Evolution of Indian Alcohol Industry:
Consumerbehaviour& CSR towards consumers
Presented by:
Anmol Pandita
Ankit Goswami
Bishruta Banerjee
Keshav Asari
Komal Choudhary
Kundan Jha
Introduction to industry
Karnataka has seen steady rise of HP In last three years ( 2010-11) .
Teachers was market leader with 24 % .
HP 20 % VAT 69 18% ,BDC 12%, B &W 14% wer other players.
Fragmented Market, no clear leadership.
Rise of HP : Reasons
Increased focus on Bangalore which contributed 67% of Industry.
With in Bangalore Rationalized spends on Key accounts & Increase investment in emerging Modern trade.
Introduction of smaller SKU for HP ,Mini was launched in NOV 10 & subsequently NOV 11 was launch of
Pints & NIPS.
Increase distribution of new SKU in Region.
Extensive Brand Building efforts i.e. Tribute Amplification, every year, India Music week, Bangalore Music
week, Mlange concerts, Fusion music concerts.
Continuous sampling at key occasions to youngsters throughout the year.
Festive packs during peak season in MOT /PR outlets.
As result of above changes/interventions , HP today is clear market leader in volumes & shares FY 13- 14
exit volume 56000 cases & share 37%.
HP situation in FY13-14
B& W took advantages of stock outs in Q 1
TCH continue to loose, they fail to recover
B&W is only brand gaining significant shares
HP continue to hold shares & maintain leadership
B & W & VAT 69 both saw significant growth primarily driven by Stock out of
competition Brands in Q1.
HP remains leader but shares are lower than region share
B & W & VAT 60 are the main gainers
CHANNEL ANALYSIS BANGALORE METRO
AS ON YTD FEB 14
Bangalore is biggest market for scotch with
64% of
Industry
Davangere ,Mysore & Mangalore are 3 top
upcountry markets & also growing faster
than Bangalore
Share loss in growing Mangalore
Very high Contribution of Competition volumes comes from TOP 200 outlets
due to Higher Trade scheme & Spends in these outlets
40% of Segment concentrated in Top 200 outlets, 85% of them located in
Bangalore/Mangalore
HP is way ahead in WOD across all packs.
August 13 HP faced stock issues as result B & W /VAT 69 took advantage.
Corporation Market
The KTK liquor industry is controlled by Karnataka State Beverages Corporation Limited (KSBCL).
KSBCL Operations
The Corporation procures liquor and beer from Distilleries and Breweries at particular prices.
Company are free to price their product but they need to take cost card approval at beginning of year.
There are 53 IMFL depots spread over KTK.
No new licenses have been issued for last 15 years but existing license holders can sell & transfer their
license to another party.
Every year licenses needs to renewed by paying fees to excise
Analysis - Growth rate in Bangalore
Increased
rentals
Investment
in brand building effortsmaintain high standards for quality and
design, focusing efforts on marketing.
HP
market shares are low in A class outlets
and they contribution 67% of the industry
concentrated in Bangalore
Analysis - 3.5% dip in Mangalore share
Focus
is more on Bangalore
Bangalore
as a whole is growing. Mangalore,
Davangere are facing share loss since
Bangalore is the biggest hub for scotch
Sign exclusivity agreements with channel
partners
Give distributors big incentives
Re-launch HP
How to counter threat of Teachers come
back ?
Increase
brand awareness of HP by encouraging trials and
eventually generate opportunities for acquisition of
consumers.
Create
on trade demand at mid class bars hotels, and clubs
Drive
off trade enquiries and demand of wholesale point of
purchase (POPs)
Increase
Advertising
- Advertising toward young people
- Increase presence in convenient store
How to grow category to gain volumes?
Educate and Engage
Videos describing complexity, guidelines for enjoyment, quality
Taste-Testing Events
Suggest food pairings and different methods of enjoying scotch
Physical validation of the communications in other channels,
engaging the senses
