Background Alcohol is one of the commonly consumed intoxicating substances in India.

Between 15 and 20 per cent of Indian people consume alcohol and, over the past twenty years, the number of drinkers has increased from one in 300 to one in 20. Of what is actually consumed, the Intake of Indian Made Foreign Liquor (IMFL) is growing at the considerable rate of 15 per cent a year. Again, The Hindustan Times says that 65 per cent of the Indian liquor market is controlled by whiskey manufacturers. The media has played a leading role in encouraging the use of alcohol among young people by such means as the portrayal of drinking in congenial social settings, by associating the habit with glamour and celebrity status, and by direct and indirect [Link] has been associated in various sporting events and also advertised using different other products such as soda ,mineral water and music cds. Alcohol is a significant contributor to government revenues in many states. In most states this accounts for over 10 per cent of total state tax revenues, whilst in the Punjab this accounts for over one third. Increasing taxes as a means of reducing alcohol consumption is problematic as it has been shown to be unresponsive to price change. Tax increases will further add to economic hardship for consumers and have little or no impact on the reduction in other negative [Link] many brands and with increasing the foreign companies entering the Indian markets its branding has increased tremendously.

Productivity Quadrants

THE FIRST QUADRANT

Well Known and Low volume brands It involves brands in Niche market where the brands are well known and volume is less. Some of the brands in this category are,

1. $2 million Henri IV, Cognac Grande Champagne

An elixir mixed since 1776 by the direct descendants of King Henri IV, each batch of Henri IV Dudognon Heritage is aged in a barrel for more than 100 years and capped inside a 24-karat gold-dipped and 6,500 diamond-bejeweled bottle.

2. $200,000 Hennessy Beaute du Siecle Cognac

Insert a bronze key, turn, and Hennessys Baccarat crystal-bottled Beaute du Siecle rises up on a tray. Housed in a melted aluminum and mirrored glass case this mixture is blended from Hennessys reserves of 47 to 100-year-old cognacs. Hennessy's popularity in the younger generation has increased in recent years, due mainly to it being referenced in quite a few rap and hip-hop songs.

3. $55,000 Remy Martin Cognac Black Pearl Louis XIII

When you swish Remy Martins deep amber-colored Black Pearl Louis XIII around in your mouth, youre actually tasting 1,200 40 to 100-year old cognacs blended together. The swill is said to smell of flowers, fruits and spices, its flavor a mixture of ginger, cinnamon and Cuban cigars.

THE SECOND QUADRANT

Well Known and High volume brands

TEACHERS

The world's premier Scotch whisky brand and the No 1 selling premium Scotch brand in India is available in a new exclusive and contemporary look. What doesn't change is the same uncompromising spirit. The new look forms part of a global refresh exercise to make Teacher's contemporary and recruit new consumers into the brand franchise. Teacher's is a Power brand within the Beam portfolio and this new look stays true to its heritage and genuine quality while staying relevant to successive generations of Scotch [Link] its 181 year history, Teacher's has had a history of innovation and has changed its packaging over the years with an objective to keep the brand relevant contemporary to the ever evolving Scotch consumer. In 1913 Teacher's patented "the self opening bottle". This innovation essentially a tapered cork with a rim gave Teacher's a 15-year lead over its rivals. Teacher's Highland Cream was the

first internationally known scotch to be launched in India. Today Teacher's is the largest selling scotch brands, ragingly popular in cocktail circuits across the country. The prestigious Teacher's 50, a 12 year old scotch whisky was specially blended and launched to commemorate the 50th year of the Indian independence.
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Kingfisher

Kingfisher, "The King of Good Times", is India's most recognized and widely available beer. Its name has been associated with sports, fashion, and even an airline. The beer itself is a light tasting, easy drinking beer with plenty of malt. It goes down really well -- if not a little too well at times! Kingfisher Strong, containing around 8% alcohol, is fast growing in popularity and has more flavor than the regular Kingfisher Premium, which has 4.8% alcohol. Another variation is Kingfisher Blue, marketed at the young and trendy. This is also a strong beer with around 8% alcohol but it has a very light watery taste. Distinctive and full-bodied Kingfisher Ultra, made from imported ingredients, is the newest label to hit the market.

Haywards

Haywards beer is light bodied and watery tasting. The brand is most well known for its Haywards 5000 label -- a top selling strong beer that contains 7% alcohol. Haywards also produces Haywards 2000, a mild beer with 5.5% alcohol, and the rarer super strong Haywards 10000. Lovers of stout beer may be interested in Haywards Black -- India's first genuine stout beer. It's a strong dark colored beer, with 8% alcohol, and a heavy sweet malty taste that apparently hints of caramel. UNKNOWN BRANDS AND HIGH VOLUME GM Brands: [Link] Limited (GMBL) was set up in the year 1981. The company is growing steadily and has earned a dedicated customer base. GMBL is the largest manufacturer of country liquor in the state of Maharashtra with a sizeable market share. GMBL also contributes substantially to the state exchequer by way of excise duty and value added tax. GMBL came out with its Initial public offer of shares (IPO) in September [Link] shares of the Company are presently listed at Bombay Stock Exchange and National Stock Exchange of India. Kings Beer

The beautiful beaches of Goa and Kings beer go hand in hand. This beer, which unfortunately is only brewed and sold in the state of Goa, is a highlight of any trip there. The Kings Black Label premium pilsner is a very light tasting, pale colored, beer that's known for its smoky malt aroma. Its got an alcohol content of 4.85%, and is priced very attractively. A small 375 ml bottle will only set you back around 35 rupees (75 cents) at most beach shacks, and half that at a liquor store.

Price Differentiation:

Feni What Darjeeling Tea is to Darjeeling and Scotch whisky is to Scotland, feni is now to [Link] was on 23rd March 2009 that feni received the final certification from the Geographical Indications Registry in [Link], Feni, that uniquely Goa drink distilled from the cashew apple, is showing a sharp decline in production. This despite the fact that it is one of the best-known local liquors in India. Although feni has gone from being the poor mans liquor to a popular drink that every tourist visiting the coastal state must have, production has gown down from 1,089,000 litres in 1971 to 875,000 litres in 2004. Some of the problems faced are y An unorganised as well as complex manufacturing and sale process, which has failed to improve with time, has led to a steep decline in the production of feni. One of the biggest problems is Fenis classification as a country liquor by the Excise authorities. This means it cannot be legally exported to other States in India, placing the odds against it, in times of growing market competition from other liquors entering the State.

Two Pillars of strong brands

A brand has to develop a cognitive relationship with the customer(a rational differentiation has to be there),post this an emotional bonding/relationship is formed from the customers end towards the product thereby making it a outstandingly successful brand. On the contrary if a brand does not innovate it starts eroding away. INNOVATORS: USL United Spirits Limited (USL) is the largest spirits company in the world by volume, selling 114 million cases for the fiscal ending March 21, 2011. Besides Whyte & Mackay and Bouvet Ladubay being 100% subsidiaries of USL, the company has 21 millionaire brands (selling more than a million cases a year) in its portfolio and enjoys a strong 59% market share for its first line brands in India. United Spirits' brands have won the most prestigious awards for flavors, ranging from Mondial to International Wine and Spirit Competition (IWSC) to International Taste & Quality Institute (ITQI); more than 115 awards & certificates. The Company is known to be an innovator in the industry and has several firsts to its credit like the first pre-mixed gin, the first Tetrapack in the spirits industry in India, first single malt manufactured in Asia and the first diet versions of whisky and vodka in India.

USL has a global footprint with exports to over 37 countries. USL acquired Balaji Distilleries Limited in 2008. This acquisition gave the company the strategic advantage to consolidate the Groups leadership position in a critical, large and growing State like Tamil Nadu. United Spirits acquired Andhra Pradesh (AP)based, Tern Distilleries, in 2009, in a bid to augment its primary distillation capacity. This is the third manufacturing unit in the region given that one fifth of USLs sales volumes come from AP. Whisky Brandy Bagpiper McDowells No.1 McDowells No.1 Honey Bee Directors Special John Ex-Shaw Old Tavern Haywards McDowells Green Label Gold Riband Royal Challenge DSP Black Signature Rum Vodka & Gin Celebration Rum White Mischief Old Cask Rum Romanov Old Adventurer Rum Blue Riband

All the brands by USL sell out by their name, the consumer cannot as such relate to USL.

Smirnoff
Smirnoff is a brand of vodka owned and produced by the British company Diageo. The Smirnoff brand began with a vodka distillery founded in Moscow by Pyotr Arsenievich Smirnov (18311898), the son of illiterate Russian peasants. It is now distributed in 130 countries. Smirnoff products include vodka, flavored vodka, and malt beverages. In March 2006, Diageo North America claimed that Smirnoff vodka was the best-selling distilled spirit brand in the world.[1] Variants: Apple, lime, orange, tropical, chocolate

Grants Whisky
Re-design Is Catalyst for Grants Whisky Podium Position

In 2006, Grants was the fourth largest global blended whisky brand selling over four million cases annually, and operating in a highly competitive market. Whilst supported by an active marketing campaign, the brand suffered from lack of direction and it lacked a distinctive and motivating personality of its own.

It was to transform the brand into a credible Scotch whisky brand with a distinctive, relevant and compelling personality, making it an active choice for consumers. It establish a distinctive and compelling personality that enabled Grants to attract new consumers in exciting growth markets without alienating existing consumers in mature markets such as the UK and France. Crucially, the new design had to increase quality perceptions as well as to create clear differentiation to support the price variance across the range. Over the last five years, Grants has grown ahead of the category, achieving in 2010 worldwide sales of 4.8 million cases and retail value over $1bn (GBP 646 million) for the first time. This represented more than a 30% increase in retail value compared to base year, 2006. (All figures IWSR 2010)

Eroding brand
Stroh Brewery Company

The Stroh Brewery Company was a beer brewery located in Detroit, Michigan. In addition to their own Stroh's brand, they produced or bought the rights to several other brands including Goebel, Schaefer, Schlitz, Augsburger, Erlanger, Lone Star, Old Milwaukee, Red River, and Signature, as well as manufacturing Stroh's Ice Cream. The company was taken over and broken up in 2000 but some of its brands continued to be made by the new owners. Stroh's beer is currently made by the Pabst Brewing Company. Growth and Expansion In 1964 the company made its first move toward expansion when it bought the Goebel Brewing Company, a rival across the street. The company had decided it could no longer compete as a

local brewer and was about to move into the national scene. One reason was a costly statewide strike in 1958 that shut down Michigan beer production and allowed national brands to gain a foothold. When Peter Stroh took over the company in 1968, it still had not regained the market share lost in the strike 12 years previous. Stroh ended a 40-year relationship with a local advertising agency for a large national agency and began targeting the larger national market. Led by creative director Murray Page, Stroh's came up with the slogan "The One Beer...", and by 1971, Stroh Brewery had moved from 15th to 13th place nationally. In 1972, it entered the top 10 for the first time. A year later it hit eighth place. Peter Stroh's willingness to depart from years of tradition enabled Stroh's to survive, but the changes were hard to swallow for many Stroh's employees. Stroh broke the company's tradition of family management and recruited managers from companies such as Procter & Gamble and Pepsico. He also introduced a light beer, Stroh's Light. By spring of 1982, Stroh had purchased the entire company, making Stroh's the third largest brewery in America. Turnaround and Decline y Changing tastes and lifestyles began to eat into the company's success: increasingly popular non-alcoholic beer segment, for example, Old Milwaukee Non-Alcoholic was introduced in 1991, while Stroh's Non Alcoholic debuted in 1993 Heavy debt, over $500 million the brewer took on to finance its acquisition of Schlitz, drained Stroh's ability to compete Declining sales

y y

The end finally came on February 8, 1999, when word came down from Stroh headquarters that the 149 year-old brewer was selling its labels to the Pabst Brewing Company and Miller Brewing Company.