in Lucknow, with Hindi being the most prominent language and the most vastly spoken one. It is the lingua franca. Under the rule of the Nawabs, Urdu flourished and turned into a refined language. Hindu and Muslim poets like Aatish, Nasikh, Daya Shankar Naseem, Musahafi, Insha, Safi Lakhnavi and the famous Meer Taqi Meer took Urdu poetry to newer heights. The two great poets, Mir Anis and Mir Dabeer, became legendary exponents of a unique genre of elegiacal poetry called 'Marsia' centred on Husayn bin Ali's supreme sacrifice 22

in the battle of Karbala which is commemorated during the annual observance of Muharram. The revolutionary Ram Prasad Bismil, who was hanged by the British at Kakori near Lucknow, was largely influenced by poetry and wrote verses under the pseudonym of "Bismil". The towns like Kakori, Majaz Daryabad, and Lakhnavi, Rudauli literateurs Josh and of Malihabad Urdu like and produced Mohsin innumerable Kakorvi, poets

Malihabadi,

Maulana Abdul Majid Daryabadi. However, in recent years, the use of Urdu has become significantly reduced; many of the residents of Lucknow are no longer able to read the rich literary tradition or historical artifacts English. found in the museums and archives. Day-to-day transactions in the city are typically performed in Hindi or

IN AND AROUND THE CITY

The architectural delights in Lucknow include the Vidhan Sabha (State Parliament) and the main railway station, Charbagh Railway Station, with its yellow domes and pillars. Two of the oldest schools in the world are also situated in Lucknow: immensely 1735 -1800 La Martiniere, and Sir founded by the bequest Claude K.C.M.G., of the successful colonial entrepreneur Colvin Martin C.I.E.

Auckland

(Lieutenant Governor of the N. W. Provinces) while functioning as Lieutenant Governor of Avadh and Agra during the year 1889, conceived the idea to of the a school with of the object of imparting Taluqdars. 23 education children the British

administrators and the landed aristocracy who were known as

The 'wards' class, founded in 1884, formed the nucleus for the establishment of Colvin Taluqedars College, Locations of interest in and around Lucknow include Kukrail Reserve Forest(a picnic spot and Gharial rehablitaion centre)[1], Malihabad (home of the famed Dashahri mangoes), Kanpur, Allahabad, Varanasi and Mirzapur.

Aminabad, a quaint bazaar quite like Delhi's Chandni Chowk, is situated in the heart of the city and is a large shopping centre, catering to a wide variety of consumers. The Hazratganj area is the upmarket shopping area with colonial style buildings that also has a number of government and administrative buildings. A popular past-time among the locals is strolling across the Hazratganj market, sometimes shopping along with is known as 'Ganjing'. However, 'Ganjing' has lost its charm to new shopping malls. Two huge malls, Sahara Ganj and Fun Republic are up and running with around 7000 visitors daily. End Mall, Riverside Pyramid and Other five malls are East malls. proposed

Lucknow has multiplexes like Wave, PVR Sahara Ganj, Fun Cinemas and soon to be launched INOX, giving its citizens world class movie watching experience. Though multiplexes are operating in Lucknow but still some good old single screen movie halls like Novelty (Lalbagh), Sahu (HazratGanj) and Pratibha (Vidhan Sabha) are operational too. These halls still draw considerable centres once are of of crowd. Some other important Bhootnath, are now shopping buildings Alambagh, the Kapoorthala, of this

Nishatgunj and Chowk Old Lucknow. Some of the historical part beauty city dilapidated owing to the negligence of the government and the

24

related authorities. Among them the most prominent one was the enchanting "Chand Mehal".

The Asafi Imambara (popularly called Bada Imambara), the Chhota Imambara, Dilkusha Garden, The Residency, Shah Najaf, La Martiniere, Ram Krishan Math (Nirala Nagar) are some famous monuments at Lucknow. The famous Bhul Bhulaiya (Labyrinth) is part of the famous Asafi Imambara. The Other places of interest are Clock Tower, Chattar Manzil,State Museum/zoo, Shaheed Smarak & Dilkusha. Lucknow is the city of gardens; some of the famous parks are Ambedkar Park, Buddha Park and Amrpali Water Kingdom. One can also visit Cathedral School (located in Hazrat Ganj), which houses the Asia's largest Cathedral - an Architectural Masterpiece. Lucknow is also famous for culinary delights, including Makkhan Malai of Chowk (flavoured whipped cream), Tundey Kababs, named after the one armed chef chef Hazi Murad Ali[6] and Kakori Kababs. A number of make-shift Mughlai Restaurants are there adjacent to Tulsi (near Parivartan Chowk) serving local nonvegetarian specialties (Dal Mein Kaala, Dastarkhwan, Naushijaan to name a few).

L O C AL I T I E S & M U N I C I P A L I T Y
Lucknow City is governed by Lucknow Municipal

Corporation. The major colonies & settlements are Hazratganj, Aminabad, Aliganj, Indira Nagar, Gomti nagar, Malviya Nagar, Sarojini Nagar, Transport Nagar, Vikas Nagar and Jankipuram Culture. 25

Lucknow, the 'Golden City of the East', is struggling to retain the old world charm that still exists in the old quarters of the city, close to the Chowk area. Regarded as one of the finest cities of India. Lucknow represents a culture that combines emotional warmth, a high degree of sophistication, courtesy and a love for gracious but living. as a there The pehle-aap for the ("after who you") of culture, is those popularised waning; tagline still society Lucknow,

remain

people

possess

beautiful qualities. This sublime cultural richness famous as 'Lakhnawi Tehzeeb' blends the cultures of two communities living side by side for centuries, sharing similar interests, speaking their common languages - Hindi and Urdu. Many of the cultural traits and customs peculiar to

Lucknow have become living legends today. The credit for this goes to the Nawabs of Awadh, who took keen interest in every walk of life and encouraged them to attain a rare degree of perfection. Old Lucknow's Chowk area is the location where the maximum number of Chikan factories and shops can be found. Apart from clothing, the Chowk area is also famous for its mouth watering sweets like 'Malai Gilauri', 'Badam Halwa' and 'Ras-Malai', as well as the famed 'Chatpati chaat'. Kathak, the classical dance form took shape here. Additionally it is also famous for its perfumes and silver-work. Lucknow is also city of eminent Ghazal Singer Begum Akhtar who was resident of Havelock Road, near Vidhan Sabha. She was the pioneer in Ghazal singing who took this aspect of music to amazing heights. 'Ae Mohabbat Tere anjaam pe rona aaya' is still a music rendition of all times. 26

Lucknow

gave

music

legends

like

Naushad

Ali,

Talat

Mehmood and Anup Jalota to the entertainment industry. It was also the birthplace of British pop legend Sir Cliff Richard. Several famous Urdu-Hindi Bollywood movies used Lucknow as their backdrop such as Shashi Kapoor's Junoon, Muzaffar Ali's Umrao Jaan, Satyajit Ray's Shatranj Ke Khiladi, Mere Mehboob, Chaudhvin Ka Chand, Main Meri Patni aur Woh, Gadar-Ek Prem Katha, Saher and many more.

LUCKNOW UNIT OF MOHAN MEAKIN LIMITED

Lucknow distillery is in existence for last 100 years and its main building with the land, was acquired by the company in 1855. It is the largest at a distance of about 1 km from the great in the world. The area occupied by the Imambara with 162 feet long and 54 meter wide arched roof i.e. arch distillery is about 10 lakh square feet. This is the place where famous products Highland Chief Whiskey,

27

Triple Crown brandy, D. M. Brandy, Old Monk Rum and XXX are manufactured. The production is carried out in well equipped plants under the most hygienic condition, because of increasing demand from defense services a separate bottling hall now been installed here.

BREWERY & IT EMERGENCE

THE ENTRANCE OF A BREWERY.
An old boil kettle placed outside as decoration. A

brewery can be a building or place that produces beer, or a business involved in the production of beer. Breweries can take up multiple city blocks, or be a collection of equipment in a home brewers kitchen. The diversity of size in breweries is matched by the diversity of processes, degrees of automation, and kinds of beer produced in breweries. Typically a brewery is divided into distinct sections, with each section reserved for one part of the brewing process.

HISTORY
The oldest brewery in the world still in operation is believed to be the Bavarian State-owned brewery Weihenstephan, found in the German city of the same name, which can trace its history back to 1040. Although the Zatec brewery in the Czech Republic claims it can prove paying beer

28

taxin1004.

THE INDUSTRIALIZATION OF THE BREWERY

Beer, in some form, can be traced back almost 5000 years to Mesopotamian writings describing daily rations of beer and bread to workers. Before the rise of production breweries the production of beer took place at home and was the domain of women, as baking and brewing were seen as "women's work". Breweries, as production facilities reserved for making beer, did not emerge until monasteries and other Christian institutions started producing beer not only for their own consumption, industrialization but of also brewing to use as the payment. This of shifted responsibility

making beer to men. Early breweries were almost always built on multiple stories, with equipment on higher floors utilized earlier in the production process, so that gravity could assist with the transfer of product from one stage to the next. This layout is often preserved in breweries today, but mechanical pumps allow more flexibility in brewery design. 29

Early breweries typically used large copper vats in the brewhouse, and fermentation and packaging took place in lined wooden containers. Such breweries were common until the Industrial and of Revolution, scientific the when better materials led to a Today, became better all available, advances process.

understanding

brewing

almost

breweries are made of stainless steel.

MAJOR TECHNOLOGICAL ADVANCES

A handful of major breakthroughs have led to the modern brewery and its ability to produce the same beer consistently. The steam engine, vastly improved in 1765 by James Watt, brought automatic stirring mechanisms, and pumps into the brewery. It gave brewers the ability to more reliably mix liquids while and heating, a quick particularly way to the mash, liquid to prevent one scorching, transfer from

container to another. Almost all breweries now use electricpowered stirring mechanisms and pumps. The steam engine also allowed the brewer to make greater quantities of beer, as human power was no longer a limiting factor in moving and stirring. Carl, along with several other people, is credited with developing the refrigeration machine in 1871. Refrigeration allowed beer to be produced year-round, and always at the same temperature. Yeast is very sensitive to temperature, and if a beer was produced during summer, the yeast would impart unpleasant flavors onto the beer. Most brewers would produce enough beer during winter to last through the summer, and store it in underground 30

cellars, or even caves, to protect it from summer's heat. Most importantly, the discovery of microbes by Louis Pasteur was instrumental in the control of fermentation. The idea that yeast was a microorganism that worked on wort to produce beer lead to the isolation of a single yeast cell by Emil to Christian pick out Hansen. yeasts flavor Pure for yeast their and cultures allow brewers fermentation fermentation

characteristics,

including

profiles

ability. Some breweries in Belgium still rely on "spontaneous" fermentation for their beer

THE MODERN BREWERY

Breweries steel, although for a cladding today are made often look. predominantly have a Stainless of stainless copper many has

vessels nostalgic

decorative steel

favorable characteristics which make it a well-suited material for brewing equipment. It imparts no flavor in beer, it reacts with very few chemicals, which means almost any cleaning solution can be used on it (concentrated chlorine bleach being a notable exception) as most and it tanks is in very the sturdy. Sturdiness brewery have is important, positive

pressure applied to them as a matter of course, and it is not unusual that a vacuum will be formed incidentally during cleaning. Heating in the brewhouse is usually achieved through pressurized steam, although direct-fire systems are not unusual in small breweries. Similarly, cooling in other areas of the brewery is typically done by cooling jackets on tanks, which allow the brewer to precisely control the temperature on each tank individually, although whole-room cooling is also common. 31

Today modern brewing plants perform myriad analyses on their beers for quality control purposes. Shipments of ingredients are analyzed in order to correct for variations; Samples are pulled at almost every step and tested for oxygen content, unwanted microbial infections, and other beer-aging compounds; product is and often a representative for sample for of the finished when stored months comparison

complaints are filed.

THE BREWING PROCESS

MAIN ARTICLE: BREWING
Work in the brewery is typically divided into 7 steps: Mashing, Lautering, Boiling, Fermenting, Conditioning, Filtering, and Filling.

MASHING
Mashing is the process of mixing milled grain (typically malted grain) with water, and heating this mixture up with rests at certain temperatures to allow enzymes in the malt to break down the starch in the grain into sugars, typically maltose.

L A UT E R I N G
Lautering is the separation of the extracts won during mashing from the spent grain to create wort. 32

It is achieved in either a lauter tun, a wide vessel with a false bottom, for first or this wort a mash of run-off, filter, during a plate-and-frame Lautering the has which filter two is designed stages: kind separation.

extract

separated in an undiluted state from the spent grains, and sparging, in which extract which remains with the grains is rinsed off with hot water.

BOILING
Boiling the wort ensures its sterility, and thus prevents infections. During the boil, hops are added, which contribute their bitterness, aroma and flavor compounds to the beer, and, along with the heat of the boil, cause proteins in the wort to coagulate and the pH of the wort to fall. Finally, the vapors produced during the boil volatilize off flavors, including dimethyl sulfide precursors.The boil must be conducted so that is it even and intense. The boil lasts between 60 and 120 minutes, depending on its intensity, the hop addition schedule, and volume of wort the brewer expects to evaporate.

FERMENTING
Fermentation, as a step in the brewing process, starts as soon as yeast is added to the cooled wort. This is also the point at which the product is first called beer. It is during this 33

stage that sugars won from the malt are metabolized into alcohol and carbon dioxide. Fermentation tanks come in all sorts of forms, From enormous tanks which can look like storage silos, to five gallon glass carboys in a home brewers closet.

Most

breweries today

use cylindroconical

vessels, or

CSVs, have a conical bottom and a cylindrical top. The cone's aperture is typically around 60, an angle that will allow the yeast to flow towards the cones apex, but is not so steep as to take up too much vertical space. CCVs can handle both fermenting and conditioning in the same tank. At the end of fermentation, the yeast and other solids which have fallen to the cones apex can be simply flushed out a port at the apex. Open fermentation vessels are also used, often for show in brewpubs, and in Europe in wheat beer fermentation. These vessels have no tops, which makes harvesting top fermenting yeasts very easy. The open tops of the vessels make the risk of infection greater, but with proper cleaning procedures and careful protocol about who enters fermentation chambers when, the risk can be well controlled. Fermentation tanks are typically made of stainless steel. If they are simple cylindrical tanks with beveled ends, they are arranged vertically, as opposed to conditioning tanks which are usually laid out horizontally. 34

very

few

breweries

still

use

wooden

vats

for

fermentation as wood is difficult to keep clean and infectionfree and must be repitched more or less yearly. After high kraeusen, a bung device (German:

Spundapparat) is often put on the tanks to allow the CO2 produced by the yeast to naturally carbonate the beer. This bung device can be set to a given pressure to match the type of beer being produced. The more pressure the bung holds back, the more carbonated the beer becomes.

CONDITIONING
When the sugars in the fermenting beer have been almost completely digested, the fermentation slows down and the yeast starts to settle to the bottom of the tank. At this stage, the beer is cooled to around freezing, which encourages settling of the yeast, and causes proteins to coagulate and settle out with the yeast. Unpleasant flavors such as phenolic compounds become insoluble in the cold beer, and the beer's flavor becomes smoother. During this time pressure is maintained on the tanks to prevent the beer from going flat. If the fermentation tanks have cooling jackets on them, as opposed to the whole fermentation cellar being cooled, conditioning can take place in the same tank as fermentation. Otherwise employed. separate tanks (in a separate cellar) must be

FILTERING
Filtering the beer stabilizes the flavour, and gives beer its polished shine and brilliance. Not all beer is filtered. When 35

tax determination is required by local laws, it is typically done at this stage in a calibrated tank. Filters come in many types. Many use pre-made filtration media such as sheets or candles, while others use a fine powder made of, for example, diatomaceous earth, also called kieselguhr, which is introduced into the beer and recirculated past screens to form a filtration bed.

Filters range from rough filters that remove much of the yeast and any solids (e.g. hops, grain particles) left in the beer, to filters tight enough to strain color and body from the beer. Normally used filtration ratings are divided into rough, fine and sterile. Rough filtration leaves some cloudiness in the beer, but it is noticeably clearer than unfiltered beer. Fine filtration gives a glass of beer that you could read a newspaper through, with no noticeable cloudiness. Finally, as its name implies, sterile filtration is fine enough that almost all microorganisms in the beer are removed during the filtration process.

PACKAGING Finished bottles being cased at a brewery.Packaging is putting the beer into the containers in which it will leave the brewery. Typically this means in labelled bottles, kegs and casks, but it might include bulk tanks for high-volume customers.

36

VISION AND MISSION STATEMENT

MOTTO OF THE MOHAN MEAKIN LIMITED 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 Mohan Meakin ltd. has set a definite meaning of some words for its employees. Employees are needed to follow the indication of these words as this represent the better and progressive work and work environment. Also company has given a saying showing the value ness of time. They have described the word STAFF and TEAM which guide the working of employees. Meaning of STAFF from the view point of Mohan Meakin ltd.

STAFF

S T A

Sincerity Tact Awareness 37

F F

Fact Figure

Meaning of TEAM from the view point of Mohan Meakin ltd. to work together by taking help from each other and by helping each other. The work which can be done by team effort can hardly be achieved with such accuracy by personal efforts.

TEAM

T E A M

together enthusiasm absolute loyalty motivation

They have provided their employees a key for success. In their view success is no far if we all move with dedication, discipline, determination. They move with keeping in mind the five Ds which guide their path and them to make a healthy an progressive work environment for a better future. D1 D2 D3 D4 D5 Determination Dedication Discipline Dress Drill

Mohan Meakin shows its employees the importance of time. As they say that time has equal importance as the money had and wastage of time is more the wastage of money, because if money has been lost it can be earned future but once if time has been wasted it will never return at any cost. So for optimum 38

utilization of time Mohan Meakin ltd. always make its employees remember that:

Yesterday is a cancelled cheque. Tomorrow is a promissory note. Today is ready cash, use it.

According to Mohan Meakin product manufactured by them should be of such quality that is customer can derive maximum satisfaction of it. For this a great skill level and other necessary precautions are taken into consideration while manufacturing products. Mohan Meakin ltd .sell its products with this saying:

Our products are made with skill, Sold with pride, and Consume with satisfaction.

39

40

Main Business
The main business of Mohan Meakins includes the

products coming out of its breweries. Mohan Meakin traces back to 1855, when Edward Dyer from UK set up the first ever brewery in India in Kasauli. He set up more breweries at Solan, Shimla, Murree, Rawalpindi, and Mandalay. Today, 6 distilleries and 5 breweries from the vanguards of the house, with 6 more units on the drawing board. The three main division of Mohan Meakins are The brewery Division, The spirits division and the food division. The Mohan Meakin ltd has a very wide line. It mainly producers alcoholic products like beer, whiskey, rum, gin, scotch, and vodka etc. in these categories it produces different flavors and brands. The above alcoholic cum under the category of foreign liquor and are known as Indian made foreign liquor. Beside foreign liquor the company also produces country liquor. In country liquor its most popular is Kohinoor this

41

bran has made a faster growth in terms of sales and market penetration. Also it produces non-alcoholic products such a juice, vinegar, mineral water extract, corn flex, etc. in different shapes and size.

TYPES OF PRODUCTS UNDER I.M.F.L.

RUM
Alcoholic beverages produced by the distillation of

fermented cane sugar products. The most common mixtures used. in making rum consist of molasses and water or sugar and water mixture of Another types of rum is made by fermenting a the scum formed when the raw juice of the

sugarcane is heated with molasses , water dunder the residue left after the refining of sugar . When distilled rum is a white or straw colored to . Spirit varying . in strength a small ester from 80 to of 150proof(40 depends 75% alcohol) Adding amount makes

caramel or by aging in special wooden casks . the flavor upon ethylbutyrate, an organic dark rums.Most rum for export is made in Barbados, Trinidad, Jamaica, Guyana,Cuba and Puerto Rico.

WHISKEY 42

Liquor distilled from the fermented mash of cereal grains and containing about 40 to 50% ethyl alcohol by volume. The term whiskey also spelled whiskey in Scotland , England and Canada is derived from Scottish Gaelic uisgebeatha and Irish usgubaugh, both meaning water of life.

The

principal

whiskey

types

are

scotch

distilled

primarily from barely irish from a mixture of five different grains , including malted barely American whiskeys are further characterized broadly as rye corn whiskey and more narrowly as bourbon (for bourbon country in Kentucky) or Tennessee whiskey. In addition some American product are produced by a fermentation sourdough whiskeys. process bread and rough are analogous thus called to the leaving of whiskeys others

characterized by their less intense flavor, are called light

BEER
Term for fermented alcohol beverages made from cereal grains that have been converted to malt . Beer may be brewed several kinds of high-starch grains .Thus in the United States beer is generally made from flavoring .In Japan , beer (caller sake) is brewed from rice . African tribes make beer from grains native to their regions , such as teff, miller or grass seeds. 43

BRANDY
Alcohol beverage produced by the distillation of grape wine and matured by aging in wooden casks . When freshly distilled the brandy is clear and colorless and will remain so if kept in glass containers , placed in wooden casks the spirits dissolve a coloring matter from the wood and acqure a light brownish tint , which dealers often deepen by added burnt sugar. The distinctive aroma of brandy is due to the presence of traces of higher alcohol and volatite oils. The very alcoholic content of the raw spirit is reduced water when the brandy is bottled for sale. Perhaps the most famous brandy is cognac , named after a town in the wine producing department of Charente, France. The amber-hued distilling white wine, which is then aged in an oak cask, makes cognac, Other notable brandies are kirch, produced in the Alasca area of France, in Switzerland, and in the Black Forest region of Germany, by distilling the fermented juice of the black Forest region of Germany, by distilling the fermented juice of the black morello cherry, and slivovitz, adry, colorless plum brandy made in the Balkans. In the United States, liquors made from fruits other than grapes are also called brandies , but are more correctly termed cordial or liqueurs. high somewhat by

aging and is adjusted usually to 40 to 45 % by dilution with

GIN

44

Alcoholic liquor , distilled from grains and deriving its flavor principally from an infusion of juniper berries . The name is an abbreviation of the world Geneva. A corruption of either the French Genevieve or the Dutch junever, both meaning juniper. The two principal kinds of gin are the

American or the English variety usually described as London gin or dry gin, and the Dutch type , called Geneva schnapps or Hollands . Dry gin is prepared from alcohol that has been purified by fractional distillation.

The purified alcohol is then mixed with juniper berries and other flavoring agents, distilled once more, and diluted to approximately 80 to 90 proofs. Dutch gin is prepared in much the same way as dry gin, expect that grains alcohol is less highly purified and thus retains more of the flavor of the grains. Sugar syrup is sometimes added to the final product. Gin drinking become a social evil in Great Britain early in the 18th century, when it was cheap that one could get drunk for a penny, dead drunk for two pence. Increasingly heavy taxes, however were levied on gin, beginning with the gin act of 1736 . Gin is a popular beverages in Great Britain and the United States.

45

46

COMPANY WISE MARKET SHARE

In liquor market there are many competitors. But the main companies which give Mohan Meakin ltd. a higher competition are U.B. Group, Shaw Wallace, Jagjit Industry, and Khodays breweries. The raking of these with relation to Mohan Meakin is as follows: 1. U. B. Group 2. Shaw Wallace & Co. 3. Jagjit Industry Ltd. 4. Mohan Meakin Breweries Ltd. 5. Khodays Breweries These competing companies acquire almost a major part of liquor market in India. Among hich the U. B. Group of Mr. Vijay Malaya acquire almost half of the market which its leading brand of Mc Dowell and Bagpiper. Mohan Meakin is standing fourth in this ranking. The ranking is as follows: U. B. GROUP-MAC DOWELL & CO. SHAW WALLACE & CO. 47 47% 16%

JAGJIT INDUSTRY LTD. MOHAN MEAKIN BREWERIES LTD. KHODAYS BREWERIES OTHER

10% 06% 03% 18%

U. B. GROUP
United breweries is the in the beer market with around 40% of the market share. UB is the planning to invest in South Africa through equity participates in materials Shargram breweries. Another joint venture in beer is on the Anvil with largo group in the African companies. Joint ventures are also planned in Nepal and Shri Lanka. US group is shirting the brewery from Bangalore to use the land former store development. In India the UB group had the turnover of Rs. 207.24 million and world wide turnover of 1 billion. It is Indias biggest manufacture of liquor. With its popular brand it holds a 47% of market share in liquor industry. Its popular brands in the market are: Mac Dowell no. 1 Bagpiper Bagpiper gold Royal velvet Blue Rebind 48 (whiskey) (whiskey) (whiskey) (whiskey) (whiskey)

The group Mission Statement embodies these objectives: 1. To be the recognized leader in our target markets. 2. To be the preferred employer wherever we operate 3. To recognize the value of our human assets. 4. To be the partner of choice for customers, suppliers, and other creators of innovative concepts.

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 of the UB Group. Led by Mr. Kalyan Ganguly, President & Managing Director, it has around 40% market share in the country. Millennium Alcobev Pvt Ltd., (MABL), is the Joint

Venture Company in which UB along with its subsidiary and Scottish & Newcastle of the UK have equal stake of 50%. 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 'hogheads' 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 and exploiting by it to a strong the hilt distribution on the other. network. A A management focused on building brand equity on one hand concerted emphasis on quality. UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the Country. 49

Quality and hygiene are the key elements of the United Breweries' manufacturing philosophy. To this end, the Central Scientific Laboratory (CSL), headquartered at Bangalore 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 international flagship brand 'Kingfisher', and has achieved many

recognition

consistently,

has

won

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 50

utilize

S&N's

global

network

to

further

globalize

its

Kingfisher. During the year 2005-2006, United Breweries Limited (UBL) has achieved a volume growth of 18% over the volume last year. The industry has grown at a rate of 14% during the period. For the year ended March 31, 2006 the volume stood at 43.4 million cases as compared to 36.4 million cases as on March 31, 2005. Against an industry volume growth of 14% for the year, your Company has continued to outperform the market in both the strong and mild beer segments. While the mild beer segment witnessed a growth of 13% (against a market growth of 9.4%), and spectacular growth in strong beer of 36% (against a market growth of 16%) was witnessed. Kingfisher Strong has now achieved the number one position in the strong beer segment, followed by Kingfisher Premium which continues to remain a leading brand in the mild beer segment. Net sales for the year under review stood at Rs.6873.5 million as against Rs.5153.8 million in the previous year representing an increase of 33.3%. Kingfisher Strong has witnessed remarkable growth during the last 6 years after its launch. Kingfisher Strong has crossed sales of 17 million cases growing by 36% compared to an industry growth rate of 16% in the strong beer segment. In this segment UBL is the market leader in 7 out of the 10 largest states of India and in the lager beer segment, UBL is the market leader in all the 10 largest states of the Country. UBL commands a market share of around 40% with 67% of the market share in the mild beer segment and 27% in the strong beer segment. The sales of lager beer have been flat or mildly de-growing, whereas over the last 5 years the share of strong beer in the overall industry is over 65%. 51

UBL continues to lead the industry with overall market share of 40%, Kingfisher Premium Lager achieved sales in excess of 20 million cases representing a market share of 65% in the mild beer segment. Kingfisher Strong has become the No.1 Strong Beer in India selling over 17 million cases, and, commanding a market share of 19% in the strong beer segment. Kingfisher Strong crossed 2 million cases (sales) in 5 major markets, which is a record in itself. Innovative launches of Kingfisher Stubby in Goa, launch of Kingfisher 650 ml in a innovative international carton pack in key markets, launch of London Pilsner 330 ml can pack in Mumbai and London No.1 Strong 330 ml bottle in Karnataka has provided further competitive advantage. Promotional events like Kingfisher Premium "Voice of Goa" and the "Great India Oktoberfest" coupled with various snack promotions have not only given a boost in volumes but also expanded the consumer base. UB Export Lager continues to deliver superior value to the consumer supported by its brand Ambassador Upendra. Capacities created in Australia and New Zealand through contract agreements have further enhanced brand equity and retentio UBL management's undiluted focus on the consumer with an emphasis on delivering value has enhanced the perception of brands in the consumers min With a rapid growth in GDP at 8%, higher disposable income, exposure change to, in consumer info behavior, uences, advent of, and in western liberalization

retail/distribution, the beer market in India is growing rapidly and is expected to grow at a rate of over 10% year on year. Growth in income for the 52 young educated population,

particularly in the service industry, gives cause to expect acceleration in demand for beer in the coming years

ABOUT THE CHAIRMAN

D R . V I J A Y M AL L Y A - T H E G R O U P C H A I R M A N
After the historic takeover of Shaw Wallace by The UB Group, United Dr. Vijay Mallya Vijay has been appointed was as the as new the Chairman by the Board of Directors under the new entity of Spirits. Dr. Mallya, 49, elected Chairman of United Breweries by its shareholders, at a young age of 28, following the sudden demise of his father, Vittal Mallya, in 1983. Prior to being entrusted with the responsibilities of a classical Indian Conglomerate, Dr. Mallya worked for the American Company Hoechst Corporation (now Aventis) in the USA and with Jenson & Nicholson in the U.K. Since 1980, he assisted his father, the then Chairman of the UB Group in managing the Brewing and Spirits Divisions and re-launching of the well-known brand Kingfisher. Also included in the Group were activities such as

Pharmaceuticals,

Aviation,

Agrochemicals,

Media,

International Trading, Fertilizers, Research & Development, Infrastructure Development, Engineering, Paints, Monomers & Polymers, Electro-mechanical 53 Batteries, Food Products,

Carbonated Beverages, and several small and medium sized industrial units.

CONSOLIDATING DIVERSE BUSINESS ACTIVITIES

Upon assuming the position of Chairman in October 1983, Vijay Mallya initiated the process of defining a corporate structure with performance, and accountability, consolidating the inducting unwieldy professional management

empire into individual operating divisions. In 1988, Vijay Mallya became a Non-resident Indian to pursue global opportunities and transform the UB Group into India's first multinational organization. While, in the initial stages, overseas representative offices had been commissioned, the real breakthrough came in 1988 when Dr. Mallya, acquired the Berger Paints Group with operating units located across four continents. Vijay Mallya successfully directed five Initial Public

Offerings on the London, Singapore, Nairobi, Jamaica and Abidjan Stock Exchanges. The paints business was divested for significant value in 1996. Dr. Mallya also founded a software company in the USA in 1993, which was subsequently listed on NASDAQ in 1996, providing a considerable window of opportunity to the vast US market. 54

He also initiated several ventures for the promotion and globalization particular. of UB brands, Kingfisher and McDowell in

LIBERALIZATION, A STEP FOR OPPORTUNITIES

In 1990, following the Government of India's liberalized economic policies, Vijay Mallya decided that the UB Group would only retain interests in businesses that were globally viable, not having to depend upon fiscal tariff protection locally. The new millennium value for brought the more focus and dramatically increased group's shareholders

through its multi-faceted operating dimensions. The UB Spirits Division now have sales figures of 56.6 million cases, making the group the second largest marketer of spirits in the world. With the recent acquisition of Shaw Wallace & Co., the combined entity now owns 12 millionaire brands to its credit. The UB Group's Brewing Division has also assumed

undisputed market leadership with a national market share in excess of 60 percent. Aggressive mergers and acquisitions have made the Group control around 60 percent of the total manufacturing capacity of beer in India. The flagship brand, Kingfisher is now sold in over 52 countries worldwide, and has received numerous accolades for its quality. UB also acquired an equity stake and management control of United National Breweries in South Africa to further promote its globalization initiatives. 55

The latest venture of the UB Group is in the Aviation sector. A new fleet of 30 Airbus A320 from Airbus SAS has been ordered at a list price of US$1.8 billion. Kingfisher Airlines has become the first Indian Airline to place an order for 5A380s, the deliveries of which commence from 2010.

Dr. Vijay Mallya is the Chairman of public companies both in India as well as in the USA. He has been the Chairman of Aventis Pharma India (previously Hoechst) as well as the Chairman of Bayer CropScience in India (previously Agrevo) for over 20 years, in addition to his Chairmanship of several other corporations. Vijay Mallya has received several professional awards both in India and abroad. He was conferred He has a honorary also been Doctorate of Philosophy in Business Administration by the Southern California University, Irvine. nominated as a 'Global Leader for Tomorrow' by the World Economic Forum. Dr, Mallya is a keen sportsman, an ardent aviator such and a yachtsman worldwide, of distinction. He for not the only under participates in various sporting events but also promotes activities particularly privileged. Dr. Mallya has always believed that corporations have a responsibility to society. He has contributed generously to various Charities and Foundations in several countries in addition to establishing The Mallya Hospital, The Mallya-Aditi School and the Vittal Mallya Scientific Research Foundation in Bangalore, India.

56

SHAW WALLACE & COMPANY

Hi sto ry
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. Ever since its inception in 1886, Shaw Wallace has

established a legacy in India that is drenched in the spirit of the Nation for the last 120 years. The company came into existence at a time when the country was battling for its for freedom against the colonialism of the British regime. 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.

57

Shaw Wallace after a modest beginning blossomed into one of the forerunners in the alcohol and beverage industry. Throughout its long and arduous journey, it has added many a firsts to its credit. The company was one of the first importers of motor cars in India during the beginning of the 20th century; the first agent in India of a wireless company - Marconi's Wireless Telegraph and in 1926, acted as an agent of an airline, The 'Imperial Airways'. In 1987, the company came under the leadership of the late Mr. M. R. Chhabria. In yet another historic development, in June 2005, Shaw Wallace was taken over by The UB Group, spearheaded under the dynamic leadership of Dr. Vijay Mallya. Heralding a complete new era for the erstwhile corporate entity, Dr. Mallya completed the acquisition by taking over as the company's Chairman, making the combined entity of McDowell, Herbertsons and Triumph Distilleries & Vintners and SWC as the second largest distilled spirits marketer in the world, with sales exceeding 59.4 million cases, second only to Diageo of UK, which sells 91 million cases. 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 following Rama the Krishna demise of Mission one of by the Swami greatest Vivekananda

Indian saints, Ramakrishna Paramhansa it also witnessed the release of Rabindranath Tagore's literary masterpiece Kari-oKomol. 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. 58

Throughout its long and rich journey, Shaw Wallace has had many a first to its credit. The company was one of the first importers of motor cars in India during the beginning of the 20th century. Shaw Wallace was also the first agent in India of a wireless company- Marconi's Wireless Telegraph. In 1926, it acted as an agent of an airline, the 'Imperial Airways'. Shaw Wallace marked another milestone in 1987, when the company came under the dynamic leadership of the Jumbo Group, spearheaded by the late Mr. M R Chhabria. His boundless vision and business acumen has further cemented the position of the company, taking it to dizzying heights of success.

The Shaw Wallace motto has been to live and breathe innovation with the consistent launch of new products and variants to cater to emerging needs of its consumers. In the last century, the company the has risen consistently to the of challenges that have come its way establishing a niche that cleverly captures varied and ever-changing taste alcohol consumers the world over. Today Shaw Wallace has a host of liquor and beer brands that have become synonymous with the highest quality and the best of times.

59

Our Philosophy

As

one

of

India's and

foremost of

liquor

manufacturers consumers in

and the

exporters with a host of brands that have captured the imagination taste alcohol country as well as abroad, we believe, it is superior quality that effectively underlines our primary goal of attaining a larger market share. For the past 116 years of existence, we have carefully cultivated and abided by a principle that has been synonymous with a tradition of excellence, upholding high standards be it in our products or in our customer focus. One need not settle for anything less than the very best. To that end, our to a customers of only in India brewed and abroad are selection of and packaged treated medley the finest

alcoholic

beverages,

carefully

under our label. 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. A constant strive for perfection along with a doctrine that stresses on consistent innovation and improvement, we 60

at Shaw Wallace intend to surpass the most stringent standards of quality in liquor manufacture and exports.

BUSINESS & PRODUCTS

Shaw

Wallace

comprises

the

following

Strategic

Business

Divisions:

Liquor Business - Shaw Wallace Distilleries Ltd. International Business Shaw Wallace motto has been to live and breathe

The

innovation with the consistent launch of new products to cater to the emerging needs of its consumers. In the last century, the company has risen consistently to the challenges that have come its way in establishing a niche that cleverly captures the ever-changing taste of alcohol consumers the world over. Today, Shaw Wallace has a host of liquor brands that have become synonymous with impeccable quality standards across the globe.

SHAW WALLACE DISTILLERIES LTD.

With its aggressive marketing strategies and a wide

distribution network, SWDL has succeeded in increasing its 61

market share gradually. It currently has products falling under the super premium, premium, prestige and deluxe segments. The company now operates 14 distilleries across the Nation. Various distilleries of Shaw Wallace have received the coveted ISO Certification for its impeccable quality.

INTERNATIONAL BUSINESS
Shaw Wallace has made giant strides in the international Alcove market by developing leading liquor and beer brands for global markets. It is a major player in the Middle-East market. Riding on the success of Director's Special Whisky, a leading brand, Shaw Wallace has also added Director's Special Black Deluxe Whisky and White Mischief Vodka to the staple of its premium brands. Shaw Wallace liquors are being exported to some of the prestigious markets across countries like the USA, Latin America, Korea, Mongolia and Singapore. The Royal Challenge brand has gone global with the launch of Royal Challenge Premium Malt Whisky, competing with global scotch brands. Director's Special whisky has been approved as a blended whisky in the USA. The brand has also forayed into the markets of South-Asian markets namely Singapore, Korea and Mongolia.

ALCOHOLIC BEVERAGES

62

The 2nd largest spirits marketer in the world with an approximate sales of 59.4 million cases. The 'Millionaire' Brands under the umbrella of United Spirits now stands at 15 McDowell's No.1 Brandy is the largest selling brandy in the world with sales of over 5.29 million cases McDowell's No. 1 Whisky is one of the fastest growing brands in the world with sales of over 6.07 million cases. It is the 4th largest non-scotch whisky and ranked the 7th largest whisky in the world

McDowell's No.1 Celebration Rum is one of the fastest growing rum brands in the world with sales of over 5.42 million cases

Bagpiper Whisky is India's Largest selling whisky with sales of over 10.54 million cases Gold Riband Whisky with sales of 1.73 million cases and John Exshaw Brandy with sales of 1.18, million cases are the new millionaire brands of UB

DISTILLERIES
Shaw Wallace Distilleries Ltd. is working towards the up gradation and expansion of its manufacturing facilities with a focus that underlines quality million Shaw Wallace 25 manufacturing control cases, 15 and Distilleries independence, market a total are has comprehensive penetration. capacity cases of enhanced Limited of by

million

which

manufactured at its own units, while the other 10 million are sourced through manufacturing contract. Looking to amplify its production, the company is constantly exploring innovative avenues to achieve greater market share and stand tall in a highly competitive environment. 63

To this end, Shaw Wallace Distilleries Ltd. plans to invest in the up gradation production and expansion a of its that manufacturing underlines, facilities. This in turn is a definite move towards reducing contract with focus manufacturing independence, comprehensive quality control and enhanced market penetration.

Aurangabad, Maharashtra Alwar, Rajasthan Malkajgiri, Hyderabad Baddi, Himachal Pradesh Bannerghatta, Bangalore Bhadrakali, West Bangal. Bhankerpur, Simbhaoli, Chandigarh Meerut, U.P. Palghat, Kerala Faridabad, Haryana Pampasar, Hospet, Karnataka Gopalpur-On-Sea, Orissa Bhopal, M.P. Salamander, Zuarinagar, Goa Pathankot, Panjab

64

SHAW WALLACE IN EXPANSION MODE-SCOUTING FOR GLOBAL PARTNER

Shaw Wallace & company ltd (SWC) is planning to establish four more breweries in kerala, Madhya Pradesh, Goa and Karnataka at a rs 100 crores. The company is currently having seven breweries in six states across the country. Shaw Wallace has embarked on an expansion drive at four of its major capacities to enhance its breweries to be expanded are skol breweries, uran (Maharashtra); Sica Breweries, Pondicherry; Charminar breweries, Hyderabad and Sonepat, at Haryana. The company, according to its Brand Manager, Ms Deepa, is also exploring the possibility of marketing beer in pet bottles. At present, SWCs portfolio includes three major brands of beer Hayward 5000, Hayward 2000 and Royal Challenge Premium larger. SWC has already received license from kerala Government for setting up a brewery in Malabar region and 65

project is expected to be completed in one-and-a-half years. The company is confident of obtaining licenses for the three other breweries proposed. This apart, plans are on the anvil for the expansion of the SWCs Charminar Breweries Ltd (CBL) in Andhra Pradesh at a cost of Rs. 20 crores .The company was awaiting the State Governments approval in this regard . CBL has a turnover of Rs 45 crores while the total group turnover of SWC is to the tune of Rs 2,500 crores. According to CBL Chief Executive, Mr. C.P.Nagpal, post-expansion the subsidiarys installed capacity would increase to 57.59 lakh cases per annum from the existing 25.64 lakh cases. Following the lifting of prohibition in 1997, the beer market in Andhra Pradesh took a major leap in terms of volume and SWCs sales grew from 6.21 lakh cases in 199495 to 40.1 lakh cases in 1999-2000. SWCs beer sales in the State are further expected to increase to 48 lakh dozens during the current fiscal. With this, the companys market share in A..P.s beer market would go up to 40 percent. SWCs Area Manager, Mr.N.S.S.Satya Murty, said that Haywards 5000 had attained the stature of Mega Brand in the country in June, 1999 with sales in excess of 10 million cases in a span of one year. The brand enjoyed a price leadership in the strong beer segment and registered a ten fold increase in sales in the last 5 years. Similarly, the companys Royal Challenge Premium Larger beer, which falls under the mild segment category, has grown consistently and doubled its sales over the last four 66

years. Apart from A.P.and M.P.SWC enjoys a leadership status in the markets of Uttar Pradesh, Haryana, Orissa and Pondicherry, Mr.Murty said.

JAGJIT INDUSTRY
Three hundred scores and ten miles away from Scotland, JIL has created a perfect atmosphere for making the magical spirit. Jagatjit Industries Limited was founded in the year 1944 by Late Mr.L.P.Jaiswal in the erstwhile State of Kapurthala under the patronage of its Maharaja Jagatjit Singh. JIL's guiding philosophy - "The Spirit Of Excellence" finds expression at all levels of JIL's activities. Excellence in its manufacturing technology, excellence in the quality of its products and excellence in its relations with its employees, dealers, shareholders and customers. JIL has achieved turnover in excess of INR 4 billion and is managed by Mr. Karamjit S. Jaiswal, Managing Director of the Company JIL is listed on various stock exchanges in India at Mumbai, Delhi, Kolkata and Ludhiana with currant total market capitalization in excess of INR 1 Billion and Price Earning ratio of Around 18. 67

JIL is one of the most shareholder rewarding companies. The original subscription of 100 share of the company in 1944 have now grown up by 53 times to 5,376 shares (face value of Rs 10 each ) by way of various bonus shares allotted by the Company in addition to Rs 1,35,756 received by shareholder aa dividend since 1944. The company manufactures and markets alcoholic beverages, malt, malt extract, malted milk foods, milk powder, ghee, glass and pet containers. Ranked as a third largest IMFL (Indian Made Foreign Liquor ) producer in the country, JILs main focus of business lies in manufacture, in the distribution of and sales of IMFL. The The other company has state of the-art manufacturing base which is located district Kapurthala, Punjab. manufacturing units owned by JIL or its business associates are located at : Uttar Pradesh Andhra Pradesh Kerala Rajasthan Maharashtra Pondicherry Himachal Pradesh Tamil Nadu

68

RADICO KHAITAN

Radico Khaitan is one of India's oldest and largest liquor manufacturers. Formerly known as Rampur Distillery which was established in 1943. It was only in 1999, that Radico decided to launch and market its own brands, thereby embarking on a period of phenomenal growth. To further boost its production capacity of bottled and branded products, the company has tied up with bottling units in various parts of the country.

T H E B R A N D ST O R Y
Radico Khaitan Ltd today has three millionaire brands in its portfolio. Radico's flagship brand, 8 PM Whisky, launched in 1999, was a runaway success. In the first year alone, it sold one million cases - a record for any Indian or foreign brand operating in India. This also made it the first brand in the liquor industry to make it to the Limca Book of Records. Drinks International, the acclaimed international liquor magazine has rated 8 PM whisky as the fastest growing whisky in the world in the regional category (2004-05). The other millionaire brands are: Contessa Rum has won the prestigious 69

Monde Selection award for its overall quality for the past three executive years .It has a large market share in the defense market.. Old Admiral Brandy has also been rated by Drinks International as the fastest growing Brandy in the world in the regional category (2004-05 and 2005-06) also it has won the Monde Selection award for its overall quality in 2004-05.

Today, Radico Khaitan has brands that straddle almost every market segment - whisky, rum, brandy, vodka & gin and price category. Our fine blends, consistent quality, distinctive packaging and superior value have resonated with customers.

Radico turnover touching Rs

touched 995

39% in

net the

profit year

growth ended

with

sales

crore

31-03-05.Radico

registered an impressive growth in the year 2004-2005. The net profit figure of Rs 35.8 crore in the year 2004-05, a growth of 39%, as compared to Rs 25.6 crore for the year 200304.Speaking on the growth Dr. Lalit Khaitan, C&MD said, "We 70

are looking at the future with confidence and optimism. Our business performance remained strong throughout the year. The new brand launches, entry into newer markets by our existing brands, setting up of new bottling plants and improved efficiencies have driven the growth. Our expansions are being implemented as per plan and we expect a robust growth in the coming years".

Speaking on the sales turnover, Mr. Abhishek Khaitan, MD said, "The company saw the sales turnover including the contract bottling units and distilleries go up from Rs 727 crore to Rs 995 crore, a growth of 37% in the year 2004-05". He also added, "With our expansion plan and our new strategy, the company is expecting a CAGR of 25% in the next two years". The company had sold 10 million cases in the year 2004-05 and has three millionnaire brands in its portfolio, which includes 8PM Whisky, Old Admiral Brandy and Contessa Rum. 8PM sold 3.3 million cases in the year 2004-05, Old Admiral sold 1.4 million cases and Contessa Rum sold 2.7 million cases The company had entered further into the white spirits segment with the launch of 8PM Bermuda White Rum and received an overwhelming response and will be shortly launching a vodka brand called Magic Moments Vodka. 8PM Excellency Brandy had also been launched being the first in its segment that is blended with Cognac. The launch of these brands aim to broad base the company's offering as well as increase its market share. Radico has three millionaire club brands 8PM Whisky, Contessa rum and the latest entrant Old Admiral Brandy. 8PM Whisky has the unique distinction of having touched sales of one million cases in the first year of its launch. Contessa Rum 71

is one of the largest selling brands among defence forces. While Old Admiral Brandy has grown by over 100% over the last year. Radico, the second largest liquor manufacturer in the country crossed the 10 million-case sale mark in 2004-05. Having a far-reaching brand portfolio across all segments of the IMFL market from Whisky to Vodka, Radico sold 6.34 million cases in the year 2003-04. There has been a growth of 58 % this year (6.3 million cases). A brand-wise view of these three brands performance during 2004-05 shows that 8PM Whisky sold 3.26 million cases, Contessa Rum sold 2.73 of its launch itself it crossed the one million case mark the first in the liquor industry, and entered the Limca Book of World Records. Contessa Rum finds ready acceptance in several customer segments. The million cases and Old Admiral Brandy sold 1.4 million cases.

VICTORIOUS BRANDS
8PM Whisky is the flagship brand of Radico. It has

crossed the 3

Million case mark in the year 2004-05. 8PM

Whisky was launched in October 1999. Since then it has grown many folds as in the first year brand has grown by 29% last year and has topped sales of 2.7 million cases in the year 2004-05. Old Admiral Brandy is another winner from the Radico portfolio. The brand crossed 1.4 million cases in the year 2004-05. Old Admiral Brandy was launched in October 2002 and has grown 69% from the year 2002. Radico joins the millionaire club with three star brands. 72

A brand-wise view of these three brands performance during 2004-05 shows that 8 PM Whisky sold 3.26 million cases, Contessa Rum sold 2.73 million cases and Old Admiral Brandy sold 1.4 million cases.

THE SEAGRAM COMPANY

JOSEPH EMM SEAGRAM (1841-1919 ) Founder of The Seagram Company The Seagram Company Ltd. was a large corporation headquartered in Montreal, Quebec, Canada that was the largest distiller of alcoholic beverages in the world. Toward the end of its independent existence it also controlled various entertainment and other business ventures. The Seagram assets have since been acquired by other companies, notably PepsiCo, Diego, and Per nod Ricard. The famous Seagram Building, the company's American headquarters office tower at 375 Park Avenue in New York City, was designed by architects Ludwig Mies van der Rohe with Philip Johnson. The former Seagram headquarters in 73

Montreal now belongs to McGill University, under the name "Martlet House

HISTORY
Original Seagram Distillery buildings in Waterloo, now converted to residential condominiums In 1857, a distillery was founded in Waterloo, Ontario. Joseph E. Seagram became a partner in 1869 and sole owner in 1883, and & the company Many became known as Joseph E. Seagram founded enjoyed Sons. decades in the later, Samuel in Bronfman due to

Distillers Corporation Limited, substantial growth

in Montreal, which part

1920s,

Prohibition in the United States. A few years after the death of Joseph E. Seagram 1928 the Distillers Corporation acquired Joseph E. Seagram & Sons, and took over the Seagram name. The company was well prepared for the end of Prohibition in 1933 with an ample stock of aged whiskeys ready to sell to the newly opened American market, and it prospered accordingly. Thus despite its earlier Waterloo history, the Seagram name is most closely associated correct to with say, the as Bronfman is often family. However, Samuel it is not done, that Bronfman

founded Seagram, since the Seagram name itself pre-dated the company he founded. 74

After the death of Samuel Bronfman in 1971, Edgar M. Bronfman was Chairman and Chief Executive Officer (CEO) until June of 1994 when his son, Edgar Bronfman, Jr., was appointed CEO.

In 1981, cash rich and wanting to diversify, Seagram Company Ltd. engineered a takeover of Conoco Inc. a major American oil and gas producing company. Although Seagram acquired a 32.2% stake in Conoco, DuPont was brought in as a white knight by the oil company and entered the bidding war. In the end, Seagram lost out in the Conoco bidding war. But in exchange for its stake in Conoco Inc, it became a 24.3% owner of DuPont. By 1995 Seagram was DuPont's largest single shareholder with four seats on the board of directors. In 1987, Seagrams engineered a $1.2 billion takeover of important French cognac maker Martell & Cie. On April 6, 1995, after being approached by Edgar Bronfman, Jr., DuPont announced a deal whereby the company would buy back its shares from the Seagram company for the amount of $9 billion. Seagram's was heavily criticized by the investment communitythe 24.3% stake in DuPont accounted for 70% of Seagram's earnings. Standard & Poor took the unusual step of stating that the sale of the DuPont interest could result in a downgrade of Seagram's more than $4.2 billion of long-term debt. The rationale for this divestiture was that Edgar

Bronfman, Jr., grandson of Samuel Bronfman, wanted Seagram 75

to branch out into the entertainment business. Bronfman, Jr., used the proceeds MCA, of the sale and to help acquire Universal Studios, parks. PolyGram, Deutsche Gramophones.

Seagram also gained control of a number of Universal theme

In 1997, the Seagram Museum, formerly the original Seagram distillery in Waterloo, was forced to close due to lack of funds. The building is now the home of the Centre for International Governance Innovation. The two original barrel houses are now the Seagrams Lofts condominiums. There are also almost five acres of land for future development. In 2000, controlling interest in Seagram's entertainment division was acquired by the Vivendi Group, and the beverage division by Pernod Ricard. By the time Vivendi auctioned off Seagram's brand around drink the business, once and beyond fifty its original brands high-profle of and brand names two renowned operation consisted

hundred

drinks

extensions. In 2001, The coca-cola Company acquired the line of Seagram's mixers (ginger ale, tonic water, club soda and seltzer water) from Pernod Ricard and Diageo, as well as signing a long term agreement to use the Seagram's name from Pernod Ricard. On April 19, 2006, Pernod Ricard announced that they would be closing the Seagram Lawrenceburg Distillery located in Lawrenceburg, Indiana.

76

Seagram brands Noted brand names owned by Seagram included Chivas Regal, Crown Royal, and VO whiskeys, Captain Morgan rum and Tropicana fruit juice, today owned by Diego PLC and PepsiCo, Inc., respectively. The Seagram brand name lives on in Per nod products such as " Seagram's Gin" and "Seagram's Coolers," in Diego product Seagram's Seven Crown and in The Coca-Cola Company's Seagram's mixers line.

KODAYS BREWERIES
Indias fifth largest manufacture of liquor. It holds a 16% of market share in liquor industry. Its popular brands in the market are: Peter Scott. Hercules Rum. Healthy Beer launched by Khodays Spent some time with Dr. Jagannatha Rao, and was talking about his company and the different types of beer. Conversation came around to Healthy beer, launched by his company recently. An Indian firm has launched a vitamin-rich beer which it says protects the body from the harmful effects of alcohol. Ladybird Bio Beer contains aloe-vera extracts as well as the normal ingredients of barley malt and hops, said its inventor B Srinivas Amarnath. He said research showed that it did not harm the liver or cause ulcers and gastric illness. The results of human clinical trials have shown aloe 77

vera increases the bioavailability of vitamins like B1, B6, B12, C and E, said C B Jagannatha Rao, senior vice president of Khoday group of industries. The beer was launched in Kerala on Wednesday by Khoday in partnership with Amarnaths firm, Advaith Biotech.

More interestingly, Dr. Rao, gave me a glimpse into the history of Beer. Apparently beer was initially a product of the Church! It was invented in a monastry. Thats right, things got out of hand after that. And back in the days, beer was a staple drink, which many in europe used to drink for breakfast. Apparently, one fellow made up a slightly pale ale and was shipping it to india, to suit the local tastes. The cargo ship met with an accident, and the barrels ended up in Irish Hands. The Irish took an instant liking to the East Indian Pale Ale (Also called Bass Ale) and obviously havent stopped enjoying it till now. A Bangalore-brewed beer is poised to make a big splash in the UK market. AdiAdi, brewed by Khodays, has been developed exclusively for the UK market by two venture capitalists from Kerala and Bangalore who have made their money in the telecom sector. Kerala-born focus their engineering on graduate John by Eipe and his two

Bangalore-based business partner, Pradip Kumar, will now energies beer business importing container loads every month. On Sunday their brew was the star attraction at an Indian fashion and business launch at Londons Cafe Royal where eager visitors jostled each other for a taste. AdiAdi is now 78 only truly Indian-made beer

available to customers in the UK and, judging by queues of customers lining up for a free sip, it is likely to be an outstanding success.

OTHER COMPANIES
Other companies have their market share of 18% in the liquor industry. This remaining part is enjoyed by various small industries and is so scattered that no industry has enough base to affect the market easily. Mohan Meakin should adopt such policy, which will help in entering in this part so as to increase the market share.

79

80

BACKGROUND

In the late 1820's, Edward Dyer moved from England to set up the first brewery in India (later incorporated as Dyer Breweries in 1855) at Kasauli in the Himalayan Mountains. The Kasauli brewery launched India's and indeed Asia's first beer, Lion, which was in great demand by the thirsty British administrators and troops stationed in the sweltering heat of India. Lion was much appreciated as a beer, and one famous poster featured a satisfied British Tommy declaring, "as good as back home!". The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh springwater there. The Kasauli brewery site was converted to a distillery, which Mohan Meakin Ltd. still operate. Dyer set up more breweries at Shimla, Murree Brewery, Rawalpindi, Mandalay, Quetta and acquired interests in the Ootacamund Brewery (South India). Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling, Kirkee and Nuwara Eliya (Ceylon). After the First World War, 81

the Meakin and Dyer breweries merged and in 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange.

Following independence, N.N. Mohan raised funds and travelled to London where he acquired a majority stake in Dyer Meakin Breweries. He took over management of the company in 1949 and built new breweries at Lucknow, Ghaziabad and Khopoli (near Bombay). The company name was changed to Mohan Meakin Breweries in 1967 (the word "Breweries" was dropped in the eighties as the company diversified into other industries). On the death of N.N. Mohan in 1969, his eldest son Colonel V.R. Mohan took over as Managing Director. He introduced a number of new products that are brand leaders today but died in 1973, soon after taking the helm. In the 1970s the manufacturing activities of the company were diversified into other fields including breakfast cereals, fruit juices and mineral water under the leadership of Brigadier Kapil Mohan (Col. V.R. Mohan's brother). Subsequently the word brewery was dropped from the company name in 1982 to remove the impression that the company was engaged only in beer making. New breweries were built during the seventies and eighties at Chandigarh, Madras, Nepal and Kakinada near Hyderabad. Today, Mohan Meakin's principal brands are Old Monk rum and Golden Deluxe, Eagle beer. Its other products Knight, include Meakin Diplomat Colonel's Special, 82 Black

10,000, Summer Hall and Solan No 1 whiskies, London Dry and Big Ben gins, and Kaplanski vodka. Asias original beer, Lion, is still sold in northern India and remains the best selling beer in Sri lanka through Ceylon Breweries.

On another front, the companys joint venture with Glen Morangie - McDonald Meakin has made limited headway with its whiskeys Highland queen and Grand Reserve. Mohan Meakin is also believed to be talking to international majors for a possible equity tie-up. Lucknow distillery is one of the manufacturing units of Mohan Meakins Ltd. It was set up by the Dyer-Meakin and Co. in the historical city of Lucknow on the perennial river Gomti. The distillery is housed in the building built about four hundred years back by the Nawab of Awadh. Its worth mentioning that Mohan Meakin has provided technical expertise to Mohan Gold Water Breweries Ltd. Lucknow Mount Shivalik Breweries Ltd. Punjab Mohan Rocky Spring Water Breweries Ltd.Maharashtra Artos Breweries Ltd. Andhra Pradesh Nagaland Distilleries Ltd. Nagaland Mohan Breweries and Distilleries Ltd. Madras Shivalik kineka Private Ltd. Patna Golden Drinks Private Ltd. Gwalior Maharashtra Distilleries Nagpur

83

84

Marketing

and

distribution

play

an

important

role

in

industries development. In this sense, the industry can be more or less classified under the FMCG category. Liquor sales are also largely driven by brand popularity. To build brand popularity companies have to get retailers to recommend the brand end- user. The brand plays a critical role in building the fortunes of a company. Given that consumption patterns are more or less static. Companies have few changes to hook a customer. But once hooked to its product volume are likely to be steady. Therefore adopting a, brand-push strategy may be a key success factor. The strength and penetration of the retailing network are the key success factors. As there are curves on advertising liquor through other media, the companies depend almost completely on retailers and other agents. This apart, with the exception Controls of few states, take liquor distribution forms such is as controlled. can various

government controls market and actions. Given these factors, companies face a difficult task in managing their supply chain. On the other hand they have to manage the ever increasing demands of wholesalers and retailers, and on the other way they have to manage the red tape and corruption associated with controlled marketed. Here again the difficulties will be acute for new players. While the 85

India made foreign made liquor (IMFL) sales in Maharashtra, West bangal, Jammu & Kashmir, Goa, Orissa, Assam, Maghalya, Tripura and Arunanchal Pradesh, Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar, Panjab & Chandigarh and government prohibition. States following the open market mode give good average to the IMFL marketing company to the choose the distributor and to determine pricing. In case of distribution by government and through auction powerful distributors exert influence on the margin of the manufactures. Brand pulls as important role forcing companies to go in for surrogates. Liquor companies have come out with a self regulatory some code (Karnik dew code) the this for liquor of code the advertising information after and liquor ads ire controlled in Tamilnadu, Karnataka, Delhi and Kerala, Gujrat, Manipur, Mijoram & Nagaland are enforcing

broadcasting slots.

ministry;

imposes

strictures

surrogates advertising and timing of the liquor advertising

The beer and the IMFL market have a large number of established companies and brand. The ban on advertising has in practice not acted as a deterrent. The companies have employed products. In India, country and IMFL cater to different segments. The low income groups in the urban areas consumes country liquor middle and high income groups of both urban as well as rural areas prefer the IMFL Government controls pricing and distribution of country liquor. In certain states, distribution of IMFL is also controlled. The demand fpr beer is increasing 86 noble and innovative method to publicize their

steadily. where a

The large

market no. of

for

beer are

lies

mainly

inn

the

urban

centers. Drought beer ids popular in Mumbai & Bangalore, pubs operating. During 1993-94 alcoholic beverage worth Rs. 370 million were exported.

Where as in 1980-81 the figure was only Rs. 6 million. The main market is the UK & US the Middle East Australia, Germany & France. Beer and rum constitute major part of India alcohol export. An Indian company is even successfully exporting sparking wins, having set a 100% export oriented unit for this purpose.

CHANNELS OF DISTRIBUTION

Mohan Meakins Ltd is a very large organization and has a wide range of products. The sources Mohan Meakins Ltd is closely related is its storage channels of distribution. The company is selling its product in every part fo the country. Thus it has a company wide distribution network. The company adopted its non integrated indirect type of distribution network, thus distribution is a separate business entity seeking to maximize its own profit. Alcoholic products are excisable item and controlled by the government channels members who constantly monitor the situation and implement the government rules and regulation regarding distribution of the products of the company. It is very necessary and compulsory for every channel members to 87

take

the

license

from

the

government

to

perform

their

function.

Distribution channel

FL-3

__

FL-1 __

__

FL-2

__

FL-4 __

__ Dealer

CONSUMER __ Retailer __

Manufacturer Consumer

Wholesaler

This is the first pipe of distribution channel by which the company reaches its customers. In this channel of distribution, manufacturing units,

which have F1_3 licenses, supply the product to the next channel member, that is, Whole seller or depot. Company reaches its customers by this method. This method is such that different depots, which work according to own will without any interference from the company. They have their own agents who look and take care of the orders of the next channel in the distribution pipeline. The next member in the distribution pipeline are dealers who are based in districts. They also possess F1_2 license. They have to work in the fixed territory. Dealer take the product from the processing channels members in still a big store as big as whole seller and carries on the channel distribution. Retailers hold F1-4 license. They sell the product to the customer a play a vital role in the sales. They are the people who are directly responsible 88 for the sales figure of the

companys product. If we want to increase the sale of the product then we have to judiciously cut down the expenditure on advertising and give this portion to the retailers. It is because it the retailer who are responsible for manipulating the brand perception. There was a time when India known as the land of snake charmers. The land of mystery. In this country, poverty and wealth meet in the middle. How can such a contradiction survive together? The answer is strongly religious social fabric, bound by tradition. Still a profoundly religious country in Hindu faith deems it a virtue to come to terms with ones own being. Spiritual growth surpasses wealth and power, as the former the brings the later too. The spiritual would is one where all come together. India is a country where all the flavors are strong. Peaking of all flavors Scotch whisky comes to mind doesnt it? Ok, may be not. But do you know where it comes from? Scotch has a interesting and perhaps surprising history. The Irish monks brought Irish learned it from Spanish. The Spanish learned it from Arab. And Arab in turn learned it from India. Imagine that, alcohol in India, as elsewhere, has been around for a while. Wine, for example, has been around since prehistoric times. Now whether alcohol is welcome or not that is another issue. Most parents raise their kids with the same morals and values that were thought to them by their parents. Indian traditionally put more emphasis parade on education, white thinking alcohol leads to a deterrent of ones goals in life, since it is sometimes connected not only to alcoholism, but also to other problems. Dusk was setting in a small village, and the villagers were returning from the fields. 89

Normally, the women headed home, while the men hit the bars. But one day, the women did not go home. They armed themselves with chili powder and broomstick, and then they waited by the village road. When jeep down to mud tracks, carrying the villages weekly alcohol supplies, they attacked it. Within minutes they through chili powder into drivers eyes, Set fore on the hundred of bottles, and thrashed the man inside the vehicle with their lives rather allow more alcohol into the village. These women were outraged by what alcohol in other ways, such as knowing drunk driving victims, alcoholics, and / or what not. Other what Capt. Morgans ship seemed to reach everyones harbor. In 1996, a prohibition in other countries has not been learned. And efforts at enforcement, as well as attempts to curtail farce. In India alcoholic sales are regulated by the state governments, which get revenue from taking it. But above this, the mind frame instilled in the people of India by the great leaders of the past especially some freedom fighters, still exist today. Theres modal advocate the temperance. Gandhi ji did not believe in losing control of mind and body through ones own will. He also believed in alcohols negative impact country, on India. Even though in alcohol is present over in all, the the even welcomes some states, infringement or avoid corruption, degenerated into

population does not regard it as a virtue. But it still is a social taboo for young generation.

90

91

The Mohan Meakin ltd has a very wide line. It mainly producers alcoholic products like beer, whiskey, rum, gin, scotch, and vodka etc. in these categories it produces different flavors and brands. The above alcoholic cum under the category of foreign liquor and are known as Indian made foreign liquor. Beside foreign liquor the company also produces country liquor. In country liquor its most popular is Kohinoor this bran has made a faster growth in terms of sales and market penetration. Also it produces non-alcoholic products such a juice, vinegar, mineral water extract, cornflex, etc. in diffent shaps and size. Different weight and size in which products are produced are:

Liquor Size
Quats (1000) Quats Pints Nips Country liquor

Quantity (In Ml)

1000 0750 0375 0180 0200

92

ALCOHOLIC PRODUCTS
Alcoholic drink is a mixture of alcoholic, sprit, water and minor ingredients. Consumable alcohol has no flavor, only careful selection of congener i.e. all the substance that are generated during the formation alcohol in the fermentation process and also I the course of maturation leads to palatable products. Alcoholic beverages are divided into following classes on the basis of their production. 4. Country Made 5. IMFL 6. Foreign Liquor Foreign liquor means the liquor, which is produced I foreign countries and is imported in India for sale. IMFL means Indian made foreign liquor. Liquor made in India, which is of foreign origin. This includes liquor such as whisky, rum, gin, beer.

93

Whiskies:
1. Solan Imperials 2. Summer Hall 3. Colonels Special 4. Colonel Premium 5. Golden Eagle 6. Diplomat Deluxe 7. Black Knight 8. Solan No.1 9. King Castle 10. Wildcat Whiskey 11. Old Masters 12. Knight Rider 13. M. M. B. 14. Solan No.117

Rum:
1. Old Monk Gold Reserve 2. Old Monk Xxx 3. Old Monk 4. Black Beauty 5. Reserve No. 1 6. Old Monk White Rum 7. Tusker 94

8. Stud Rum

Beer:
1. Sun Bird 2. Guru Special Premium 3. Guru Super Strong 4. Black Gold 5. Guru Extra Strong 6. Half Stein Super Strong 7. Golden eagle beer 8. Golden eagle deluxe larger 9. Gold larger beer (herbal beer) 10. Gymkhana premium larger 11. Asia 72 entree super strong 12. Black knight super strong 13. Solan no.1 special larger 14. Old monk deluxe 15. Solan no.1 strong 16. Black knight deluxe 17. Big Ben London 18. Meakin 5000, 10000 19. Lion larger

Gin:
1. Big ben London 2. Dry MMB gin 3. Orange gin 4. Black beauty gin 95

5. Silver mix 6. Meakin dry gin

Scotch:
1. Highland Queen

Brandies:
1. Triple Crown 2. Golden Eagle 3. Doctors Reserve No. 1 4. D. M. 5. MMB black brandy

96

NON ALCOHOLIC PRODUCTS

JUICE 1. Mohan Gold Gin Apple Juice

MINERAL WATER 1. Golden Eagle Mineral Water

VINEGARS 1. Mohans Pure Malt Vinegars 2. Mohans Synthetic Malt Vinegars

BREAK FAST FOOD 1. Mohan New Life Corn Flex 2. Mohans Wheat Porridge 3. Mohans New Life White Flakes

OTHER FOOD PRODUCTS 1. Prickles 2. Jam And Jellies 3. Spices

97

EXTRACTS 1. Brewers Yeast 2. Malt Extract

EXPORTS 1. Beer 2. Rum 3. Whiskey 4. Brandy 5. Mango Pulp 6. Gin 7. Mango Slice 8. Guava Juice 9. Pineapple Juice 10. Papaya Juice 11. Mineral Water

98

99

Alcohols Market analysis

OVERVIEW

* Indian Made Foreign Liquor (IMFL)

Negative perceptions about alcoholic beverages widely prevalent This is a regulated goods state industry movement, alcohol) exert prices tightly of

intermediate controlled influence

(molasses, governments

considerable

100

Yet, this is a well developed - Rs 8,200 crores (US $ 1907 million) - industry in India Major players in the alcoholic beverages market - United Breweries (UB) Group( Bangalore), Shaw Wallace Associated (Calcutta), Jagajit Industries (Kapurthala, Punjab), Mohan Meakins(Solan, Himachal Pradesh), Breweries & Distilleries (Mumbai)

BEER: MARKET
Market Size

A 70 million cases market Market growing at 10-12 % per annum South and west zones account for bulk (> 75 %) market of this

Major beer consuming centers - Maharashtra (Mumbai) Karnataka (Bangalore); Tamilnadu (Chennai)

I N D U S T R Y S T R U CT U R E

Minimum economic size : 5000 kilo liters; 15000 kilo liters for NRI proposals Around 40 units in organized sector, mostly regional players 4 large breweries have 84% of the market Major beer brands (manufacturers) - King Fisher, Kalyani Black Label (UB Group), Golden Eagle (Mohan Meakins), Haywards (Shaw Wallace), London Pilsner (Associated Breweries and Distilleries)

Foreign brands - Strohs, Mohan meakin 101

Licensing required except for smaller units employing under 50 persons or not using power

Installed Production In Hecta liters Installed Capacities (199798) Production (199899)

Capacities, Beer 6,750,000 HL 4,352,570 HL

DUTIES

Import duty on beer - 100 % SAD : 4 %

basic; 10 % surcharge;

Sales taxes - 45% , 5% cess (State subject). Excise subject) Duty Rs. 4/ Bulk litre in Karnataka (State

102

BEER MARKET: FEATURES

Market Characteristics

Trade 650,750 & bottles; ml) cans

Beer packed in 1000 usage minimal ml of glass (330 in

States policies sales for beer

prohibition govern trade

Multi layer trade channel structure Beer sold through the

Preference

the

Indian

market for strong beer

same outlets as IMFL Promotions sponsorships musical promote brands events) and (sports, to

Institutional

sales

of

beer to star hotels, large restaurants, bars/ pubs

REGULATIONS

Subject to licensing under Industrial Regulation) Act, 1956

(Development and

Cap on licensed capacity; special license for expansion Beer policy; announced in 1994 to augment industry growth

Plethora of duties and taxes from bottling to sales stage; varying from state to state. 103

L I Q U O R: M A R K E T
Market Size

Market : 58 million cases Past growth 15 % CAGR per annum Brown spirits - particularly whisky, rum & brandy

account for

over 75 % of this market

South and North share 60% of market

I N D U S T R Y S T R U CT U R E

Industry in the organised sector - an industrial license is required to start manufacture Major brands (manufacturers) : Signature, Blue Riband (UB Group), Aristocrat Label, (Jagajit Industries), Archers India), Smirnoff, Peach Passport Gilbeys Green Malibu, Distilleries

Schnapps(International Distillers India)

(Seagrams), VAT 69, Black & White, Black Dog (United

Installed

Capacities,

Production In Hecta litres IMFL Production (19985,16,600 HL 99) 104

L I Q U O R M A R K E T : F E AT U R E S Market Characteristics

Preference for brown spirits (molasses flavour) in Indian market Liquor packed in 180, 375, 500, 750 and 1000 ML bottles glass and plastic bottles. 180 ML and 750 ML are fast moving

Guala caps on bottles to prevent bootlegging Brand building very important Yet avenues limited - advertising of liquor banned in most media Promotions,sponsorships,surrogate (sometimes) done to build brands advertising

Trade

Open market : Maharashtra, J&K, Goa, Orissa Auction market : Uttar : Pradesh, Rajasthan, Madhya Pradesh, Bihar, Punjab, Chandigarh

Government Kerala

Controlled

Tamilnadu,

Karnataka, Delhi,

Prohibition States : Gujarat, Manipur, Mizoram, Nagaland There are over 22000 liquor retail outlets spread across the country

Regulations

Movement of IMFL products regulated across states Entire process of manufacturing to distribution and sales attracts taxes a plenty.

105

Duties & Taxes

Sales tax (ad valorem), Bottling Fee, Litre Fee, Vend Fee, Gallonage Fee, etc.are levied Privilege Fee, Import/ export Pass duty the taxes some of them. In Karnataka some of

are : Excise Duty : Liquor from spirits - Rs. 45/-

bulk litre; Premium Malt Whisky - Rs. 60/- bulk/ litre; Litre Fee - Rs. 20/- bulk litre; Sales tax : 60%; cess 5%

Import duty on whisky, rum, gin & vodka, liqueur - 230 % + SAD : 4 %

F UT U R E B u s i n e s s Co n c e r n s

Prohibition policies of states - vary from time to time Tax differentials curbs free movement of these beverages across states To avoid multiple taxes, manufacturers set up bottling plants in each state Curbs on advertisement of alcoholic beverages Finance constraints - banks reluctant to lend Constraints on availability of key raw material - molasses Bootlegging - a major concern

Demand Drivers

Deregulation of this industry; at the state level Increase in disposable income Changing lifestyles of middle class 106

Key Success Factors

Blend,

body,

firmness,

heritage

brand

image

and

distribution - key factors

International image - not successful in India; success rate < 10% Local strategy - a must; in fact, due to high (sales) tax rate differential, marketers of alcoholic beverages have state-wise marketing strategy.

Future

Industry expected to grow by 12% per annum Beer likely to grow to 7.6 million by the year 2003 - 04 Liquor industry to grow to 0.92 million by the year 2003 04 New capacities Beer Beer: : One (100,000 (765,000 HLPA) HLPA)

Liquor One (500 KLPA)

Expansions

Two

Liquor One (5,000 KLPA)

107

108

M A N U F A CT U R I N G P R O C E S S
Ethyl alcohol or ethanol , C2H5OH, is a clear , colorless liquid , with a burning taste and characteristic , agreeable odor .Ethanol is the alcohol such beverages as beer , wine, and brandy. Because of its low freezing point , it has been used as the fluid in thermometers for temperature below -40c(40f) , the freezing point of mercury and other special especial low-temperature purpose , such as for antifreeze in automobile radiators. Ethanol is normally concentrated by distillation of dilute solution . Commercial ethanol contains 95% by volumn of ethanol and 5% of water . Dehydrating agents remove the remaining water and produce absolute ethanol melts at114.1c(-173.4f), boils nat 78.5c(173.3f), and has a specific gravity of 0.789 at 20c(68f). Ethanol termentation has been made since ancient times by the

of sugar . All beverages ethanol and more than

half of industries ethanol is made by this process. Starch from potatoes , corn or other cereals can be the raw materials . The yeast enzyme, changes the simple sugars into ethanol and carbon dioxide . The fermentation reaction , represented by the simple equation. Glucose Alcohol Carbon-di-oxide is actually very

complex because impure cultures of yeast produce varying amount of other substances , including fuel oil, glycerinand various organic acids. The fermented liquid , containing from 7-12% ethanol , is concentrated to 95% by a serious of distillations. 109

In the production of beverages such whiskey and brandy, some of the impurities , supply the flavor , are of great value much ethanol not intended for drinking is now made from synthetically , either from acctaldehyde. from wood pulp. Ethanol can be oxidized to from first acctadehyde products made from ethanol include butadiene , used and in Made from acctylene , or from petroleum . A small amount is made

then acetic acid . It can be dehydrated to form either . Other making synthetic rubber ; ethyl choride , used as a local anesthetic ; and many other organic chemicals. Ethanol can also be mixed with gasoline to form the automobile fuel called gasoline . Ethanol is miscible (mixable ) in all properties with water most organic solvents . It is an excellent solvents for many substances and is making such products as perfumes , lacquer , celluloid, and explosives. Alcohol solution of nonvolatile substances are called tinctures; if the solution is volatile ,the solution is called a spirit. Most industrial ethanol is denatured to prevent its use as beverages . Denaturing involves mixing ethanol mixing ethanol with small amount of poisonous or unpleasant to make the ethanol undrinkable . The removal of all these substances would involve a series of treatment more expensive than the federal excise tax on alcohol beverages .

110

F E R M E N T AT I O N
Chemical all chemical changes of in organic substances by the and

action of enzymes. This general definition includes virtually reaction psychological importance scientists today often restrict y]the term of action of specific enzyme.,called ferment produced by minute organisms such as molds, bacteria ad yeasts. For example- lactase a ferment produced by bacteria usually found in molk , cause the milk to sour by changing lactose (milk sugar ) into lactic acid. which the action of zymase sugar ,such as glucose and carbon-di-oxide . Many Probably the most important type of of fermentation is alcoholic fermentation in secreted by yeast convert simple fructose, into ethyl alcohol and kinds of fermentation occur

other

naturally , as in the formation of butyric acid when butter becomes rabcid and of acetic when wine turns to vinegar. Generally , fermentation results in the breakdown of complex organic substances into simple ones through the action of catalysis . For example , by the action of database , zymase , and invertase , starch is broken down (hydrolyzed) into complex sugar then simple sugarsand finally alcohol. Glycerin , acetone, butyle alcohol and bytric acid are now produced on a commercial scale by special fermentation processes. Various fermentation productions of milk , such as acidophilus milk; and yogurt are widely consumed for their nutrictive properties .

111

The

action

of

certain

bacteria

on

undoigested

carbohydrates causes fermentation in the human intestine as a result , gases such as hydrogen sulfide and carbon dioxide may. From in amount large enough to cause distension and pain . Acids such as lactic acid and acetic acid may also form in the intenstines of infants , causing , and diarrhea.

BREWING
Process beverages of making are beer, ale, but and not similar cereals the raw

that

fermented

distilled

materials of these beverages are water , hopes and barely supplemented by corn , rice or sugar.

M AL T I N G
Barely is first steeped in cold water for 45 to 72 hours , the water being drained off about once a day . The barely is then placed in slowly revolving drums or in shallow tanks equipped with plows . As the wet grains is stripped and aersted it begans to germinate . This process produces several enzymes in the grains , the most important being malt diastase , which has the property of changing starch into sugar . Germination is allowed for about 6days ; the sported barely , now called malt finally kiln-dried kilning checks germination and produces substances that give an aromatic flavor to the beer. By varying the heat , the malt can be toasted from light tan to dark brown ; the color of the beer is partially determined by the color of the malt.

112

MASHING
Crushing the malted grains between iron rollers begins brewing . The grist is then with warm water in tubs until it forms a porridge like consistency; next the supplementary grains are added . If raw grains is used. it must first undergo boiling ; when cereals such as cornflakes , are used as malt adjuncts, however , precooking is not required. The temperature of the mash is then raised stepsform 38c(100f) to 77c(170f) ,with time allowed at each step for the various enzyme to act. The finished mash to the bottom of the mash tub There it forms bed through which the liquor , sparge , the remaining work from the spent grain. About 16kg(about 35 lb) of barely malt and some 7kg (about 15lb) of corn or rice are used for each 117-litre (31-gallons) barrel of beer.

COOKING
The wort is drawn off into copper kettles in which it is boiled with hopes . Next, the hopes are screened the wort is passed through a cooler and run into vats, where fermentation takes places.

F E R M E N T AT I O N
Fermentation is started by adding about 0.45 kg (about 1 lb) of pure culture per barrel of wort . This culture has been reserved from a previous brewing of the same kind of beer. Bottom- fermenting yeast (which settle to bottom) is used for ale. Fermentation continuous a number of days , depending on

113

the beer brewed . The yeast is then skimmed off or settles, and the beer is drawn off for cellaring.

CELLARING
The beer is aged 3 weeks to 3 months in storage vats, in

which it clarifies and its flavor develop . Often it is fully matured , a small amount of fresh wort or sugar is added , and the beer is placed in pressure tanks for fonal fermentation to produce the carbon-dioxide gas that gives the characteristics head , or foam. Finally , beer is usually pasteurized and filtered and is then sealed in pitch-lined kegs or packaged in individual bottles or cans.

BY-PRODUCTS
Spent grains remaining after mashing and sparing is rich in elements and is as brewers grains for feed . Brewers yeast , which is produced in the fermentation brewing requirements , is a rich process in excess of of vitamins , source

especially the B conmplex . Carbon dioxide , which is also produced by fermentation , may be recovered and used extinguishers. BOTTLING Bottling has the following stages:1. First the bottled are cleared properly . with water to in the manufacturing of dry ice, carbonated beverages , and fire

remove foreign elements . 2. Filling is done by volumn process 3. Liffed bottles are screned properly to direct presence of any foreign elements., breakage of bottles from top. 114

4. Labeling of bottle is done /. 5. Finally packed in carton packages .

SOME OTHER BREWERY DESCRIPTIONS

Breweries range widely in the volume and variety of beer produced, ranging from small breweries that produce a few dozen barrels a year, to massive multinational conglomerates, such as InBev, that produce hundreds of millions of barrels annually. Some commonly used descriptions of breweries are: Microbrewery A late 20th century name for a small brewery. The term started to be replaced with craft brewer at the start of the 21st century. Brewpub A brewery whose beer is brewed primarily on the same site from which it is sold to the public, such as a pub or restaurant. If the amount of beer that a brewpub distributes off-site beer exceeds 75%, it may also be described as a craft or microbrewery. Contract brewing company or contract brewery A

business that hires another brewery to produce its beer. The contract brewing company generally handles all of the beers marketing, sales, and distribution, while leaving the brewing and packaging to the producer-brewery (which, confusingly, is also sometimes referred to as a contract brewer). Regional brewery An established term for a brewery that supplies beer in a fixed geographical location. With modern distribution methods this term is falling out of use. Yuengling Brewery a regional 115 A brewery that in is Pottsville, replacing

PennsylvaniaCraft

brewer

term

microbrewery. A craft brewery is a brewery which does not use adjuncts and/or is considered to make craft beer. Macrobrewery or Megabrewery Negative terms for a large brewery. A with a brewmaster is a person who is in charge The of title the of

production of beer. The major breweries employ engineers Chemistry/Biotechnology background. Brewmaster is given to a person after 2 years of extra study in the art of brewing thus earning a degree equivalent to a Master's degree. US Brewing Programs: Seibel Institute of Technology California Brewers Guild American Brewers Guild UC Davis

CRAFT BREWING
Before Prohibition in the United States, breweries were local institutions, with a few exceptions. The costs involved in moving large quantities of beer while maintaining its quality necessitated that beer be made near where it was to be consumed. Prohibition, as could be expected, closed most of the breweries in the United States, and the few that were able to remain open by producing near beer, malt extract, yeast, and other beer-related products, were in an advantageous position to produce and sell beer after the repeal of Prohibition.

116

During

the

same

period,

advancements

in

refrigeration and motor vehicles enabled large regional and national breweries to maintain product quality while being transported a greater distance. These remaining breweries quickly became large enough to be household names all over the nation, and concentrated mostly on the style with the broadest appeal: American light lager. Local breweries, primarily producing niche beers, were lost in America. In 1978, Jimmy Carter signed into law a bill explicitly allowing people to brew beer for private consumption. As the homebrewing movement grew, homebrewers looked to recreate beers they had enjoyed in places with a more varied beer assortment. The rise of imported beers and homebrewing brought a demand for more beer styles, and locally brewed beer. Answering this need, smaller breweries started popping up across America, and a whole industry grew around the microbrewing industry. Many of these startup microbreweries, such as St. Paul's Summit Brewing Company, have since grown into major regional breweries in their own right. Portland, Oregon has earned the name "Beervana", with more breweries than any other city in the world: a mindnumbing 33 just within the city limits. The McMenamin brothers alone have over thirty brewpubs, distilleries and wineries scattered throughout the metropolitan area, many in renovated theaters and other old buildings otherwise destined for demolition.

117

Other notable Portland brewers include Widmer Brothers, Bridgeport Brewing Company and the MacTarnahan's Brewing Company. In 1999, "beerhunter" and author Michael Jackson called Portland a candidate for the beer capital of the world because the city boasted more breweries than Cologne, Germany.

118

RESEARCH ON LIQUOR AND ITS ROLE

Liquor adds mirth or the festivals . Many people find that that liquor makes heart glad and thus making mood lighter .Some use it moreover as a effective social lubricant for social mixing. People use liquor as a medium to add in festivity of joy. Many people finds that liquor makes heart glad . We use it more over as convenient and effective base for get-together parties. Most of the people can testify to the value of alcohol as an add to makings the party go now and again a person uses it to distract situation for some moments or to soften the movement from reality of the world. Alcohol is a popular conceived as a stimulant , in a fact all these impressions or brought about its anesthetic effect upon the nervous system and in particularly upon the cortex of brain by depressing action on cerebral cortex . Alcohol treduces inhabitation and judgement as a result person mixes easily and pays less attention to frustrating elements in the environment. The purists maintain that it is unforgettable to define whiskey , soda and ice, diehards are socked that whiskey can be mixed with any thing ,. Every one has different type of drinking habit , which is an extension of ones personality . Pleasure and consolation has 119 been found in alcohol

throughout

the

history

and

overwide

range

of

cultural

achievements from the most primitive to the most advanced .

120

Executive Director, Mohan Meakin Ltd.

ROCKY MOHAN

Rocky Mohan recounts how his companys origin go way back to Edward Dyer from the UK who set p the first-ever brewery in 1855 at Kasauli, India .Years later , another British entrepreneur H.G. Meakin has diversified into breakfast cereals and glassware. Despite changing times, the companys basic value

remains the same integrity and craftsmanship. Im theres believer in says supernatural Mohan. In powers. his I also believe is a

divinity,

opinions,

God

derivation of goodness in man. At the same time he feels the downside of it all is combining spirituality with religion. He elaborates: Im averse to religion and feel its for the weakminded and not for those who have belief in themselves. I agree we all need an anchor in life, which spirituality provides. We are not a religious family. But our upbringing has been such that goodness is imbibed in use. Being good and noble gives one sense of satisfaction, he feels. But I tend not

121

to use spirituality as a form of meditation or spend time invoking the kundalini.

Cool, confident and composed, Mohan has always had faith in himself and has never felt the need to have a guru. Yet, he gushes: I find Osho an extremely vibrant thinker. I feel he has been grossly misrepresented. I have also read Swami Vivekananda and U.G.Krishnamurti, both enhanced my ability to understand spirituality without the religious trappings. Mohan feels that people like Shiv Khera and Deepak Chopra are successfully selling Indian spirituality abroad. The simplicity of the erstwhile days is over, he opines. Theres constant need to alleviate the stress we live with in this complex forms world. of And because guidance. we are unable to comprehend whats happening around us, we tend to bank on different spiritual This mean looking toward people we think know more. But I personally feel by looking inward we would be able to become more spiritual. If the fundamental are right, if your family nucleus is strong, I dont think one needs gurus. I spend a lot of time with my wife and children and that helps a lot. A workaholic and practical person, Mohan says ;I

believe in the good things of life. In the sense that I like to practice some goodness in whichever form I can. But I do question certain things: Is giving food to orphans a form of spirituality? When you are philanthropic in any way, most of the time the fear is whether you are really doing justice to 122

someone, whether the donation will be correctly used. One is skeptical about the help one extends. And after a point of time, one does shy away.

Besides exercise, cooking is a form of relaxation for Mohan. His book art of Indian cuisine provides simple, lucid instruction on cooking. Being a businessman gives him a good feeling. I

definitely feel that ethics and business can go together, he says. There are numerous examples. Now there are laws that make you ethical. Plus one remains content with oneself. Today Im a very happy and content person. Fortunately, God has been kind. Hes given me that ability to feel very relaxed by what I do and I enjoy what I do. Rocky Mohan recounts how his company's origins go way back to Edward Dyer from the UK who set up the first-ever brewery in 1855 at Kasauli, India. Years later, another British entrepreneur H.G. Meakin bought the old Simla and Solan Breweries and set up more units. Today, Mohan Meakin has diversified into breakfast cereals and glassware. Despite changing times, the company's basic values

remain the sameintegrity and craftsmanship. "I'm a believer in supernatural powers. I also believe there's divinity," says Mohan. In his opinion, God is a derivation of goodness in man. At the same time he feels the downside of it all is combining spirituality with religion. He elaborates: "I'm averse to religion and feel it's for the weakminded and not for those who have belief in themselves. I

123

agree

we

all

need

an

anchor

in

life,

which

spirituality

provides.

"We are not a religious family. But our upbringing has been such that goodness is imbibed in us..." Being good and noble gives one a sense of satisfaction, he feels. "But I tend not to use spirituality as a form of meditation or spend time invoking the kundalini" Cool, confident and composed, Mohan has always had faith in himself and has never felt the need to have a guru. Yet, he gushes: "I find Osho an extremely vibrant thinker. I feel he has been grossly misrepresented. I have also read Swami Vivekananda and U.G. Krishnamurthi, both enhanced my ability trappings." Mohan feels that people like Shiv Khera and Deepak Chopra are successfully selling Indian spirituality abroad. "The simplicity of the erstwhile days is over," he opines. "There's a constant need to alleviate the stress we live with in this complex forms world. of And because guidance. we This are unable to comprehend what's happening around us, we tend to bank on different spiritual means looking towards people we think know more. But I personally feel by looking inwards we would be able to become more spiritual. to understand spirituality without the religious

124

"If the fundamentals are right, if your family nucleus is strong, I don't think one needs gurus. I spend a lot of time with my wife and children and that helps a lot."

workaholic

and

practical

person,

Mohan

says:

"I

believe in the good things of life. In the sense that I like to practise some goodness in whichever form I can. But I do question certain things: Is giving food to orphans a form of spirituality? When you are philanthropic in any way, most of the time the fear is whether you are really doing justice to someone, whether the donation will be correctly used. One is skeptical about the help one extends. And after a point of time, one does shy away." Besides exercise, cooking is a form of relaxation for Mohan. His book Art of Indian Cuisine provides simple, lucid instructions on cooking. Being a businessman gives him a good feeling. "I

definitely feel that ethics and business can go together," he says. "There are numerous examples. Now there are laws that make you ethical. Plus one remains content with oneself. Today I'm a very happy and content person. Fortunately, God has been kind. He's given me the ability to feel very relaxed by what I do and I enjoy what I do."

125

ORGNISATIONAL STRUCTURE
The Mohan Meakin ltd. is directed by its board of director. All the necessary and required decisions at higher management level is taken by it. Mohan Meakin ltd. constitutes nine members in its board of directors. Their name and designation are as follows.

BOARD OF DIRECTORS

MANAGING DIRECTOR

BRIG. (DR.) KAPIL MOHAN VSM (RETD.) PH.D.

DEPUTY MANAGING DIRECTOR EXECUTIVE DIRECTOR FINANCIAL DIRECTOR DIRECTORS

SHRI HEMANT MOHAN SHRI RAKESH MOHAN SHRI P. D. GOSAWMI SHRI. VINAY MOHAN SHRI. L. K. MALHOTRA SHRI. J. K. JAIN 126

SECRETARY

SHRI H. N. HANDA B. COM., F.C.A., F.C.S. AMCIA (LONDON)

STATUTORY AUDITOR

A. F FERGUSON & COMPANY C.A. NEW DELHI.

REGISTERED OFFICE

SOLAN BREWERY P.O. (SHIMLA HILLS) HIMANCHAL PRADESH

BANKERS SOLICITORS

PANJAB NATIONAL BANK J.B. DADA CHANJI & CO. NEW DELHI.

127

ORGNISATION HIERARCHY
Board of directors Managing director

Director Director

Finance Director

Executive Director Secretary

Director

Director

Director

Chief executive

Administrative personal Manager manager

marketing & Packaging

sales

store

production account manager

manager manager manager 128

Manager Sales Supervisor Distillery

Sales Personal

Chemist

STRUCTURE OF SALES DEPARTMENT

Sales department of the company works under the leadership of its manger, Mr. Anil Dang is the sale manger of the Mohan Meakin ltd. under him other sales personals are there, who work as per direction of sales manager. Sales supervisor, sales personal are the last hierarchy of the sales department. These persons are responsible for the completion of work given to them and are answerable towards the sales manager. Sales supervisor and sales personal work the director control of the sales manager.

Sales Manager

Sales Supervisor

Sales Personnel
129

130

HUMAN RESOURCES

What drives Mohan Meakins Limiteds employees is the positive outlook towards work in an environment of change that encourages innovation and lateral thinking to harness new concepts for increasing maximum efficiency. The Shaw Wallace employee is determined, ready to learn and committed to meeting and raising the organization's standards of quality, bringing the organisation to the very forefront of the global alcohol and beverage industry. Our employee is determined, loyal, committed and eager to learn and we provide this platform like every other growing global entity. A complete teamwork is highly appreciated. Every Shaw Wallace employee works in harmony to reach higher goals and strive to take the organization forward. Forming a team, whose sole purpose is to achieve its target under any circumstances, a team that never compromises on quality and inner strength. The Mohan Meakins Limited Human Resource Department has initiated a metamorphosis within the organization - a phase of change to compete and excel globally for future. HRD 131

believes in the dynamics of change: if we always do what we had always done, we will always get what we always got and we nurture a constant urge to achieve something beyond the expected.

To implement this change, Mohan Meakins Limited is working in tandem with the world-renowned consultant McKinsey & Co. in order to increase efficiency while reducing unnecessary costs and expenses. Mercer HR Consulting has been appointed to design a tailor-made HR roadmap, giving a new dimension to the HR systems and processes, leading the organization towards an effective human engineering process. HRD works towards enhancing the effectiveness and the efficiency of Mohan Meakin Limited by enriching individual maps of reality, by supporting personalized growth of the individuals, by improving team-spirit and inter-personal communication of the organization's members. It not only believes in harnessing internal pools of knowledge but also provides its employees a platform for knowledge integration with internal as well as external sources. The Mohan Meakin Limited human resources department has become an eventful place with a focus towards attraction, retention and development of talent, as it surges ahead to set higher performance thresholds. Our HR motto states that "We not only believe in blending Spirits into Liquor but also blending Aspirations into Career."

132

ENVIRONMENTAL CARE

We are blessed to be in the planet called Earth and enjoy its pristine beauty to inhabit in it. As a large entity, it is our commitment to preserve this beautiful paradise. Shaw Wallace as a company has conceived a variety of on-going initiatives, designed exclusively to safeguard the wonderful gift of Mother Nature. After all, this obligation extends to the generations that will follow us in the years to come. In an Endeavour we at of to Shaw bolster within environmental maintain the vicinity care of and our

nourishment, standards

Wallace,

the

highest

precaution,

manufacturing units. As a good corporate citizen, we have taken adequate steps to protect and conserve the resources inherited from nature, adopting various environmental friendly measures. The greenery and landscapes maintained at several of our units have also won the 'Best Garden' awards on numerous occasions. At SKOL Breweries SICA unit, which has the distinction of being the first brewery in India to get the coveted ISO 14001 Certification, there has been a significant reduction of wastage of all raw materials and compliance with international 133

pollution

control

norms.

SICA

has

based

its

environment

policy on parameters like conservation of natural resources, complying with legal requirements of all statues applicable to the organization, prevention and the loss also of to bio-diversity, impart and training airfor are pollution, systems water-pollution to ensure that

environment management. The brewery has also developed policies objectives implemented periodically. SKOL Breweries Charminar unit is the second brewery in the country to have received the prestigious ISO 14001 Certification for its environment management practices. Be it raw material handling, processing or bottling, every process is conducted as per international environment practices. At the Narmada Gelatines unit at Jabalpur, SWC has constructed an effluent treatment plant comprising one primary clarifier, an aeration tank, a secondary clarifier and a rotary drum vacuum filter. NGL also planted over 30,000 trees as an afforestation drive. This has helped in consumption of treated water and ensuring zero discharge of effluents from the factory. NGL also has a solid waste treatment plant using 'vermiculture' as a technology drive.

134

ETHICS OF THE ORGANIZATION

The Board of Directors (the Board) of Mohan Meakins Limited (the Company) has adopted the following Code of Business Conduct and Ethics (the Code) for Directors of the Company (Directors) and all employees of the rank of VicePresident and above (Covered Employees). The Board of Directors has the right to expand/amend the extent and coverage of employees under this Code.

The Company is committed to ethical and lawful business conduct and perceives it as critical to the Companys success. The Company will uphold ethical and legal standards while pursuing its objectives. Consistent with these principles, the Companys Board has adopted the Code for compliance both in letter and spirit by all Directors and Covered Employees. While it is not possible to anticipate every situation or circumstance that may arise, the Code is intended to serve as a broad guide. The Board reserves the right to amend, alter or terminate the Code at any time and for any reason, subject to applicable law. Directors/Covered Employees 135 who violate/deviate from

the requirements of the Code will attract disciplinary action which may include termination of office /employment.

In

performing

their

functions,

Directors

and

Covered

Employees will: Act with integrity, probity, honesty, transparency and with utmost good faith. Actively Objectives needs. assist and in implementing an the Companys that is

creating

organization

responsive, positive and driven by business and social

(1) COMPLAINS WITH LAW ,RULES AND REGULATION

All Directors and Covered Employees must respect and obey all the applicable laws of the countries in which the Company operates. Violations of laws, rules and regulations may subject Directors/Covered Employees to individual criminal or civil liability, in addition to disciplinary action by the Company, apart from subjecting the Company to liability and/or loss of business.

(2)

C O NF L I CT S O F I N T E R E S T
A conflict of interest exists when personal interest

interferes in any way with the interests of the Company. As a general rule, Directors/Covered Employees should avoid 136

actual or apparent conflicts of interest between their personal and professional relationships. A situation of conflict of interest arises when a Director/Covered Employee has interests that may make it difficult to perform his or her company work objectively and effectively. Another example of situation of conflict of interest is when a Director/Covered Employee or members of his or her family, It is deemed to be a conflict of interest or independence for a Director/Covered Employee to work simultaneously for a competitor, customer or supplier. Directors/Covered Employees are not allowed to work for a competitor as a consultant or board member unless approved by the Board. Conflicts of interest are prohibited as a matter of Company policy, except in exceptional circumstances and with the prior approval of the Board and subject to limitations imposed by law. It is not possible to describe all situations of conflicts of interest that could arise. Conflicts of interest may not always be clear-cut, so if a Director/Covered Employee is unclear, he/she should seek guidance of his/her immediate superior and/or the Chairman of the Audit Committee.

The purpose of business entertainment and gifts in a commercial setting is to create goodwill and sound working relationships, not to gain unfair advantage with customers or suppliers. No costly/unusual gift or entertainment should be offered, given, provided or accepted by any Director/Covered Employee Directors / or Covered his/her Employees relatives. may not use the

Companys assets, labour or information for personal use except as outlined in Section 8, Protection and Proper Use of Company Assets and Proprietary Information, or unless approved by the Chairman of the Audit Committee or as part of 137

a compensation or expense reimbursement program available to all Directors/Covered Employees.

A Directors disclosure of interest under Section 299 of the Companies Act, 1956 shall be treated as sufficient compliance under this clause regarding situations of potential conflicts of interest. (3) INSIDER-TRADING:In order to assist with compliance with laws/regulations against insider trading, the Company has adopted the Code of Conduct for Prevention of Insider Trading governing trading in securities of the Company and Group Companies that is applicable to every Director/designated employee. Abiding by the Code of Conduct for Prevention of Insider Trading is mandatory.

(4) COMPETITION AND FAIR DEALING

The Company strives to outperform its competition fairly and honestly. Each Director/Covered Employee should deal fairly with the Companys customers, suppliers, competitors and employees and should not take unfair advantage of anyone through any intentional unfair-dealing practice. Pilfering proprietary information, possessing trade secret information that was obtained without the owners consent,

138

(5) DISCRIMINATION AND HARASSMENT The Company is firmly committed to providing equal opportunity in all aspects of employment and any illegal discrimination or harassment of any kind is prohibited.

(6)HEALTH AND SAFETY The Company strives to provide each employee with a safe and healthy work environment. Every Director/Covered Employee has responsibility for maintaining a safe and healthy workplace by following safety and health rules and practices and reporting accidents, injuries and unsafe equipment, practices or conditions. Being under the influence of illegal drugs and/or alcohol on the job is absolutely prohibited.

(7)CONFIDENTIALITY Directors/Covered confidentiality of Employees shall to maintain them by the the

information

entrusted

Company and any other confidential information about the Company that comes to them, from whatever source, in their capacity as Directors/Covered Employees, except when disclosure is duly authorized by the Chief Executive Officer or Chief Financial Officer or the Audit Committee or the Board of Directors or is required by laws or regulations. Confidentiality extends to information that suppliers and customers have entrusted to the Company. Use of confidential information for personal gain is strictly prohibited. 139

(8) PROTECTION AND PROPER USE OF COMPANY ASSETS AND PROPRIETARY INFORMATION

All Any

Director/Covered incident to

Employees of the fraud Head

must or of

endeavour should

to be

protect the Companys assets and ensure their efficient use. suspected theft Human immediately reported Resource

Department and in appropriate cases, the Chairman of the Audit Committee for investigation. Company assets should not be used for personal use, though incidental personal use may be permitted when properly authorized. The obligation of Director/Covered Employees to protect the Companys assets includes protecting its proprietary intellectual information. Proprietary information includes

property such as trade secrets, patents, trademarks, designs and copyrights, as well as business, marketing and service plans, engineering records of and and manufacturing unpublished policy and ideas, designs, data. of databases, only a financial the

Unauthorized use or distribution of this information is not violation Company terms employment with the Company, but could also be illegal and result in civil and/or criminal liabilities.

140

(9) REPORTING ANY ILLEGAL OR

UNETHICALBEHAVIOR
If any Director/Covered Employee believes that a violation of or significant deviation from the Code has occurred or has become unavoidable, he/she must contact the Head of the Human Resources Department and in appropriate cases the Chairman of the Audit Committee. Use of the above reporting procedures in bad faith or in a false or frivolous manner will be considered a violation of the Code.

(10) WAIVER OF THE CODE Any waiver of the Code or any provision of the Code for any Director/Covered Employee must be made only by the Board of Directors and disclosed as required by law or SEBI/Stock Exchange regulations.

11) COMPLIANCE PROCEDURES 141

Every Director and Covered Employee shall annually confirm on or before April 15 compliance of the Code in the prescribed form.

HR POLICY ON FRIENDSHIP

In our society we come across a lot of people, many known people and a few as acquaintances. Among them, very few become nearer and dearer to us and develop a feeling of friendship such people can be called few become true friends. They friends. Among them a a great liking, develop

attachment, and feel a lot about our good and bad. They tell you like who to you share are? our Thus good and bad have and the earn power our to

affection. There is a saying that show me your friend, I will friends determine the character of a person. In everyones life friends play a vital role. The secrets which one will not reveal with his kith and kin will share the same with his friends. Generally, through friends, one will accustom to certain bad habits. One must be cautious in this regard. It is all in ones own mental control. If we are determined and disciplined you will remain unchanged under any sort of atmosphere. The friendship which we develop in our childhood will last till we die since it is pure, unselfish and not expecting anything in return. But nowadays friendship has been commercialized. Before making friendship people assess what we can get out 142

of this person. But these friendships will vanish within no time. Good friendship will really help an individual to groom up in life. A good circle of friends will provide a greater and wider range of people in society. It helps to interact with many in the global atmosphere. One can express himself about his personal trait and abilities through friends. Thus it helps him in his career also. With the same spirit he deals with his customers if he is in sales. He can easily understand the minds of the people and get his job done. The ease and capacity to mix with others is developed because of friendship. One learns things from mistakes and every individual will generally make mistake when he or she is amidst friends. So friends are in a way teachers also, indirectly. True friends will form a network and they can achieve anything in life collectively. In sales it is what we require. The more number of people you know the more business you will do. In business they may have rivalry but in personal level friendship is above all. History has told us the true friendship between Lord Krishna and the poor Kuchela and left us the message that poverty cannot become a barrier in friendship. Similarly, Duryodhana and Karnas friendship is remembered as a great one because in friendship Duryodhana did not see caste, richness or any other disparity with Karna.True friends will always be our well wishers. To conclude, we have to assess a mans prosperity not by seeing his wealth but by seeing how many good friends he 143

has earned in life. This will tell us the character, good nature and the ability of the person to influence people and society.

144

PROBLAMS IN LIQUOR MARKETING

Liquor market is one of the complex markets today. The markets is optimally saturated by the large no. of companies in the market, leading to customers likes and dislikes and inter creating competition among the brand of a particular range. We all are very well acquainted the fact that west is much different from the east. The belief, the norm, the aptitude, the perception, the way of life, which they cultivate for from that of us this happen in case of liquor consumption also. Liquor drinking is not considered as unsocial in the west society but in India smoking and drinking is not considered as socially correct and called socially unethical. In present day liquor is manufactured in every part of the country. But advertisement can not be directly done for the product so all together it a different game. So due to this reason most of the liquor advertising is done indirectly for the brand name rather than the product. This is done by making dance music videos by the brand name or some times by companies name, publicize the company and its brand more rapidly then any other means. 145

A very common practice is to do advertising for the soda or mineral water. This is called surrogate advertising as its retail outlet.

Time is changing fast. Changing the lifestyle, the way of thinking, with the invasion of the cable the marketing of liquor product has got a fillip. Now companies are adopting the idea of open advertising their product in various cable channels like ZEE TV, SONY, STAR PLUS. As result the wants and needs of people of changing with such factors as fashion, attitude etc.. with the coming of many private channels west has now become accessible to us in this atmosphere a sudden transaction from an age old values to the new set of norms has been observes. Liquor today is a part of show business and youth craze with this change in social value drinking is acceptable now a days. Even among the teenagers and college going students although this is unhealthy and should be discourage.

146

LIQUOR MARKETERS ARE FACED WITH FOLLOWING PROBLEMS AND RESTRICTIONS

No outdoor publicity :

Advertisements are restricted to putting up banners and posters insides of retail shop only.

Limited outlets

number of retails and wholesale outlets Are controlled by government. These Strictly limited areas wise

Price restriction No direct Marketing

: :

government directly controls the price. No door-to-door marketing and selling can be one.

147

JOINT VENTURE
Memorandum of understanding has been signed by the company with M/S Mc Donald and muir ltd., Edinburgh (UK) for the purpose of market and bottling of scotch whiskey. This collaboration helped mohan Meakin ltd. in enhancing its technology. 1. Mc Donald and Muir ltd Edinburgh, Scotland (UK). A separate joint venture company has been corporate under the name Mc Donald mohan distilleries ltd with head office New Delhi. 2. Miss Bizzard and Rogers international (world largest liquor manufacturer) located in France for the purpose of bottling distribution and marketing of the Larson cognac. In present to the economic liberalization policy, Mohan Meakin has explored other strategic tie pups with international alcoholic beverages manufacturers for the purpose of not only introducing international brands in the Indian market but also to export products through their distribution network internally.

148

TECHNICAL COLLABORATION OF MOHAN MEAKIN LTD WITH DIFFERENT ORGNISATION

1. MAHARSHTRA DISTRILLERS 2. MOHAN GOLD WATER BREWERIES LTD. 3. MOHAN SHIALIK BREWERIES LTD. 4. CHITTOR CO-OP LTD. 5. MOHAN ROCKEY SPRING WATER BREWERIES. 6. MERRY DRINKS 7. GOLDEN DRINKS LTD.

OUTSIDE INDIA
Mohan Meakin has not performed collaboration with other companies only on India but also outside India. Some of its collaborations outside the India are as follows: 1. HIMALYAN BREWERIES LTD. 2. MOHAN MEAKIN KENYA LTD. 3. RIJAL TANSI INDUSTRIES NEPAL. 4. ARMY WELFARE PROJECT BHUTAN. 5. ZUPACK GENETISCHAFT, GERMANY. Marketing and distribution play an important role in industries development. In this sense, the industry can be more or less classified under the FMCG category. Liquor sales are also largely driven by brand popularity. To build 149

brand popularity companies have to get retailers to recommend the brand end- user. The brand plays a critical role in building the fortunes of a company. Given that consumption patterns are more or less static. Companies have few changes to hook a customer. But once hooked to its product volume are likely to be steady. Therefore adopting a, brand-push strategy may be a key success factor. The strength and penetration of the retailing network are the key success factors. As there are curves on advertising liquor through other media, the companies depend almost completely on retailers and other agents. This apart, with the exception of few states, liquor distribution is controlled. Controls can take various forms such as government controls market and actions. Given these factors, companies face a difficult task in managing their supply chain. On the other hand they have to manage the ever increasing demands of wholesalers and retailers, and on the other way they have to manage the red tape and corruption associated with controlled marketed. Here again the difficulties will be acute for new players. While the India made foreign made liquor (IMFL) sales in Maharashtra, West bangal, Jammu & Kashmir, Goa, Orissa, Assam, Maghalya, Tripura and Arunanchal Pradesh, Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar, Panjab & Chandigarh and government controlled in Tamilnadu, Karnataka, Delhi and Kerala, Gujrat, Manipur, Mijoram & Nagaland are enforcing prohibition. States following the open market mode give good average to the IMFL marketing company to the choose the distributor and to determine pricing. In case of distribution by government and through auction powerful distributors exert influence on the margin of the manufactures. Brand pulls as important role forcing companies to go in for surrogates. Liquor companies have come out with a self regulatory code 150

(Karnik code) for liquor advertising after some liquor ads dew the ire of the information and broadcasting ministry; this code imposes strictures surrogates advertising and timing of the liquor advertising slots.

The beer and the IMFL market have a large number of established companies and brand. The ban on advertising has in practice not acted as a deterrent. The companies have employed noble and innovative method to publicize their products. In India, country and IMFL cater to different segments. The low income groups in the urban areas consumes country liquor middle and high income groups of both urban as well as rural areas prefer the IMFL Government controls pricing and distribution of country liquor. In certain states, distribution of IMFL is also controlled. The demand fpr beer is increasing steadily. The market for beer lies mainly inn the urban centers. Drought beer ids popular in Mumbai & Bangalore, where a large no. of pubs are operating. During 1993-94 alcoholic beverage worth Rs. 370 million were exported. Where as in 1980-81 the figure was only Rs. 6 million. The main market is the UK & US the Middle East Australia, Germany & France. Beer and rum constitute major part of India alcohol export. An Indian company is even successfully exporting sparking wins, having set a 100% export oriented unit for this purpose.

151

ALCOHOLIC BEVERAGES MARKET IN INDIA

OVERVIEW

Negative perceptions about alcoholic beverages widely prevalent This is a regulated industry movement, prices of

intermediate

goods (molasses, alcohol) tightly

controlled - state

governments exert considerable influence

Yet, this is a well developed - Rs 8,200 crores (US $ 1907 million) - industry in India Major players in the alcoholic beverages market - United Breweries (UB) Group( Bangalore), Shaw Wallace Associated (Calcutta), Jagajit Industries (Kapurthala, Punjab), Mohan Meakins(Solan, Himachal Pradesh), Breweries & Distilleries (Mumbai)

Per capita beer consumption in India - 0.5 liters; as against 20 liters in China, 100 liters each in USA Germany , annually &

152

BEER: MARKET

Market Size

A 70 million cases market Market growing at 10-12 % per annum South and west zones account for bulk (> 75 %) market of this

Major beer consuming centers - Maharashtra (Mumbai) Karnataka (Bangalore); Tamilnadu (Chennai)

Industry Structure

Minimum economic size : 5000 kilo liters; 15000 kilo liters for NRI proposals Around 40 units in organized sector, mostly regional players 4 large breweries have 84% of the market Major beer brands (manufacturers) - King Fisher, Kalyani Black Label (UB Group), Golden Eagle (Mohan Meakins), Haywards (Shaw Wallace), London Pilsner (Associated Breweries and Distilleries)

Foreign brands - Strohs, Mohan meakin Licensing required except for smaller units employing under 50 persons or not using power 153

Cap on additional capacities (frequently circumvented under pretext of modernization)

Installed Production In Hecta liters Installed Capacities (199798) Production (199899)

Capacities, Beer 6,750,000 HL 4,352,570 HL

Duties

Import duty on beer - 100 % SAD : 4 %

basic; 10 % surcharge;

Sales taxes - 45% , 5% cess (State subject). Excise subject) Duty Rs. 4/ Bulk litre in Karnataka (State

154

BEER MARKET: FEATURES

Market Characteristics

Trade 650,750 & bottles; ml) cans

Beer packed in 1000 usage minimal ml of glass (330 in

States policies sales for beer

prohibition govern trade

Multi layer trade channel structure Beer sold through the

Preference

the

Indian

market for strong beer

same outlets as IMFL Promotions sponsorships musical promote brands events) and (sports, to

Institutional

sales

of

beer to star hotels, large restaurants, bars/ pubs

Regulations

Subject to licensing under Industrial Regulation) Act, 1956

(Development and

Cap on licensed capacity; special license for expansion Beer policy; announced in 1994 to augment industry growth

Plethora of duties and taxes from bottling to sales stage; varying from state to state.

155

L I Q U O R: M A R K E T

Market Size

Market : 58 million cases Past growth 15 % CAGR per annum Brown spirits - particularly whisky, rum & brandy

account for

over 75 % of this market

South and North share 60% of market

Industry Structure

Industry in the organised sector - an industrial license is required to start manufacture Major brands (manufacturers) : Signature, Blue Riband (UB Group), Aristocrat Label, (Jagajit Industries), Archers India), Smirnoff, Peach Passport Gilbeys Green Malibu, Distilleries

Schnapps(International Distillers India. Installed

(Seagrams), VAT 69, Black & White, Black Dog (United

Capacities,

Production In Hecta litres IMFL Production (19985,16,600 HL 99)

156

L I Q U O R M A R K E T : F E AT U R E S

Market Characteristics

Preference for brown spirits (molasses flavour) in Indian market Liquor packed in 180, 375, 500, 750 and 1000 ML bottles glass and plastic bottles. 180 ML and 750 ML are fast moving

Guala caps on bottles to prevent bootlegging Brand building very important Yet avenues limited - advertising of liquor banned in most media Promotions,sponsorships,surrogate advertising (sometimes) done to build brands

Trade

Open market : Maharashtra, J&K, Goa, Orissa Auction market : Uttar : Pradesh, Rajasthan, Madhya Pradesh, Bihar, Punjab, Chandigarh

Government Kerala

Controlled

Tamilnadu,

Karnataka, Delhi,

Prohibition States : Gujarat, Manipur, Mizoram, Nagaland There are over 22000 liquor retail outlets spread across the country

Regulations

Movement of IMFL products regulated across states Entire process of manufacturing to distribution and sales attracts taxes a plenty.

157

Duties & Taxes

Sales tax (ad valorem), Bottling Fee, Litre Fee, Vend Fee, Gallonage Fee, etc.are levied Privilege Fee, Import/ export Pass duty the taxes some of them. In Karnataka some of

are : Excise Duty : Liquor from spirits - Rs. 45/-

bulk litre; Premium Malt Whisky - Rs. 60/- bulk/ litre; Litre Fee - Rs. 20/- bulk litre; Sales tax : 60%; cess 5%

Import duty on whisky, rum, gin & vodka, liqueur - 230 % + SAD : 4 %

F UT U R E B u s i n e s s Co n c e r n s

Prohibition policies of states - vary from time to time Tax differentials curbs free movement of these beverages across states To avoid multiple taxes, manufacturers set up bottling plants in each state Curbs on advertisement of alcoholic beverages Finance constraints - banks reluctant to lend Constraints on availability of key raw material - molasses Bootlegging - a major concern.

Key Success Factors

Blend,

body,

firmness,

heritage

brand

image

and

distribution - key factors

International image - not successful in India; success rate < 10% Local strategy - a must; in fact, due to high (sales) tax rate differential, marketers of alcoholic beverages have state-wise marketing strategy. 158

DEMAND DRIVERS

Deregulation of this industry; at the state level Increase in disposable income Changing lifestyles of middle class

F UT U R E

Industry expected to grow by 12% per annum Beer likely to grow to 7.6 million by the year 2003 - 04 Liquor industry to grow to 0.92 million by the year 2003 04 New capacities Expansions Beer : One (100,000 HLPA)

Liquor One (500 KLPA)

Beer: Two (765,000 HLPA)

Liquor One (5,000 KLPA)

159

TARGET MARKETING
The beer-drinkers in the country are much younger than the average beer-drinker elsewhere in the world. This makes them more likely to carry the brand with them for a lifetime. Also, as the target audience becomes younger, a light beer, is expected to attract first-time drinkers, since it is much milder than any of the other beers in the country. Even if one accounts for the fact that the strong beer market is growing fast in India, we expect that at times when consumers of our product shift to stronger beers, they will restrict themselves to the Fosters brand because of the association they have with it and the positive connotations from the Fosters name. A lot of new variants promise to gain prominence, but mainly in niche urban segments. The sophisticated consumer who drinks beer for the experience and not to get drunk will lap up ice beer or light beer. In urban centres, apart from first time users we are also targeting women, who as the times they are a changing, are entering the market for beer. Essentially, women shy away from beer consumption because it is associated with calories, and has traditionally been a buddy drink, associated with pot-bellied men sitting at bars and shooting darts. Our product however is light both in colour and body, and mild in flavour. It is highly carbonated with low bitterness and no aftertaste. It has fewer calories lower alcohol content. It thus moves away from the traditional psychographics of the sector and toward the more up-market, college/office going youth, male or female, with aspirations, who sees himself as both physically and mentally fit, has an attitude of selfconfidence and nurtures the belief that he/she can change the world. 160

Maharashtra is the highest consumer of beer and has registered a rise from 100-lakh cases in '91 to 120 lakh cases in '96, an average growth of 3%. Draught beer is around 10% of the beer market here with all three major players enjoying a similar share. Nationally, the draught beer and canned beer shares are under5%.

Per capita consumption in India is hovering around a measly 0.5 litres per annum. These figures pale into insignificance if one compares them with those of Czech Republic that has the highest per capita consumption of 156.9 litres per annum (see box) Per capita consumption is directly related to the

taxation, according to an industry observer. For instance, in Maharashtra there is a direct 100% excise duty on Beer. An equivalent 650 ml bottle is available for approximately Rs 8 in China. Which is why the per capita consumption in China is a high 16 litres per annum. Deregulation is the only way out and it should happen in the near future. The beer industry has been united in airing its views in this regard. By de-regulation we mean that beer must be de-linked from liquor and the State must be reasonable enough to lower beer price (it must be mentioned that there is also a debate that beer must be made part of Central Excise). If de-regulation happens, the Indian beer market will expand 10-15 times in the next five years. I mention this because we have to keep this in mind as a shift in government policy such as this will broaden the demographic base significantly.

161

Given the levies, illicit liquor is actually available at far cheaper stands prices no compared in last to mild lower as a beer. So, given India's And the economic conditions, 'kick for the buck' being the norm, beer chance over of the the beer income we category, segments. have which seen therefore emergence three years,

strong

actually

satisfies this need, but, globally, strong beer is a very, very small component of the market. It is really lager beer, which is the key segment. The day in the terms government of the begins to on distinguish between beer and spirits in terms of the state levies and impositions, restrictions marketing and advertising, there will be a huge opportunity in the beer business. Especially given India's demographics and given the huge purchasing power of the youth in India. We at Fosters do not plan to wait for that day and then start moving. Once we have established ourselves in the market, when the day comes, we hope to have built such a strong base in the segment that we cannot be shaken from our prime position. In worldwide share of throat, the spirits to beer ratio is In India the spirits to beer ratio, taking both the organized and unorganized sector together is in the vicinity Which means we're talking of a 50 times differential between the two. We have reached this stage because brewing is a more has capital-intensive are greater the advantage business entry of having than a distilling However, and our therefore product there barriers.

well-established

industrial unit as well as an excellent network of dealers and distributors thanks to Fosters Lager.

162

An important aspect that we must keep in mind for our launch is Delhi has that the a of legal minimum age to purchase liquor age limit has of not 25 years. So far, It the has, ranges from 18 years in some state to 25 years in others. minimum efficiency enforcement been studied.

however, been shown that an increase in the age of legal drinking from 18 years to 21 years achieves nearly 60 per cent of the effect of prohibition on alcohol consumption. Which means that, at least in the launch period, we would like to go the Fosters Lager way and launch in Maharashtra, expanding later to other parts. By the year 2010, it is estimated that 47.5 billion gallons of beer will be consumed worldwide - equal to nearly 7 gallons for every man, woman and child on earth. 60 percent of consumption will occur in Europe and the United States, down from a current 70 percent of the world market. The majority of the difference will occur in Asia, where it is predicted that consumption will increase by almost 35% during the period. The more than for US demographics of the have beer men consumption accounting In of India, the as for men

overwhelmingly 80% an account

male-dominated, volume higher even

with

consumed. percentage

volume

consumed. Of all the beer types, light beer has the strongest following among women consumers. Women beer drinkers are more attracted to specialty micro brewed beers than they are to the big brands, possibly because of their greater variety.

163

In the US, the largest groups of beer consumers are those that are employed full time with a household income greater than $75,000. At minimum they have graduated from high school and/or attended college. They tend to be men between the ages of 25 to 34 and most often are married with households of 3 or more. According to the commercial psychographics profile system called VALS2, these groups of people are classified as actionoriented consumers who enjoy variety and adventure. Anheuser-Busch, the makers of Budweiser, identify this group with primarily focusing on the "Generation X" demographic segment. We at Fosters have witnessed an exaggerated version of this in the demographics in India. Beer consumers here are either college going, or employed full time and belong to the SEC AB classes. The consumption age however has been decreasing over the years as may be seen in Kerela, where the age at which youngsters begin to consume liquor has come down. In 1986 the age was 19, by 1990 it had dropped to 17, and by 1994 the age was 14. Fosters of course does not intend to target consumers below the legal age limit. I merely cite these statistics to give an idea of the consumption patterns in the country and a better understanding of our target audience. The consumer demographic profile, media reach and beer consumption with relation to other liquids in India is enclosed herein. Please note that advertisements in the press and local TV in the category are not permitted by the government of the state. They have however been included herein, purely for the purpose of comparison.

164

I have taken the liberty of highlighting the segments I feel would be the most responsive to our product. However, we trust the judgment of your agency in this regard. If you do feel that we need to expand our contract the target base in any sector, then please keep me updated of the same.

Liters Per Person Beer in comparison with other

Categories Beer Bottled Water CSDs Coffee Distilled Spirits Milk Tea Wine Subtotal All Others* TOTAL 1995 1996 1997 1998 1999 2000 0.5 0.1 1.0 2.0 0.3 41.2 49.7 0.0 94.8 0.5 0.1 1.2 1.2 0.3 0.1 41.7 50.9 0.0 96.1 0.6 0.1 1.2 1.3 0.4 0.1 40.2 49.2 0.0 93.1 0.6 0.2 1.5 1.3 0.5 0.2 40.7 52.5 0.0 97.4 0.7 0.3 1.6 1.3 0.6 0.2 40.1 48.2 0.0 93.0 0.7 0.5 1.8 1.2 0.6 0.2 40.5 44.2 0.0 89.7

Fruit Beverages 0.1

631.9 630.6 633.6 629.3 633.7 637.0 726.7 726.7 726.7 726.7 726.7 726.7

The product is a light beer - highly carbonated with low bitterness and no aftertaste. It has fewer calories and lower alcohol content. Fine dining and wine have become synonymous, but beer, once the traditional drink at the table, is making a comeback as a dinner drink. In India especially, the wine market is not significant enough to make any impact on our industry. Moreover, the Indian palate and food is more associated with 165

beer in any case. Light beers compliment spicy Mexican or Italian foods, and combine nicely with appetizers. The same goes for Indian foods. I believe we have not taken seriously beer consumption in semi-urban and rural markets, which now gives the industry the bulk of its revenue. You will see exciting patterns of beer consumption if you were to visit suburbs of small townships. Look at Andhra Pradesh where there is a tendency to consume beer along with a nip of hard liquor. Similarly, preferences vary from region to region and this is worth a closer look. If you as the agency deem fit, we can also attempt to generate consumption in new ways such as promoting the use of our beer for beer recipes or the like. Here again, we can use the USP of low bitterness, no aftertaste, low calories, low alcohol content and thus encourage consumers to use our product in household recipes. This will open up an entirely new segment, and bring our that product would into the kitchens be of India, increasing with an brand association and reaching out to an entirely different audience otherwise uncomfortable alcoholic beverage in their homes. I include this only as a suggestion, and of course will go with whatever decision your agency takes in this regard. I have also taken the liberty of listing some possible recipes which could use our product.

ADVERTISING / PROMOTION
166

An advertising message encoded in one culture has to be decoded as the in another will culture decode in the the case of in standardized his/her own marketing. This process may be subject to severe distortions, receiver message cultural context. A standardized approach could hence run into the danger that the message will be unconvincing, as it does not meet the psychological "triggers" required to evoke a purchase decision with the consumer. Beer categories as of a product dominant has been confined friendship, to form five

appeals:

sex,

sport,

tradition and relaxation. The category friendship included all commercials that focused around drinking beer in a group of friends, or with a friend, where the consumption of beer was depicted overwhelmingly as a social activity, or implied as such. Our product gels well with this image. A commercial members was of judged the to use "sex appeal", if it

depicted

opposite

sex

making

advances

towards the main character, if they spoke seductively or were dressed in a manner that may be interpreted as erotic. Our product, being targeted essentially at both sexes, might not do well to overplay on a predominantly macho image, but can use sexual undertones to an extent.

Sport includes all commercials that make a clear reference to sports of all forms, 167 show main characters

involved in sporting activities or after sports. Light beer is ideal for this it kind of image as more sportspersons of fitness can and consume alertness. Commercials focusing on the tradition of the brewery or the product, showed historic buildings or images or were set in a historical background were judged to have "tradition" as the dominant appeal. We would not advocate an image of this nature, as our brand personality is essentially very different from this. Finally, commercials showing the main character in a clearly relaxing situation, where the main character consumed beer primarily as a way to unwind and relax (mostly alone), use "relaxation" as the dominant appeal. Again, this is not an accurate representation of the product image. However, if your agency feels that such an image would cater to certain untapped sectors of the population, then we are not by any means averse to such an image so long as it is in line with the broader brand image. without affecting their state

MARKETING POLICY OF PRESENTATION OF PRODUCTS

168

Every day millions of people around the world enjoy drinking Mohan Meakin Lager, and the striking red F and the Mohan Meakin Lager blue and gold are instantly recognised by beer drinkers around the world. We at Mohan Meakin follow the five C approach to branding

COMMUNICATION
Building familiarity and relevance to consumers is only achieved through effective communication of the brand message. Mohan Meakin spreads its brand message through promotional programs, sponsorship and public relations.

CONTINUITY
Brand equity is enhanced by long-term marketing

programs to ensure a cumulative build over time. Indianness is the essence of Mohan Meakin brand image is promoted in every market in the world. All Mohan Meakin lager theme advertising is consistent with an indian positioning. A powerful range of award winning advertising and promotional programs has been the driving force of the brand's success.

169

CONSISTENCY
Global consistency in brand packaging and advertising image portrayal, in both above and below-the-line programs, builds upon the brand's strengths. Also, stringent controls are in place to ensure the Mohan Meakin experience remains consistent around the world. This experience guarantees a consistent high-quality product and brand support that makes Mohan Meakin Lager instantly recognizable and familiar to beer drinkers the world over.

CO-OPERATION
Mohan international Meakin seeks of partners major to build the brand's

success through co-operative arrangements. An impressive network brewing companies, distributors and hospitality partners make up the worldwide Mohan Meakin team. As a leading world brand, Mohan Meakin has secured major licensing and brewing agreements in the Americas and in Europe. Carlton & United Breweries expands the network in Australia, while Mohan Meakin Brewing International distributes their product to the Middle East and Africa. Mohan Meakin Brewing International also produces Mohan Meakin lager in strategically placed breweries in Asia and the Pacific region.

CONTROL
170

Mohan Meakin tightly controls the brand and its image to manage, protect and grow the brand equity worldwide. Mohan Meakin Brewing International has strict controls in place to protect Mohan Meakin image, reputation and identity. Their Australian-based upholds marketing and team set the the brand direction, to standards promotes latest technology

develop communications links between their marketing team worldwide. Mohan Meakin has an electronic, virtual global marketing office.

171

172

LOW CALORIE & LOW ALCOHOLIC PRODUCTS

The product is a beer in the light beer category. It is by definition, extremely light in colour and body, and mild in flavour. It is essentially a variant of one of the Carlton & United Breweries (CUB) Groups revolutionary beers Golden Eagle Premium. Developed using the innovative process of ultrahigh gravity brewing, Foster's LightIce quickly claimed the number one post in the low alcohol beer market within months of its debut in Australia in 1995 and has steadfastly remained a popular choice in the light beer segment since that time. Light beer has is beer with a low alcohol content

(between 1 and 4% vol), or fewer calories (-30%), or both. Golden Eagle Premium has an alcohol content of 2.7% V/V, in contrast with the already established brands in India like Kingfisher Lager which has an alcohol content of 4.8% V/V and our own Fosters Lager with 4.9% V/V. The Indian market does not have a beer in this category. The light beer segment promises to grow at an extremely fast rate with a widening consumer base, taking into account that as of Sep. 26, 2001, Budweiser, long the No. 1 selling beer in America, has been toppled by its low cal sibling, Bud Light (both Anheuser-Busch, St. Louis beers). The September 2001 Market Watch, a spirits industry publication, reported that Bud Light has eclipsed Budweiser for the first time since the light beer was introduced in 1982. In 2000, light beer accounted for 44% of all the malt beverages consumed in the United States.

173

Also, low alcohol beer sales have doubled in volume in the past 10 years in Australia and low alcohol beers now account for over one in four beers sold. We at Fosters see this change as part of an overall trend. As none of the other leading international brands in this category Bud Light, Carlsberg Light, Coors Light, Old Milwaukee Light or Miller Lite are planning launches in the Indian sub-continent in the near future, we envisage this as an excellent opportunity and are keen to get the first-mover advantage.

174

CONSUMER BEHAVIOUR
175

In the words of Peter F. Drucker:

The aim of the marketer is to know and understand the customer so well that the product or service sells itself.
In the earlier days, marketer could arrive at affairs understanding of the customer through the daily experience. But the growth in the size of the firm and the marketer has removed many marketing decision makers from their customer. Increasingly managers have to turn to market research. They are spending more and more time to study consumer behaviour like:

Who is the customer? How is he buys Where he buys When he buys Why he buys What he buy
The company that really understand how consumers will respond to different product feature, price, advertising appeals and so on, will have an enormous advantage over its competitor. Factors which influence the Consumer Behaviour are: Culture factors Personal factor Psychological factor Social factor

Cultural Factors
176

Cultural factors exert the broadest and deepest influence on the consumer behaviour. It is the most fundamental department of persons wants and behaviour.

THE CULTURAL FACTORS ARE:

Culture: Set of values, wants, perception, attitudes, behaviour and

belief acquired through his/her family or other key institutions.

Subculture: It is the subdivision of culture based on some unifying

characteristics. Many subcultures makes important market segment. E.g. : Based on nationalities, religion, and geographical region.

Social class:
As PHILIP KOTLER said: These are relatively homogeneous division in a society, which are hierarchally ordered whose members shares similar value attitude and belief. Social class are on the basic of social; satisfaction done on the basic of caste system. Where the member of different caste play different role and con not change their caste membership.

Personal Factor
Personal factor are the personal characteristics of a person which are unique for him: These are: a. Age and lifecycle b. Occupation c. Economic circumstance d. Life style e. Personality 177

Psychological Factor
a. Motivation b. Perception c. Learning d. Believe and attitude

Social factor
a. Reference groups. (Groups which have direct or indirect influence on behaviour of a person.) b. Family c. Roles and status.

178

179

GOVERNMENT POLICY TOWARDS LIQUOR

Government policy towards liquor has never been encouraging. In the year 1930 congress declared that if it were voted to power totally prohibit alcohol. After independence prohibition was confined to states of Maharashtra, Gujarat, Tamilnadu, and Mizoram. It was completely unsuccessful and resulted in heavy loss of revenue of the government. It was lifted in all the states except Gujarat where prohibition is still continued. Prohibitions in Haryana have been implemented recently. As a result Mohan Meakin Ltd. The manufacturer of the famous diplomat brand of whiskey and old monk brand seems to have hit hard. The prohibition affects Mohan Meakin ltd substantially because the plant of Mohan Meakin ltd. Are located in Ghaziabad in western U.P. and Sloan in H.P. and large part of sales is in Haryana, where company enjoys popularity. Exorbitant excise duties and other taxes like export tax, import tax, sales tax etc. is responsible for exceeding price of liquor. In states like West Bengal and Madhya Pradesh liquor is more costly. Government laws are very stringent for liquor. Transportation of liquor for one state to other state requires excise duty to be paid. License for all retailer outlets are given by government and are renewed every year.

Government gives following five types of license

FL-1 FL-2 FL-3 FL-4 FL-5 to wholesaler to distributor to productive unit to bars to retailer

180

FL is a license which is given to category of liquor which included whiskey, gin, rum, vodka. FL-3 FL-1 FL-2 FL-4 CONSUMER

This is the first pipe of distribution channel by which the company reaches the customer. In this channel of distribution manufacturing units which have FL-3 license supplies the product to the next channel member i.e. wholesaler or depot. Company reaches his customer by this method. This method is such that there is different depot which work according to own will, without any interference of the company. They have their own agents who look and fulfill the order the next channel member. The next parts of the channel are the dealers who are the based in the district they also possess the FL-2 license. They have to work in the fixed territory. Dealers take the product from the preceding channel member. It is still a bigger store as big as the wholesaler and carries on the channel of the distribution. Retailers hold FL-4 license. They have sell the product to the ultimate customer and play a very vital role in the sales. They are the people who are directly responsible for the sale of product. If we went to increase the sale of product then we have to judiciously cut down the expenditure on advertising and give this portion to retailer because it is who can manipulated brand perception. That is government provided the license for liquor production and even for its production and sales. No persons can deal in its production or its sales if it has no license from the licensing authority of the government.

181

ALCOHOL IN INDIA
The world enthanol (ethyl alcohol) market growing

between 2-3%a year , with global consumption expected to rise 41.9 billion liters by 2006 . Brazil is the largest producer of ethanol is an alternative fuel (especially in Brazil) , accounting for over two-thirds of world consumption while other applications are within the industrial beverages making sectors . The largest consuming region other thyan South America and the United Kingdom . reports reviews the ethanol market in the 156 countries from 1999, with forecasts forward to 2006 . Ethanol (ethyl alcohol ) is a clear colorless alcohol with a distinctive smell . Ethanol has the chemical formula CH3CH2OH melt at -114c and boiled at 78.5c,it has the density of 0.789g/maqlt 20c. Ethanol has traditionally been made by the fermentation of sugar , with half of industrial ethanol still made by this process . This report contains a consolidated review of un-denatured ethanol. Abstinence from alcohol is a value that is deeply rooted in Indian cultured and religion and as such is the only approach to drinking that could be called sensiblein this country .Hinduism has the largest following in Indian. And in the Hindu scriptures drinking to as one of the laws of manu it is a sin to consume alcohol and the only way to alone for it is to have the image of a liquor some bottle branded on your forehead . The ancient Tamil poet , Thiruvalluvar whose work entitled THIRUKURAL offers foundations for ethical values in society , also condemns alcohol , calling it is a social evil and equating a drunkard to dead body .

182

The Indian constitution strongly endorse the principal of prohibition a concept that was first introduced by Mahatma Gandhi , and total prohibition a throughout India was imposed in 1077. It only lasted for two years but the state of Tamil Nadu was dry for a total it appears that most Indian women favor total prohibition and politician often advocate some form of it to win their vote . It is illegal to advocate beverage alcohol in Indian , and they do not have a culture role to play in religious and social activities , thus it could be said that there is quite a strong supportive environment for abstinence here . The modern trend towards serving alcohol at reflect the influence of western cultured is limited to small pockets in urban areas . The large majority of Indian still live in villages; furthermore annual per capita income in India is less than US $160 , which means that alcohol is a luxury few can afford . For most, it can only be bought bat the expense of basic necessities. Not surprisingly or a country in which the doctor-patient ratio 1 to 2310, the health services are focused on providing bare essentials such as immunization dont drink . Religiously, when questions of socially, and alcohol consumption do arise the answer is usually simple culturally, economically is the only answer that makes sense . In other wards for an average Indian abstinence is not a matter of choice but an imperative Shanti Rangnathan. Mrs. Ranganathan is honorary secretary of the TT

Ranganathan Clinical Research Foundation at TTR hospital , 17 main road, Indira Nagar , Madras 600020.

183

STATUS OF ALCOHAL INDUSTRY IN INDIA

The alcohol is very important for the government. It generates an estimated Rs.16,000 crores per annum in spite of the fact that the per capital consumption of liquor in India is the lowest in the world. The total liquor industry is worth Rs. 2,000 crores. IMFL priced Whisky below Rs. account for only a third of the total liquor 200 for per bottle. of the Alcohol liquor sales proceed Rum, industry consumption in India. Most IMFLs are cheap and are account for 45% of the revenue collection in the country. accounts 60% sales while Brandy and Vodka accounts for 17%, 18% and 6% respectively. MNCs share is only 10% and they have been successful only in the premium and super premium ranges. Post WTO the government may have opened India to foreign distilleries, but the duty has been increased from 222% to $64-706%. This is due to the fact that there is a 100% customs The cost duty is , 150% contravening by is the duty , local taxes, the the distributors margin, retailers margin and publicity charges. finally claim born this consumer. done to Though protect government that being

domestic liquor industry, the domestic industry

184

ALCOHOLISM
It is found in India and later in many later in many countries of the eastern mediterrancan region , has amply convicted me that alcohol drinking has a different meaning in different countries and also within different communities in the same country .The major religions with different which I have some familiarity , Christianity , Islam and Hinduism seem to be more liberal in accepting its use for social purpose . While Islam totally reject it. The Hindu position lies somewhat between . Their scriptures generally disapprove consumption but seem to condone its occasional use by certain classes of people such as kings , nobles, worriors and following a religious way of life. When came drugs to of the British in the and other European colonial power , manual workers but prohibit its use for priests, student and those serious

India

eighteen

and .

nineteen However ,

centuries under

cannabiesand opium probably enjouyed more popularity as the recreation that alcohol the patronage of British rules , the popularity of alcohol started increasing. In the publics mind , alcohol soon associated with the western way of life . In the days of the freedom struggle in India , the opening of liquor shop by British rulers was seem as a form of exploitation and was strongly resented . At the time the of independence endeavor in to 1947, bring India about boldly wrote in of the the directive principle of state policy shall in the constitution that prohibition

consumption in the intoxicating drinks .Unfortunately , even the written provision in the constitution of the country has not been able to prevent the increase in the consumption of alcohol in India during the last few decades.

185

It seem that most of the developing countries in Asia and Africa have had a similar experience in the matter of alcohol consumption during the last hundred years . Originally, alcohol was not such an integral part of the social scene in most of the countries of Asia and Africa as it was in the Christian communities of westernization and modernity . Condemned and regarded as something alien to local culture a century ago. It is now fast becoming the in thing a Sign of social sophistication and a symbol of prestige. Most of the enveloping countries have now set up their own breweries and distilleries , and the tax on alcohol is major source of revenue for many of them. High pressure advertising by the alcohol companies further speed up the trend. Barely there decades ago, less than 1% of the cases in psychiatric wards were admitted for alcohol related problems ; now the number exceeds 20% in most of the major psychiatric centers . The position in many newly independent countries , except perhaps in the Islamic countries of the middle east . Since there are no previous cultural norms in this area refer to, there are no clear social guidelines about when , where, and How much to drink . we are witnessing a bewildered social response , usually no on extreme kind . While reformers keep urging a total ban on alcohol , the common people are drinking more and more . Also, people are drinking so much for social enjoyment as to get intoxicated .

186

It is in this context that I see the relevance of the concept of sensible drinking in developing countries an idea whose time seems to have come . The rapid social changes has already overtaken us . The old debates and old solution have become irrelevant. The first battle to be won in developing drinking in realistically. The choices are very hard for developing countries any general cantonment of drinking alcohol seems sure to increase the number of heavy drinker . On the other hand , it is equally dangerous not to educate our youth about how much to drink, when we know that very soon they are likely to drink recklessly, especially if uniform about the consequence. Before we move further in popularizing the concept of sesible drinking there are many hard question to answer can we isolated drinking behavior from other personal behavior? In non-European cultures in population imagination, alcohol has become linked. With other features of western lifestyle which give high priority to the pursuit of personal pleasure in life, personal freedom in sexual matters , unlimited consumption , assertiveness in social relation etc. can we put a control on drinking behaviors ? Furthermore, drinking of alcohol be left only to the discretion of the individual as a private matter or should society set the norm? How much alcohol is good for the individual? Should this be governed by science or rules made by religion? countries our is to , accept so the we reality can of alcohol it societies that approach

187

Obviously

the

answer

to

such

questions

will

vary

accordingly to different cultural perception and exceptions. Islamic has already taken a clear position in this regard . Other culture have to evolve answers depending on their past history and tradition, succeed only if they programmes ideas like sensible are conveyed as Drinking will part of larger

of public policy and health education in which

moderation in all spheres of human behavior is accepted as a basis for healthy life , and where the growth and happiness of other members of society are to be as important as ones own . In the matter of personal behavior , probably science alone cannot set all the rules sensible drinking can only be a part of sensible living.

188

P O L L UT I O N I S S U E W I T H M O H A N M E A K I N S L T D .

State

capitals

oldest

and

only

distillery

unit

Mohan

Meankins has decided to move out of Lucknow. The decision has come after the closure of its unit as the UP Pollution Control Board (UPPCB) got the companys distillation unit sealed a couple of days ago for allegedly not adhering to pollution control norms while discharging effluents Gomati. The new destination is Hathras in western UP, where the company is in possession of 500 acres of land, almost 250 times bigger than its Lucknow campus. The land is situated in the Salempur Industrial Area and has been purcahsed from the UPSIDC. River "Gomti" is a tributary of Ganga. It is a bane that almost all rivers in India are now saturated with pollutants and the holy river is not spared from that malady. What causes greater concern to those for whom rivers flowed sanctified waters, and to those, for whom rivers supplied potable water, is the frightening gallop of pollution level in recent decades. The measures evolved by the Parliament to control the escalating poisoning of our streams have not yielded the desired results due to a variety of causes. The present by is an a case in which unit of the a trade effluents liquor

discharged

industrial

premier

processing company made the water in Gomti more polluted to impermissible levels. So the State Pollution Control Board ('the Board' for short) initiated proceedings for prosecuting M/s Mohan Meakins Limited and its Directors way back in 1983. Alas, the canoe remains at the starting point itself in spite of lapse of long seventeen years till now. 189

The

Chief

Judicial

Magistrate,

(before

whom

the

complaint was filed) thereafter passed a detailed order on 25.4.1984 and again issued process to the accused. That order was again challenged by the accused in revision before the Sessions Court and the same Sessions Judge (Shri Prahlad Narain) again quashed it by order dated 25.8.1984.

The Board moved the High Court in a revision against the said order. Though the motion was made in 1984 itself it took fifteen years for the High Court to dismiss that revision petition as per the order passed by a learned Single Judge on 27.7.1999. The special leave petition to appeal is filed in challenge of the said order. Special leave granted. In a recent decision of the Supreme Court it has been pointed out that the legislature has stressed the need to record reasons in certain situations such as dismissal of a complaint without issuing process. There is no such legal requirement imposed on a magistrate for passing detailed order while issuing summons vide Kanti Bhadra Shah vs. State of West Bengal [2000(1) SCC 722]. The following passage will be apposite in this context "If there is no legal requirement that the trial court should write an order showing the reasons for framing a charge, why should the already burdened trial courts be further burdened with such an extra work. The time has reached to adopt all possible measures to expedite the court procedures and to chalk out measures to avert all roadblocks causing avoidable delays. If a Magistrate is to write detailed orders at different stages, the snail-paced progress of proceedings in trial courts would further be slowed down.

190

We are coming across interlocutory orders of Magistrates and Sessions Judges running into several pages.On the factual position this Court noticed that "so far as the Directors are concerned, there is not even a whisper nor a shred of evidence nor anything to show, apart from the presumption drawn by the complainant, that there is any act committed by the Directors from which reasonable inference can be drawn that they could also be vicariously liable." It was only on the said fact situation that the complaint as against the Directors was quashed. In Municipal Corporation of Delhi vs. Purshottam Dass (supra) the same Bench of two Judges pointed out the different factual position therein that "a clear averment has been made regarding the active role played by the respondents (the Directors of the company) of the extent of their liability," and hence the court declined to quash the complaint. Neither of the above decisions has laid down a legal position which can be of any use to the respondents in this case for contending that the Directors cannot be prosecuted for the offence alleged. In the complaint filed by the appellant before the Chief Judicial Magistrate, the company (M/s. Mohan Meakins Ltd.) has been arrayed as first accused and the other persons who were arrayed as accused 2 to 10 were described as the Directors of the said company. The 11th person arrayed in the complaint as accused is described as the Manager of the Company. The averments in the complaint show that the Distillery unit of the company at Daltonganj, Lucknow, has been discharging noxious trade effluents into the river Gomti and causing continuous pollution of the river.

191

It was further averred in the complaint that on 19-9-1982, samples of trade effluents were collected by the officers empowered in this behalf, from the drain "just outside the plant inside the factory", and from the irrigation plant out of which the effluents were pumped into the river. When the samples were analysed in the Industrial Toxicology Research Center, Lucknow, it was revealed that the quality of effluents was beyond the standard laid down for the purpose. Therefore, it is alleged that the company has violated Section 24 of the Act and thereby the company is guilty of the offence under Section 43 of Act.

Where an offence under the Act has been committed by a company the the every is person also who was guilty in of to is charge the or of and by in for was the the the responsible to the company for the conduct of the business of company company, of made offence connived liable statutory creation. Any Director, Manager or other officer of who the has said consented offence, commission made

punishment of the offence. This is clearly discernible from Section 47 of the Act. "47. Offences by companies.- Where an offence under this Act has been committed by a company every person who at the time the offence was committed was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly provided that nothing contained in this sub- section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. 192

Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or, is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly." In the above context what is to be looked at during the stage of issuing process is whether there are allegations in the complaint by which the Managers or Directors of the company can also be proceeded against, when the company is alleged to be guilty of the offence. Paragraph of M/s. Mohan 12 of the complaint Distillery, reads thus "That the as

accused persons from 2 to 11 are directors/managers/partners Meakins Daliganj, Lucknow, mentioned in this complaint are responsible for constructing the proper works and plant for the treatment of their highly polluting trade effluent so as to conform the standard laid down by the Board. Aforesaid accused persons are deliberately avoiding to abide the provisions of sections 24 and 26 of the aforesaid Act which are punishable respectively under Sections 43 and 44 of the aforesaid Act, for which not only the company but its directors, managers, secretary and all other responsible officers of the accused company, responsible for the conduct of its business are also liable in accordance with the provision of the Section 47 of the Act."

193

The appellant has further stated in paragraph 23 of the complaint that "the Chairman, Managing Directors and Directors of the company are the persons responsible for the act and therefore, they are liable to be proceeded against according to the law."

Shri P.Chidambaram, learned senior counsel who argued for respondents made a fervent plea to rescue the Directors of the company on the ground of lapse of a long time now since the institution of the complaint. Lapse of seventeen years is no doubt considerable, but the Board is not the least to be blamed for it. Since it is not a pleasant task to probe into the causes which contributed for such a long delay we choose to refrain from lapse doing of such long that period exercise. cannot be a

Nonetheless,

reason to absolve the respondents from the trial. It must reach its logical culmination. Courts cannot afford to lightly deal with cases involving pollution of air and water. The message must go to all concerned. The courts will share the parliamentary concern on the escalating pollution level of our environment. Those who discharge noxious polluting effluents to

streams may be unconcerned about the enormity of the injury which it inflicts on the public health at large, the irreparable impairment So the it causes should the on not in the deal a aquatic with the or organisms, prosecution routine the for deleteriousness it imposes on the life and health of animals. courts under offences Act casual manner.

Parliamentary concern in the matter is adequately reflected in strengthening the measures prescribed by the statute. 194

The

court

has

no

justification

for

ignoring

the

seriousness of the subject. We are, therefore, not inclined to accede to the plea made by Shri Chidambaram on the ground of lapse of long period now. Of course this lapse of long period is a good reason for expediting the trial. Now the deck is clear and hence the trial court can proceed with faster pace and accelerated velocity.

If any of the accused applies for dispensing with his personal presence in the court, after making the first appearance, the trial court can exempt him from continuing to appear in the court by imposing any condition which the court deems fit. Such conditions can include, inter alia, that a counsel on his behalf would be present when the case is called, that he would not dispute his identity as the particular accused in the case, and that he would be present in court when such Subject presence is imperatively needed. the

to the above observations, we set aside

impugned judgment of the High Court as well as the order of the Sessions Court. We direct the trial court to proceed with the case in accordance with law and dispose it of as expeditiously as possible.

Thus the State capitals oldest and only distillery unit Mohan Meankins has decided to move out of Lucknow. The decision has come after the closure of its unit as the UP Pollution adhering Control to Board (UPPCB) got the companys discharging distillation unit sealed a couple of days ago for allegedly not pollution control norms while effluents in Gomati.

195

The new destination is Hathras in western UP, where the company is in possession of 500 acres of land, almost 250 times bigger than its Lucknow campus. The land is situated in the Salempur Industrial Area and has been purcahsed from the UPSIDC.

196

197

RESEARCH METHODOLOGY
RESEARCH IS A SCIENCETIFIC INVESTIGATION. In the words of Redman and Morry.

Research is a careful knowledge.

systemized

effort

of gaining new

Research is and interview is to discover answer to a problem intellectual and practical through and application of scientific method to the knowledge universe. According to Clifford woody research comprises defining and redefining problems, formulating, hypothesis or suggested solutions; collecting organizing and evaluating data, making deductions and reaching conclusions, an at least carefully testing conclusions to determine whether they fit the formulating hypothesis. Marketing research is the system design, collection, analysis, and reporting of data and finding and relevant to specific marketing situations facing the company.

Research is, thus and original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison, and experiment. In short the search of knowledge through objective and systematic method of defining solution to a problem is research. The system approach concerning generalization and the formulation theory is also research.

198

RESEARCH PROCESS

Formulation the research problem

Extensive literature survey

Preparing the research design

Determining the sample design

Collection of data

Analysis of data

Preparation of data 199

200

TITLE: Product preference and consumer behavior of liquor in Lucknow

City.

MAIN OBJECTIVE OF RESSEARCH

The main of research is to find out the truth which is hidden and which has not been discovered yet. Though each research study has its own specific purpose. These can be: 1. To gain familiarity with a phenomenon or to achieve new insights into it. (Exploratory or formative research studies.) 2. To portray accurately the characteristics of a particular individual, situation or a group (descriptive research). 3. To determine the frequency with which some thing occurs or with which it is associated with something else(diagnostic research). 3. To test a hypothesis of a casual relationship between variables hypothesis- testing research).

201

OBJECTIVE OF MY RESEARCH
The main objective of my project work is to investigate about the product preference given by consumers to Mohan Meakin ltd. Products and also to know about their behavior which they show at time of purchase and which guide and effect their choice and preference. The research objective of this re3search can be summarized as follows: 1. To get an idea about the market size of liquor in Lucknow. 2. the preference given by the retailers in the sales, seasonal demand pattern etc. 3. The expectations a from the liquor company to the retailers. 4. What is customers preference in the consumption of liquor? 5. How do they come to know about the brands of liquor? 6. Whether they have tested M.M.L. products or not? 7. Their attitude towards M.M.L. products, reasons for dissatisfaction (if any) and also awareness about the new brands of Mohan Meakin ltd. 8. What are the reasons for choosing a particular brand? 9. Exploring the reasons responsible for the decline in the sales of Mohan Meakin ltd.

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TYPES OF RESEARCH
EXPLORATORY RESEARCH: The purpose of exploratory research is the development of hypothesis of the research hypothesis of this reason. It is also called Formative Research. It is done to add new knowledge into existing one. HISTORICAL RESEARCH: It is that which utilizes historical source like documents, remains, etc. to study events and ideas of past. Including the philosophy of persons and groups at any remote point of time. It has been define as the systematic and objective collection, evaluation and the synthesis of evidence so as to reconst5ruct the past event in order to gain a new understanding of past and its relevance to the present and future. DESCREPTIVE RESEARCH: This is concerned with surveys and fact finding enquiries of different kinds. The major purpose of descriptive research of the state affairs as it exists at present. Here the researcher has no control over variables. He can only report what has happen or what is happening. ANALYTICAL RESEARCH: Here the researcher has to use facts and information already available, and analyze these to make a critical evaluation of the material. EXPERIMENTAL RESEARCH: Experimentation is a research process in which one or more variables are manipulated by or on the request of the research under controlled condition which permit collection of data in order to show the efforts of such variable on research phenomenon clearly.

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CONCEPTUAL RESEARCH: It is related to abstract ideas or theory. It is generally used by philosopher and thinkers to develop new concepts or to reinterpret the existing ones. EMPIRICAL RESEARCH: It relies on experience or observation alone, often without due regard for system and theory.

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RESEARCH DESIGN
Research design is the conceptual structure within with the research is conducted. Decisions regarding what, when and how a research is to be done is answered on the research design. It is actually the blueprint of the research project i.e. the blueprint for the collection, measurement and analysis of data and when implemented must bring out the information required for solving the identified marketing problem. The research design indicates method of research of i.e. method of information gathering. A research design is the arrangement of condition for collection and analysis of Data in a manner that aims to combine relevance to the research purpose which economy in procedures. So it is clear from the above definition that very first step in process of marketing research is systematic design which can be define as a specification of methods and procedure for acquiring the information need to structure or solve problems. The main characteristics of research design can be summarize in two words.

ANTICIPATION SPECIFICATIO

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FUNCTION OF RESEARCH DESIGN

1. Statement of evidence needed to solve the problem. 2. Anticipation of what will be done with data to provide answer to problems. 3. Specification of evidence from where it will be obtained and how. 4. Statement of basic schemes whereby answers will be revealed and validated. 5. A guide for the calculation and approval of the feasibility and cost of the products. 6. Provisions of blueprints or plan guiding the work.

TYPES OF RESEARCH DESIGN

THERE ARE THREE TYPES OF RESEARCH DESIGN:1. Research design in case of exploratory research studies. 2. Research design in case of descriptive and digenetic research studies. 3. Research design in case of hypothesis-testing research studies.

SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample for a given population. It refers to the technique or the procedure the researcher would adopt in selecting items from the sample. Sample design may as well lay down the no. of items to be included the sample i.e. the size of samples.

DIFFERENT TYPES OF SAMPLE DESIGN

There are basically two types of sample design:

1. Non probability sampling

206

2. Probability sampling

MY SAMPLING DESIGN
The research has used non probability sampling design (random sampling). In the sampling design the researcher has taken the samples of three areas of Lucknow city to collect the data. The sample is taken as deliberate or convenience sampling. 200 respondents are taken for this piece of research work.

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THE METHODOLOGY
I have completed my project under the topic: Product preference and consumer behavior of liquor in Lucknow city.

INFORMATION REQUIRED
(Data Collection) Data collection is a key activity of research. Data collection method is the backbone of research design. There are two types of data:

1. Primary data 2. Secondary data

PRIMARY DATA:
Primary data is the data gathered first time by the researcher . primary data can be collected through observational studies, market surveys or experiments. SECONDARY DATA: Secondary data is the data collected by any other person other than the researcher. The data collected may be internal or external. Collected data may be for the same purpose or any other purpose.

Keeping in the mind the research objective, the first problem is to collect the relevant and required information. The information required is a collection of coherent or relevant numerical observation or events with there relevance with each other.

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We require information about the awareness of the brands of Mohan Meakin among the consumer, there reason for preferring brands and what extent their buying behavior is influenced by the factor such as: age, residential location, gender, income, etc

COLLECTION OF PRIMARY DATA

I collect the primary data during the course of doing experiment research but in case we do research of the descriptive type and performs surveys, whether sample surveys or census surveys, then we can obtain primary data either through observation or through direct communication with respondents in one from or another or through personal interviews this means that there are several methods of collecting primary data, particularly in surveys and descriptive researches. The important ones are 1. Observation method 2. Interview method 3. Through questionnaires 4. Through schedules METHOD OF DATA COLLECTION: The two type of data collection method used.

Observation method:
In this method the data is personally collected by the researcher. It can be structured or unstructured, controlled or uncontrolled.

Survey method:
It is used if the required data is not available from the companys internal record and external published resources.

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TYPES OF SURVEY METHODS 1. Personal collection of data through face to face interview. 2. Telephone interview 3. Mail survey through questionnaire. 4. Schedule method. Questionnaire is a tool for collecting data. I have used it for the purpose of data collection. In it there are the questions which are predetermined and are asks to every respondent. Every question has alternative answers and the respondents are asked to provide the answers by selecting the most appropriate answers among all. By the use of questionnaire the time required for collecting the primary data for respondents is saved, as every time it is not needed to ask the same questions to different respondents. Moreover a pattern of questions is asked to every respondent and they give answers by selecting the answers from the set of alternatives which t5he uniformity in answers and make easy the interpretation.

COLLECTION OF SECONDARY DATA

1. Various publications of the central, state and local government. 2. Various publications of foreign government or of international bodies and their subsidiary organizations. 3. Technical and trade journals. 4. Books, magazines and newspapers 5. Report and publications of various associations connected with business and industry, banks, stock, exchanges etc. 6. Report prepared by research scholars, universities, economists etc. in different field. 210

7. Public record and statistics, historical documents an other source of published information.

LIMITATION OF RESEARCH REPORT

1. The findings of the survey were made on the basis of the data provided by the people (working in different sectors) which may not be exactly correct hence may affect authenticity of the result. 2. We have to collect the information according to the convenience of the people; hence the data may not be accurate.

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212

213

CATEGORY OF ALCOHOLIC PRODUCT

types of alcohol Beer Whiskey Rum Scotch

% of respondents 51% 30% 13% 6%

INTERPRETATION
In the survey most of the people preferred beer. People were of the opinion that beer is in taste and gives them the kick they need; they prefer it in comparison to whiskey, rum, or vodka. Whiskey drinkers are also significant.

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REASONS WHY CONSUMERS PREFER THEIR BRANDS

CONSUMER PREFERENCE Taste Price Strength Packaging

% OF RESPONDENTS 45% 20% 31% 4%

INTERPRETATION
45% prefer their brand because of the taste and only 20% of them prefer because of price.

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ATTITUDE OF CUSTOMER IN ABSENCE OF THEIR FAVORITE BRAND

CONSUMERS ATTITUDE Switch to another brand Go to another shop Prefer a dry day

% OF RESPONDENTS 54% 31% 15%

INTERPRETATION
People seem to be brand switcher, whenever they seem to have any difficulty in getting their favorite brand.

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LEVEL OF AWARNESS ABOUT NEW PRODUCT/BRAND OF MOHAN MEAKIN LTD.

CONSUMERS AWARNESS Know Dont know

% OF RESPONDENTS 18% 82%

INTERPRETATION
It is founded that only about 18% of total consumer surveyed were aware of the new products or brands launched by Mohan Meakin and other consumer were not aware of new product because the company has not taken any steps for the advertising and sales promotion. It means that company should go advertise its product.

OVER ALL PERFORMANCE OF MOHAN MEAKIN LTD.

217

PERFORMANCE OF MM Good Very good Average Below average

% OF RESPONDENTS 28% 09% 55% 08%

INTERPRETATION
Half of respondents rated performance of MM product as average and only 28% of the respondents have rated it good.

LEVEL OF SATISFACTION MOHAN MEAKIN PRODUCT BRANDS

218

CONSUMERS REACTION Satisfied Not satisfied

% OF RESPONDENTS 68% 32%

INTERPRETATION
It is found that 68% of respondents are satisfied with the MM products, it was noticed that the consumer of Old Monk rum and Haywards 1000 beer are more satisfied. It means that MML should increase the quality of the brands among whiskey.

RESPONDENTS WHO TASTED MOHAN MEAKIN PRODUCTS

219

TASTED 1`Tasted Not tasted

% OF RESPONDENTS 82% 18%

INTERPRETATION
Above graph shows that around 82% of the respondents have tasted the product of Mohan Meakin ltd. Some time in their life time and important feature about the respondent is that they have tasted only rum and beer.

HOW CONSUMER COME TO KNOW ABOUT BRANDS

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AWARNESS T.V. Newspaper Magazine Friends

% OF RESPONDENTS 15% 05% 15% 65%

INTERPRETATION
Near more than half of the respondents come to know about their brands through their friends, 15% of them come to know about their brands through magazines and T.V.

MOST VALNERABLE AGE GROUP

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AGE GROUP 15 - 25 Years 25 - 35 Years 35 - 45 Years 45 55 Years

% OF RESPONDENTS 15% 35% 30% 20%

INTERPRETAION
From the above bar graph it is clear that most of the respondents started consuming liquor at the age of 20-25 years. So on this basis we can conclude the most vulnerable group is 20-25yaers and the least vulnerable group is 1525 years.

LIQUOR CONSUMED AT ONE SITTING

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PEGS AT ONE SITTING 1-5 pegs 5-8 pegs Above 8 pegs Cant say

% OF RESPONDENTS 40% 25% 15% 20%

INTERPRETATION
From the above graph it is concluded that about half of the respondents, 40% of consumer consumes 1-5 pegs and around 28%b of the respondents 5-8 pegs and 15% of the respondents consumes more than 8 pegs at one sitting.

WEEKLY FREQUENCY OF CONSUMPTION

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FREQUENCY OF CONSUMPTION Daily Once in a week Twice/thrice a week Once in a month

% OF RESPONDENTS 20% 30% 45% 05%

INTERPRETATION
About half of the consumers take liquor thrice or twice a week and about 30% of the consumers consume alcohol once in a week.

REPONCE TOWARDS PRICE

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PRICE Reasonably priced Highly priced Low priced

% OF RESPONDENTS 65% 25% 10%

INTERPRETATION
Most of the respondents find their brands reasonably priced. So we can say that consumer do not buy any brand due to price, what matter is taste, flavor, quality, satisfaction, level and brand name.

PROBLEM FACED AT RETAIL OUTLETS

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PROBLEM FACED No problem Hesitation Availability

% OF RESPONDENTS 65% 13% 22%

INTERPRETATION
Most of the consumers seemed to have no problem at the retail shop, whereas some of them complaint about the availability of the product or a particular brand.

PRODUCT DEMAND MOST IN THE SEASON

226

DEMAND IN PEAK Winter Summer Rainy season Festivals

% OF RESPONDENTS 44% 32% 14% 10%

INTERPRETATION
The above graph shows that in winter season demand is more than compared to other season.

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RETAILER PREFERENCE FOR PRODUCTS

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RETAILERS PREFERENCE Customer demand Incentives

% OF RESPONDENTS 58% 42%

INTERPRETATION
Retailers prefer to keep and sell those products which have more demand in the customers.

RETAILERS PREFERENCE FOR MOHAN MEAKIN LTD PRODUCTS

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TRTAILERS PREFERENCE High profit margin Incentives Free gifts

% OF RESPONDENTS 20% 30% 45%

INTERPRETATION
From the above graph we can conclude that most of the retailer say that he will help in increasing the sale of MML product if company will provide him high profit margin. The few retailers say that he will do this one if company will give him some incentives.

POPULAR BRAND IN BEER

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POPULAR BRAND IN BEER Haywards 10000 Kingfisher Strong Australian Max Guru

% OF RESPONDENTS 35% 32% 18% 15%

INTERPRETATION
The most popular brand according to most of the retailers is Haywards 10000.

POPULAR BRAND IN RUM

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POPULAR BRAND Old monk Bagpiper Black house

% OF RESPONDENTS 35% 32% 21%

INTERPRETATION
Old monk rum captures about half of the rum market even some are the view that it I not providing the taste and quality for which it is famous.

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SWOT ANALYSIS
STRENGTH
233

1. The Mohan Meakin Company is the largest service providers and using best technology available in the market. 2. Company operates in major cities of India and also provides inanity service. 3. It holds good market share. 4. It has large market share in all group of society. 5. Most of people think positively about it. 6. Company holds a high percentage of brand loyalty. 7. It has well qualified staff which proper attention towards the need of consumer. 8. Dedicated and well trained work force. 9. Constantly striving to explore new overseas market. 10. Comprehensive research and development programme which help in productive improvement. 11. Extensive market research through research agencies. 12. Long-lasting goodwill of the company.

WEAKNESS
1. They do not have market share in the under graduate segment. 2. People are not aware about its all products. 3. High cost for label and monitoring item.

OPPORTUNITIES
1. Through improvement and meeting customer problem promptly company can gain. 2. Superiority in field of liquor market. 3. Fast response of complaint and product development. 234

THREATS
1. Increase competition from MNC. 2. Company is facing its main threats from govt. rules and regulation.

LIMITATIONS
1. Liquor consumption now a day is not so uncommon in India. But some people feel that consumption of liquor is unethical. As a result people

235

feel uncomfortable in discussing their drinking habit freely. So I faced some problems in getting information from respondents. 2. Due to paucity of time a sample of only 200 people could be covered. For a more accurate analysis a large sample size could have been covered. 3. As we know that in all such surveys, sampling error to bound to there. 4. Sometimes the correct information is not revealed by the consumer so biases come. 5. Some people had no idea about the brand, while they are consuming that. 6. Some people get problem in rating the factors that are considered before purchasing a brand of whiskey. 7. Lucknow is a big city so care has been taken to cover all the areas of city but rural areas could not be covered. 8. Some people also questioned about why the survey has been conducted and were suspicious about giving the information. 9. Error of biases on behalf of respondents may vary the results.

RESULT
After conducting a full detailed study I find that MML a 150 years old company even today has a strong consumer base in rum and beer sector. 236

But many of its consumers are of the view that it is not providing the taste and quality as earlier. Many retailer has a compliant that is no proper channel of feedback and communication between company and themselves. Also rare number of customer are brand loyal and they easily switch to another brands if they are not getting the needed satisfaction and this need differ from person to person depending upon its behavior and personality. This decline in customer satisfaction and improper marketing policy is resulting in fall of sales. 1. Enhancing easy availability. 2. Making customers aware of the new products. 3. Producing superior products in comparison to competitors.

RECOMMEDATION AND SUGESSTION

On the basis of analysis interpretation given as per the position. The previous chapter 237 the investigation is in a

position

to

draw

conclusion

about

the

perception

of

consumers through the marketing of I.M.F.L. in the market as per the following details p :The first conclusion has been segmented in the form of brand preference, awareness, rating, reasons commission, schemes for the sales promotion, qualitative and quantities analysis, attitude of consumers, price sensitivity, satisfaction record and income preferences. All retailer deals with products of Mohan Meakins Ltd but only 15% are satisfied with companies marketing department as remaining 85% dont get the scheme provided by the company. In comparison other companies give more incentives to the retailers for promotion of their sale. It means that Mohan Meakins Ltd should give more incentive to promote their sales. Sales promotion, element of the marketing process that can close the sale of good and services to a potential customer by providing the incentive to make a positive purchase decision. Sale promotion, advertising are the major techniques use in merchandising product to the public. Salesmanship often takes the form of a face to face encounter between buyer and seller; the presentation is set up to convince customer that the products on sale are essential to their satisfaction. The lack of personal feedback between buyer and seller is sometimes considered a drawback of the advertising approach. Selling by telephone, although it is significantly less effective than personal selling is still considered an important method of merchandising. In the 1980s a growing 238

promotional technique involved in home shopping programs using cable television channels. Now days the government is involved in home shopping programs using cable television channels. Now a days government has banned the advertising of liquor by any media thus companies have only option in have and that is to go for surrogate advertising for their products so there is though competition among the competitors to capture the huge market share. Now a days liquor has become one of the most important parts of any celebration. Todays women are also interested in liquor; ladies of high society take it openly so in order to this segment of market, company should introduce new range of products containing feminine characteristics in it. Since this market is untouched so it can prove a boost for the companies market share in the liquor industry.

SUGGESTIONS
Sponsoring media and events for advertising.

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If you as the agency deem fit, we can also attempt to generate consumption in new ways such as promoting the use of our beer for beer recipes or the like. Here again, we can use the USP of low bitterness, no aftertaste, low calories, low alcohol content and thus encourage consumers to use our product in household recipes. This will open up an entirely new segment, and bring our product into the kitchens of India, increasing brand association and reaching out to an entirely different audience that would otherwise be uncomfortable with an alcoholic beverage in their homes. I include this only as a suggestion, and of course will go with whatever decision your agency takes in this regard. I have also taken the liberty of listing some possible recipes which could use our product.

Regular retailer-sales officer (MML) interaction. HRD should work towards enhancing the

effectiveness and the efficiency of Mohan Meakins Limited by enriching individual maps of reality, by supporting personalised growth of the individuals, by improving not only team-spirit of the believes in and inter-personal members. It internal communication should organization's

harnessing

pools of knowledge but also provides its employees a platform for knowledge integration with internal as well as external sources. The Mohan Meakins Limited human resources department has become an eventful place with a focus towards attraction, retention and development of talent, as it surges 240 ahead to set higher

performance thresholds. Our HR motto states that "We not only believe in blending Spirits into Liquor but also blending Aspirations into Career."

Shifting profit margin from company to distributor. Our only suggestion with regard to the brand name is that it should capitalize on the brand heritage which Meakins 10000s enjoys, and in its association with Mohans liquor which is already established in the market as one of the leading beers. Meakins 10000 is the international flagship brand for the Mohan Meakins's group. The brand has achieved international growth of more than 60 per cent in the last five years and is one of the fastest growing beer brands in the world today. The product is a variant of the international brand, and we are not averse to retaining the name here. However, as Meakins 10000 is an international brand, and we might want to make some alterations, for example in the packaging of the product, we would rather not keep the brand name itself, as any changes we undertake in India would necessarily have to be reflected in the mother brand worldwide.

Naming it something like simply Mohan Meakinss Light allows us to experiment with the brand while retaining the heritage and association of the Mohan Meakinss label. 241

Keeping these considerations in mind, the final call rests with the agency as always.

Attractive packaging. Incentives to retailers. Enhancing easy availability. Making customers aware of the new products. Producing superior products in comparison to competitors.

RECOMMENDATION

242

 Communication to retailers. Communicating to the customers through advertisement. Proper marketing channel. Sales promotion programs.

LEARNING WHILE EARNING

243

The project assigned to me is to study the phenomenon of consumer decision making with regards to Indian made foreign liquor. The complex part of the assignment is to find out up to what extent this consumer behavior would affect the company that is Mohan Meakins On the outset of the project, my prime objective would be to find out the ins and outs of the organization. For this I had to find out systematic and detailed information about the company. I had to have complete profile of the organization. I would require complete information about the company to study impact on consumer perception of Indian made foreign liquor. If I have the detailed information about the company than I can carry out an in-depth study on the impact of this behavior. I started with finding out the top level management of the organization. by this way I can have vague picture of the organizational structure of the company. Accordingly I went further to find out the different departments of the organization and their role in the organization. Learning at the time of gathering company profile: The most difficult part of the whole assignment is the

interaction with the top level management of the organization. Until now I was on my own without any boss over me. But now, during this project I had top deal with this boss thing. I since I was a little hesitant in speaking to the top level management. But during the project I learned a lot. I improved my communication skills to a great extent.

The top management people generally have very less time

to waste on training purpose. So in the beginning I faced lot of difficulties in getting an appointment from the marketing manager. 244

And once I got the appointment I had to convince him on how my contribution to the organization can help the organization in improving the sales of the products and would help the company in better understanding its potential customers. Once I had him convinced, I had to buy time from to gather

information about the company. I had to go to the company repeatedly to match the timing with the manager. This process continued with almost all the top management people of the organization. During this phase I learned that patience is an important

ingredient to be a successful corporate player. I had to wait for long hours outside the offices of the officials. I also had to survey the different plants of the organization. I did keep my patience and got my fruits. While I was taking interview of different persons of the

organization, I had to deal with another problem. I was encountering different kinds of individuals and with each individual I had to deal in a different way. In other words I was in a diverse environment so there was a communication gap. Thus this was an important lesson for me. This helped me in enhancing my communication skills. I was in a completely new environment and it was a new place as well. I had to use different language with different persons. There are many other problems that I am facing in

gathering information about the company. But I am continuing to search the in-depth information about the organization and I am doing well.

245

The second phase of the project is to gather information and data from the market in Lucknow. For this I had to interact with different customers in Lucknow. For that I had to design a set of question to be asked to customers and gather information likewise. This will show me the direction by which the company can increase its sales volume and the company can have a better understanding of its potential customers. For this I am going around the Lucknow city and finding out the consumers of Indian made foreign liquor and gather information from them. Then I have to analyze the collected information and decide consumers perception about the Indian made foreign liquor. With this I will judge its overall impact on the sales of the sales volume of the organization.

Learning at the time of gathering information from the customers: Liquor consumption of liquor consumption nowadays is not so

uncommon in India; still people feel that consumption of liquor is unethical. As a result people feel uncomfortable in discussing their drinking habits freely. So it was very difficult to collect information from the consumers. I had to firstly convince the consumer that the survey I was doing, was no where related with their personal lives. Once they get convinced they used to answer some question but I had to go through a lot of pain in handling the customers. It was also difficult to find out the potential customers. Sometimes the consumers do not reveal the accurate information.

This would cause inconsistency in the results produced. Os it was of utmost importance that we take the consumer in our complete confidence. Sometimes I also faced some difficulty in selecting the correct

sample. As we know that in all such survey is bound for sampling errors. Thus I had to be extra careful in the sample selection. 246

Since I was collecting information about Indian made foreign

liquor I had to visit places like bars and liquor outlets. The owners of this places would generally deny to let us in because according to them, this would irate the consumers. Some of the consumers have no idea about the Brand of liquor

they are consuming. So give any comment on the brand acceptability becomes very difficult for them and in turn creates difficulty for me. The city Lucknow is the big city so all the areas could not be

covered in the survey. And the summer also created lot of hassle to go to distant location. But the areas covered were carefully observed and I am continuing like that.

247

CASE STUDY

NOT TO SALE LIQUOR TO CONSUMERS LESS THAN 18 YEARS Mohan Meakin traces back to 1855, when Edward Dyer from UK set up the first ever brewery in India in Kasauli. He set up more breweries at Solan, Shimla, Murree, Rawalpindi, and Mandalay. Another entrepreneur H.G. Meakin came to India from Britain and bought the old shimla and solon breweries from Dyer and added more at Ranikhet. Dalhousi, Chakrata, Darjiling, and Kirkee. As all the companys always wnts to earn profit any how but Mohan Meakin ltd. Always tries earn profit but in the roof of social welfare. For benefit of the society company brings out a policy that it

will not sale any kind of alcoholic products to the consumers less than 18 years. Due to company has suffered in its profit percentage but it is a matter was of social welfare so company is very much strict about it. And give order to its distributors and retailers that not to sale any kind of alcoholic products to consumers less than 18 years. But due to demand of the products retailers is not doing so. For this company take very strict & legal action against them.

248

CONCLUSION

On the basis of analysis interpretation given as per the previous chapter the investigator is in a draw conclusion about perception of the consumer as per the following details: The represent conclusion has been segmented in the form of brand preference, awareness, rating reason for selection the particular brand the qualities and quantities analysis, attitude of consumer, price sensitivity, satisfaction record and income preference. Most of the people preferred beer. People were of the opinion that beer is in taste and gives them the kick they need; they prefer it in comparison to whiskey, rum, or vodka. Whiskey drinkers are also significant. 45% prefer their brand because of the taste and only 20% of them prefer because of price. Half of consumers rated performance of MM product as average and only 28% of the respondents have rated it good. Near more than half of the respondents come to know about their brands through their friends, 15% of them come to know about their brands through magazines and T.V About half of the consumers take liquor thrice or twice a week and about 30% of the consumers consume alcohol once in a week. 249

 In winter season demand is more than compared to other season. Most of the consumers started consuming liquor at the age of 20-25 years. So on this basis we can conclude the most vulnerable group is 20-25yaers and the least vulnerable group is 15-25 years. Because by this they will be indirect contact with the company personal and they will come to know the consumers is a better way and about their liking and drinking about the product.

250

251

QUESTIONAIRE FOR CONSUMERS

Name: Age: .. ..

Address: ..
1. Whether you consume liquor or not? Yes No 2. Is your brand Low priced Reasonable High priced 3. Please let me know your frequency of consuming liquor? a. Daily b. Once in a week c. Twice/thrice a week d. Once in a month 4. How much liquor do use at one sitting? a. 1-5 pegs b. 5-8 pegs c. Above 8 pegs d. Cant say 5. For what reason you prefer your brand? a. Strength b. Price c. Taste d. Packaging

252

6. How do you come to about this brand? a. Through television b. Through newspaper c. Through magazine d. Through friends 7. Which product categories of liquor do you use? a. Rum b. Whiskey c. Gin d. Beer e. Scotch

8. Have you ever tasted Mohan Meakin products? a. Yes b. No 9. Are you satisfied with M.M. Products? a. Yes b. No 10. If no then what is the reason for your dissatisfaction? a. Color b. Flavor c. Quality d. Taste e. Packaging f. Price

253

11. Are you aware about new products of M.M.M.L.? a. Yes b. No 12. According to you over all performance of MML is? a. Good b. v. good c. average d. below average 13. What you do in case you dont get your favorite brand in a shop? a. Prefer a dry day b. Go to another shop c. Switch to another brand 14. What problem you face at the retail outlets? a. No problem b. Availability c. Hesitation

254

QUESTINAIRE FOR RETAILER

Retailers name: . Shop address:

1. Do you deal in Mohan Meakin products? Yes No 2. Product demand most in the following season a. Summer b. Winter c. Rainy season d. Festival 3. Product are preferred by you, because, a. Attractive incentive and commission b. Consumer demand and availability 4. do you like to sell Mohan Meakin product if no, because a. They do not provide prompt services b. They do not offer good incentives c. Not demand by the customer 5. You will help in increasing the sale of M.M. products if you will get: a. Free gifts b. Incentives c. Attractive packaging (yes/no)

255

6. Which is popular whiskey of Mohan Meakin? a. Diplomat deluxe b. Old monk c. Solon no.1 d. Colonel special 7. Which is popular rum? a. Old monk b. Bagpiper c. Black house 8. Which is popular beer? a. Guru b. Australian max c. King fisher strong d. Haywards 10000

256

BIBLIOGRAPHY
The following boos and periodicals, articles from various newspaper, web based newspapers, websites have been consulted for writing up to this project.

BOOKS
Marketing research (Dr. D.D. Sharma) Research methodology (Dr. Elhanse) Research methodology (C.R. Kothari) Consumer behavior ( Leon, Leslie Lazer) Business communication (K.K. Sinha)

Websites and Web Zone

http://www.hinduonline.com www.google.com www.thedistillary.com www.boozeguru.com (for archives etc.) (for searching etc.) (for alcoholic references) (for archives etc.)

257