liquor industry

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LIQUOR INDUSTRY Submitted by- Ajay (2901) Ashish (2832) • Jatin Pradeep (2921) Mayank (2849) Shubhkaran (2920) Submitted to- Prof. Asha Sharma (Eco. Env. Of

Transcript of liquor industry

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LIQUOR INDUSTRYSubmitted by-• Ajay (2901)• Ashish (2832)• Jatin • Pradeep (2921)• Mayank (2849)• Shubhkaran (2920)

Submitted to-Prof. Asha Sharma(Eco. Env. Of Buss.)

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CONTENT

Introduction.

List of major players of the sector.

Macro environment.

SWOT analysis of liquor industry.

SWOT analysis of a Major Brand.

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INTRODUCTION Indian Liquor Industry is divided into 2 broad

categories Indian Made Foreign Liquor (IMFL) Country Made Liquor

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INDUSTRY STRUCTURE

Alcoholic beverages (8500 Crore)

IMFLRs 6150 Crore

Country Liquor Rs 2350 Crore

Licensed IllicitBrown Spirits White Spirits Whisky

Brandy

Rum

Vodka

Gin

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MAJOR COMPETITORS

Manufacturer BrandsUnited Breweries (UB) Group( Bangalore)

King Fisher, Kalyani Black Label, Signature, Blue Riband

Shaw Wallace (Calcutta) Haywards 

Jagajit Industries (Kapurthala, Punjab) Aristocrat

Mohan Meakins (Solan, Himachal Pradesh)

Golden Eagle 

Associated Breweries &  Distilleries (Mumbai)

London Pilsner, Smirnoff, Gilbeys Green Label, Malibu, Archer’s Peach  Schnapps

Major Competitors

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MACROENVIRONMENT

Legal

Social

Economic

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LEGAL ENVIRONMENT

Ban on direct advertising Excise regulations and Licenses Subject to licensing under Industrial  (Development and

Regulation) Act, 1956 Cap on licensed capacity; special license  for expansion

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SOCIAL ENVIRONMENT Increase in disposable income Western culture influence Changing Trends – Youngsters, Parties and Celebrations Minimum age Beer - from 18 to 21 Hard liquor - from 21 to 25

In India 40-50 % of all males and 1% of all females consumed alcohol last yr.

62% drinkers classified as light, 29% as moderate drinkers and 9% as hard drinker.

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ECONOMIC ENVIRONMENT

It is a well developed - Rs 8,200- 8500 Crores industry in India

Past growth 12 % CAGR per annum Brown spirits - particularly whisky, rum & brandy

account for over 75 % of this market South and North share 60% of market  Market size – 20 million cases in 1999 to 84

million cases in 2011.

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SWOT Analysis

of

Liquor Industry

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STRENGTHS

Recession Proof Industry India- An Attractive Market for Spirits Favorable Demographics

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WEAKNESS

Multiplicity of Taxes Ban on Advertising Inter State Transfer Fees on Molasses Limited SKU (stock keeping unit) Result in

Slower Distribution Expansion

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OPPORTUNITIES

Low Per Capita Consumption of Alcohol in India -Room for Growth

Rising Middle Class Increase in Disposable Income and Discretionary

Spending

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THREATS

Religious Influence Increasing Competition Increasing Raw Material Costs Inappropriate and Delay in Government Policies

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ABOUT ONE OF THE MARKET PLAYER

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INTRODUCTION• Johnnie walker is a brand of Scotch

whisky owned by Diageo that originated in Kilmarnock, Ayrshire, Scotland.

• The most widely distributed brand of blended Scotch whisky in the world, with annual sales of over 130 million bottles.

• It basically targets on Businessmen and executive professionals.

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SWOTA

N

A

L

Y

S

I

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STRENGTH:- • Strong customer and brand loyalty.• Unique packaging that customer could recall.• Popularity and following among the high

income group and its intended use for special occasions.

• “Keep walking” slogan and logo are extremely well recognized world over.

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WEAKNESS:-• Brand protection costs are high as product

replicas affect image and sales• Penetration in the market is low no easy

availability

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OPPORTUNITY:-• Increased consumption of scotch on

special occasion• Spending power for such premium

products amongst the consumer is increasing

• More global penetration

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THREATS:-

• Comparatively low prices of competitors• Use of champagne for special occasions• Local blended scotch and their high

penetration in the market

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CHEERS..!!!THANK YOU