Marketing Management - Alcohol Industry

A presentation explaining the briefs of alcohol industry, their market share, growth, demands, and competition among different brands in India

1. The Alcohol Industry By: Anjali Gulani Soumyajit dutta Varnika Talwar Yamini chhatwani

2. Contents Introduction Market Scenario Needs/Wants Demands Growth Rate Market Penetration Competition Intensity Market Share

3. Introduction… Indian alcohol industry is the third largest alcohol industry in the world, behind China and Russia. India’s alcoholic beverage market has grown steadily in the last 5 years . Indian liquor industry can be broadly classified in the below two types: Indian Made Foreign Liquor (IMFL) Country Made Liquor

4. Market Scenario UB Group and Shaw Wallace Group enjoy a combined market share of 55% in IMFL and 70% in beer. UB Group is larger with 37% share in IMFL and 53% share in beer.

5. Industry Structure Source: Researchjournal.com

6. Demands Potential Drinkers: Around 485 million are currently under drinking age. Actual Drinkers: 30% of India’s population i.e. 393 million . Source: Researchjournal.com

7. Reasons for increase in demand Increase in personal disposable income. Favorable demographics. Changing social acceptance. Increased alcohol accessibility and availability. Urbanization. Growing prominence of ‘ Pub and Cocktail culture ’.

8. Growth Rate Indian liquor industry is growing at the rate of 11.9%. The industry saw sales of 23.47 million cases in 2016, down from 29.69 million cases a year ago . Source: NCAER, BW Marketing Handbook

9. 2001 Age Profile Source: NCAER, BW Marketing Handbook Large increase projected in emerging and regular customers

10. Market Penetration Market Penetration = Sales( Current )/Potential Sales*100 According to WHO report, 30% of Indians consume alcohol, out of which, 4-13% are daily consumers and up to 50% of these fall under the category of hazardous drinking. List of major alcohol brands in India: Officer’s Choice Bagpiper Imperial Blue Blender’s Pride McDowell’s Royal Stag

11. Competition Intensity Kingfisher has the maximum share among all the brands, amounting to 88.3%. Kingfisher Ultra crossed 1.42 million cases sales in FY15 and commands a market share of 3.1% in super premium category. Heineken is the fastest growing brand. Source: Financial Express

12. Market Share… Market Share = Sales of company A in T period Total sales of industry in T period Source: kenresearch.com/ india -alcoholic-beverages-industry-research-report

13. COMPOSITION OF IMFL Source: crisil.com

14. Thank You !!