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SUMMER TRAINING PROJECT REPORT ON “impact of surrogate advertisment on liquor sales” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE MASTER’S DEGREE IN INTERNATIONAL BUSINESS (MIB) OF H. N. B. GARHWAL UNIVERSITY, DEHRADUN SUBMITTED TO: INTERNAL GUIDE EXTERNAL GUIDE Richa sinha ranvijay singh Asst. professor IMS ub group Dehradun dehradun SUBMITTED BY: Chunan kumar (MIB 11A20) INSTITUTE OF MANAGEMENT STUDIES, DEHRADUN BATCH 2011-13 ACKNOWLEDGEMENT The completion of a project is never a unilateral effort. Through this sentence I wish to make a modest effort to thank and express my gratitude to all those who extended their co-operation and assistance for this project. I am highly indebted to professor richa sinha, our internal guide ims dehradun, for her inspiration, guidance and encouragement during the course of this Research work assigned to me. She was our guiding force right from the inception of the research till its completion. Chunan kumar MIB 11A20 (2011-2013) Ims dehradun 2 CERTIFICATE I have the pleasure in certifying that Mr. /Ms. ...………….. …………………………..is a bonafide student of IInd Semester of the Master’s Degree in International Business (MIB), Batch 2011-13, of Institute of Management Studies, Dehradun under H.N.B.Garhwal University Roll No. ………..……. He/She has completed his/her project work entitled …………………………………… …………………………………………………………….. under my guidance. I certify that this is his/her original effort & has not been copied from any other source. This project has also not been submitted in any other Institute / University for the purpose of award of any Degree. This project fulfils the requirement of the curriculum prescribed by this Institute for the said course. I recommend this project work for evaluation & consideration for the award of Degree to the student. 3 Signature : …………………………………… Name of the Guide : …………………………………… Designation : …………………………………… Date : …………………………………… 4 (To be made on Company Letter Head) CERTIFICATE This is to certify that Mr. / Ms. ________________________ (Mention your ID), S/o. / D/o. Shri ______________________________, student of Master’s Degree in International Business (MIB), Batch 2011-13, at Institute of Management Studies, Dehradun has successfully completed his / her compulsory Summer Training with us, as part of his / her Course Curriculum. The duration of his / her training was from _____________ to _____________ on the project _______________________________________________________ ________________________________________________________________ *under the supervision of Mr. / Ms.………………………, Designation ……………. During the training we found him / her quite sincere, hard working and his / her conduct & behavior was good. We wish him / her all success in his / her academic endeavours and in life. Signature : ____________________ ** (HR Manager) Name : ____________________ 5 Designation : ____________________ *, ** : To be used only when the certificate is given by HR Department. 6 Contents Topic Page No Rationale of the study ----------------------------------------------------6 Introduction-----------------------------------------------------------------7 Industry Structure and developments----------------------------------8 Opportunities and Threats -----------------------------------------------10 Future Outlook ------------------------------------------------------------ 12 DEFINING SURROGATE ADVERTISING ---------------------------13 LIQUOR ADS ON TV -----------------------------------------------------16 -KABHI WHISKY, KABHI RUM---------------------------------------20 Allowing socially responsible ads by Liquor Company------------------ 22 Advertising in the Liquor category on Televisio-------------------------23 Surrogate advertising — Needed, a spirited attack -------------------26 Liquor Company’s uses overseas series to Circumvent ad ban: -----------30 Kingfisher, Wills spared from surrogate ad ban: ---------------------- 32 Surrogate liquor ads flow into FM radio: -----------------------------------34 I & B Ministry’s Slashing of Surrogate Ads ------------------------------35 7 Foul Cry by Major Liquor------------------------------------------------------39 Bacardi origins ------------------------------------------------------------------40 BACARDI’S WAY OF SURROGATE ADVERTISING--------------------46 UB Group…………………………………………………………….…48 PROMOTIONAL MOVES OF UB GROUP FROM TIME TO TIME……………………………………………………………….53 Methodology……………………………………………………………..59 Questionnaire……………………………………………………………60 Analysis and Graphs…………………………………………………….62 Conclusion………………………………………………………………..70 Bibliography -----------------------------------------------------------------------72 8 Rationale of the study Liquor Industry has one of the fastest growing markets in India. The liquor industry does make campaign to entire customer, therefore the assurance of the customer are increasing day by day. In an industry where change is the only constant, survival depends on the quickest reaction time. When technology advances happen at the blink of the eye, one has to keep pace or else get left behind. To achieve this, the Co’s have to lay emphasis on total customer satisfaction through improvements by their own capabilities and teamwork, for this products should be backed by strong R & D, 9 continuous up gradation of technology, customer oriented marketing and unique background integration process in manufacturing. 10 OBJECTIVES OF THE STUDY My research objective is to find out that “How successful has Surrogate Advertising been in promoting the liquor Brand” Is surrogate advertising actually for launching a new product or is it for manipulation of the existing liquor brands for sales? We get a 100% recall value for the actual liquor products even though surrogate versions were being mentioned on T.V. 11 INTRODUCTION Liquor Industry has one of the most lately growing market values in India. The liquor industry does make about by campaign to entire customer. Therefore the assurance of the customer is increasing day by day this is mainly due to the advertising. In an industry where change is the only constant, survival depends on the quickest reaction time. When technology advances happen at the blink of the eye, one has to keep pace or get left behind. To achieve this, the companies have to lay emphasis on total consumer satisfaction through continuous improvements by their own capabilities and teamwork. For this products should be backed by strong R & D, continuous up gradation of technology, customer oriented marketing and unique background integration process in manufacturing. 12 There is a surrogate approach towards liquor advertising in India. There is not much that they can do except market themselves through promotions with the latest celebrity. Hollywood films like “Scent of a Woman” have helped in brand endorsement. 13 14 Industry Structure and developments The Indian Made Foreign Liquor (IMFL) market consists of Whisky, gin, rum and vodka. The all important whisky market is further segmented into low priced, regular, and deluxe, semi premium, premium and Scotch. The most competitive segment in the IMFL category is the regular segment whisky. This segment has more than 30 brands competing with each other. The size of the organized IMFL industry stands close to Rs.200 billion and comprises of approximately 25 IMFL manufactures. The low price IMFL and country liquor segment accounts for approx. Rs.120billion. Now low priced IMFL is a distinct category as opposed to country liquor, with products in the latter category typically sold at lower prices. The total IMFL market today’s stands at around 70 million cases per annum which is been growing at a rate of 10% to 12% over the past 5 years. India is one of the very few liquor markets in the world where the growth rates are positive. Particularly, the cheap liquor segment has shown a growth of more than 25% over the past 5 years. Also, 15 which is estimated to be more than the size of the IMFL market? The market is heavily skewed in favor of whisky, accounting for around 60% - 65% of the IMFL market. There also exists a huge unorganized sector (estimated to be as large as the organized sector) involved in the production and safe of cheap liquor (which is distinctly different from excise duty paid country liquor). This trend is witnessed most in the rural areas of the country. The Indian Liquor industry is also characterized by the presence of immense competition amongst the major domestic liquor companies. Regulation The liquor business is among the last few industries that are still under the licensing policies of the Central Government and will likely see the most significant growth over the next 2/3 years on account of more progressive regulation. Liquor, in India, is a state subject, not a central one, in that each state controls the excise duty structure and also the distribution of liquor. The event, liquor manufactured in one state is sold in another state, the incidence of import duty and export duty results in high product 16 prices at the consumer end. It is this non uniformity of the duty structure coupled with different types of distribution arrangements dictated by the state governments that makes manufacturing and marketing of liquor a very challenging task for Indian companies. Distribution while unregulated in some states such as Maharashtra and West Bengal is regulated in some others such as through auctions (Haryana & Rajasthan, Bihar, Jharkhand) or through government controlled procurement agencies (such as Tamil Nadu