liquor ind

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The Indian liquor industry

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The Indian Liquor Industry The Indian liquor industry is divided into two broad segments:- Indian Made Foreign Liquor (IMFL) and Country made liquor. IMFL comprises alcoholic beverages that were developed abroad but are being made in India ( eg . Whisky, rum, vodka, beer, gin and wine), while country made liquor comprises alcoholic beverages made by local breweries.

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During 1999 the Rs60 billion Indian liquor industry grew at the rate of 10-12% while IMFL was consumed by the middle upper classes of society In India 40-50 % of all males and 1% of all female consumed alcohol Almost 62% drinkers could be classified as light 29% as moderate drinkers and about 9%as hard drinker.

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Indian Liquor Industry with estimated market value of INR 340 bn is growing at 12-15% over the last two years. Inherent Potential, Deregulation, western cultural influence and high entry barriers has helped the industry in notching up higher sales growth. Shift from country liquor to IMFL is expected with rising per capita income and limiting the sale of country liquor by states due to hygiene factor. Industry has one of the lowest per capita consumption of both Liquor and Beer and also since the margins are amongst the lowest.

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The consumption of alcohol is perhaps as old as civilization itself, and has played a significant role in religion, medicine and culture. Throughout the history of the India , drinking has been associated with revelry and feasting. Over the years, alcohol became an integral part of 'celebrations' - birthdays, holidays and religious events. Alcohol is believed to have the ability to give the consumer an overall sense of well-being. It is also known to help people overcome their inhibitions

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Prohibition in India Soon after independence, prohibition was imposed in the erstwhile state of Bombay. The first large-scale movement against alcohol began in the 1970s, when rural women in various parts of the country protested against the sale of liquor in their villages. The information and Broadcasting ministry of India ordered leading television broadcaster to ban the telecast of liquor advertisement. Even after the ban, liquor companies continued to advertise their drinks in the form of surrogate advertisements .

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Meaning of Surrogate Advertisement It is one where a product which is different from the main product (parent brand), is advertised and promoted with the same brand name as that of the main product (parent brand) to camouflage the later. The product, thus, advertised is called “SURROGATE PRODUCT” and such advertisement is referred as “SURROGATE ADVERTISEMENT ”

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Some Points:- In India it is legal to manufacture liquor and sell them freely. But it is illegal to advertise them through the public media. it is done through surrogate advertisement, which is banned by law but no practical enforcement is done.

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Different form of surrogate marketing As per the government rules, no advertisement should leads to sale, consumption, promotion of liquor but companies are spending their promotion budget on the alternatives products on the same name and thus, indirectly build the liquor brand. The budget is often used for surrogate ads. It is used to sponsor sports and often ads events or to engage in co-marketing with other products and services. It is done by complementary products such as Soda, bottled drinking water, fruit juice etc. Other commonly advertised includes – Music CDs, apparel and accessories and sports goods of the same brand name.

Legitimate business & their surrogate advertisements:

Legitimate business & their surrogate advertisements Legitimate Business McDowell’s malt whisky Radico Khaitan’s 8 pm whisky Hayward’s 5000 Beer Derby Special Bacardi Liquor Bagpiper liquor Kingfisher Beer Royal Challenger whisky White Mischief Liquor Smirnoff Vodka Surrogate advertisements McDowell’s Soda/water Radico Khaitan’s water Hayward’s water/soda Derby special soda Bacardi Blast CDs & Cassettes Bagpipers soda and cassettes Kingfisher bottled drinking water Royal Challenger golf accessories & mineral water & cricket team White Mischief holidays Smirnoff cassettes & CDs

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Conclusion At last, its my conclusion that Indian liquor industry is one of the biggest industry of the India which generates a large amount of government as well as private revenue. It generates an annual revenue of Rs 200 cr for television channels and Rs 250 cr for the print media. Due to country’s protestation, the govt imposed the ban on the advertisement of liquor, but however the companies continue to advertise the products under the shelter of surrogate advertisement where the products are advertised in another form resemble to parent products, such as soda, water bottles etc similar to the name of the liquor brands.

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THANK YOU Presented By : Hatim Ali Tabrez Ahmad Imroz Gaddi Gufran Akhtar Masroor Ahmed