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Project Report
The study on the sales promotion policies
adopted by Mount Shivalik Breweries Limited.
The study on the sales promotion policies adopted by

                        Mount Shivalik Breweries Limited.

        Mohangram,P.O. Bhankarpur, Distt Mohali,Punjab,India



 Submitted in partial fulfillment of the requirements for the degree of

                      Master of business administration



                                   BY



                               Shiv sachdeva

                           Session- 2008-09

                     Prepared under the guidance

                                  Of

                          Shri D.P Khetar pal

                       Manager coordination

                          M.S.B Limited




                               Submitted to




SHIV SACHDEVA           MBA,                                     SESSION-2008-10
ACKNOWLEGEMENT


First of all would like to thank MOUNT SHIVALIK BREWERY LTD, Which provided

me a great opportunity of undergo my summer Training in such a prestigious

organization. Then I would like to Thank Mr Rajiv Bali (Managing Director, Mount

shivalik brewery Ltd) in whose region I have done my training. I am especially

thankful to to Mr.D.P Khetarpal (manager coordination, Mount shivalik brewery

Ltd.) under whose kind guidance I have done my training. At the end I would like

to thank Mr.V.K Ohri, (R.M) & all those who helped me during my training.




                                                              Shiv sachdeva




                                       1




SHIV SACHDEVA        MBA,                                     SESSION-2008-10
DECLARARTION

            I solemnly declare that the work reported in the project

     Report entitled “The study on the Sales Promotion adopted by Mount

    Shivalik Brewery Limited “has been carried by me during the period from

   20 .7.09 – 21.07.09 and that no part of the report has been submitted for any

  Other degrees, diploma or certificate.



         Thanking You,



Place:

Date:



                                                        Shiv sachdeva

                                                        Course – MBA

                                                      Session -2008-10




                                 2




SHIV SACHDEVA            MBA,                                  SESSION-2008-10
CERTIFICATE



                                This is to certify that the project report entitled
“The study on the sales promotion adopted by Mount Shivalik brewery Ltd”has
been prepared by Mr. shiv sachdeva, of course MBA and Session 2008-2010 for
the award of the Degree of Master of business administration by Shri Raghu Nath
Rai Memorial School Of Management, Ram Nager (Banur) under the guidance of
Mr. D.P Khetarpal, manager coordination, mount shivalik brewery Ltd,
Bhankarpur,punjab




                                                                Signature

                                                           (Internal Examiner)



                                                               Signature

                                                           (External Examiner)




                                 3




SHIV SACHDEVA         MBA,                                      SESSION-2008-10
CONTENTS


Sr.No                            Topic                     Page No.

   1.                     General Introduction                 6

   2.               THE LIQUOR INDUSTRY IN INDIA               9

   3.                     About company                       12

   4.                       Competitors                        21

   5.                     Sale promotion                       33

   6.              Objectives of sales promotion               56

   7.                Research Methodology                      70

   8.                      Limitation                          73

   9.                     Conclusion                           74

  10.           Questionnaire for consumer                      75

  11.           Questionnaire for retailer                      79

  12.                  Bibliography                             81




                                    5



SHIV SACHDEVA      MBA,                            SESSION-2008-10
GENERAL INTRODUCTION


                   This modern era of liberalization and globalization has opened a
broad scope for conducting marketing of products in business.To-day; marketing
management has become more challenging and exciting than ever before.
Generally a group customer who heavily shares a common a group of customers
who heavily share a common need constitute the market. Now days, market has
turned from seller‘s market to buyer‘s market. Every market plan depends upon the
nature and size of the market.

                    The word marketing means the act of selling and buying in the
market. Marketing involves meeting traders, merchants, dealer‘s retailers and
many a time the consumers directly through media. But it all depends upon the
factors, conditions, characteristic of the producer‘s product, middlemen and the
consumers. Hence, the marketing manager and sales executives are also required to
be more and more consumer oriented. Today, profit rather than sales volume is
given priority. To achieve goal the proper marketing strategy is needed. A
successful strategy man oeuvre for obtaining specific goals can be possible ply by
building a high committed and motivated sales team of area managers, sales
officers, dealers and officers.

                  Strategy of marketing depends upon the nature of products,
quantity of production, consumers, views and awareness overall demand, capacity
of product circulation and existence of middle



                                   6


SHIV SACHDEVA         MBA,                                      SESSION-2008-10
A new product may have to be promoted by door to door selling, selling shops
and through media like T.V. or through advertisements. If a product is to be
exported, the marketing has to be done within the framework of policies and
procedures set up by the govt. The middlemen under strict price and control policy
of the Ministry of Home Affairs especially Food and Civil Supply Department.

                      For successful marketing of its products, a company may have
sales persons, area sales manager, regional sales manager, zonal sales manager
marketing professionals, depot communication manager, product manager media
assistant, public relation officer and managing director depending upon the size of
the company. For the successful career in marketing a person must have certain
basic skills like a degree in an area of thrust related to the type of company, ability
to formulate and implement sales, distributional sales, distributional and
promotional strategies and exceptional skills to motivate and effectively manage
the sales force. In addition, the attitude and talent for innovation, good knowledge
of designing and preparing various inputs including visual aid folder is needed.
Besides this, involvement in marketing research for launching new products and in
training sales force is must for a successful marketing manager. The above
qualifications are must because the role of marketing manager in the organization
has also changed with requirement of the hour. Today, marketing manager has
become the integral part of business and involves all the activities that take place in
an enterprise.

                      As a good marketing manager one has to train the staff.
Therefore the sound knowledge of marketing activities, marketing strategies and
legal aspects is needed. Not only this, there many other things which pave the way
for promoting sales. Good contacts in corporate sectors, knowledge of controlling
activities up to grass-root level, interacting with concerned departments and sales
regulatory authorities are also required for a successful marketing manager. Four
Ps namely product, price, place and promotion are the most vital areas of
marketing management. Fifth P added is pace. Without these the marketing
objectives of organization cannot be fulfilled.

                                  7


SHIV SACHDEVA          MBA,                                        SESSION-2008-10
Channel distribution system may get affected by the
product factor, market factor and institutional or organizational factors and the
vital decisions has to be taken with regard to internal sales promotion in the light of
channels of distribution.



The marketing division should see that brand identification is must for the
producers to exercise maximum control over the demand for its products. Branding
of products is necessary for administration of warranty, guarantee and service
policies. The branding is also necessary from companies share point of view and
for export purpose.

                      Overall marketing manager must use management science
and decisions making technology to the fullest while understanding the limitations
of these tools. He should also provide guidelines, stimulations and encouragement
for the fullest and richest use of inspiration talents, inventiveness and judgment.




                                  8



SHIV SACHDEVA          MBA,                                        SESSION-2008-10
THE LIQUOR INDUSTRY IN INDIA


The alcohol industry is very important for the government. It generates an

estimated Rs. 16,000 crore per annum in spite of the fact that the per capita

consumption of liquor in India is the lowest in the world. The total liquor industry

is worth Rs. 2,000 crore. IMFL accounts for only a third of the total liquor

consumption in India. Most IMFLs are cheap and are priced below Rs. 200 per

bottle. Alcohol sales proceeds account for 45% of the total revenue collection in

the country. Whiskey accounts for 60% of the liquor sales while rum; brandy any

vodka account for 17% 18% and 6% respectively. MNC‘s 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 464-706%. This is due to the fact that there is a

100% customs duty, 150% contravening duty, local taxes, distributor‘s margin,

retailer‘s margin and publicity charges. The cost is finally borne by the consumer




                                9



SHIV SACHDEVA         MBA,                                      SESSION-2008-10
The cost is finally borne by the consumer

Though the government claims that this is being done to protect the domestic

liquor industry, the domestic industry accounts for 99% of the market share. This

protectionist policy could prove to be counterproductive and lead to smuggling.

As of now, only 45% of the sales are through legal channels and only 25% of this

is duty paid for.

                    Within India itself, the policy of alcohol retail differs from state

to state. While some states like Maharashtra. Uttar Pradesh, and Tamil-Nadu have

a liberal policy, come states like Haryana and Andhra Pradesh have had very bitter

experience in trying to make these states dry and have eventually had to withdraw

the policy.




                                       10


SHIV SACHDEVA          MBA,                                        SESSION-2008-10
PRODUCT PROFILE


This research focuses the study of alcoholic product of MSBL. Thus it is important

for us to known what Alcoholic drinks are. Alcoholic drinks are a mixture of

alcohol or spirit water and minor ingredients knows as cogeneries. The organic

name of alcohol is ethyl alcohol, which is derivative of hydrocarbon. Consumable

alcohol has no flavor, only careful section of congeneries which is added during

fermentation process lead to a palatable product. Therefore alcohol drinks offered

world over are blended to provide uniform blends, bouquets and palatability.




                                       11

SHIV SACHDEVA         MBA,                                     SESSION-2008-10
ABOUT COMPANY


A saga that began over a century and a half ago continues on its path of service to

the world with dedication, courage and an unflinching commitment to quality.

Over the years the Company has embraced modernity and adapted to changing

times. Yet, its basic values remain the same-integrity, Craftsmanship, and

Tradition. From mount shivalik brewery Ltd where the sanctity of ancient culture,

technological development and craving for quality are artfully blended into the

products.


   Late padamshri Mr N.N.Mohan(1901-1969) who was the father of mount

shivailk give the idea to open brewery at bankerpur.after that foundations stone

was laid by then padamshri col.V.R mohan on 29 nov.1972.


            1972-1978     mount   shivalik   breweries   ltd.(MSBL)was      formally

incorporated, headed by Mr.B.D. Bali as the managing director.




                                   12


SHIV SACHDEVA           MBA,                                     SESSION-2008-10
The construction of brewery began at bhankarpur,dist.patiala,india and was

completed in a record time of 1 year.MSBL launched its brands in

JK,Haryana,Himachal Pradesh,Delhi and Madhya Pradesh.


                                    1982-1984 the group established an Indian

made foreign liquor(IMFL) bottling plant at Chandigarh namely ―Mount shivalik

bottling plant‖.


                     Second IMFL bottling plant at patna,bihar under the name of

shivalik kineme(P)Ltd. Established in the year 1983.In the year 1984,country‘s

first super strong beer ―THUNDERBOLT SUPER STRONG ―Beer launched.


         1987-1993 In the year 1987, pub culture in north India invoked, by

opening of pubs in Chandigarh by the company. Group‘s flagship brand

―THUNDERBOLT Super Strong‖ won the prestigious ―monde selection gold

medal ‖ at Barcelona (1991) for its international quality.




                                   13



SHIV SACHDEVA         MBA,                                    SESSION-2008-10
THUNDERBOLT Super strong beer reached a landmark in the

country by achieving sales of 1.5 million doz. The brand become benchmark for

other super strong beer in the country by setting higher standards of quality and

excellent packaging throughout the country.


     Mount shivalik industries Ltd. incorporated on 19th January.


                                       1996-1998 Two new brands were launched

mild and strong segments by the name of:-GOLDEN PEACOCK & TORPEDO

SUPER STORNG.


Group achieved a land mark by selling 3.5 million doz. In over 18 states in the

country in the country in the year 1997.as part of diversification plans, the group

has decided to set up resorts having facilities of 30 room‘s motels, a pub, beer

garden, fast food restaurant, health care, and recreational facilities.


                         MSIL entered into an agreement with Stroh‘s brewery co.,

USA‖ to produce and market strohs in India.




                                       14



SHIV SACHDEVA          MBA,                                         SESSION-2008-10
In the year 2000 as part of expansion plans for IMFL, the company has received a

letter of intent from Government of Punjab to set up distillery for producing

potable alcohol for its own IMFL brands to be introduced shortly.


 Presently Mr. Rajiv Bali is working as managing directing of MSBL (bankerpur)


: Mount Shivalik Breweries Ltd (MSBL), the makers of Golden Peacock and
Thunderbolt beer brands, is now brewing a multi-pronged marketing strategy to re-
introduce the American beer brand Stroh in the Rs 1,500-crore domestic beer
market.

The Stroh brand was previously canned in India by Rajasthan Breweries, which

stopped production in February 1999 following differences with the $ 1 billion

Stroh Brewery Co, USA. MSBL--which had struck an agreement with Stroh USA

in 1998 for bottled beer--will now produce and distribute bottled Stroh beer in

Diet, Mild and Strong category for all the markets in the country, except South

India (Tamil Nadu, Kerala, Pondicherry, Karnataka and Andhra Pradesh).




                                    15


SHIV SACHDEVA         MBA,                                       SESSION-2008-10
A study conducted by the Delhi-based market research agency
M&M in March 1999 in the markets of North-East, North and West India, revealed
that 78 per cent of the 4,000 respondents were aware of the Stroh brand and
regarded it as a premium beer. The findings have now spurred MSBL into quickly
activating the Stroh brand--with an integrated marketing plan. Says MSBL director
marketing, Monish Bali: ``had we given a longer gap the brand would have
suffered.''

MSBL now plans to launch Mild and Strong Stroh beer between mid-June and
September 1999 in a phased manner: beginning with Rajasthan and progressing to
the markets of Chandigarh, Punjab, West Bengal, and Haryana. Later, in the
second phase, it will roll out the beer in Delhi, Bihar, Daman, Orissa, Madhya
Pradesh and the North-East.

Old beer in new bottles
In its new avatar, Stroh would be made available not in cans but in amber-colored
650 ml and 330 ml bottles. While the 650 ml bottle will have the conventional
shape popular in the Indian beer industry, it's the 330 ml packaging which will
flaunt the `long neck' design used by Stroh in America. The 650 ml bottle will also
have a golden champagne capsule top to enhance its shelf and eye appeal, while
the unique feature of the 330 ml bottle will be a color-coded neck label.

In terms of colors, the blue label will represent mild beer as distinct from the red
label for strong beer. Moreover, a special offset printed master carton has been
developed for packing these two sizes. MSBL is also considering options like
supplying Stroh in kegs to pubs, but this will depend on the prevailing excise laws
of the respective states.

                                    16



SHIV SACHDEVA         MBA,                                       SESSION-2008-10
Pegging the price

Aiming to position the beer as a super premium brand, Stroh would be offered at a
price that is higher by Rs 3 to Rs 5 a bottle, against the top-selling domestic brand
in each state. MSBL believes that despite the more expensive price, the consumer
would view Stroh as ``an international quality beer at an affordable price.'' While
the can option was earlier available at Rs 60 per 500 ml and Rs 40 per 300 ml can,
the new pricing for Stroh in Rajasthan is expected to be around Rs 35-40 (strong
beer) and Rs 30-35 (mild) per 330 ml bottle; and Rs 50-55 (strong) and Rs 40-45
(mild) per 650 ml bottle.

Currently, cans account for around two per cent of overall beer sales in India.
MSBL hopes that apart from catering to the upper elite and foreign tourists, Stroh
in bottle form would also appeal to the price-sensitive middle class. ``With bottles
we are giving Stroh consumers more value than they were getting from the can,''
says Bali adding: ``We are keeping open the option for cans in future both in terms
of setting up our own facilities or having arrangements with other existing
breweries.''



Raising the bar

Taking cognisance of the fact that the Stroh consumer expects international
quality, taste, packaging and consistency, Stroh would be positioned as `The Great
American Beer'. A distinct marketing strategy is being evolved to promote the beer
at, what Stroh calls, `on-shops' (institutional sales via hotels, bars, clubs,
restaurants) and `off-shops' (retail outlets).

Determined to gulp over 50 per cent of the international beer market in India, Stroh
is planning some bubbly bursts:



                                     17

SHIV SACHDEVA         MBA,                                        SESSION-2008-10
 A 30-second television commercial (TVC), createdin the US, will unfold by
late June '99 on the Star channels. With an advertising and promotion budget of
over Rs 5 crore, MSBL will also take positions in other international channels as
`The Great American Beer'.

The earlier TVC for Stroh cans by Rajasthan Breweries was an Indianised one: it
showed a person returning from the US and feeling thrilled on discovering Stroh in
India. However, this time, MSBL will reinforce Stroh's American-ness in its
advertising -- just as Foster's is positioned as an Australian beer.

 To build a one-on-one relationship with potential consumers, a direct mailer
highlighting the brand's USP--`Fire Brewed Beer'--is being sent to all its
distributors, retailers, bars and clubs, as well as high networth consumers.

In the first phase MSBL is focusing on selective marketing in six markets
(Rajasthan, West Bengal, Haryana, Chandigarh, Punjab and Delhi) to cover over
2,000 retail outlets and over 500 bars/restaurants from its existing network of over
165 dealerships, 6,000retail outlets and 1,300 bars and restaurants in 18 states.
Says Bali, ``Efforts would be made to convert some of the major outlets in metros
into exclusive outlets under tie-up arrangements.''

 In association with event management company Crayons, MSBL will organise
at least one mega event a month, from July 1999, in towns like Chandigarh, Jaipur,
Calcutta, Delhi, Jamshedpur and Guwahati. The events would include fashion
shows, polo matches, rock concerts, rain dances, spot events and theatre. Says Bali,
``We are also considering celebrity endorsements by sports and cine stars.''
Moreover, Stroh would also sponsor various `happening events' and carnivals in
other towns.



                                    18


SHIV SACHDEVA         MBA,                                       SESSION-2008-10
 Special promotions on the concept of `The Great American Beer' will be held
at places which are associated with hanging out and having fun and symbolic of
American culture: pool parlours, bowling alleys, Go-Kart circuits and other
recreation centres.

 MSBL's field force of 85--all wearing branded Stroh T-shirts, caps andunique
electronic badges--will aggressively promote the campaign `Let's Stroh a Party'
with the help of POS materials like posters, banners, bunting, danglers, stickers,
dispensers, glow signs etc at institutions and retail outlets.

 Also, special promotions like the Best-Decorated Stroh shop and Demand-A-
Stroh will be conducted through the retail counters to ensure that the product
reaches the targeted consumer. At the institutional level, Stroh would be promoted
via Happy Hours on Saturdays/Sundays as well as special offers during regular
hours. Ninety per cent of MSBL's sales come from retail outlets and the remaining
10 per cent from institutions.

 MSBL also plans to communicate messages like `Drink Smart or Don't Start'
via its POS materials. To project a caring image it is also planning to associate
with organisations dealing in environment-related issues.

 MSBL has also identified sports like golf, cricket, bowling, pool, polo, football
and tennis for the promotion of Stroh indifferent markets. Stroh has already tapped
the mood of the World Cup revellers by distributing a 42-page pocket Stroh World
Cup diary giving the entire schedule of matches, at the institution and retail level.



                                        19

SHIV SACHDEVA          MBA,                                        SESSION-2008-10
With the Stroh initiatives ready to pour, MSBL expects a 20 per cent
increase in its turnover next year, from an estimated Rs 100 crore in 1998-99.
That's reason enough to cheer.

Golden Peacock raises a toast to India XI

Do beer and cricket go together? Mount Shivalik Breweries Ltd (MSBL) certainly
thinks so--especially given the initiatives undertaken by the hospitality industry to
woo consumers to watch World Cup matches in restaurants. To benefit from the
special packages offered by hotels, restaurants and bars, MSBL is currently
running a promotion for Golden Peacock (GP), its premium lager beer brand.

Called `Go for India, Go for GP', the promotion targets institutional sales and
offers consumers a one pint bottle (330 ml) free on the purchase of one bottle of
650 ml GP; and one 650ml bottle free on the purchase of two 650 ml bottles of GP.
The promotion will run for the entire duration of the World Cup -- irrespective of
India's participation -- in the cities of Jaipur, Delhi and Chandigarh.




                                          20


SHIV SACHDEVA          MBA,                                        SESSION-2008-10
COMPETITORS

Today‘s world is the competition. In every filed there is competition and the

success of any company or product largely depends upon competition.

Competition provides a good quality of product to the customer. If a company has

to survive in the market, then it has to face throughout competition. In liquor

industry too the competition is there. The increasing awareness and exposure to

beer among consumers and the removal of quantitative restrictions gives big boost

to the beer industry. It saw the emergence of new companies like future wine and

spirit brand (P) Ltd (FWSB), set up recently by two Non-Resident Indians (NRI‘s)

from USA. ‗BEER‘ consumption in the country increased 7-9 % per year.




                                21


SHIV SACHDEVA        MBA,                                     SESSION-2008-10
1. SABMiller India


SABMiller India is a wholly owned subsidiary of SABMiller plc, the second

largest beer Company in the world over a hundred years of heritage.


SABMiller India sojourn began in 2000 and in just a few years, its has cornered

nearly on third of the India beer market with brands such as Haywards 5000.

Haywards 2000, Haywards Black, Knock Out, Royal Challenge. Castle Lager and

Fosters.


Based on consumer insights, SABMiller India has taken innovative measures to fill

up the packaging, pricing, occasion and product gaps. Expertise on a global level

has come in use to create many firsts in India including the use of one-way bottles,

flash pasteurization, establishing draught standard, and now Haywards Black-a

genuine stout beer.


With ten world-class breweries strategically located across India. SABMiller is

well positioned to easily access and efficiently service the beer markets.




                                 22




SHIV SACHDEVA         MBA,                                        SESSION-2008-10
The Company‘s to India and ethos of quality reflected in the fact that it

invested over Rs. 125 crore in the last two years to upgrade breweries in line with

global standards.


SABMiller is a market facing and brand led organization that continuously

refreshes itself in pursuit of its mission of owning and nurturing local and

international beer brands which are the first choice of the consumer.


The company invests in bottles, which are returnable in nature are accounted for as

fixed assets in its books. The company pays to its customers/agents for returning

the empty bottles at the prevailing market prices. The company urges its

customer/agents to return the empty bottles to the company for which the company

will reimburse them at prevailing market prices.



2. UNITED BREWERIES LTD.


The UB group commenced its brewing operations as early as the 19 th century

(1857) with fire small breweries in South India. In 1951, a Scotsman named

Thomas Leishman combined the five breweries to form United Breweries .

                                    23



SHIV SACHDEVA         MBA,                                       SESSION-2008-10
The company was taken over by Vijay Malaya in 1947. In 1952 the

company shifted its registered office Madras to Bangalore. In 1958 the name of the

company was changed from United Breweries Ltd. To UB Ltd. In 1989 as a

measure of diversification the company stated manufacturer of bulk drug, the

pharmaceuticals on a priority basis.

In 1992, 11 different breweries were and amalgamated with the parent company. In

1994 the company launched its ‗Kalyani Premier Strong‘ and started exporting

‗Kalyani Export Special‘ to U.K The company presently has 21 breweries under its

direct or indirect control. Recently the company has started implementing

restructuring excise unless which it has dedicated to split its business into two-the

core beer business and the group invertment business. The company has dedicated

to focus on core business and to hive off non-core business.

United Breweries launched the countries premium ice beer to be introduced in

Mumbai and selected cities of Maharashtra.

The United Breweries Ltd. And its subsidiary Millennium Alcoveb           Ltd. Have

entered into a contract agreement with Mohan Meakins to brew beer at the later‘s

facilities in Maharashtra, Uttar Pradesh, Andhra Pradesh and Daman.



                                 24


SHIV SACHDEVA         MBA,                                       SESSION-2008-10
Mr. Ravi Jians millennium alcoveb Ltd A subsidiary of united

breweries is in negotiations with an international beer company for an equity joint

venture to making a Super Premium Beer in India.



UB Ltd. Has carried out a reorganization of its business by hiring off fours

subsidiaries and making seven companies its fully owned aims apart from

acquiring the sorghums business in South Africa breweries ltd.

Relawant of San Mighel and London Lilsnex, the new beer brands in it portfolio

United Breweries (Holiday), a wholly owned subsidiary of united Breweries has

entered into an agreement to acquire up to 75% of the paid of equity capital of

Mangalore Breweries and Distilleries Ltd.

UB group has signed reseller and license agreement to market steel first faster

steaming media solutions Asia.

UB Ltd. The largest beer manufacturer and marketing company, has launched two

more premium brands-London pilsner Premium beer and London No. 1 Strong

beer in Hyderabad




                                    25


SHIV SACHDEVA         MBA,                                       SESSION-2008-10
3. COBRA BEER


Cobra Beer is a British beer company founded in 1989 by Karan Bilimoria. The

company is based in Fulham, southwest London. Originally brewed in Bangalore,

India (now Bengaluru), for export to the United Kingdom, the company now has

contract brewing operations in the UK (Charles Wells), Poland, Belgium, the

Netherlands and India. Cobra Beer was founded in 1989 by Arjun Reddy and

Karan Bilimoria, then aged 27 and £20,000 in debt. A Cambridge law graduate and

qualified Chartered Accountant, Bilimoria launched Cobra Beer after spotting a

gap in the market for a less gassy lager. The beer was originally planned to be

named 'Panther', but the name 'Panther' did not portray the picture of India and

hence a more suitable and iconic name i.e. 'Cobra' was chosen.


By way of introduction by Arjun's uncle Keshow Reddy the two founders were

introduced to Mysore Breweries in India, who were the original brewers of Cobra

beer.




                                 26



SHIV SACHDEVA        MBA,                                        SESSION-2008-10
Cobra was first brewed in Bangalore (now Bengaluru) in 1990

and imported to the UK for seven years. In 1997 Cobra commenced brewing under

licence with Charles Wells in the UK. A 125 year old, family run brewery and the

largest independent brewery in the UK, Charles Wells brew leading international

beer brands including Kirin from Japan and Red Stripe from Jamaica. The business

recently stopped brewing in Poland for cost saving reasons and returned brewing to


contract breweries in the UK Cobra Beer has also partnered with Mount Shivalik

Group, the largest independent brewing company in India, to brew Cobra under

licence for India‘s rapidly growing domestic market.


Currently, Cobra presently produces five varieties of beer:

       Cobra 5.0% Premium


       Cobra Zero %


       Cobra Light


       King Cobra


       Cobra Bite

                                       27


SHIV SACHDEVA          MBA,                                    SESSION-2008-10
PARENT UNIT OF MOUNT SHIVALIK BREWERY LTD


The registered office of Mount shivalik brewery Limited is situated at in different
state

      Mount Shivalik Breweries Ltd. Mohangram,P.O. Bhankarpur, Distt

      Mohali,Punjab,India


      Mount Shivalik Breweries Ltd. Rajasthan


      MSB SPIRIT BOTTLING PLANT Chandigarh




                                       28


SHIV SACHDEVA         MBA,                                       SESSION-2008-10
A COMPLETE BRAND PROFILE OF MSBL IS AS UNDER:
Strong Beer Segment:          Thunderbolt Super Strong

                              Thunderbolt Gold Premium

                              Punjab Extra Strong

                              Stroh's Super Strong



Mild Beer Segment:            Slimms Lite

                              Golden Peacock Premium Lager

                              Punjab Extra Special

                              Stroh's Premium Lager

NOTE-

Among strong beer (8.25%) two brands are available in market namely

a) THUNDERBOLT SUPER STRONG BEER

b) STROH SUPER STRONG BEER

Among mild beer ( 5.25%) two brands are available in market namely

   a) STROH MILD BEER
   b) GOLDEN PEACOCK BEER
Drought Beer is also manufactured and brand names are

   a) thunderbolt strong
   b) stroh mild
                                  29


SHIV SACHDEVA        MBA,                                    SESSION-2008-10
BEER

Beer is not a distillate like the drinks mentioned above but it is a beverage made by

fermentation of malt obtained from carbohydrate rich material barley. Hops are

used to add taste while yeast is used to ferment the beer.



Beer is to two types :

   1. Pilsner or Lager

   2. Draught



   Lager Beer is the most common bottled Beer found in almost all the retail

   shops in the country. This Beer is served chilled and is of two types.

       Mild Beer alcohol content of 5.25%.

      Strong Beer alcohol content of 8.25%.




                                      30




SHIV SACHDEVA            MBA,                                    SESSION-2008-10
PROCESS OF MAKING BEER


Ingredients-the simple formula for brewing beer is to convert three national
ingredients i.e. malted barley,hops,and water –using yeast to ferment this
wonderful combination of ingredients, mount shivalik combines expertise and
practical experience with frequent control tests during each stage of the brewing

Malt mall- first, the malt is brought to the malt mall, each type of beer requires a
different types of combinations of malted grains….

Fermentation- this is the next step in the brewing of beer. The temperature in
fermentation is initially kept here for 2-3 weeks, lagers are actually kept longer.

Filtration-after fermentation ,the next step in brewing, is filtration before the beer
is sent to the serving tank where it is bottled

Bottling-after filtration beer is sent to the serving, where it get bottled.

Pasturisation-after the beer is bottled, it is send for pasturisation ,this is the last
process in the brewing of beer.

Packaging-the beer finally is ready for the market and it goes to packaging and
labeling house.

Recycle-the company is committed towards clean environment by using recycled
corrugated boxes, light weight bottles and using the spend grains from brewing
process as high protain for livestock feed .

Besides this the company is also involved in the various environment friendly
programs such as wild life foundation, preserve the environment ,sane the forests.



                                       31



SHIV SACHDEVA           MBA,                                         SESSION-2008-10
The company to operate in India has divided it into 4 zones each
zone covering some states:-



Zone 1 :        Jammu & Kashmir, Punjab,.


Zone 2:         Himachal, Haryana, Uttarakhand


Zone 3:         Chandigarh , Delhi , CSD


Zone 4:         Jharkhand, Bihar, Orissa, West Bengal, etc




                               32

SHIV SACHDEVA      MBA,                                SESSION-2008-10
Sales Promotion :
    Definition:
                    It covers marketing activities other then advertising, publicity and
    personal selling that stimulate consumer purchasing and dealer effectiveness. Such
    activities are displays, shows, exhibitions, demonstrations and many other non-
    routine selling efforts like spot selling. Sales promotion tries to complement the
    other means of promotion given above.

                    All kinds of promotion plays the role of communication channels
    between the marketer and the consumer. Promotion as on element of marketing
    mix has three broad objectives:

(a) Information, (b) persuasion, (c) reminding.

                    The overall objective of promotion is, of course, influencing the
       buyer behavior and his predispositions (needs, attitudes, goals, beliefs, values
       and preferences).

                      According to the American Marketing Association, the sales
       promotion can be defined as ―Those marketing activities other then personnel
       selling advertising and publicity, that stimulate consumer purchasing and dealer
       effectiveness, such as displays, show and exhibition, demonstration and various
       non-current efforts not in the ordinary routine‖.




                                           33


    SHIV SACHDEVA          MBA,                                       SESSION-2008-10
The Marketing MIX: Ingredients for Success
The marketing mix, earlier known as the 4 P‘s,(but now has a few more),is a vital
part of any marketing strategy. This is a tool whereby the marketer takes decisions
on what and how a product should be, where it can be sold, how it should be
priced, how it will be promoted, how to equip the people who are responsible for
selling the product…and so on. Getting the marketing mix right is equally
important for the large corporation and the small business owner. One of the most
critical marketing management decisions is that decision of setting the marketing
mix values, and select ing and employing strategy that periodically change that
marketing mixes in response to changing business environment.

 Product
   1. No.1 selling product in its segment.

   2. Good quality raw material is used to maintain the quality standards.

   3. Consistency of product quality is high.

   4. Always tastes fresh due to good quality and well developed distribution
      network.

   Place-
      1. it is available in many states Punjab, Haryana in other states

      2. Company location plant Punjab, Rajasthan




                                    34


SHIV SACHDEVA         MBA,                                       SESSION-2008-10
Distribution Network




                                       APB
                                   Breweries


                                  Distributors




                               On / Off Premise

                                   Locations




                                End Consumer




 Price-
   In both mild and strong beer segments thunderbolt beer uses competitive price
   strategy

   650ml

   .RS 65

                                     35


SHIV SACHDEVA        MBA,                                      SESSION-2008-10
Promotion
      Promotion includes advertising and other forms of sales presentations,
designed to encourage fast consumer or trade up-take of a product or service. The
form of any promotion depends on the product, the marketing plan and its
objectives, and on the imagination of the product management team. It can vary
from a simple in-store demonstration, or sampling, or a tie-in with on premises. A
range of promotional tools, techniques and activities are mixed and matched to
meet the needs of individual marketing campaigns.



Major Tools in Marketing Beer

Publications: Companies rely extensively on published materials to reach and
influence target markets, including annual reports, brochures, articles, printed and
on-line newsletters and magazines, and audiovisual materials.

Events: Companies can draw attention to new products or other company activities
by arranging special events like news conferences, on-line chats, contests and
competitions, and sport and cultural sponsorships that will reach the target publics.

News: One of the major tasks of PR professionals is to find or create favorable
news about the company, its products, and its people. The next step is getting the
media to accept press releases and attend press conferences.



                                   36



SHIV SACHDEVA         MBA,                                        SESSION-2008-10
Marketing Activities at MSBL


      Brand Advertising

      Promotional Activities in on & off trade

      Experiential marketing

      Consumer planning

      Relationship marketing

      Consumer PR

      Brand Website & online activities

      Packaging




                                    37



SHIV SACHDEVA        MBA,                        SESSION-2008-10
Factors Influencing Company Marketing Strategy




There are various forms of marketing which are used for promoting the product in
market.




                                   38


SHIV SACHDEVA        MBA,                                     SESSION-2008-10
Relationship between PLC & Marketing Strategies
Like human beings, products also have life cycles. That is, they're born, and then—
over time—their sales grow, mature, and finally decline. The strategies with which
you market a product need to change with each of these life-cycle phases. The
table below shows a few examples of how this might work:



PLC Stage       Characteristics                     Marketing               Market Strategies

                                                    Objectives

Product         Low sales, high cost per            Create product          Offer a basic product,
                customer, no profits, few           awareness and trial
Introduction                                                                Use heavy promotions to
                competitors
                                                                            entice trial

Product         Rising sales and profits, more      Maximize market         Offer product
                and more competitors                share
Growth                                                                      Extensions

Product         Peaking sales and profits, stable   Maximize profit while   Diversify brands
                or declining number of              defending market
Maturity
                competitors                         share
                                                                            Intensify promotion to
                                                                            encourage switching to
                                                                            new brands

Product         Declining sales, profits, and       Reduce expenditure      Phase out weak Products,
                number of competitors               and "milk" the brand
Decline                                                                     Cut price;

                                                                            Reduce promotion




                                            39



SHIV SACHDEVA              MBA,                                                 SESSION-2008-10
Packaging


       Packaging, as defined by Kotler and Keller, refers to ‗all the activities of
designing and producing the container for a product.‘ Though the primary purpose
of packaging is to serve against damage during the movement of the product, it is
no longer the only purpose that it serves. Packaging, and not the product, is the
first touch-point that the customer comes into contact with. A substandard product
within a unique packaging might be easier to sell as against a superior product
packaged in a substandard pack. Superior packaging would not ensure repeat sales
though. Packaging is an effective tool to make the product distinguishable in the
clutter.

       Packaging, the fifth and final stage of the brewing process, prepares the beer
for distribution and consumption. During packaging, beer is put into the vessel
from which it will be served: a keg, cask, can or bottle. Beer is carbonated in its
package, either by forcing carbon dioxide into the beer or by "natural carbonation".

           Most products have multiple levels of packaging. For example, thunderbolt
Beer is packed in a glass bottle (primary package). These individual bottles are
then packed in cartoon case (secondary package). Each of these packages serve a
different purpose.




                                     41


SHIV SACHDEVA            MBA,                                    SESSION-2008-10
Thunderbolt label design




Thunderbolt bottle



                                 42


SHIV SACHDEVA        MBA,                        SESSION-2008-10
Beer Advertising

      Advertising of beer is a topic that has frequently attracted the attention of
industrial organization economists. For beer advertising several interrelated issues
should be analyzed, including:

   1. The importance of advertising and product differentiation for structural
      change in the brewing industry

   2. The manner and extent to which brewers can strategically alter market
      shares using advertising

   3. The social costs of alcohol advertising and marketing.

      Analyses of both issues include attempts to determine the net welfare effects
of beer advertising. On the third issue, economists have analyzed advertising‘s
possible influence on alcohol consumption and underage drinking, and as a
contributor to social costs such as drunken driving fatalities. Several regulatory
concerns are related to this issue, including use of advertising bans; advertising
placements that might target underage youth; legal rights of states under the three-
tier system of alcohol distribution; and other advertising or marketing restrictions
that affect competition in the industry (e.g., price advertising bans, price-posting
and price affirmation laws)




                                    43



SHIV SACHDEVA         MBA,                                      SESSION-2008-10
SWOT Analysis of MSBL


Strength
   • Production capacity

   • Premium Quality Product

   • Experience Management team




Weakness
   • Low Advertising & Promotion Spends

   • Less Manpower

   • Products not available in Cans

   • Low Market Share

   • Inefficient Distributors

   • Less Market Visibility




                                 44


SHIV SACHDEVA        MBA,                 SESSION-2008-10
Opportunities

   • Regional Expansions

   • Production Volumes

   • Higher Profits

   • Increased Market share



Threats

   • Competitors High Spends

   • International Players

   • Government Laws

   • Taxes & Tariffs




                               45




SHIV SACHDEVA         MBA,          SESSION-2008-10
Whereas advertising gives a reason to
buy, SP gives an incentive to buy

It is part of the Marketing spend of all companies and

these days SP spends in many companies exceed that of

the ad spend




Why?
      Internal

      External



                           46



SHIV SACHDEVA    MBA,                        SESSION-2008-10
Internal reasons
      Top management is more conducive to
      spending on promotions
      Line managers under greater pressure to
      achieve targets
      Justification of expenditure is easy
External reasons
      Increase in number of brands
      Consumer is more price savvy
      Greater pressure from trade to liquidate
      stocks
Add effectiveness declining owing to rising
costs, media clutter and legal constraints

                       47


SHIV SACHDEVA   MBA,                     SESSION-2008-10
SP is a push strategy


   •      Since it is at the last point where the
       consumer is often at the point of buying, the
       additional incentive makes a last ditch effort
       to convert the customer on to the
       incentivised brand
SP is of two types
   • Trade
   • Consumer
Trade promotion
   • Liquidating heavy inventories
   • Persuade retailers to carry stock, carry more
     than usual stock, promote brand franchise
                         48



SHIV SACHDEVA   MBA,                      SESSION-2008-10
Consumer promotion
   • Stimulate purchase
   • Induce trial
   • Create new users
   • Increase repurchase from occasional
     customers
   • Reward loyal customers
Forms of trade promotion
   • Bulk discounts
   • Free materials
   • Display windows
   • Shelf hiring
   • Lucky draws
   • ‗Mystery‘ customer
   • Redistribution incentives
                       49

SHIV SACHDEVA   MBA,                 SESSION-2008-10
Forms of consumer promotion


   • Free samples
   • Free gifts
   • Coupons
   • In-packs
   • Price packs
   • Price-offs
   • Sweepstakes
   • Bundling offers




                       50


SHIV SACHDEVA   MBA,          SESSION-2008-10
Sales Promotion:

   PERSONAL                  ADVERTISING
   SELLING


PUBLICITY                      SALES
                            PROMOTION




                       51


SHIV SACHDEVA   MBA,               SESSION-2008-10
Sales Promotion
Product sampling, demonstration
Coupons, refunds

Rebates, cents-off-

Contests, games & sweepstakes


Premiums

Multiple purchase offers,
Frequent-user incentives

P-O-P material
Product placements/tie-ins
                       52


SHIV SACHDEVA   MBA,              SESSION-2008-10
Classifying Types of Sales Promotion
Promotional             Non-price           sampling
  Pricing               Promotions
• Price reductions     . contents          .imported the



• Free goods           . free gift         .food products



• Tied offers          . self-supporting   .very expensive



• Money off next purchase




                            53



SHIV SACHDEVA   MBA,                         SESSION-2008-10
Market Segmentation I

      Sales of standard lager form the most lucrative sector of the Indian beer
market, with an 87% share of the market's value. In addition, sales of premium
lager generate a further 6.2% of the market's revenues.




                Category                      % Share

                Standard lager                87.00%

                Premium lager                 6.20%

                Ales, stouts & bitters        3.20%

                Low/no alcohol                2.90%

                Specialty beer                0.70%

                Total                         100.0%




                                  54




SHIV SACHDEVA           MBA,                                SESSION-2008-10
Market Segmentation II

        India accounts for 1.3% of the Asia-Pacific market by value. In comparison,
Japan generates 45.5% of the market's revenues




Geography                     % Share

Japan                         45.50%

China                         36.40%


South Korea                   9.50%

Rest of Asia-Pacific          7.30%

India                         1.30%


Total                         100.0%




                                      55



SHIV SACHDEVA          MBA,                                      SESSION-2008-10
Objectives of the Sales Promotion:

               There are many ways by which sales can be increased and more
orders can be obtained. This can be done by increasing advertising publicity and
market research. The major objective of sales promotion are :-

   - To increase the sales.
   - To make the customer aware of the product.

   - To persuade non-users to try it once.
   - To sell the new product.

 Advertising :

            “Any paid form of non-personal personal presentation and
      promotion of ideas, goods or services by an identified sponsor.”

               It is paid communication because the advertising appears.
      Advertising appears in magazines, radio, TV, film and transit (car cards).
                According to Russel and Veril “Advertising is a message paid for by
      an identified sponsor and delivered through some medium of mass
      communication”.
Classifications of Advertising :
 They can be classified as :
   (1) Audiences, (2) Types of Advertisers and (3) Media




                                     56

SHIV SACHDEVA         MBA,                                       SESSION-2008-10
Marketing Activities :
Sales :
   a) Making personal calls to concerned agents.
    b) Generating orders for products.
    c) Reporting on product movements or problems.
   d) Obtained special displays, features etc.



    e) Gaining new accounts.

    f) Checking of pricing, material and product availability in stores.

Publicity :

              Publicity can be defined as the activity of “Securing editorial space,
as divorced from paid space, in all media which are read or heard by the
company’s customers or prospects, for the specific purpose of assisting in the
meeting of sales goals.

            In other words, publicity refers to an appeal made to a mass of
people publicity in making goods, “Publicity known”. It constitute a mass
approach.

                       Publicity can also defined as the first communication about
the product and its detailed history through the media, radio and so on before the
actual manufacture and launching of the product to get the response of the users
or consumers.

          Usually Sugar Industry requires no advertising publicity.

                                     57


SHIV SACHDEVA          MBA,                                       SESSION-2008-10
Marketing Activities of Public Relation :

    a) Generation news, features about the business, its people and its products.

    b) Handing press inquiries and interviews.

    c) Preparing statement and releases.

    d) Helping counter in-favorable publicity.

    e) Preparing and distributing communications to special interested groups
       such as stock-holders suppliers.

    f) Handling product and regularly public



Personal selling:

                    Personal selling is a broader concepts and invoices oral
presentation in conversation with one or more prospective buyers for making sales.
The main purpose of personal selling is to bring the product and the company in
the knowledge of the prospective buyers and to convince them about the quantity
of product of products and make certain that ownership transfer will take place.




                                    58


SHIV SACHDEVA         MBA,                                      SESSION-2008-10
According to Richard Bushik,personal selling consists of contacting
prospective buyers personally.

                       According to American marketing association, personal
selling is an oral presentation in conversation with one or more prospective
purchasers for the purpose of making sales. Personal selling is the most important
ingredient in the promoting mix. It renders valuable services to consumers,
producers and the society. It is an effective of sales promotion. Unlike advertising
personal selling is present in all the three phases of buying.

                              Personal selling in an effective media of selling. It is
the      largest single cost accounting say for 20% of net sales in several business
enterprises. Besides this, there are many other advantages of personal selling also.

Distribution Channels:

                      Distributional channels those systems of economic
institutions through which a producer of goods delivers them into the hands of
their users. As society shifted from producing things in the home to buying goods
manufactured in centralized locations, there arose a need for some means to
distribute the products from the central points of production to the dispersed
populace. Channels of distribution furnish this bridge between the producer and
the consumer.



                                         59


SHIV SACHDEVA          MBA,                                          SESSION-2008-10
Tremendous amount of time and money
would be expended in just acquiring the minimum amount of goods one would
need for survival. Marketing channels funnels the goods demanded by the
consumer to the place where he wishes to purchase them, and create three basic
utilities, viz.

1. Place

2. Ownership, and

3. Time

 Marketing institutions must move the goods from point of production to the point
of purchase i.e. consumption. this creates place utility, because goods will have
no value to the buyer If they are still in hands of manufacturer

                  Marketing channels arrange for the transfer of title of the goods
   from the manufacturer to the buyer. This creates ownership utility.

   Marketing channels must have arranged goods available to the user when he
   wants them, this creates time utility. In great part of US bathing suits gave little
   value to the consumer in the month of January, in fact, the manufacturer

                               Of swimming apparel must make them during the
   winter because a substantial amount of lead time is necessary to ensure that
   ample merchandise is on hand at that time is demanded. Channels of
   distribution frequently absorb much of this difference in time between
   production and consumption. This statement does not imply that all marketing
   activities do not have a bearing on the creation of these utilities. Although
   advertising may stimulate ownership utility by making a person want
   something, the actual ownership utility is created on the transfer of title from
   the retailer to the individual

The title does not always automatically follow the actual trail of the merchandise.



                                     60



SHIV SACHDEVA          MBA,                                        SESSION-2008-10
Channel Originated Behavior:

          It should not be assumed that marketing channels are passive institutions
   moving only at the order of manufactures. Most aggressive middleman will
   institute the economic behavior of their own when they see a need for it market
   place. Many retailers and wholesalers have originated their own brands with
   which they compete in the market place side by side.



                        Often in conflict with the promotional programmes of the
manufacturers with whom middleman deal they originate promotions of their own.
A food manufacturer have a certain promotion under way which requires a man
floor display in super market, but the super market owner may have promotional
plan of this own that do not provide for such display. In fact middlemen have
learned through their bitter experiences of business that the interests of the
manufacturer are not always identical with theirs. Often middlemen modify a
manufacturer product in an attempt to make it more appealing to the consumer.
Ready-to-wear stores will frequently change the labels and alter some of
accessories of the apparel they sell.

                   Intact, middlemen are influential in determining the actual
   location at which the merchandise will be delivered to the customers. Although
   manufacturers have some degree of control over location through their selection
   of outlets but in fact, it is the dealer who will make the final decision
   concerning where the merchandise should be sold to customer.

                                        61


SHIV SACHDEVA          MBA,                                        SESSION-2008-10
Channel Arrangement:
                      Four major alternative channel arrangement have been
   described below which differ significantly in their capability for creating sales,
   in their costs of operation and their susceptibility to control. Once they are
   choose, the firm must adhere to them for a substantial period of time.

   1. The first channel consist of direct sales of goods by producer to ultimate

   2. The seconds marketing channel shows one selling intermediates between the
      producer and the ultimate consumer. If the middlemen is retailer, his
      function is to purchase the producer‘s goods and resale them at a profit.
      They deal with many producers. P-R-C

   3. The third marketing channel shows two different selling intermediaries. The
      most common example consists of wholesaler and retailer. This is known as
      the linkage. P-W-R-C
The last channel consists of three selling intermediaries where a jobber usually
intervenes between the wholesalers and the retailers. The linkage is P-W-J-R-C.
The jobber buys from wholesalers and sells to small retailers, who generally are
not serviced by the large wholesalers

      P = PRODUCER, W=WHOLESALER, J=JOBBER, R=RETAILER,
      C=CUSTOMER

Sales promotion is a tool used to achieve most of the five major promotional
objectives discussed in the Promotion Decisions tutorial:

Building Product Awareness – Several sales promotion techniques are highly
effective in exposing customers to products for the first time and can serve as key
promotional components in the early stages of new product introduction.
Additionally, as part of the effort to build product awareness, several sales
promotion techniques possess the added advantage of capturing customer
information at the time of exposure to the promotion.

                                   62


SHIV SACHDEVA         MBA,                                        SESSION-2008-10
In this way sales promotion can act as an effective customer information
gathering tool (i.e., sales lead generation), which can then be used as part of
follow-up marketing efforts.

                       Creating Interest – Marketers find that sales promotions are
very effective in creating interest in a product. In fact, creating interest is often
considered the most important use of sales promotion. In the retail industry an
appealing sales promotions can significantly increase customer traffic to retail
outlets. Internet marketers can use similar approaches to bolster the number of
website visitors. Another important way to create interest is to move customers to
experience a product. Several sales promotion techniques offer the opportunity for
customers to try products for free or at low cost.

Providing Information – Generally sales promotion techniques are designed to
move customers to some action and are rarely simply informational in nature.
However, some sales promotions do offer customers access to product information.
For instance, a promotion may allow customers to try a fee-based online service
for free for several days. This free access may include receiving product
information via email.

Stimulating Demand – Next to building initial product awareness, the most
important use of sales promotion is to build demand by convincing customers to
make a purchase. Special promotions, especially those that lower the cost of
ownership to the customer (e.g., price reduction), can be employed to stimulate
sales.

                                       63



SHIV SACHDEVA           MBA,                                         SESSION-2008-10
Reinforcing the Brand – Once customers have made a purchase sales
promotion can be used to both encourage additional purchasing and also as a
reward for purchase loyalty (see loyalty programs below).

Promotional Strategy

1. Deciding Promotional Mix
Personal selling, advertisement and sales promotion are some of the promotional

methods. During most of the situations two or more promotional methods are to be

used for each campaign. Generally with the help of a single method it is not

possible to succeed. Advertising needs the support of personal selling or display to

increase the sales. Sometimes even the personal selling alone cannot be successful

without the support of advertisement.


An ideal promotion mix is that situation where the total expenditure incurred for

various promotion methods is minimum and sales by such mix is maximum.

Promotion mix means finding out the proper ratio of usage of different methods of

promotion. The management must find out, how much amount should be spent on

each promotional activity. Promotional mix is influenced by the following factors.




                                    64



SHIV SACHDEVA         MBA,                                       SESSION-2008-10
(a) Nature of the product

Nature of the product will be decide the promotional mix. For consumer goods
advertisement and dealer display will have more effect. Industrial goods with high
technology will need much of personal selling and cosmetics, blades etc, will
require more of advertisement than personal selling and display




(b) Nature of the Customer

If the communications are mostly to middlemen, then personal selling will be more
effective and very little spending on advertisement will do. If information are to be
passed to consumers and when the number of consumers is large, it is better to
advertise. Especially if customers are scattered, then advertisement alone can be
successful.

(c) Nature of the Market

If market for a product is only local then personal selling alone will be sufficient.




                                       65


SHIV SACHDEVA          MBA,                                        SESSION-2008-10
Top 10 Reasons Beer is Good for your Health
       Everyone is looking for a reason to drink beer. Right? It turns out that a lot
of people are. So here are 10 great reasons to drink more beer. Not only that, but
they're all true. Beer really is good for your health, so drink up!



Beer Reduces Stress

     Alcohol in general has been shown to reduce stress. This one is obvious, and
may be the best reason beer is good for your health.



Beer is Good for the Heart

     A study was conducted from 1982 - 1996 on the elderly. It was found that
those who drank at least 1.5 per day had a 20-50 percent less chance of having
heart failure.



Beer Improves Blood Circulation

      Beer increases your "good" cholesterol, or HDL (high-density lipoprotein)
cholesterol. Its basically a kind of blood fat, so it reduces blood's tendency to clot.




                                    66

SHIV SACHDEVA          MBA,                                           SESSION-2008-10
Beer is Chock Full o' Fiber

     The fiber comes from the cell walls of the malted barley. A liter of beer can
have as much as 60% of your daily recommended fiber. The extra fiber will keep
you regular and can also lower the risk of heart disease.



Beer as a Multi-vitamin

     Beer is a significant source of magnesium, selenium, potassium, phosphorus,
biotin, folate, vitamin B6 and vitamin B12



Beer can Prevent Strokes

     A study published in Stroke magazine in 2001 showed that alcohol drinkers
have fewer strokes. Because it thins the blood, it increases the circulation in the
brain, thereby protecting from silent strokes which are cause by tiny blood clots.

Beer keeps your Brain Young

     A large study, published in the December 2001 issue of Alcoholism: Clinical
& Experimental Research, was conducted on elderly italian men and women. It
showed that moderate drinkers had a 40% lower risk of mental impairment.




                                   67


SHIV SACHDEVA         MBA,                                       SESSION-2008-10
Beer is Good for your Liver

       Alcohol expands the small blood vessels in the liver. This speeds up
metabolism so it can help clean all the toxins out of the liver. This is from Beer Net
Publication, April 2001 Biological Institute.



Beer Cures Insomnia

     Lactoflavin and nicotinic acid, both present in beer, can promote sleep. Also
hops are a natural sedative.



Beer Fends off Gallstones

     According to Professor Oliver James at the University of Newcastle, beer
protects against gallstones and kidney stones.




                                  68

SHIV SACHDEVA         MBA,                                        SESSION-2008-10
Stock Data:                                        Recent Stock Performance:
                                                      1 Week         1.5%    13 Weeks          -14.2%
    Current Price (7/17/2009):       41.60
    (Figures in Indian Rupees)                        4 Weeks          4.3%     52 Weeks       -19.8%

     Mount Shivalik Breweries Limited Key Data:


     Ticker:                507522                     Country:                  INDIA


     Exchanges:             BOM                        Major Industry:           Food & Beverages


                                                       Sub Industry:             Brewers


                            927,979,682
     2008 Sales                                        Employees:                140
                            (Year Ending Jan 2009).


     Currency:              Indian Rupees              Market Cap:               251,542,720


     Fiscal Yr Ends:        March                      Shares Outstanding:       6,046,700


     Share Type:            Ordinary                   Closely Held Shares:      2,559,684




                                            69




SHIV SACHDEVA             MBA,                                           SESSION-2008-10
RESEARCH METHDOLOGY

Research – Research is common parlance refers to a search for knowledge. The

Advanced Learner‘s Dictionary of Current English lays down the meaning of

research as ―A careful investigation or inquiry specially through search for

new facts in any branch of knowledge” According to Redman & Mory ―A

systematized effort to gain new knowledge.”

Research Methodology- It is the way to systematically solve the research

problem. It may be understood as a science of studying how research is done

scientifically. In it we study the various steps that are generally adopted by a

researcher in studying his research problem along with the logic behind them.




                                  70


SHIV SACHDEVA         MBA,                                     SESSION-2008-10
Types of research Design:-

   1. Descriptive Research Design – Descriptive research studies are those studies

      which are concerned with describing the characteristics of a particular

      individual, or of a group.


   2. Hypothesis Research Design – Hypothesis testing research studies (generally

      known as experimental studies) are those where researcher tests the

      hypotheses of causal relationship between variables.


   3. Exploratory Research Design - Exploratory research studies are also termed

      as formulative Research studies. The main purpose of such studies is that of

      formulating a problem for more precise investigation or of developing the

      working hypothesis from and operational point of view. The major emphasis

      in such studies is on the discovery of idea and insights. As such the research

      design appropriate for such studies must be flexible enough to provide

      opportunity for considering different aspects of problem under studies.




                                   71


SHIV SACHDEVA         MBA,                                      SESSION-2008-10
Sampling- Sampling may be defined as the selection of some part of an

   aggregate or totality on the basis of which a judgment about the aggregate is

   made. In other words, process of obtaining information about an entire

   population by examining only a part of it. In most of the research.


   Types of sampling:-

   1. Systematic Sampling- The most practical way of sampling is to select every

      ith item on a list. This kind of sampling known as systematic sampling.


   2. Stratified Sampling- If a population from which a sample is to be drawn

      does not constitute a homogeneous group, stratified sampling technique is

      applied in order to obtain representative sample.

   3. Cluster Sampling- If the total area of interest happens to be big one, a

      convenient way in which is sample can be taken is to be divided into smaller

      non-overlapping areas called cluster known as cluster sampling.


   4. Non probability sampling- In case of non probability sampling it is
      considered appropriate to use a random selection process where the
      probability of each cluster being included in the sample is proportional to
      size of the cluster.

                                   72



SHIV SACHDEVA          MBA,                                    SESSION-2008-10
LIMITATION

During the process of a research a person comes across certain restrictions certain

limitations. Some of these limitations are overcome while come have to be

overlooked for the smooth conducting of the research. Some of these restrictions

are:

    Liquor is such a product that the wholesaler, retailers and consumer fear to

       come out with information.

    Due to the wide area of the markets, it was impossible to cover each and

       every retail shop, hence only few shops were covered.

    The such had to be completed in 8-10 weeks, which is not enough time to

       cover the market. So time was the major constraints in conducting the study.




                                73



SHIV SACHDEVA         MBA,                                      SESSION-2008-10
CONCLUSION

During our research we found out that the brands of Mount shivalik brewery in the

Beer Segment specially thunderbolt super strong beer is performing well. The

demand of thunderbolt super strong beer in the market is good but not easily

available every where Company has got good image among the general public.

Thunderbolt beer is the undisputed leader in the strong beer segment.

As far as Mount shivalik brewery ltd is concerned the major position of its

turnover through thunderbolt lite and strong these are the largest selling brands in

the beer industry after thunderbolt super strong but the company badly needs to

promote other brands because neither of them has hot good presence at the national

level.




                                74



SHIV SACHDEVA         MBA,                                      SESSION-2008-10
QUESTIONNAIRE FOR CONSUMER
Ques.1- Do you drink liquor?

     a) Yes             b) No



Ques. 2- You take liquor in form of...

      a) Beer        b) Whisky      c) Rum



Ques. 3- Your age is………

     a) 15-25 yrs.        b) 25-35yrs.

     c) 35-45yrs.         d) 45 & above



Ques. 4- Who introduced you to drink Beer?

      a) friends          b) Advertising



Ques. 5- You consume Beer…….

      a) Once a week          b) 3-4 times in a week

      c) Every day            d) Occasionally



                                  75


SHIV SACHDEVA          MBA,                            SESSION-2008-10
Ques. 6- How often do you drink beer?

      a) Occasionally         b) Regularly

Ques. 7- Which type of Beer do you prefer?

      a) Mild                b) Strong        c) Both

      Mild………………. Strong…………….

Ques. 8- How much quantity of Beer is consumed by you at one time?

      a) 1 Bottle             b) 2 Bottles          c) > 2 Bottles



Ques. 9- You drink Beer usually at?

      a) Home       b) Restaurant        c) Bar     d) Open space



Ques. 10- What are the key factor that affect your purchasing decision?

       a) Price     b) Brand             c) Taste   d) Status



Ques. 11- How was it, as compared to other existing brands ?

        a) Good     b) Poor      c) Satisfactory     d) Equivalent




                                  76


SHIV SACHDEVA         MBA,                                           SESSION-2008-10
Ques. 12- You feel after drink………

       a) Relaxed   b) Happy      c) Tensed     d) Angry



Ques. 13- Your preference for packaging?

       a) Bottle                  b) Cane



Ques. 14- Are you brand loyal?

       a) Loyal                   b) Switcher



Ques. 15- Any suggestions for MSBL beer ?



………………………………………………………………………

………………………………………………………………………




                             77


SHIV SACHDEVA        MBA,                                  SESSION-2008-10
Personal information

Name-…………………………….

Address-...…………………………………………………………..

………………………………………………………………………

………………………………………………………………………

Gender-………………………………

Age-…………………………………..

Occupation-…………………………………………………………




                          78


SHIV SACHDEVA      MBA,          SESSION-2008-10
QUESTIONNAIRE FOR RETAILER

Ques.1- What different types of liquor are sold by you ?

     a) Beer    b) Whisky     c) Rum    d) Other



Ques.2- Which type of beer is mostly demanded ?

     a) Mild    b) Strong     c) Both



Ques.3- In beer, what are the different brands available with you ?

     a) Golden eagle    b) Maeakins 1000 c) Haywards 5000

    d) Kingfisher       e)Any other………………



Ques.4- Which brand of MML beer in mostly demanded ?

     a) Golden eagle b) Meakins 1000 c) Golden eagle deluxe prem.



Ques.5- How much quantity of MML beer is sold daily ?

     a) 10 Cases       b) 10-20 Cases     c) > 20 Cases




                                   79


SHIV SACHDEVA          MBA,                                      SESSION-2008-10
Ques.6- Do you agree with advertising program of Beer ?

      a) Yes          b) No



Ques.7-Are you satisfied with the distribution system of MML ?

    a) Yes            b) No



Ques.8- Do you think that sale can be increased by providing scheme              to

retailer and consumers ?

     a) Yes                b) No



Ques.9- Who is the biggest competitor of MML in the market ?

      …………………………………………………………



Ques.10- Would you like to give some suggestions to MML for improvement ?

………………………………………………………………………

………………………………………………………………………




                                   80


SHIV SACHDEVA        MBA,                                      SESSION-2008-10
BIBLOGRAPHY

The readings which rendered all possible help and guidance in finalizing the

marketing are:-



Marketing Concept                       :        Philip Kotler

Data From                   :           Internet & floro & fauna

                                             housing and land Dev. (P) ltd.



News Papers                     :            The Economic Times &

                                             Times of India

Magazine                        :                Business Week



Research Methodology                :            C.R. Kothari



Marketing Research                  :            G.C. Beri




                                            81



SHIV SACHDEVA        MBA,                                              SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10
SHIV SACHDEVA   MBA,   SESSION-2008-10

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19801762 project-report-of-mount-shivalik-brewery-ltdthunderbolt-beer

  • 1. Project Report The study on the sales promotion policies adopted by Mount Shivalik Breweries Limited.
  • 2. The study on the sales promotion policies adopted by Mount Shivalik Breweries Limited. Mohangram,P.O. Bhankarpur, Distt Mohali,Punjab,India Submitted in partial fulfillment of the requirements for the degree of Master of business administration BY Shiv sachdeva Session- 2008-09 Prepared under the guidance Of Shri D.P Khetar pal Manager coordination M.S.B Limited Submitted to SHIV SACHDEVA MBA, SESSION-2008-10
  • 3. ACKNOWLEGEMENT First of all would like to thank MOUNT SHIVALIK BREWERY LTD, Which provided me a great opportunity of undergo my summer Training in such a prestigious organization. Then I would like to Thank Mr Rajiv Bali (Managing Director, Mount shivalik brewery Ltd) in whose region I have done my training. I am especially thankful to to Mr.D.P Khetarpal (manager coordination, Mount shivalik brewery Ltd.) under whose kind guidance I have done my training. At the end I would like to thank Mr.V.K Ohri, (R.M) & all those who helped me during my training. Shiv sachdeva 1 SHIV SACHDEVA MBA, SESSION-2008-10
  • 4. DECLARARTION I solemnly declare that the work reported in the project Report entitled “The study on the Sales Promotion adopted by Mount Shivalik Brewery Limited “has been carried by me during the period from 20 .7.09 – 21.07.09 and that no part of the report has been submitted for any Other degrees, diploma or certificate. Thanking You, Place: Date: Shiv sachdeva Course – MBA Session -2008-10 2 SHIV SACHDEVA MBA, SESSION-2008-10
  • 5. CERTIFICATE This is to certify that the project report entitled “The study on the sales promotion adopted by Mount Shivalik brewery Ltd”has been prepared by Mr. shiv sachdeva, of course MBA and Session 2008-2010 for the award of the Degree of Master of business administration by Shri Raghu Nath Rai Memorial School Of Management, Ram Nager (Banur) under the guidance of Mr. D.P Khetarpal, manager coordination, mount shivalik brewery Ltd, Bhankarpur,punjab Signature (Internal Examiner) Signature (External Examiner) 3 SHIV SACHDEVA MBA, SESSION-2008-10
  • 6. CONTENTS Sr.No Topic Page No. 1. General Introduction 6 2. THE LIQUOR INDUSTRY IN INDIA 9 3. About company 12 4. Competitors 21 5. Sale promotion 33 6. Objectives of sales promotion 56 7. Research Methodology 70 8. Limitation 73 9. Conclusion 74 10. Questionnaire for consumer 75 11. Questionnaire for retailer 79 12. Bibliography 81 5 SHIV SACHDEVA MBA, SESSION-2008-10
  • 7. GENERAL INTRODUCTION This modern era of liberalization and globalization has opened a broad scope for conducting marketing of products in business.To-day; marketing management has become more challenging and exciting than ever before. Generally a group customer who heavily shares a common a group of customers who heavily share a common need constitute the market. Now days, market has turned from seller‘s market to buyer‘s market. Every market plan depends upon the nature and size of the market. The word marketing means the act of selling and buying in the market. Marketing involves meeting traders, merchants, dealer‘s retailers and many a time the consumers directly through media. But it all depends upon the factors, conditions, characteristic of the producer‘s product, middlemen and the consumers. Hence, the marketing manager and sales executives are also required to be more and more consumer oriented. Today, profit rather than sales volume is given priority. To achieve goal the proper marketing strategy is needed. A successful strategy man oeuvre for obtaining specific goals can be possible ply by building a high committed and motivated sales team of area managers, sales officers, dealers and officers. Strategy of marketing depends upon the nature of products, quantity of production, consumers, views and awareness overall demand, capacity of product circulation and existence of middle 6 SHIV SACHDEVA MBA, SESSION-2008-10
  • 8. A new product may have to be promoted by door to door selling, selling shops and through media like T.V. or through advertisements. If a product is to be exported, the marketing has to be done within the framework of policies and procedures set up by the govt. The middlemen under strict price and control policy of the Ministry of Home Affairs especially Food and Civil Supply Department. For successful marketing of its products, a company may have sales persons, area sales manager, regional sales manager, zonal sales manager marketing professionals, depot communication manager, product manager media assistant, public relation officer and managing director depending upon the size of the company. For the successful career in marketing a person must have certain basic skills like a degree in an area of thrust related to the type of company, ability to formulate and implement sales, distributional sales, distributional and promotional strategies and exceptional skills to motivate and effectively manage the sales force. In addition, the attitude and talent for innovation, good knowledge of designing and preparing various inputs including visual aid folder is needed. Besides this, involvement in marketing research for launching new products and in training sales force is must for a successful marketing manager. The above qualifications are must because the role of marketing manager in the organization has also changed with requirement of the hour. Today, marketing manager has become the integral part of business and involves all the activities that take place in an enterprise. As a good marketing manager one has to train the staff. Therefore the sound knowledge of marketing activities, marketing strategies and legal aspects is needed. Not only this, there many other things which pave the way for promoting sales. Good contacts in corporate sectors, knowledge of controlling activities up to grass-root level, interacting with concerned departments and sales regulatory authorities are also required for a successful marketing manager. Four Ps namely product, price, place and promotion are the most vital areas of marketing management. Fifth P added is pace. Without these the marketing objectives of organization cannot be fulfilled. 7 SHIV SACHDEVA MBA, SESSION-2008-10
  • 9. Channel distribution system may get affected by the product factor, market factor and institutional or organizational factors and the vital decisions has to be taken with regard to internal sales promotion in the light of channels of distribution. The marketing division should see that brand identification is must for the producers to exercise maximum control over the demand for its products. Branding of products is necessary for administration of warranty, guarantee and service policies. The branding is also necessary from companies share point of view and for export purpose. Overall marketing manager must use management science and decisions making technology to the fullest while understanding the limitations of these tools. He should also provide guidelines, stimulations and encouragement for the fullest and richest use of inspiration talents, inventiveness and judgment. 8 SHIV SACHDEVA MBA, SESSION-2008-10
  • 10. THE LIQUOR INDUSTRY IN INDIA The alcohol industry is very important for the government. It generates an estimated Rs. 16,000 crore per annum in spite of the fact that the per capita consumption of liquor in India is the lowest in the world. The total liquor industry is worth Rs. 2,000 crore. IMFL accounts for only a third of the total liquor consumption in India. Most IMFLs are cheap and are priced below Rs. 200 per bottle. Alcohol sales proceeds account for 45% of the total revenue collection in the country. Whiskey accounts for 60% of the liquor sales while rum; brandy any vodka account for 17% 18% and 6% respectively. MNC‘s 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 464-706%. This is due to the fact that there is a 100% customs duty, 150% contravening duty, local taxes, distributor‘s margin, retailer‘s margin and publicity charges. The cost is finally borne by the consumer 9 SHIV SACHDEVA MBA, SESSION-2008-10
  • 11. The cost is finally borne by the consumer Though the government claims that this is being done to protect the domestic liquor industry, the domestic industry accounts for 99% of the market share. This protectionist policy could prove to be counterproductive and lead to smuggling. As of now, only 45% of the sales are through legal channels and only 25% of this is duty paid for. Within India itself, the policy of alcohol retail differs from state to state. While some states like Maharashtra. Uttar Pradesh, and Tamil-Nadu have a liberal policy, come states like Haryana and Andhra Pradesh have had very bitter experience in trying to make these states dry and have eventually had to withdraw the policy. 10 SHIV SACHDEVA MBA, SESSION-2008-10
  • 12. PRODUCT PROFILE This research focuses the study of alcoholic product of MSBL. Thus it is important for us to known what Alcoholic drinks are. Alcoholic drinks are a mixture of alcohol or spirit water and minor ingredients knows as cogeneries. The organic name of alcohol is ethyl alcohol, which is derivative of hydrocarbon. Consumable alcohol has no flavor, only careful section of congeneries which is added during fermentation process lead to a palatable product. Therefore alcohol drinks offered world over are blended to provide uniform blends, bouquets and palatability. 11 SHIV SACHDEVA MBA, SESSION-2008-10
  • 13. ABOUT COMPANY A saga that began over a century and a half ago continues on its path of service to the world with dedication, courage and an unflinching commitment to quality. Over the years the Company has embraced modernity and adapted to changing times. Yet, its basic values remain the same-integrity, Craftsmanship, and Tradition. From mount shivalik brewery Ltd where the sanctity of ancient culture, technological development and craving for quality are artfully blended into the products. Late padamshri Mr N.N.Mohan(1901-1969) who was the father of mount shivailk give the idea to open brewery at bankerpur.after that foundations stone was laid by then padamshri col.V.R mohan on 29 nov.1972. 1972-1978 mount shivalik breweries ltd.(MSBL)was formally incorporated, headed by Mr.B.D. Bali as the managing director. 12 SHIV SACHDEVA MBA, SESSION-2008-10
  • 14. The construction of brewery began at bhankarpur,dist.patiala,india and was completed in a record time of 1 year.MSBL launched its brands in JK,Haryana,Himachal Pradesh,Delhi and Madhya Pradesh. 1982-1984 the group established an Indian made foreign liquor(IMFL) bottling plant at Chandigarh namely ―Mount shivalik bottling plant‖. Second IMFL bottling plant at patna,bihar under the name of shivalik kineme(P)Ltd. Established in the year 1983.In the year 1984,country‘s first super strong beer ―THUNDERBOLT SUPER STRONG ―Beer launched. 1987-1993 In the year 1987, pub culture in north India invoked, by opening of pubs in Chandigarh by the company. Group‘s flagship brand ―THUNDERBOLT Super Strong‖ won the prestigious ―monde selection gold medal ‖ at Barcelona (1991) for its international quality. 13 SHIV SACHDEVA MBA, SESSION-2008-10
  • 15. THUNDERBOLT Super strong beer reached a landmark in the country by achieving sales of 1.5 million doz. The brand become benchmark for other super strong beer in the country by setting higher standards of quality and excellent packaging throughout the country. Mount shivalik industries Ltd. incorporated on 19th January. 1996-1998 Two new brands were launched mild and strong segments by the name of:-GOLDEN PEACOCK & TORPEDO SUPER STORNG. Group achieved a land mark by selling 3.5 million doz. In over 18 states in the country in the country in the year 1997.as part of diversification plans, the group has decided to set up resorts having facilities of 30 room‘s motels, a pub, beer garden, fast food restaurant, health care, and recreational facilities. MSIL entered into an agreement with Stroh‘s brewery co., USA‖ to produce and market strohs in India. 14 SHIV SACHDEVA MBA, SESSION-2008-10
  • 16. In the year 2000 as part of expansion plans for IMFL, the company has received a letter of intent from Government of Punjab to set up distillery for producing potable alcohol for its own IMFL brands to be introduced shortly. Presently Mr. Rajiv Bali is working as managing directing of MSBL (bankerpur) : Mount Shivalik Breweries Ltd (MSBL), the makers of Golden Peacock and Thunderbolt beer brands, is now brewing a multi-pronged marketing strategy to re- introduce the American beer brand Stroh in the Rs 1,500-crore domestic beer market. The Stroh brand was previously canned in India by Rajasthan Breweries, which stopped production in February 1999 following differences with the $ 1 billion Stroh Brewery Co, USA. MSBL--which had struck an agreement with Stroh USA in 1998 for bottled beer--will now produce and distribute bottled Stroh beer in Diet, Mild and Strong category for all the markets in the country, except South India (Tamil Nadu, Kerala, Pondicherry, Karnataka and Andhra Pradesh). 15 SHIV SACHDEVA MBA, SESSION-2008-10
  • 17. A study conducted by the Delhi-based market research agency M&M in March 1999 in the markets of North-East, North and West India, revealed that 78 per cent of the 4,000 respondents were aware of the Stroh brand and regarded it as a premium beer. The findings have now spurred MSBL into quickly activating the Stroh brand--with an integrated marketing plan. Says MSBL director marketing, Monish Bali: ``had we given a longer gap the brand would have suffered.'' MSBL now plans to launch Mild and Strong Stroh beer between mid-June and September 1999 in a phased manner: beginning with Rajasthan and progressing to the markets of Chandigarh, Punjab, West Bengal, and Haryana. Later, in the second phase, it will roll out the beer in Delhi, Bihar, Daman, Orissa, Madhya Pradesh and the North-East. Old beer in new bottles In its new avatar, Stroh would be made available not in cans but in amber-colored 650 ml and 330 ml bottles. While the 650 ml bottle will have the conventional shape popular in the Indian beer industry, it's the 330 ml packaging which will flaunt the `long neck' design used by Stroh in America. The 650 ml bottle will also have a golden champagne capsule top to enhance its shelf and eye appeal, while the unique feature of the 330 ml bottle will be a color-coded neck label. In terms of colors, the blue label will represent mild beer as distinct from the red label for strong beer. Moreover, a special offset printed master carton has been developed for packing these two sizes. MSBL is also considering options like supplying Stroh in kegs to pubs, but this will depend on the prevailing excise laws of the respective states. 16 SHIV SACHDEVA MBA, SESSION-2008-10
  • 18. Pegging the price Aiming to position the beer as a super premium brand, Stroh would be offered at a price that is higher by Rs 3 to Rs 5 a bottle, against the top-selling domestic brand in each state. MSBL believes that despite the more expensive price, the consumer would view Stroh as ``an international quality beer at an affordable price.'' While the can option was earlier available at Rs 60 per 500 ml and Rs 40 per 300 ml can, the new pricing for Stroh in Rajasthan is expected to be around Rs 35-40 (strong beer) and Rs 30-35 (mild) per 330 ml bottle; and Rs 50-55 (strong) and Rs 40-45 (mild) per 650 ml bottle. Currently, cans account for around two per cent of overall beer sales in India. MSBL hopes that apart from catering to the upper elite and foreign tourists, Stroh in bottle form would also appeal to the price-sensitive middle class. ``With bottles we are giving Stroh consumers more value than they were getting from the can,'' says Bali adding: ``We are keeping open the option for cans in future both in terms of setting up our own facilities or having arrangements with other existing breweries.'' Raising the bar Taking cognisance of the fact that the Stroh consumer expects international quality, taste, packaging and consistency, Stroh would be positioned as `The Great American Beer'. A distinct marketing strategy is being evolved to promote the beer at, what Stroh calls, `on-shops' (institutional sales via hotels, bars, clubs, restaurants) and `off-shops' (retail outlets). Determined to gulp over 50 per cent of the international beer market in India, Stroh is planning some bubbly bursts: 17 SHIV SACHDEVA MBA, SESSION-2008-10
  • 19.  A 30-second television commercial (TVC), createdin the US, will unfold by late June '99 on the Star channels. With an advertising and promotion budget of over Rs 5 crore, MSBL will also take positions in other international channels as `The Great American Beer'. The earlier TVC for Stroh cans by Rajasthan Breweries was an Indianised one: it showed a person returning from the US and feeling thrilled on discovering Stroh in India. However, this time, MSBL will reinforce Stroh's American-ness in its advertising -- just as Foster's is positioned as an Australian beer.  To build a one-on-one relationship with potential consumers, a direct mailer highlighting the brand's USP--`Fire Brewed Beer'--is being sent to all its distributors, retailers, bars and clubs, as well as high networth consumers. In the first phase MSBL is focusing on selective marketing in six markets (Rajasthan, West Bengal, Haryana, Chandigarh, Punjab and Delhi) to cover over 2,000 retail outlets and over 500 bars/restaurants from its existing network of over 165 dealerships, 6,000retail outlets and 1,300 bars and restaurants in 18 states. Says Bali, ``Efforts would be made to convert some of the major outlets in metros into exclusive outlets under tie-up arrangements.''  In association with event management company Crayons, MSBL will organise at least one mega event a month, from July 1999, in towns like Chandigarh, Jaipur, Calcutta, Delhi, Jamshedpur and Guwahati. The events would include fashion shows, polo matches, rock concerts, rain dances, spot events and theatre. Says Bali, ``We are also considering celebrity endorsements by sports and cine stars.'' Moreover, Stroh would also sponsor various `happening events' and carnivals in other towns. 18 SHIV SACHDEVA MBA, SESSION-2008-10
  • 20.  Special promotions on the concept of `The Great American Beer' will be held at places which are associated with hanging out and having fun and symbolic of American culture: pool parlours, bowling alleys, Go-Kart circuits and other recreation centres.  MSBL's field force of 85--all wearing branded Stroh T-shirts, caps andunique electronic badges--will aggressively promote the campaign `Let's Stroh a Party' with the help of POS materials like posters, banners, bunting, danglers, stickers, dispensers, glow signs etc at institutions and retail outlets.  Also, special promotions like the Best-Decorated Stroh shop and Demand-A- Stroh will be conducted through the retail counters to ensure that the product reaches the targeted consumer. At the institutional level, Stroh would be promoted via Happy Hours on Saturdays/Sundays as well as special offers during regular hours. Ninety per cent of MSBL's sales come from retail outlets and the remaining 10 per cent from institutions.  MSBL also plans to communicate messages like `Drink Smart or Don't Start' via its POS materials. To project a caring image it is also planning to associate with organisations dealing in environment-related issues.  MSBL has also identified sports like golf, cricket, bowling, pool, polo, football and tennis for the promotion of Stroh indifferent markets. Stroh has already tapped the mood of the World Cup revellers by distributing a 42-page pocket Stroh World Cup diary giving the entire schedule of matches, at the institution and retail level. 19 SHIV SACHDEVA MBA, SESSION-2008-10
  • 21. With the Stroh initiatives ready to pour, MSBL expects a 20 per cent increase in its turnover next year, from an estimated Rs 100 crore in 1998-99. That's reason enough to cheer. Golden Peacock raises a toast to India XI Do beer and cricket go together? Mount Shivalik Breweries Ltd (MSBL) certainly thinks so--especially given the initiatives undertaken by the hospitality industry to woo consumers to watch World Cup matches in restaurants. To benefit from the special packages offered by hotels, restaurants and bars, MSBL is currently running a promotion for Golden Peacock (GP), its premium lager beer brand. Called `Go for India, Go for GP', the promotion targets institutional sales and offers consumers a one pint bottle (330 ml) free on the purchase of one bottle of 650 ml GP; and one 650ml bottle free on the purchase of two 650 ml bottles of GP. The promotion will run for the entire duration of the World Cup -- irrespective of India's participation -- in the cities of Jaipur, Delhi and Chandigarh. 20 SHIV SACHDEVA MBA, SESSION-2008-10
  • 22. COMPETITORS Today‘s world is the competition. In every filed there is competition and the success of any company or product largely depends upon competition. Competition provides a good quality of product to the customer. If a company has to survive in the market, then it has to face throughout competition. In liquor industry too the competition is there. The increasing awareness and exposure to beer among consumers and the removal of quantitative restrictions gives big boost to the beer industry. It saw the emergence of new companies like future wine and spirit brand (P) Ltd (FWSB), set up recently by two Non-Resident Indians (NRI‘s) from USA. ‗BEER‘ consumption in the country increased 7-9 % per year. 21 SHIV SACHDEVA MBA, SESSION-2008-10
  • 23. 1. SABMiller India SABMiller India is a wholly owned subsidiary of SABMiller plc, the second largest beer Company in the world over a hundred years of heritage. SABMiller India sojourn began in 2000 and in just a few years, its has cornered nearly on third of the India beer market with brands such as Haywards 5000. Haywards 2000, Haywards Black, Knock Out, Royal Challenge. Castle Lager and Fosters. Based on consumer insights, SABMiller India has taken innovative measures to fill up the packaging, pricing, occasion and product gaps. Expertise on a global level has come in use to create many firsts in India including the use of one-way bottles, flash pasteurization, establishing draught standard, and now Haywards Black-a genuine stout beer. With ten world-class breweries strategically located across India. SABMiller is well positioned to easily access and efficiently service the beer markets. 22 SHIV SACHDEVA MBA, SESSION-2008-10
  • 24. The Company‘s to India and ethos of quality reflected in the fact that it invested over Rs. 125 crore in the last two years to upgrade breweries in line with global standards. SABMiller is a market facing and brand led organization that continuously refreshes itself in pursuit of its mission of owning and nurturing local and international beer brands which are the first choice of the consumer. The company invests in bottles, which are returnable in nature are accounted for as fixed assets in its books. The company pays to its customers/agents for returning the empty bottles at the prevailing market prices. The company urges its customer/agents to return the empty bottles to the company for which the company will reimburse them at prevailing market prices. 2. UNITED BREWERIES LTD. The UB group commenced its brewing operations as early as the 19 th century (1857) with fire small breweries in South India. In 1951, a Scotsman named Thomas Leishman combined the five breweries to form United Breweries . 23 SHIV SACHDEVA MBA, SESSION-2008-10
  • 25. The company was taken over by Vijay Malaya in 1947. In 1952 the company shifted its registered office Madras to Bangalore. In 1958 the name of the company was changed from United Breweries Ltd. To UB Ltd. In 1989 as a measure of diversification the company stated manufacturer of bulk drug, the pharmaceuticals on a priority basis. In 1992, 11 different breweries were and amalgamated with the parent company. In 1994 the company launched its ‗Kalyani Premier Strong‘ and started exporting ‗Kalyani Export Special‘ to U.K The company presently has 21 breweries under its direct or indirect control. Recently the company has started implementing restructuring excise unless which it has dedicated to split its business into two-the core beer business and the group invertment business. The company has dedicated to focus on core business and to hive off non-core business. United Breweries launched the countries premium ice beer to be introduced in Mumbai and selected cities of Maharashtra. The United Breweries Ltd. And its subsidiary Millennium Alcoveb Ltd. Have entered into a contract agreement with Mohan Meakins to brew beer at the later‘s facilities in Maharashtra, Uttar Pradesh, Andhra Pradesh and Daman. 24 SHIV SACHDEVA MBA, SESSION-2008-10
  • 26. Mr. Ravi Jians millennium alcoveb Ltd A subsidiary of united breweries is in negotiations with an international beer company for an equity joint venture to making a Super Premium Beer in India. UB Ltd. Has carried out a reorganization of its business by hiring off fours subsidiaries and making seven companies its fully owned aims apart from acquiring the sorghums business in South Africa breweries ltd. Relawant of San Mighel and London Lilsnex, the new beer brands in it portfolio United Breweries (Holiday), a wholly owned subsidiary of united Breweries has entered into an agreement to acquire up to 75% of the paid of equity capital of Mangalore Breweries and Distilleries Ltd. UB group has signed reseller and license agreement to market steel first faster steaming media solutions Asia. UB Ltd. The largest beer manufacturer and marketing company, has launched two more premium brands-London pilsner Premium beer and London No. 1 Strong beer in Hyderabad 25 SHIV SACHDEVA MBA, SESSION-2008-10
  • 27. 3. COBRA BEER Cobra Beer is a British beer company founded in 1989 by Karan Bilimoria. The company is based in Fulham, southwest London. Originally brewed in Bangalore, India (now Bengaluru), for export to the United Kingdom, the company now has contract brewing operations in the UK (Charles Wells), Poland, Belgium, the Netherlands and India. Cobra Beer was founded in 1989 by Arjun Reddy and Karan Bilimoria, then aged 27 and £20,000 in debt. A Cambridge law graduate and qualified Chartered Accountant, Bilimoria launched Cobra Beer after spotting a gap in the market for a less gassy lager. The beer was originally planned to be named 'Panther', but the name 'Panther' did not portray the picture of India and hence a more suitable and iconic name i.e. 'Cobra' was chosen. By way of introduction by Arjun's uncle Keshow Reddy the two founders were introduced to Mysore Breweries in India, who were the original brewers of Cobra beer. 26 SHIV SACHDEVA MBA, SESSION-2008-10
  • 28. Cobra was first brewed in Bangalore (now Bengaluru) in 1990 and imported to the UK for seven years. In 1997 Cobra commenced brewing under licence with Charles Wells in the UK. A 125 year old, family run brewery and the largest independent brewery in the UK, Charles Wells brew leading international beer brands including Kirin from Japan and Red Stripe from Jamaica. The business recently stopped brewing in Poland for cost saving reasons and returned brewing to contract breweries in the UK Cobra Beer has also partnered with Mount Shivalik Group, the largest independent brewing company in India, to brew Cobra under licence for India‘s rapidly growing domestic market. Currently, Cobra presently produces five varieties of beer: Cobra 5.0% Premium Cobra Zero % Cobra Light King Cobra Cobra Bite 27 SHIV SACHDEVA MBA, SESSION-2008-10
  • 29. PARENT UNIT OF MOUNT SHIVALIK BREWERY LTD The registered office of Mount shivalik brewery Limited is situated at in different state Mount Shivalik Breweries Ltd. Mohangram,P.O. Bhankarpur, Distt Mohali,Punjab,India Mount Shivalik Breweries Ltd. Rajasthan MSB SPIRIT BOTTLING PLANT Chandigarh 28 SHIV SACHDEVA MBA, SESSION-2008-10
  • 30. A COMPLETE BRAND PROFILE OF MSBL IS AS UNDER: Strong Beer Segment: Thunderbolt Super Strong Thunderbolt Gold Premium Punjab Extra Strong Stroh's Super Strong Mild Beer Segment: Slimms Lite Golden Peacock Premium Lager Punjab Extra Special Stroh's Premium Lager NOTE- Among strong beer (8.25%) two brands are available in market namely a) THUNDERBOLT SUPER STRONG BEER b) STROH SUPER STRONG BEER Among mild beer ( 5.25%) two brands are available in market namely a) STROH MILD BEER b) GOLDEN PEACOCK BEER Drought Beer is also manufactured and brand names are a) thunderbolt strong b) stroh mild 29 SHIV SACHDEVA MBA, SESSION-2008-10
  • 31. BEER Beer is not a distillate like the drinks mentioned above but it is a beverage made by fermentation of malt obtained from carbohydrate rich material barley. Hops are used to add taste while yeast is used to ferment the beer. Beer is to two types : 1. Pilsner or Lager 2. Draught Lager Beer is the most common bottled Beer found in almost all the retail shops in the country. This Beer is served chilled and is of two types. Mild Beer alcohol content of 5.25%. Strong Beer alcohol content of 8.25%. 30 SHIV SACHDEVA MBA, SESSION-2008-10
  • 32. PROCESS OF MAKING BEER Ingredients-the simple formula for brewing beer is to convert three national ingredients i.e. malted barley,hops,and water –using yeast to ferment this wonderful combination of ingredients, mount shivalik combines expertise and practical experience with frequent control tests during each stage of the brewing Malt mall- first, the malt is brought to the malt mall, each type of beer requires a different types of combinations of malted grains…. Fermentation- this is the next step in the brewing of beer. The temperature in fermentation is initially kept here for 2-3 weeks, lagers are actually kept longer. Filtration-after fermentation ,the next step in brewing, is filtration before the beer is sent to the serving tank where it is bottled Bottling-after filtration beer is sent to the serving, where it get bottled. Pasturisation-after the beer is bottled, it is send for pasturisation ,this is the last process in the brewing of beer. Packaging-the beer finally is ready for the market and it goes to packaging and labeling house. Recycle-the company is committed towards clean environment by using recycled corrugated boxes, light weight bottles and using the spend grains from brewing process as high protain for livestock feed . Besides this the company is also involved in the various environment friendly programs such as wild life foundation, preserve the environment ,sane the forests. 31 SHIV SACHDEVA MBA, SESSION-2008-10
  • 33. The company to operate in India has divided it into 4 zones each zone covering some states:- Zone 1 : Jammu & Kashmir, Punjab,. Zone 2: Himachal, Haryana, Uttarakhand Zone 3: Chandigarh , Delhi , CSD Zone 4: Jharkhand, Bihar, Orissa, West Bengal, etc 32 SHIV SACHDEVA MBA, SESSION-2008-10
  • 34. Sales Promotion : Definition: It covers marketing activities other then advertising, publicity and personal selling that stimulate consumer purchasing and dealer effectiveness. Such activities are displays, shows, exhibitions, demonstrations and many other non- routine selling efforts like spot selling. Sales promotion tries to complement the other means of promotion given above. All kinds of promotion plays the role of communication channels between the marketer and the consumer. Promotion as on element of marketing mix has three broad objectives: (a) Information, (b) persuasion, (c) reminding. The overall objective of promotion is, of course, influencing the buyer behavior and his predispositions (needs, attitudes, goals, beliefs, values and preferences). According to the American Marketing Association, the sales promotion can be defined as ―Those marketing activities other then personnel selling advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, show and exhibition, demonstration and various non-current efforts not in the ordinary routine‖. 33 SHIV SACHDEVA MBA, SESSION-2008-10
  • 35. The Marketing MIX: Ingredients for Success The marketing mix, earlier known as the 4 P‘s,(but now has a few more),is a vital part of any marketing strategy. This is a tool whereby the marketer takes decisions on what and how a product should be, where it can be sold, how it should be priced, how it will be promoted, how to equip the people who are responsible for selling the product…and so on. Getting the marketing mix right is equally important for the large corporation and the small business owner. One of the most critical marketing management decisions is that decision of setting the marketing mix values, and select ing and employing strategy that periodically change that marketing mixes in response to changing business environment. Product 1. No.1 selling product in its segment. 2. Good quality raw material is used to maintain the quality standards. 3. Consistency of product quality is high. 4. Always tastes fresh due to good quality and well developed distribution network. Place- 1. it is available in many states Punjab, Haryana in other states 2. Company location plant Punjab, Rajasthan 34 SHIV SACHDEVA MBA, SESSION-2008-10
  • 36. Distribution Network APB Breweries Distributors On / Off Premise Locations End Consumer Price- In both mild and strong beer segments thunderbolt beer uses competitive price strategy 650ml .RS 65 35 SHIV SACHDEVA MBA, SESSION-2008-10
  • 37. Promotion Promotion includes advertising and other forms of sales presentations, designed to encourage fast consumer or trade up-take of a product or service. The form of any promotion depends on the product, the marketing plan and its objectives, and on the imagination of the product management team. It can vary from a simple in-store demonstration, or sampling, or a tie-in with on premises. A range of promotional tools, techniques and activities are mixed and matched to meet the needs of individual marketing campaigns. Major Tools in Marketing Beer Publications: Companies rely extensively on published materials to reach and influence target markets, including annual reports, brochures, articles, printed and on-line newsletters and magazines, and audiovisual materials. Events: Companies can draw attention to new products or other company activities by arranging special events like news conferences, on-line chats, contests and competitions, and sport and cultural sponsorships that will reach the target publics. News: One of the major tasks of PR professionals is to find or create favorable news about the company, its products, and its people. The next step is getting the media to accept press releases and attend press conferences. 36 SHIV SACHDEVA MBA, SESSION-2008-10
  • 38. Marketing Activities at MSBL Brand Advertising Promotional Activities in on & off trade Experiential marketing Consumer planning Relationship marketing Consumer PR Brand Website & online activities Packaging 37 SHIV SACHDEVA MBA, SESSION-2008-10
  • 39. Factors Influencing Company Marketing Strategy There are various forms of marketing which are used for promoting the product in market. 38 SHIV SACHDEVA MBA, SESSION-2008-10
  • 40. Relationship between PLC & Marketing Strategies Like human beings, products also have life cycles. That is, they're born, and then— over time—their sales grow, mature, and finally decline. The strategies with which you market a product need to change with each of these life-cycle phases. The table below shows a few examples of how this might work: PLC Stage Characteristics Marketing Market Strategies Objectives Product Low sales, high cost per Create product Offer a basic product, customer, no profits, few awareness and trial Introduction Use heavy promotions to competitors entice trial Product Rising sales and profits, more Maximize market Offer product and more competitors share Growth Extensions Product Peaking sales and profits, stable Maximize profit while Diversify brands or declining number of defending market Maturity competitors share Intensify promotion to encourage switching to new brands Product Declining sales, profits, and Reduce expenditure Phase out weak Products, number of competitors and "milk" the brand Decline Cut price; Reduce promotion 39 SHIV SACHDEVA MBA, SESSION-2008-10
  • 41. Packaging Packaging, as defined by Kotler and Keller, refers to ‗all the activities of designing and producing the container for a product.‘ Though the primary purpose of packaging is to serve against damage during the movement of the product, it is no longer the only purpose that it serves. Packaging, and not the product, is the first touch-point that the customer comes into contact with. A substandard product within a unique packaging might be easier to sell as against a superior product packaged in a substandard pack. Superior packaging would not ensure repeat sales though. Packaging is an effective tool to make the product distinguishable in the clutter. Packaging, the fifth and final stage of the brewing process, prepares the beer for distribution and consumption. During packaging, beer is put into the vessel from which it will be served: a keg, cask, can or bottle. Beer is carbonated in its package, either by forcing carbon dioxide into the beer or by "natural carbonation". Most products have multiple levels of packaging. For example, thunderbolt Beer is packed in a glass bottle (primary package). These individual bottles are then packed in cartoon case (secondary package). Each of these packages serve a different purpose. 41 SHIV SACHDEVA MBA, SESSION-2008-10
  • 42. Thunderbolt label design Thunderbolt bottle 42 SHIV SACHDEVA MBA, SESSION-2008-10
  • 43. Beer Advertising Advertising of beer is a topic that has frequently attracted the attention of industrial organization economists. For beer advertising several interrelated issues should be analyzed, including: 1. The importance of advertising and product differentiation for structural change in the brewing industry 2. The manner and extent to which brewers can strategically alter market shares using advertising 3. The social costs of alcohol advertising and marketing. Analyses of both issues include attempts to determine the net welfare effects of beer advertising. On the third issue, economists have analyzed advertising‘s possible influence on alcohol consumption and underage drinking, and as a contributor to social costs such as drunken driving fatalities. Several regulatory concerns are related to this issue, including use of advertising bans; advertising placements that might target underage youth; legal rights of states under the three- tier system of alcohol distribution; and other advertising or marketing restrictions that affect competition in the industry (e.g., price advertising bans, price-posting and price affirmation laws) 43 SHIV SACHDEVA MBA, SESSION-2008-10
  • 44. SWOT Analysis of MSBL Strength • Production capacity • Premium Quality Product • Experience Management team Weakness • Low Advertising & Promotion Spends • Less Manpower • Products not available in Cans • Low Market Share • Inefficient Distributors • Less Market Visibility 44 SHIV SACHDEVA MBA, SESSION-2008-10
  • 45. Opportunities • Regional Expansions • Production Volumes • Higher Profits • Increased Market share Threats • Competitors High Spends • International Players • Government Laws • Taxes & Tariffs 45 SHIV SACHDEVA MBA, SESSION-2008-10
  • 46. Whereas advertising gives a reason to buy, SP gives an incentive to buy It is part of the Marketing spend of all companies and these days SP spends in many companies exceed that of the ad spend Why? Internal External 46 SHIV SACHDEVA MBA, SESSION-2008-10
  • 47. Internal reasons Top management is more conducive to spending on promotions Line managers under greater pressure to achieve targets Justification of expenditure is easy External reasons Increase in number of brands Consumer is more price savvy Greater pressure from trade to liquidate stocks Add effectiveness declining owing to rising costs, media clutter and legal constraints 47 SHIV SACHDEVA MBA, SESSION-2008-10
  • 48. SP is a push strategy • Since it is at the last point where the consumer is often at the point of buying, the additional incentive makes a last ditch effort to convert the customer on to the incentivised brand SP is of two types • Trade • Consumer Trade promotion • Liquidating heavy inventories • Persuade retailers to carry stock, carry more than usual stock, promote brand franchise 48 SHIV SACHDEVA MBA, SESSION-2008-10
  • 49. Consumer promotion • Stimulate purchase • Induce trial • Create new users • Increase repurchase from occasional customers • Reward loyal customers Forms of trade promotion • Bulk discounts • Free materials • Display windows • Shelf hiring • Lucky draws • ‗Mystery‘ customer • Redistribution incentives 49 SHIV SACHDEVA MBA, SESSION-2008-10
  • 50. Forms of consumer promotion • Free samples • Free gifts • Coupons • In-packs • Price packs • Price-offs • Sweepstakes • Bundling offers 50 SHIV SACHDEVA MBA, SESSION-2008-10
  • 51. Sales Promotion: PERSONAL ADVERTISING SELLING PUBLICITY SALES PROMOTION 51 SHIV SACHDEVA MBA, SESSION-2008-10
  • 52. Sales Promotion Product sampling, demonstration Coupons, refunds Rebates, cents-off- Contests, games & sweepstakes Premiums Multiple purchase offers, Frequent-user incentives P-O-P material Product placements/tie-ins 52 SHIV SACHDEVA MBA, SESSION-2008-10
  • 53. Classifying Types of Sales Promotion Promotional Non-price sampling Pricing Promotions • Price reductions . contents .imported the • Free goods . free gift .food products • Tied offers . self-supporting .very expensive • Money off next purchase 53 SHIV SACHDEVA MBA, SESSION-2008-10
  • 54. Market Segmentation I Sales of standard lager form the most lucrative sector of the Indian beer market, with an 87% share of the market's value. In addition, sales of premium lager generate a further 6.2% of the market's revenues. Category % Share Standard lager 87.00% Premium lager 6.20% Ales, stouts & bitters 3.20% Low/no alcohol 2.90% Specialty beer 0.70% Total 100.0% 54 SHIV SACHDEVA MBA, SESSION-2008-10
  • 55. Market Segmentation II India accounts for 1.3% of the Asia-Pacific market by value. In comparison, Japan generates 45.5% of the market's revenues Geography % Share Japan 45.50% China 36.40% South Korea 9.50% Rest of Asia-Pacific 7.30% India 1.30% Total 100.0% 55 SHIV SACHDEVA MBA, SESSION-2008-10
  • 56. Objectives of the Sales Promotion: There are many ways by which sales can be increased and more orders can be obtained. This can be done by increasing advertising publicity and market research. The major objective of sales promotion are :- - To increase the sales. - To make the customer aware of the product. - To persuade non-users to try it once. - To sell the new product. Advertising : “Any paid form of non-personal personal presentation and promotion of ideas, goods or services by an identified sponsor.” It is paid communication because the advertising appears. Advertising appears in magazines, radio, TV, film and transit (car cards). According to Russel and Veril “Advertising is a message paid for by an identified sponsor and delivered through some medium of mass communication”. Classifications of Advertising : They can be classified as : (1) Audiences, (2) Types of Advertisers and (3) Media 56 SHIV SACHDEVA MBA, SESSION-2008-10
  • 57. Marketing Activities : Sales : a) Making personal calls to concerned agents. b) Generating orders for products. c) Reporting on product movements or problems. d) Obtained special displays, features etc. e) Gaining new accounts. f) Checking of pricing, material and product availability in stores. Publicity : Publicity can be defined as the activity of “Securing editorial space, as divorced from paid space, in all media which are read or heard by the company’s customers or prospects, for the specific purpose of assisting in the meeting of sales goals. In other words, publicity refers to an appeal made to a mass of people publicity in making goods, “Publicity known”. It constitute a mass approach. Publicity can also defined as the first communication about the product and its detailed history through the media, radio and so on before the actual manufacture and launching of the product to get the response of the users or consumers. Usually Sugar Industry requires no advertising publicity. 57 SHIV SACHDEVA MBA, SESSION-2008-10
  • 58. Marketing Activities of Public Relation : a) Generation news, features about the business, its people and its products. b) Handing press inquiries and interviews. c) Preparing statement and releases. d) Helping counter in-favorable publicity. e) Preparing and distributing communications to special interested groups such as stock-holders suppliers. f) Handling product and regularly public Personal selling: Personal selling is a broader concepts and invoices oral presentation in conversation with one or more prospective buyers for making sales. The main purpose of personal selling is to bring the product and the company in the knowledge of the prospective buyers and to convince them about the quantity of product of products and make certain that ownership transfer will take place. 58 SHIV SACHDEVA MBA, SESSION-2008-10
  • 59. According to Richard Bushik,personal selling consists of contacting prospective buyers personally. According to American marketing association, personal selling is an oral presentation in conversation with one or more prospective purchasers for the purpose of making sales. Personal selling is the most important ingredient in the promoting mix. It renders valuable services to consumers, producers and the society. It is an effective of sales promotion. Unlike advertising personal selling is present in all the three phases of buying. Personal selling in an effective media of selling. It is the largest single cost accounting say for 20% of net sales in several business enterprises. Besides this, there are many other advantages of personal selling also. Distribution Channels: Distributional channels those systems of economic institutions through which a producer of goods delivers them into the hands of their users. As society shifted from producing things in the home to buying goods manufactured in centralized locations, there arose a need for some means to distribute the products from the central points of production to the dispersed populace. Channels of distribution furnish this bridge between the producer and the consumer. 59 SHIV SACHDEVA MBA, SESSION-2008-10
  • 60. Tremendous amount of time and money would be expended in just acquiring the minimum amount of goods one would need for survival. Marketing channels funnels the goods demanded by the consumer to the place where he wishes to purchase them, and create three basic utilities, viz. 1. Place 2. Ownership, and 3. Time Marketing institutions must move the goods from point of production to the point of purchase i.e. consumption. this creates place utility, because goods will have no value to the buyer If they are still in hands of manufacturer Marketing channels arrange for the transfer of title of the goods from the manufacturer to the buyer. This creates ownership utility. Marketing channels must have arranged goods available to the user when he wants them, this creates time utility. In great part of US bathing suits gave little value to the consumer in the month of January, in fact, the manufacturer Of swimming apparel must make them during the winter because a substantial amount of lead time is necessary to ensure that ample merchandise is on hand at that time is demanded. Channels of distribution frequently absorb much of this difference in time between production and consumption. This statement does not imply that all marketing activities do not have a bearing on the creation of these utilities. Although advertising may stimulate ownership utility by making a person want something, the actual ownership utility is created on the transfer of title from the retailer to the individual The title does not always automatically follow the actual trail of the merchandise. 60 SHIV SACHDEVA MBA, SESSION-2008-10
  • 61. Channel Originated Behavior: It should not be assumed that marketing channels are passive institutions moving only at the order of manufactures. Most aggressive middleman will institute the economic behavior of their own when they see a need for it market place. Many retailers and wholesalers have originated their own brands with which they compete in the market place side by side. Often in conflict with the promotional programmes of the manufacturers with whom middleman deal they originate promotions of their own. A food manufacturer have a certain promotion under way which requires a man floor display in super market, but the super market owner may have promotional plan of this own that do not provide for such display. In fact middlemen have learned through their bitter experiences of business that the interests of the manufacturer are not always identical with theirs. Often middlemen modify a manufacturer product in an attempt to make it more appealing to the consumer. Ready-to-wear stores will frequently change the labels and alter some of accessories of the apparel they sell. Intact, middlemen are influential in determining the actual location at which the merchandise will be delivered to the customers. Although manufacturers have some degree of control over location through their selection of outlets but in fact, it is the dealer who will make the final decision concerning where the merchandise should be sold to customer. 61 SHIV SACHDEVA MBA, SESSION-2008-10
  • 62. Channel Arrangement: Four major alternative channel arrangement have been described below which differ significantly in their capability for creating sales, in their costs of operation and their susceptibility to control. Once they are choose, the firm must adhere to them for a substantial period of time. 1. The first channel consist of direct sales of goods by producer to ultimate 2. The seconds marketing channel shows one selling intermediates between the producer and the ultimate consumer. If the middlemen is retailer, his function is to purchase the producer‘s goods and resale them at a profit. They deal with many producers. P-R-C 3. The third marketing channel shows two different selling intermediaries. The most common example consists of wholesaler and retailer. This is known as the linkage. P-W-R-C The last channel consists of three selling intermediaries where a jobber usually intervenes between the wholesalers and the retailers. The linkage is P-W-J-R-C. The jobber buys from wholesalers and sells to small retailers, who generally are not serviced by the large wholesalers P = PRODUCER, W=WHOLESALER, J=JOBBER, R=RETAILER, C=CUSTOMER Sales promotion is a tool used to achieve most of the five major promotional objectives discussed in the Promotion Decisions tutorial: Building Product Awareness – Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. 62 SHIV SACHDEVA MBA, SESSION-2008-10
  • 63. In this way sales promotion can act as an effective customer information gathering tool (i.e., sales lead generation), which can then be used as part of follow-up marketing efforts. Creating Interest – Marketers find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors. Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost. Providing Information – Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email. Stimulating Demand – Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (e.g., price reduction), can be employed to stimulate sales. 63 SHIV SACHDEVA MBA, SESSION-2008-10
  • 64. Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). Promotional Strategy 1. Deciding Promotional Mix Personal selling, advertisement and sales promotion are some of the promotional methods. During most of the situations two or more promotional methods are to be used for each campaign. Generally with the help of a single method it is not possible to succeed. Advertising needs the support of personal selling or display to increase the sales. Sometimes even the personal selling alone cannot be successful without the support of advertisement. An ideal promotion mix is that situation where the total expenditure incurred for various promotion methods is minimum and sales by such mix is maximum. Promotion mix means finding out the proper ratio of usage of different methods of promotion. The management must find out, how much amount should be spent on each promotional activity. Promotional mix is influenced by the following factors. 64 SHIV SACHDEVA MBA, SESSION-2008-10
  • 65. (a) Nature of the product Nature of the product will be decide the promotional mix. For consumer goods advertisement and dealer display will have more effect. Industrial goods with high technology will need much of personal selling and cosmetics, blades etc, will require more of advertisement than personal selling and display (b) Nature of the Customer If the communications are mostly to middlemen, then personal selling will be more effective and very little spending on advertisement will do. If information are to be passed to consumers and when the number of consumers is large, it is better to advertise. Especially if customers are scattered, then advertisement alone can be successful. (c) Nature of the Market If market for a product is only local then personal selling alone will be sufficient. 65 SHIV SACHDEVA MBA, SESSION-2008-10
  • 66. Top 10 Reasons Beer is Good for your Health Everyone is looking for a reason to drink beer. Right? It turns out that a lot of people are. So here are 10 great reasons to drink more beer. Not only that, but they're all true. Beer really is good for your health, so drink up! Beer Reduces Stress Alcohol in general has been shown to reduce stress. This one is obvious, and may be the best reason beer is good for your health. Beer is Good for the Heart A study was conducted from 1982 - 1996 on the elderly. It was found that those who drank at least 1.5 per day had a 20-50 percent less chance of having heart failure. Beer Improves Blood Circulation Beer increases your "good" cholesterol, or HDL (high-density lipoprotein) cholesterol. Its basically a kind of blood fat, so it reduces blood's tendency to clot. 66 SHIV SACHDEVA MBA, SESSION-2008-10
  • 67. Beer is Chock Full o' Fiber The fiber comes from the cell walls of the malted barley. A liter of beer can have as much as 60% of your daily recommended fiber. The extra fiber will keep you regular and can also lower the risk of heart disease. Beer as a Multi-vitamin Beer is a significant source of magnesium, selenium, potassium, phosphorus, biotin, folate, vitamin B6 and vitamin B12 Beer can Prevent Strokes A study published in Stroke magazine in 2001 showed that alcohol drinkers have fewer strokes. Because it thins the blood, it increases the circulation in the brain, thereby protecting from silent strokes which are cause by tiny blood clots. Beer keeps your Brain Young A large study, published in the December 2001 issue of Alcoholism: Clinical & Experimental Research, was conducted on elderly italian men and women. It showed that moderate drinkers had a 40% lower risk of mental impairment. 67 SHIV SACHDEVA MBA, SESSION-2008-10
  • 68. Beer is Good for your Liver Alcohol expands the small blood vessels in the liver. This speeds up metabolism so it can help clean all the toxins out of the liver. This is from Beer Net Publication, April 2001 Biological Institute. Beer Cures Insomnia Lactoflavin and nicotinic acid, both present in beer, can promote sleep. Also hops are a natural sedative. Beer Fends off Gallstones According to Professor Oliver James at the University of Newcastle, beer protects against gallstones and kidney stones. 68 SHIV SACHDEVA MBA, SESSION-2008-10
  • 69. Stock Data: Recent Stock Performance: 1 Week 1.5% 13 Weeks -14.2% Current Price (7/17/2009): 41.60 (Figures in Indian Rupees) 4 Weeks 4.3% 52 Weeks -19.8% Mount Shivalik Breweries Limited Key Data: Ticker: 507522 Country: INDIA Exchanges: BOM Major Industry: Food & Beverages Sub Industry: Brewers 927,979,682 2008 Sales Employees: 140 (Year Ending Jan 2009). Currency: Indian Rupees Market Cap: 251,542,720 Fiscal Yr Ends: March Shares Outstanding: 6,046,700 Share Type: Ordinary Closely Held Shares: 2,559,684 69 SHIV SACHDEVA MBA, SESSION-2008-10
  • 70. RESEARCH METHDOLOGY Research – Research is common parlance refers to a search for knowledge. The Advanced Learner‘s Dictionary of Current English lays down the meaning of research as ―A careful investigation or inquiry specially through search for new facts in any branch of knowledge” According to Redman & Mory ―A systematized effort to gain new knowledge.” Research Methodology- It is the way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. 70 SHIV SACHDEVA MBA, SESSION-2008-10
  • 71. Types of research Design:- 1. Descriptive Research Design – Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group. 2. Hypothesis Research Design – Hypothesis testing research studies (generally known as experimental studies) are those where researcher tests the hypotheses of causal relationship between variables. 3. Exploratory Research Design - Exploratory research studies are also termed as formulative Research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from and operational point of view. The major emphasis in such studies is on the discovery of idea and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of problem under studies. 71 SHIV SACHDEVA MBA, SESSION-2008-10
  • 72. Sampling- Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgment about the aggregate is made. In other words, process of obtaining information about an entire population by examining only a part of it. In most of the research. Types of sampling:- 1. Systematic Sampling- The most practical way of sampling is to select every ith item on a list. This kind of sampling known as systematic sampling. 2. Stratified Sampling- If a population from which a sample is to be drawn does not constitute a homogeneous group, stratified sampling technique is applied in order to obtain representative sample. 3. Cluster Sampling- If the total area of interest happens to be big one, a convenient way in which is sample can be taken is to be divided into smaller non-overlapping areas called cluster known as cluster sampling. 4. Non probability sampling- In case of non probability sampling it is considered appropriate to use a random selection process where the probability of each cluster being included in the sample is proportional to size of the cluster. 72 SHIV SACHDEVA MBA, SESSION-2008-10
  • 73. LIMITATION During the process of a research a person comes across certain restrictions certain limitations. Some of these limitations are overcome while come have to be overlooked for the smooth conducting of the research. Some of these restrictions are:  Liquor is such a product that the wholesaler, retailers and consumer fear to come out with information.  Due to the wide area of the markets, it was impossible to cover each and every retail shop, hence only few shops were covered.  The such had to be completed in 8-10 weeks, which is not enough time to cover the market. So time was the major constraints in conducting the study. 73 SHIV SACHDEVA MBA, SESSION-2008-10
  • 74. CONCLUSION During our research we found out that the brands of Mount shivalik brewery in the Beer Segment specially thunderbolt super strong beer is performing well. The demand of thunderbolt super strong beer in the market is good but not easily available every where Company has got good image among the general public. Thunderbolt beer is the undisputed leader in the strong beer segment. As far as Mount shivalik brewery ltd is concerned the major position of its turnover through thunderbolt lite and strong these are the largest selling brands in the beer industry after thunderbolt super strong but the company badly needs to promote other brands because neither of them has hot good presence at the national level. 74 SHIV SACHDEVA MBA, SESSION-2008-10
  • 75. QUESTIONNAIRE FOR CONSUMER Ques.1- Do you drink liquor? a) Yes b) No Ques. 2- You take liquor in form of... a) Beer b) Whisky c) Rum Ques. 3- Your age is……… a) 15-25 yrs. b) 25-35yrs. c) 35-45yrs. d) 45 & above Ques. 4- Who introduced you to drink Beer? a) friends b) Advertising Ques. 5- You consume Beer……. a) Once a week b) 3-4 times in a week c) Every day d) Occasionally 75 SHIV SACHDEVA MBA, SESSION-2008-10
  • 76. Ques. 6- How often do you drink beer? a) Occasionally b) Regularly Ques. 7- Which type of Beer do you prefer? a) Mild b) Strong c) Both Mild………………. Strong……………. Ques. 8- How much quantity of Beer is consumed by you at one time? a) 1 Bottle b) 2 Bottles c) > 2 Bottles Ques. 9- You drink Beer usually at? a) Home b) Restaurant c) Bar d) Open space Ques. 10- What are the key factor that affect your purchasing decision? a) Price b) Brand c) Taste d) Status Ques. 11- How was it, as compared to other existing brands ? a) Good b) Poor c) Satisfactory d) Equivalent 76 SHIV SACHDEVA MBA, SESSION-2008-10
  • 77. Ques. 12- You feel after drink……… a) Relaxed b) Happy c) Tensed d) Angry Ques. 13- Your preference for packaging? a) Bottle b) Cane Ques. 14- Are you brand loyal? a) Loyal b) Switcher Ques. 15- Any suggestions for MSBL beer ? ……………………………………………………………………… ……………………………………………………………………… 77 SHIV SACHDEVA MBA, SESSION-2008-10
  • 79. QUESTIONNAIRE FOR RETAILER Ques.1- What different types of liquor are sold by you ? a) Beer b) Whisky c) Rum d) Other Ques.2- Which type of beer is mostly demanded ? a) Mild b) Strong c) Both Ques.3- In beer, what are the different brands available with you ? a) Golden eagle b) Maeakins 1000 c) Haywards 5000 d) Kingfisher e)Any other……………… Ques.4- Which brand of MML beer in mostly demanded ? a) Golden eagle b) Meakins 1000 c) Golden eagle deluxe prem. Ques.5- How much quantity of MML beer is sold daily ? a) 10 Cases b) 10-20 Cases c) > 20 Cases 79 SHIV SACHDEVA MBA, SESSION-2008-10
  • 80. Ques.6- Do you agree with advertising program of Beer ? a) Yes b) No Ques.7-Are you satisfied with the distribution system of MML ? a) Yes b) No Ques.8- Do you think that sale can be increased by providing scheme to retailer and consumers ? a) Yes b) No Ques.9- Who is the biggest competitor of MML in the market ? ………………………………………………………… Ques.10- Would you like to give some suggestions to MML for improvement ? ……………………………………………………………………… ……………………………………………………………………… 80 SHIV SACHDEVA MBA, SESSION-2008-10
  • 81. BIBLOGRAPHY The readings which rendered all possible help and guidance in finalizing the marketing are:- Marketing Concept : Philip Kotler Data From : Internet & floro & fauna housing and land Dev. (P) ltd. News Papers : The Economic Times & Times of India Magazine : Business Week Research Methodology : C.R. Kothari Marketing Research : G.C. Beri 81 SHIV SACHDEVA MBA, SESSION-2008-10
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