Nitish Project

7/29/2019 Nitish Project

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PREFACE

In this age of globalization hyper competition has become a regular feature. Today the markets

are no less then battlegrounds and one has to strive very hard for survival and growth.

Due to very rapid industrialization all over the world the demand for the managerial personnel

and the administrative personnel has increased. The perfect study of Management involves both

the theoretical as well as practical aspects. To survive in this highly competitive market

Practical Knowledge is as relevant as the Theoretical.

The significance of MBA Degree is that the Theoretical aspects, which a student learns

throughout the year in the class sessions, can be practically applied through different projects,

which one undertakes. Keeping in tune with this doctrine, we have tried to apply theoretical

aspects throughout the project, which we learned under the course of management.

In this project more emphasize given to the various tools of sales promotion and its impact on

consumers buying decisions. Actually in recent trend to some extent this technique also become

victim of clutter, even though it can be eliminated by generating innovative and more attractive

tools to lure the customers.

Now a day most of the FMCG companies considering sales promotion as an important part of

their marketing strategy. From the analysis of survey it becomes clear that consumers do

response to the sales promotion campaign, but there are customers who strongly prefer to stick tobrand name.


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INDEX

Sr.No. TOPICS Page

No.

1. Objectives 6

2. Methodology 8

3. Sales and Promotion 10

4. Advertising 24

5. Types Of Advertising 29

6. Branding 30

7. About Company 61

8. Advantages and Disadvantages Of Sales and Promotion 63

9. Methods Of Sales and Promotion 65

10. Tools Of Promotion 66

11. Steps To Effective Sales Promotion 67

12. Why Sales Promotion 68

13. Scenario Of company before and after Sales and Promotion 69

12. Pros and Cons of these Strategic Implementaions

13. Suggestions


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14. Conclusion

15. Bibliography


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OBJECTIVES

1. To make a study on the most preferably used Marketing Strategy opted by the companies.

(internal/external) whether is it in case of junior, middle or senior level.

2. To study the Whisky related products of the company.

3. To identify the key factors in the marketing process conducted by the companies.

4. To take into consideration the different types of competency based practices conducted by the

companies.

5. To understand the policies and schemes run by the companies.

6. To study the importance of the factors that influences the recruitment policy.

7. To analyze the challenges the countered by the Marketing Team of such companies.

8. To make a study on the important factors that contributes towards sale.

9. To assess the conditions responsible for the Need of Advertising and Sales Promotion.

10. To know the Marketing Process and Strategy followed by the company.

11. To know whether induction is carried on by the company.

12. To assess the importance of both Advertising and Sales Promotion.


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METHODOLOGY

Source of Information:

Primary:

The primary information is collected through Face to Face Interview, Observations and by active

participation in the Sales and Promotion procedure of the company.

Secondary:

The Secondary Information is collected through website, Journals, Books and some other relevant

sources.

Both Primary and Secondary Data sources are used to generate this report.

Primary Data sources are Scheduled survey, informal discussion with professionals and

observations while working.

The secondary Data sources are different published website of revolve and other books which are

referred.


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SALES PROMOTION

Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution

channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories,

attract traffic, and to lift sales temporarily. It is more closely associated with the marketing of

products than of services. The American Marketing Association (AMA), in its Web-based

"Dictionary of Marketing Terms," defines sales promotion as "media and nonmedia marketing

pressure applied for a predetermined, limited period of time in order to stimulate trial, increase

consumer demand, or improve product availability." Business pundits and academic students of

business have developed almost fancifully sophisticated views of sales promotion. In down-to-earth

terms it is a way of lifting sales temporarily by appealing to economic motives and impulse-buying

behavior. The chief tools of sales promotion are discounts ("sales"), distribution of samples andcoupons, the holding of sweepstakes and contests, special store displays, and offering premiums and

rebates. All of these techniques require some kind of communication. Thus sales promotion and

advertising are difficult to distinguish.

The need for promotion arises from the intensity of competition. Sellers must somehow attract

customers' attention. In the open markets of old (and farmers markets of today), sellers did and do

this by shouting, joking with customers, and sometimes by holding up a squealing piglet for

everyone to see. Priya Raghubir and his coauthors, writing in California Management Review,identify "three faces" of consumer promotions: these are information, economic incentive, and

emotional appeal. Information may take the form of advertising the availability of something,

incentives are offered in the form of discounts, and emotional appeals are made by displays and, of

course, by the low price itself.

Precisely because sales promotions must provide incentiveswhether to the distribution channel,

the company's own sales people, or to the consumerthey cost money by definition and must

produce additional volume to pay for the expenditures. A grand sale that clears out the inventory

but, with added advertising costs factored in, reduces margin too isa failure. Sales promotions

therefore must be carefully calibrated to achieve the purpose. Holding promotions too frequently

will habituate customers to buy only when promotions are in effect. Avoiding promotions all


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together will let competitors draw customers away. Alas, business never fails but to challenge the

participant'.

GROWTH OF SALES PROMOTION

Craig Endicott and Kenneth Wylie, writing for Advertising Age in the magazine's 62nd annual

Agency Report, indicate a continued shift of revenues in advertising from traditional to new forms

of media. They label the new forms as "marketing services" and comment as follows: "Marketing

servicesidentified as all forms of interactive, sales promotion and direct marketing in this

reportgrew 11.3% to $7.66 billion in revenue in the U.S. [in 2005]; traditional advertising and its

media component advanced to $12.02 billion, a 5.1% advance that was slightly stronger than last

year." The growth of sales promotion, a significant portion of total marketing services expenditures,

is no doubt in part due to the proliferation of media channels by cable, the availability of the Internet

to channel direct marketing messages, and simply the fact that advertising has become so ubiquitous

it has become less effective: people tune (or mute) it out.

CONSUMER PROMOTIONS

Consumer sales promotions are steered toward the ultimate product userstypically individual

shoppers in the local marketbut the same techniques can be used to promote products sold by one

business to another, such as computer systems, cleaning supplies, and machinery. In contrast, trade

sales promotions target resellerswholesalers and retailerswho carry the marketer's product.

Following are some of the key techniques used in consumer-oriented sales promotions.

Price Deals

A consumer price deal saves the buyer money when a product is purchased. The main types of price

deals include discounts, bonus pack deals, refunds or rebates, and coupons. Price deals are usually

intended to encourage trial use of a new product or line extension, to recruit new buyers for a

mature product, or to convince existing customers to increase their purchases, accelerate their use,

or purchase multiple units. Price deals work most effectively when price is the consumer's foremost

criterion or when brand loyalty is low.


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Buyers may learn about price discounts either at the point of sale or through advertising. At the

point of sale, price reductions may be posted on the package, on signs near the product, or in

storefront windows. Many types of advertisements can be used to notify consumers of upcoming

discounts, including fliers and newspaper and television ads. Price discounts are especially common

in the food industry, where local supermarkets run weekly specials. Price discounts may be initiated

by the manufacturer, the retailer, or the distributor. For instance, a manufacturer may "pre-price" a

product and then convince the retailer to participate in this short-term discount through extra

incentives. For price reduction strategies to be effective, they must have the support of all

distributors in the channel. Existing customers perceive discounts as rewards and often respond by

buying in larger quantities. Price discounts alone, however, usually do not induce first-time buyers.

Another type of price deal is the bonus pack or banded pack. When a bonus pack is offered, an extra

amount of the product is free when a standard size of the product is bought at the regular price. This

technique is routinely used in the marketing of cleaning products, food, and health and beauty aids

to introduce a new or larger size. A bonus packs rewards present users but may have little appeal to

users of competitive brands. A banded pack offer is when two or more units of a product are sold at

a reduction of the regular single-unit price. Sometimes the products are physically banded together,

such as in toothbrush and toothpaste offers.

A refund or rebate promotion is an offer by a marketer to return a certain amount of money whenthe product is purchased alone or in combination with other products. Refunds aim to increase the

quantity or frequency of purchase, to encourage customers to "load up" on the product. This

strategy dampens competition by temporarily taking consumers out of the market, stimulates the

purchase of postponable goods such as major appliances, and creates on-shelf excitement by

encouraging special displays. Refunds and rebates are generally viewed as a reward for purchase,

and they appear to build brand loyalty rather than diminish it.

Coupons are legal certificates offered by manufacturers and retailers. They grant specified savingson selected products when presented for redemption at the point of purchase. Manufacturers sustain

the cost of advertising and distributing their coupons, redeeming their face values, and paying

retailers a handling fee. Retailers who offer double or triple the amount of the coupon shoulder the

extra cost. Retailers who offer their own coupons incur the total cost, including paying the face

value. In this way, retail coupons are equivalent to a cents-off deal.


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Manufacturers disseminate coupons in many ways. They may be delivered directly by mail,

dropped door to door, or distributed through a central location such as a shopping mall. Coupons

may also be distributed through the mediamagazines, newspapers, Sunday supplements, or free-

standing inserts (FSI) in newspapers. Coupons can be inserted into, attached to, or printed on a

package, or they may be distributed by a retailer who uses them to generate store traffic or to tie in

with a manufacturer's promotional tactic. Retailer-sponsored coupons are typically distributed

through print advertising or at the point of sale. Sometimes, though, specialty retailers or newly

opened retailers will distribute coupons door to door or through direct mail.

Contests/Sweepstakes

The main difference between contests and sweepstakes is that contests require entrants to perform a

task or demonstrate a skill that is judged in order to be deemed a winner, while sweepstakes involve

a random drawing or chance contest that may or may not have an entry requirement. At one time,

contests were more commonly used as sales promotions, mostly due to legal restrictions on

gambling that many marketers feared might apply to sweepstakes. But the use of sweepstakes as a

promotional tactic has grown dramatically in recent decades, partly because of legal changes and

partly because of their lower cost. Administering a contest once cost about $350 per thousand

entries, compared to just $2.75 to $3.75 per thousand entries in a sweepstakes. Furthermore,

participation in contests is very low compared to sweepstakes, since they require some sort of skill

or ability.

Special Events

According to the consulting firm International Events Group (IEG), businesses spend over $2

billion annually to link their products with everything from jazz festivals to golf tournaments to

stock car races. In fact, large companies like RJR Nabisco and Anheuser-Busch have special

divisions that handle only special events. Special events marketing offer a number of advantages.

First, events tend to attract a homogeneous audience that is very appreciative of the sponsors.

Therefore, if a product fits well with the event and its audience, the impact of the sales promotion

will be high. Second, event sponsorship often builds support among employeeswho may receive

acknowledgment for their participationand within the trade. Finally, compared to producing a

series of ads, event management is relatively simple. Many elements of event sponsorship are


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prepackaged and reusable, such as booths, displays, and ads. Special events marketing is available

to small businesses, as well, through sponsorship of events on the community level.

Premium

A premium is tangible compensation that is given as an incentive for performing a particular act

usually buying a product. The premium may be given for free, or may be offered to consumers for a

significantly reduced price. Some examples of premiums include receiving a prize in a cereal box or

a free garden tool for visiting the grand opening of a hardware store. Incentives that are given for

free at the time of purchase are called direct premiums. These offers provide instant gratification,

plus there is no confusion about returning coupons or box tops, or saving bar codes or proofs of

purchase.

Other types of direct premiums include traffic builders, door openers, and referral premiums. The

garden tool is an example of a traffic-builder premiuman incentive to lure a prospective buyer to

a store. A door-opener premium is directed to customers at home or to business people in their

offices. For example, a homeowner may receive a free clock radio for allowing an insurance agent

to enter their home and listening to his sales pitch. Similarly, an electronics manufacturer might

offer free software to an office manager who agrees to an on-site demonstration. The final

categories of direct premiums, referral premiums, reward the purchaser for referring the seller to

other possible customers.

Mail premiums, unlike direct premiums, require the customer to perform some act in order to obtain

a premium through return mail. An example might be a limited edition toy car offered by a marketer

in exchange for one or more proofs-of-purchase and a payment covering the cost of the item plus

handling. The premium is still valuable to the consumer because he or she cannot readily buy the

item for the same amount.

Continuity Programs

Continuity programs retain brand users over a long time period by offering ongoing motivation orincentives. Continuity programs demand that consumers keep buying the product in order to get the

premium in the future. Trading stamps, popularized in the 1950s and 1960s, are prime examples.

Consumers usually received one stamp for every dime spent at a participating store. The stamp

company provided redemption centers where the stamps were traded for merchandise. A catalog

listing the quantity of stamps required for each item was available at the participating stores. Today,


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airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequent-shopper programs,

and bonus-paying credit cards are common continuity programs. When competing brands have

reached parity in terms of price and service, continuity programs sometimes prove a deciding factor

among those competitors. By rewarding long-standing customers for their loyalty, continuity

programs also reduce the threat of new competitors entering a market.

Sampling

A sign of a successful marketer is getting the product into the hands of the consumer. Sometimes,

particularly when a product is new or is not a market leader, an effective strategy is giving a sample

product to the consumer, either free or for a small fee. But in order for sampling to change people's

future purchase decisions, the product must have benefits or features that will be obvious during the

trial.

There are several means of disseminating samples to consumers. The most popular has been

through the mail, but increases in postage costs and packaging requirements have made this method

less attractive. An alternative is door-to-door distribution, particularly when the items are bulky and

when reputable distribution organizations exist. This method permits selective sampling of

neighborhoods, dwellings, or even people. Another method is distributing samples in conjunction

with advertising. An ad may include a coupon that the consumer can mail in for the product, or it

may include an address or phone number for ordering. Direct sampling can be achieved throughprime media using scratch-and-sniff cards and slim foil pouches, or through retailers using special

displays or a person hired to hand out samples to passing customers. Though this last technique may

build goodwill for the retailer, some retailers resent the inconvenience and require high payments

for their cooperation.

A final form of sample distribution deals with specialty types of sampling. For instance, some

companies specialize in packing samples together for delivery to homogeneous consumer groups,

such as newlyweds, new parents, students, or tourists. Such packages may be delivered at hospitals,hotels, or dormitories and include a number of different types of products.


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TRADE PROMOTIONS

A trade sales promotion is targeted at resellerswholesalers and retailerswho distribute

manufacturers' products to the ultimate consumers. The objectives of sales promotions aimed at the

trade are different from those directed at consumers. In general, trade sales promotions hope to

accomplish four goals: 1) Develop in-store merchandising support, as strong support at the retail

store level is the key to closing the loop between the customer and the sale. 2) Control inventory by

increasing or depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 3)

Expand or improve distribution by opening up new sales areas (trade promotions are also

sometimes used to distribute a new size of the product). 4) Generate excitement about the product

among those responsible for selling it. Some of the more common forms of trade promotions

profiled belowinclude point-of-purchase displays, trade shows, sales meetings, sales contests,push money, deal loaders, and promotional allowances.

Point-of-Purchase (POP) Displays

Manufacturers provide point-of-purchase (POP) display units free to retailers in order to promote a

particular brand or group of products. The forms of POP displays include special racks, display

cartons, banners, signs, price cards, and mechanical product dispensers. Probably the most effective

way to ensure that a reseller will use a POP display is to design it so that it will generate sales for

the retailer. High product visibility is the basic goal of POP displays. In industries such as the

grocery field where a shopper spends about three-tenths of a second viewing a product, anything

increasing product visibility is valuable. POP displays also provide or remind consumers about

important decision information, such as the product's name, appearance, and sizes. The theme of the

POP display should coordinate with the theme used in ads and by salespeople.

Trade Shows

Thousands of manufacturers display their wares and take orders at trade shows. In fact, companies

spend over $9 billion yearly on these shows. Trade shows provide a major opportunity to write

orders for products. They also provide a chance to demonstrate products, disseminate information,

answer questions, and be compared directly to competitors. Related to trade shows, but on a smaller

scale, are sales meetings sponsored by manufacturers or wholesalers. Whereas trade shows are open

to all potential customers, sales meetings are targeted toward the company's sales force and/or


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independent sales agents. These meetings are usually conducted regionally and directed by sales

managers. The meetings may be used to motivate sales agents, to explain the product or the

promotional campaign, or simply to answer questions. For resellers and salespeople, sales contests

can also be an effective motivation. Typically, a prize is awarded to the organization or person who

exceeds a quota by the largest percentage.

Push Money

Similarly, push money (PM)also known as spiffsis an extra payment given to salespeople for

meeting a specified sales goal. For example, a manufacturer of refrigerators might pay a $30 bonus

for each unit of model A, and a $20 bonus for each unit of model B, sold between March 1 and

September 1. At the end of that period, the salesperson would send evidence of these sales to the

manufacturer and receive a check in return. Although some people see push money as akin to

bribery, many manufacturers offer it.

Deal Loaders

A deal loader is a premium given by a manufacturer to a retailer for ordering a certain quantity of

product. Two types of deal loaders are most typical. The first is a buying loader, which is a gift

given for making a specified order size. The second is a display loader, which means the display is

given to the retailer after the campaign. For instance, General Electric may have a display

containing appliances as part of a special program. When the program is over, the retailer receivesall the appliances on the display if a specified order size was achieved.

Trade Deals

Trade deals are special price concessions superseding, for a limited time, the normal purchasing

discounts given to the trade. Trade deals include a group of tactics having a common themeto

encourage sellers to specially promote a product. The marketer might receive special displays,

larger-than-usual orders, superior in-store locations, or greater advertising effort. In exchange, the

retailer might receive special allowances, discounts, goods, or money. In many industries, tradedeals are the primary expectation for retail support, and the marketing funds spent in this area are

considerable. There are two main types of trade deals: buying allowances and advertising/display

allowances.


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Buying Allowances

A buying allowance is a bonus paid by a manufacturer to a reseller when a certain amount of

product is purchased during a specific time period. For example, a reseller who purchases at least 15

cases of product might receive a buying allowance of $6.00 off per case, while a purchase of at least

20 cases would result in $7.00 off per case, and so forth. The payment may take the form of a check

or a reduction in the face value of an invoice. In order to take advantage of a buying allowance,

some retailers engage in "forward buying." In essence, they order more merchandise than is needed

during the deal period, then store the extra merchandise to sell later at regular prices. This assumes

that the savings gained through the buying allowance is greater than the cost of warehousing and

transporting the extra merchandise. Some marketers try to discourage forward buying, since it

reduces profit margins and tends to create cyclical peaks and troughs in demand for the product.

The slotting allowance is a controversial form of buying allowance. Slotting allowances are fees

retailers charge manufacturers for each space or slot on the shelf or in the warehouse that new

products will occupy. The controversy stems from the fact that in many instances this allowance

amounts to little more than paying a bribe to the retailer to convince him or her to carry your

company's products. But many marketers are willing to pay extra to bring their products to the

attention of consumers who are pressed for time in the store. Slotting allowances sometimes buy

marketers prime spaces on retail shelves, at eye level or near the end of aisles.

The final type of buying allowance is a free goods allowance. In this case, the manufacturer offers a

certain amount of product to wholesalers or retailers at no cost if they purchase a stated amount of

the same or a different product. The allowance takes the form of free merchandise rather than

money.

Advertising Allowances

An advertising allowance is a dividend paid by a marketer to a reseller for advertising its product.

The money can only be used to purchase advertisingfor example, to print flyers or run ads in alocal newspaper. But some resellers take advantage of the system, so many manufacturers require

verification. A display allowance is the final form of trade promotional allowance. Some

manufacturers pay retailers extra to highlight their display from the many available every week. The

payment can take the form of cash or goods. Retailers must furnish written certification of


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compliance with the terms of the contract before they are paid. Retailers are most likely to select

displays that yield high volume and are easy to assemble.


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ADVERTISING

Advertising or advertising is a form ofcommunication formarketing and used to

encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a

specific group) to continue or take some new action. Most commonly, the desired result is to

drive consumer behaviour with respect to a commercial offering, although political and

ideological advertising is also common. This type of work belongs to a category called affective

labour.

In Latin, ad vertere means "to turn toward." . The purpose of advertising may also be to reassure

employees or shareholders that a company is viable or successful. Advertising messages are

usually paid for by sponsors and viewed via various traditional media; including media such

as newspaper, magazines, television,commercial, radio,advertisement, outdooradvertising or

direct mail; ornew media such as blogs, web sites ortext messages.

Commercial advertisers often seek to generate increased consumption of

theirproducts orservices through "branding," which involves associating a product name or

image with certain qualities in the minds ofconsumers. Non-commercial advertisers who spend

money to advertise items other than a consumer product or service include political parties,

interest groups, religious organizations and governmental agencies. Non-profit organizations may

rely on free modes ofpersuasion, such as a public service announcement (PSA).
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TYPES OF ADVERTISING

Radio advertising

Radio advertising is a form of advertising via the medium ofradio. Radio advertisements are

broadcast as radio waves to the air from a transmitter to an antenna and a thus to a receiving

device. Airtime is purchased from a station ornetworkin exchange for airing the commercials.

While radio has the limitation of being restricted to sound, proponents of radio advertising often

cite this as an advantage. Radio is an expanding medium that can be found not only on air, but

also online. According to Arbitron, radio has approximately 241.6 million weekly listeners, or

more than 93 percent of the U.S. population.

Online advertising

Online advertising is a form ofpromotion that uses the Internet and World Wide Web for theexpressed purpose of delivering marketing messages to attract customers. Online ads are

delivered by an ad server. Examples of online advertising include contextual ads that appear

on search engine results pages, banner ads, in text ads, Rich Media Ads, Social network

advertising, online classified advertising, advertising networks and e-mail marketing, including e-

mail spam.

New media

Technological development and economic globalization favors the emergence of new and new

communication channels and new techniques of commercial messaging.

Product placements

Covert advertising is when a product or brand is embedded in entertainment and media. For

example, in a film, the main character can use an item or other of a definite brand, as in the

movie Minority Report, where Tom Cruise's character John Anderson owns a phone with

the Nokia logo clearly written in the top corner, or his watch engraved with the Bulgari logo.

Another example of advertising in film is in I, Robot, where main character played by Will

Smith mentions his Converse shoes several times, calling them "classics," because the film is set

far in the future. I, Robot and Space balls also showcase futuristic cars with

the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac chose

to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which
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Cadillac cars were used. Similarly, product placement forOmega

Watches, Ford, VAIO, BMW and Aston Martin cars are featured in recent James Bond films,

most notably Casino Royale. In "Fantastic Four: Rise of the Silver Surfer", the main transport

vehicle shows a large Dodge logo on the front. Blade Runnerincludes some of the most obvious

product placement; the whole film stops to show a Coca-Colabillboard.

Press advertising

Press advertising describes advertising in a printed medium such as a newspaper, magazine, or

trade journal. This encompasses everything from media with a very broad readership base, such

as a major national newspaper or magazine, to more narrowly targeted media such as local

newspapers and trade journals on very specialized topics. A form of press advertising is classified

advertising, which allows private individuals or companies to purchase a small, narrowly targeted

ad for a low fee advertising a product or service. Another form of press advertising is the Display

Ad, which is a larger ad (can include art) that typically run in an article section of a newspaper.

Billboard advertising

Billboards are large structures located in public places which display advertisements to passing

pedestrians and motorists. Most often, they are located on main roads with a large amount of

passing motor and pedestrian traffic; however, they can be placed in any location with large

amounts of viewers, such as on mass transit vehicles and in stations, in shopping malls or office

buildings, and in stadiums.

Mobile billboard advertising

Mobile billboards are generally vehicle mounted billboards or digital screens. These can be on

dedicated vehicles built solely for carrying advertisements along routes preselected by clients,

they can also be specially equipped cargo trucks or, in some cases, large banners strewn from

planes. The billboards are often lighted; some being backlit, and others employing spotlights.

Some billboard displays are static, while others change; for example, continuously or periodically

rotating among a set of advertisements. Mobile displays are used for various situations in

metropolitan areas throughout the world, including: Target advertising, One-day, and long-term

campaigns, Conventions, Sporting events, Store openings and similar promotional events, and Big

advertisements from smaller companies.
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In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes placement of a

product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout

counters (aka POP Point of Purchase display), eye-catching displays promoting a specific

product, and advertisements in such places as shopping carts and in-store video displays.

Coffee cup advertising

Coffee cup advertising is any advertisement placed upon a coffee cup that is distributed out of an

office, caf, or drive-through coffee shop. This form of advertising was first popularized in

Australia, and has begun growing in popularity in the United States, India, and parts of the Middle

East.[citation needed]

Street advertising

This type of advertising first came to prominence in the UK by Street Advertising Services to

create outdoor advertising on street furniture and pavements. Working with products such

as Reverse Graffiti, air dancers and 3D pavement advertising, the media became an affordable and

effective tool for getting brand messages out into public spaces.[citation needed]

Sheltered Outdoor Advertising

This type of advertising opens the possibility of combining outdoor with indoor advertisement by

placing large mobile, structures (tents) in public places on temporary bases. The large outer

advertising space exerts a strong pull on the observer, the product is promoted indoor, where the

creative decor can intensify the impression.

Celebrity branding

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain

recognition for their products and promote specific stores or products. Advertisers often advertise

their products, for example, when celebrities share their favorite products or wear clothes by

specific brands or designers. Celebrities are often involved in advertising campaigns such as

television or print adverts to advertise specific or general products. The use of celebrities toendorse a brand can have its downsides, however. One mistake by a celebrity can be detrimental

to the public relations of a brand. For example, following his performance of eight gold medals at

the 2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's

was terminated, as Kellogg's did not want to associate with him after he was photographed
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smoking marijuana. Celebrities such as Britney Spears have advertised for multiple products

including Pepsi, Candies from Kohl's, Twister, NASCAR, Toyota and many more.

Consumer-generated advertising

This involves getting consumers to generate advertising through blogs, websites, wikis and

forums, for some kind of payment.

Aerial advertising

Using aircraft, balloons orairships to create or display advertising media. Skywriting is a notable

example.
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BRANDING

The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or

design, or a combination of them intended to identify the goods and services of one seller or

group of sellers and to differentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not about getting your target market to

choose you over the competition, but it is about getting your prospects to see you as the only one

that provides a solution to their problem.

The objectives that a good brand will achieve include:

Delivers the message clearly Confirms your credibility Connects your target prospects emotionally Motivates the buyer Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and

prospects. You do this by integrating your brand strategies through your company at every point

of public contact.

Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum

total of their experiences and perceptions, some of which you can influence, and some that you

cannot.

A strong brand is invaluable as the battle for customers intensifies day by day. It's important to

spend time investing in researching, defining, and building your brand. After all your brand is the

source of a promise to your consumer. It's a foundational piece in your marketing communication

and one you do not want to be without.


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ABOUT COMPANY

BUSINESS OVERVIEW

THE LOGO

The Pegasus, which is the symbol of the United Breweries, first found its place as the Group logo

in 1940. Then, the Helladic horseassociated with beer and nectar in Greek mythology- carried a

beer cask between the wings, ostensibly because beer formed the core operations of the Group.

Later, the beer cask was removed to represent the Groups multifaceted operations . Now, it is just

the Pegasus.


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BUSINESS INTERESTS OF UB GROUP

Beverage Alcohol:The UB Group is 3rd largest spirits marketer in the world, with overall sales of 60 million cases.

The company offers 140 brands at varying price points. Some of the famous brands of the UBGroup are: Bagpiper Whisky, McDowell's No.1 Whisky, Director's Special Whisky, McDowell's

No.1 Brandy and McDowell's Celebration Rum.

Pharmaceuticals:

The group's company Aventis Pharma Limited is the second largest pharmaceutical multinational

in India. It develops and markets branded prescription drugs and vaccines.

Media:

The UB Group also has a shareholding in Asian Age Holdings Ltd, the company that owns and

manages daily newspaper, The Asian Age.

International Trading:

The Group's company UB Global Limited is a recognized export house engaged in the export of

Beer, Spirits, Leather Footwear and Processed Foods. The Company also exports Pharmaceutical

Products and customized perfumeries.

Research & Development:

Vittal Mallya Scientific Research Foundation (VMSRF) was established in 1987 with the

objective of developing newer and novel technologies that will have substantial application in

industry and health care. The foundation is it is recognized by the Departments of Scientific &

Industrial Research (DSIR), Dept. of Biotechnology (DBT), Council for Scientific and Industrial

Research (CSIR) and the Ministry of Finance, Govt. of India.

Aviation:

UB Group entered aviation sector in 2005 with the launch of Kingfisher Airlines Limited.

Kingfisher Airlines has captured an impressive market share and has established a niche identity

for itself. The airlines recently acquired 25% stake in Deccan Airlines.


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Fertilizer:

Mangalore Chemicals & Fertilizers Limited is under UB Group's management. It has a

manufacturing capacity of 217800 MT of Ammonia and 380000 MT of Urea.

COMPANIES UNDER THE UB GROUP

1. United Breweries Holdings Limited2. United Spirits Limited- Spirits and Wines Branch


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3. United Breweries Limited- Beer Branch4. Kingfisher Airlines5. Mangalore Chemicals and Fertilizers Limited6. UB Engineering


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1. PRODUCTS MANUFACTURED :-Ever since its inception during the 19th Century, United Spirits Limited (USL) - earlier known as

the McDowell & Co. Ltd. and the flagship company of the UB Group - has been the metaphor

for the finest spirits produced across the world. With more than 140 brands across different

flavours such as Scotch, Whisky, Vodka, Rum, Brandy and imported Wines, USL has the most

sought-after brand portfolio in the industry. The fact that 21 out of the 140 brands are

"Millionaire Brands" (those that sell more than a million cases per annum) is a definite indication

to the reach and popularity of USL's brands.

Not only that, United Spirit's brands have won the most prestigious of national and international

awards across flavors, ranging from the Mondial to International Wine and Spirit Competition

(IWSC) to International Taste and Quality Institute (ITQI); a total of 99 awards and certificates

(as of December 2007) - which again is a true reflection of the company's commitment towards

maintaining quality and finesse across all its offerings.

USL has constantly revamped itself and its brands to keep pace with the changing business

dynamics and global competition. The company's ultimate objective of becoming the second

largest spirits company in the world received a major shot in the arm during 2007 with the

acquisition of internationally renowned brands (companies) such as Whyte & Mackay, Bouvet

Ladubay and Pinky Vodka.

And yes. with such a head start, the excitement continues as USL is geared for an action-packed

year, which will drive it further closer to becoming the No. 1 spirits company in the world.

Dalmore

With over 160 years of existence in the art of whisky-making, Dalmores Highland malt

whisky is recognized as one of the finest distilleries in the world. To enrich the rich taste of

almore, the malts used for brewing the fine liquor are fermented in oak wooden casks for as

long as 21 long years. With subtle transformation, the malt tends to emit an orange, healthier

roma with subtle hints of smoke. To find more you simply have to follow your nose and taste

it with the help of Richard Patersons tasting notes. The pure water of River Alness is used to

roduce the Dalmore and its because of the wholesomeness of the river many other Highland
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malt whiskies of Scotland have set up their production lines along the banks.

From Norse to Gaelic, Dalmore means the big meadowland referring the fertile Black Isle

ocated on the opposite side of the distillery. The Dalmore offers 26 unusually distinct aromas

with a choice of flavor from chocolate and spice. Each of these exceptional malts has its own

unique character and has bagged numerous prestigious awards.

Jura

Established in 1810, the name of JURAs single malts is inspired from the Island of JURA

described as one of the most un-getable places by English writer George Orwell because of

its distant location in London. The serenity of the location contributes to the unique blending

rocess where whisky not only absorbs the flavors of the wood, but also the islands sea breeze

assing over the porous walls of barrels. Often the smallest of factors can affect the balance of

flavors in whisky. Jura, as they say is an island rich in history, myths and superstitions and

thelegacy dates back to 8000 years ago where the pre-historic graveyard at Kilearnadil was

said to be the resting place of a saint.

For true whisky enthusiasts a visit to the distillery is the major attraction. The island of Jura

may be hard to get to, but those who have been there will find it even harder to leave. The

fastest route from London involves changing a couple of flights and then a ferry. After

winning numerous awards in its category JURAs single malt is distinguished for its subtle

flavors world over.

Whyte & Mackay

stablished on the docks of Glasgow in 1844, the brand was named after two founders, James

Whyte and Charles Mackay. The finest whiskey Whyte and Mackay is proud of its Glasgow

roots to produce the rich flavor by combining the best of 35 selected malts in Scotland. The

brand has always believed in the philosophy of good things comes to those who wait, and

ats how Whyte and Mackay had been known for using the unique double marriage process
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blending their whisky which not only guarantees a smooth, mellow and distinctive character

ut ensures every drop of Whyte & Mackay tasting as good as the first. There is an old saying

which goes something like this You Cant Hurry Love. The simple meaning of the saying

signifies the double marriage process.

At 12 years old, when other producers bottle their aged blends, Whyte & MacKays Master

lender brings together the finest malt whiskies, then returns them to sherry casks to marry for

nother year of loving union. At 13 years old, the second marriage takes place, when the finest

grain whiskies are introduced to this blend of malts to create the masterpiece that is THE

THIRTEEN.

There are 3 different variants of scotch whiskey based on the period of maturation, viz.

Whyte and Mackay The Thirteen (13 year old blended scotch whiskey)

Whyte and Mackay 19 Years Old Blend (19 year old blended premium scotch whiskey)

Whyte and Mackay 22 Years Old (Rare edition blended scotch whiskey)

Black Dog

he birth of the great whisky took place almost 125 years ago when James McKinley from the

econd generations of the Leith Scotch-whisky blending family launched the masterful whisky

y the name of Millard Black Dog. It is said that in the year 1883 Walter Millard, a Scot from

British East India company came searching for the perfect Scotch and eventually discovered

e great taste of whisky in these misty shores of Scotland. Today Black Dog is considered as a

100% genuine Scotch-whisky distilled, matured and blended in the lowland regions of

Scotland. After more than 125 years every time-honored process is followed the same way to
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produce the impeccable blend of robust, yet smooth Scotch-whisky which is relished as an

intricate fusion of delicate tones and soft aromas. Available in 2 enchanting blends - 12 Year

Old Deluxe Scotch-whisky and 8 Year Old Centenary Scotch-whisky.

or 12 Year Old Deluxe Scotch-whisky, the Master blender guarantees a lavish finishing with

a touch of cream. On the other hand the 8 Year Old Centenary Scotch-whisky comes with a

promise of giving a balanced, long and intense finishing.

Antiquity

t was during the era of sizzling 80s, Antiquity captured the fascination of whisky and scotch

drinkers with its exceptional creation. It is a unique blend of exclusive Scotch, fine Indian

malts and alcohol with zero artificial flavors. Needless to say the blend composition was

derived after numerous experiments and till date the composition is a closely guarded secret,

known only to the Master Blender. Quality of the product is maintained using strict quality

control norms including finger-printing using the sophisticated Gas Chromatographic

technique. A timeless packaging that's earned global recognition, bagging prominent awards

ike World-star, Asia-star and India-star. Available in two distinct blends - Antiquity Blue and

Antiquity Rare, the brand is known for its indomitable spirit and superior taste.

oth variants come in colors of Antique Gold with fantastically long and smooth finishing. As

far as the aroma goes Antiquity Blue gives a whiff of peat as the delicate spice is married

eautifully with honey, vanilla and tropical fruits double the excitement. On the other hand its

sibling Antiquity Rare couples the delicate balance of malt and wood with a rare touch of

heather.

Signature

In the late 80s and early 90s, finding a Scotch or expensive whisky was a tough task. Every

connoisseur stocked his bar largely from the bootlegger or trips abroad. With bootlegger, the

risk of getting original stock always remained a question mark and secondly bulk purchase
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requirements of corporate partners could not be met. That saw the birth of Signature Whisky.

Thats how in 1991, McDowell & Company launched this prized blend of imported Scotch

having impeccable Indian malts and called it McDowell's Signature which soon started

expanding its consumer franchisee to become the Best Indian Whisky of all time.

The full-bodied Signature blend with a well-rounded bouquet of peated malts and a generous

fusion of Scotch, adds to its superior value delivery. The physical identity of brand Signature

played an instrumental role in creating a premium, aspirational and exclusive imagery for it.

As it stepped into the new millennium, the focus shifted towards premium whisky drinkers

who were younger, well-heeled, well-exposed and on-the-way-to-the-top. Thus was born the

New Signature, known commonly for its rich "Scotch like Taste," McDowell's Signature is

clearly young, modern, and stylish for the discerning.

Royal Challenge

Royal Challenge is the largest selling premium whisky in India with a rich heritage of

innovation and unsurpassable quality. Blended for 24 years, Royal Challenge has won the

hearts of whisky drinkers across the nation since its inception in the 80s. It is said that the

Master Blender spent a lot of time in studying the properties of various oak wood casks to

elect the right procedure for maturation. The kind of imagery it lends to its customers goes in

o prove its leadership in the market. As the UB Group acquired Shaw Wallace in 2005, Royal

hallenge commonly referred as RC amongst whisky drinkers became a part of USL's proud

legacy.

An amazingly smooth whisky, the secret of its velvet-like texture lies in the use of leisurely

atured malt spirit. With its rare texture of antique gold, the finishing gets long, smooth, deep

and yet so delicate.

McDowell's No.1

McDowells No.1 has undoubtedly been the top-of-the-line whiskey both literally and

laterally. Over the years the brand has reinvented itself in all possible ways and has looked at
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reater accomplishments in product, packaging, marketing and promotions. In the beginning, it

ad the tag 'Mera No.1' attached to it. However, over the years, it has evolved and transformed

from an "icon" to a brand character. The brand has reinvented itself in all possible ways and

has looked at greater accomplishments over the years. With the simple proposition of

celebrations in life begin with McDowell, the trademark cheer finger has quite evidently

made an impression. The proof of its quality and appeal is that it has not only survived the

Scotch invasion, but is on its way to becoming one of the biggest

hisky brands in the world even beating pure Scotch! Apart from the popular McDowell's No.

1 Reserve Whisky, McDowell has another variant under its label - DietMate Whisky, world's

first diet whisky, created especially for the fitness conscious drinkers. The brand's ability to

change itself constantly and remain connected to the ever - changing customer aspirations is

the key to its success.

ts aroma has a subtle vanilla-like sweetness and no wonder which gives it a light, smooth and

warm finishing.

cDowell's No.1 Platinum

he No.1 spirit of leadership.

true leader is he who thinks, and acts unconventionally. Bearing testimony to this belief is

cDowells No.1 Platinum - A brand that celebrates real leaders. As drinking whiskey is

erceived as a sign of achievement among todays youth, McDowells No.1 Platinum serves as

n inspiration to the young leaders of tomorrow to dream big and work towards achieving it.

ased on the insight, in todays world successful leader is he who makes unconventionality a

ay of his life, the brand reaches out across different media to awaken the leader in each of us.

leader in his own right.

is said, the task of a leader is to get his people from where they are, to where they have not

een. Case in point is MS Dhoni having led the Indian team to victory in the World Cup 2011.
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ifted with leadership qualities that have inspired millions, it is no surprise that MS Dhoni fits

e bill to be the brand ambassador for Mc Dowells No. 1 Platinum. Undoubtedly one of the

est captains of all time, MS Dhoni embodies the brands ethos - Think and lead differently.

nd this platinum partnership certainly is a great unison of two iconic brands that synergize

ach other in an immaculate manner.

efining leadership.

its endeavor to emphasize the true essence of unconventional leadership, McDowells

latinum No.1 recently shot a television commercial (TVC) starring MS Dhoni. The authentic

lot of the TVC revolves around the thought Successful leaders think differently. And takes

s to the last over of the final T20 match in September 2007, where Dhoni, being the epitome

f unconventional leadership, led India to a glorious win. This inspiring TVC, features a

tirring narration by the captain himself. Further, its also a visual treat that offers a grand mix

f stunning visuals and mind-blowing graphics. Currently on air in all leading TV channels

nd out-of-home media, it aims at reinforcing in the consumers minds the brands philosophy

The No.1 Spirit of Leadership.

Bagpiper

agpiper is one of the flagship brands of United Spirits Limited and the worlds largest selling

whisky. The brand sold more than 16 million million cases in 2009-10. The 33 year old

flagship brand of USL is the market leader with 27% market share.

agpiper Whisky was launched in 1976 by Herbertsons which was acquired by the UB Group

in 1973. With a distinct style and blend, Bagpiper is been promoted as the whisky of the

cinestars, endorsed by the reigning macho heartthrob. Bagpiper has many firsts to its credit

including the guala caps and tetra packs. Bagpiper is exported to 22 countries. The brands

promise of Khoob Jamega Rang jab mil baithenge teen yaar... Aap, Mein Aur Bagpiper is
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synonymous with the Bollywood glamor.

Bagpiper Whisky is known for its strong blend and light malt-like aroma with a hint of

woody/earthy character at the background. The malt spirits used in the blend are chosen from

malts matured in pre-identified American oak casks. These malt spirits, when blended in

certain proportions, give a smooth woody aroma to the whisky.

Celebration Rum

c Dowells Celebration Rum is the 2nd largest rum in the world and a market leader in India.

vailable in 2 variants - No.1 Celebration Rum and No.1 Celebration Rum Dry & White, both

f which are matured, distilled and blended with exceptional finesse. It captures the traditional

roots of rum making and full credit to the Master Blender who did a rigorous study before

reating this superior blend. Its chocolate brown texture makes it full-bodied rum with richness

of toffee and caramel in its aroma. Take a sneak peek at the residential bar of any defense

personnelyou can be doubly sure to find atleast one bottle of Celebration Rum.

Bouvet Ladubay

With the acquisition of BOUVET-LADUBAY in July 2006, the UB Group has made a

strategic entry into the wines category. BOUVET-LADUBAY based in Saumur in the Loire

Valley region in France, has a heritage of over 160 years. BOUVET-LADUBAY has won

many International Awards and Recognition for the longstanding quality of its fine Sparkling

ines. (360 Medals, 100 Gold Medals until today). BOUVET-LADUBAY considers Wine as

Lifestyle Art the French "Art de Vivre" & has always been partnering with Arts :

Contemporary Art through its Art Center, Theatre through its 19th Century Theatre, Cinema

rough numerous events during each year Cannes Film Festival for instance for over 15 years.

The Company currently produces 5.5 Million bottles per annum and has a 8 Million bottles

roduction capacity through its new Winery BOUVET-LADUBAY Full Metal inaugurated in

December 2008 by Dr Vijay Mallya, Mr Ravi Nedungadi and his Excellency Ranjan Mathai,

Indian Ambassador to France.
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Pinky

ts pink with an exotic combination of flowers and fruit. Packaged in its chic perfumed styled

bottle, Pinky offers a shot of sheer feminity. Created in Sweden by champion wine tasters,

Pinky owes its elegance and distinctive pink taste to a bouquet of violets, rose petals, wild

strawberries and other botanical herbs hand blended into the vodka after distillation for

aximum flavor. To accentuate its sensuous appeal the brand name is printed in metallic silver

on a black layered mono carton. The brands unusual typeface adorned with rose thorns

suggests its beauty while alluding to its ingredients.

Romanov

Romanov gets its name from the last czar of Russia and true to its calling remains committed

to the finest vodka making, the way Russians traditionally made their vodkas. A premium

offering for the fastest growing vodka consumers in the country, Romanov is at the forefront

of all innovations. The finest grains from different harvest seasons are fermented with utmost

are to retain all the natural characters. With multi-distillation and multi-filtration techniques, a

never before blend of Romanov Red is finally blended to perfection with a rigorous 7 step

manufacturing process. Keeping in step with the changing times Romanov offers 2 peppy

flavors namely Green Apple and Tropical Thrill, orange,lemon. A World class triple-distilled

lend with a tinge of de-mineralized water, Romanov induces a sense of refreshing energy, and

its piquancy leaves you craving for more.

White Mischief

White Mischief is triple-distilled vodka filtered to the highest levels of purity to ensure the

flamboyant spirit of youth - its core essence being flirtatious mischief. The clean and dry

Extra Neutral Alcohol is blended in close supervision and strict quality control parameters to

ensure a high quality vodka blend. The frosty and smooth look of the bottle with shades of

royal blue and white on the vial stand for the stylish youth of today. White Mischief is the

market leader today with 46% market share.
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Four Seasons

Four Seasons range of premium wines is a delight for every season. Be it sprightliness of a fresh

spring morning, the joyous warmth of a glorious summer afternoon the tingling nip of a crisp

autumn twilight or the biting chill of an icy winter night, it offers wines in 6 distinct flavors -

Sauvignon Blanc, Chenin Blanc, Blush, Cabernet Sauvignon, Shiraz and Zinfandel. Four Seasons

uses fine French varieties of wine grapes cultivated in the Western Ghats of Maharashtra to

produce wines at the state-of-the-art winery in Baramati. The lush rolling Western Ghats which

occupies almost 1000 acres of Nasik and Sahyadri ranges offer not just a breathtaking landscape

of beauty but are endowed with the perfect natural conditions to nurture the grapes. All thanks to

Mr. Abhay Kewadkar the Cheif Winemaker and Business Head for the UB Group who seamlessly

used his expertise in setting up its wine business.

BOARD OF DIRECTORS

Dr. Vijay Mallya

Chairman

Dr. Vijay Mallya is the face of the $2 billion UB Group. 52 year-old Dr. Mallya took over the

reins of the United Breweries Group in 1983 at the tender age of 28 and has, since then, steered

the UB Group to a multinational conglomerate.

Instrumental in shaping the Kingfisher brand as one of the most popular beers across the globe,

Dr. Mallya has received several awards both in India and overseas. He was conferred a Doctorate

in Philosophy in Business Administration (honoris causa) by the University of Southern

California and nominated as a Global Leader for Tomorrow by the Geneva-based World

Economic Forum (WEF).

In recognition of Dr. Vijay Mallya's contribution to the development of Trade and Industry in

Karnataka, the Federation of Karnataka Chambers of Commerce and Industry conferred upon him

"Sir M. Visvesvaraya Memorial Award" for the year 2001.
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Dr. Mallya is a Member of Parliament and on the board of several public companies in India and

abroad.

Mr. S. R. Gupte

Vice Chairman

Mr. Subhash Raghunath Gupte (Mr. Gupte), aged 68 years, is a Chartered Accountant. Mr. Gupte

has worked with Caltex India Limited for 5 years in various capacities. Mr. Gupte has also

worked with Air India for 24 years and took over as Acting Chairman and Managing Director

from July 17, 1990. He was also Chairman of Hotel Corporation of India till November, 1991.

Mr. Gupte has been with the UB Group for the last 15 years.

Mr. Gupte has varied experience in financial, administration and personnel fields as he was

heading these fields in Air India.

Mr. Ashok Capoor

President and Managing Director

Mr. Ashok Capoor is the President and Managing Director of United Spirits Limited, the worlds

largest alco bev company by volume and the USD 2 billion spirits arm of the UB Group.

Mr. Capoor has over 35 years of experience across companies and various functions with major

specialization and experience in sales & marketing. He has led several brands to their global

iconic status despite operating in highly regulated business environments.

Mr. Capoor started his career with the National Tobacco Company in 1976. He then took up an

assignment with Godfrey Phillips India Ltd. as Branch Manager in 1978. He rose to the position

of Regional Manager Sales, Northern Region in April 1982 and then to the position of

Marketing Manager in 1988. He later joined the erstwhile Herbertsons Limited as Divisional Vice

President in 1992, looking after PAN India Sales and Marketing operations. He later took over as

Chief Operating Officer (West) in United Spirits Ltd. (USL) in June 2001. During his tenure,

USL took giant strides in the Western region and gained significant market share across brands,


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setting a performance benchmark for other regional profit centers within the USL fold.

Mr. Capoor donned the mantle of the Deputy President of United Spirits in 2007, directly

overseeing the sales and marketing function across the country. During his tenure, USLs growth

outpaced the industry, consistently achieving over 12 13% volume growth and a 16% value

growth year on year. Under his visionary leadership, USL reached the global No 1 mark with 21

brands in its portfolio selling over a million cases every year.

Mr. Capoor is known for his market driven management style backed with teams that remain

continuously motivated to beat their own benchmarks and deliver shareholder value. His charter

is to lead United Spirits to the 200 million cases mark in the next five to six years.

Mr. Ashok Capoor was born on the 5th of July, 1953. He completed his schooling from Mayo

College, Ajmer. He is an alumnus of Sri Ram College of Commerce, Delhi where he secured a

degree in B.A. Economics (Hons). He has also secured a masters degree in Business

Administration (Marketing) from Faculty of Management Studies, Delhi. He successfully

completed an Advanced Management Programme from Harvard University, Boston.

Mr. M. R. D. Iyengar

Mr. M. R. Doraiswamy Iyengar. aged 66 Years is a Graduate in Commerce and a Chartered

Accountant. He is also a post Graduate in Law, holding a B.L. degree. Mr Iyengar has served as

Chief Accountant and Secretary of a few Companies for 6 years and joined M/s. K. V.

Narasimhan & Co., a firm of Chartered Accountants as partner in 1970. Mr. Iyengar was a senior

Partner in the firm till 28-3-2000 and has since retired from the said firm presently, Mr. Iyengar is

a Consultant and advisor to the said firm.

Mr. Doraiswamy Iyengar has over 30 years experience in auditing and accounts of both Public

and Private Sector Companies and large sized firms, specialized in taxation of all categories of

assesses both under Direct Tax laws & also State Sales Tax law and has carried investigations for

Companies. Presently Mr. Iyengar is appearing before all Appellate authorities in Tax cases.


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Mr. Doraiswamy Iyengar was appointed as an additional Director on April 19, 2001.

Mr. Sreedhara Menon

Mr. Sreedhara Menon, aged 70 years, is currently Chairman of the Board and Strategic Advisor of

VITEOS Capital Market Services Limited, a Business Process Outsourcing Company in India

with a branch located at Somerset, New Jersey, USA. Mr. Menon has previously held senior

positions as Deputy President and Member of the Board of Directors of American Express Bank

Limited, Chairman of the Board of Directors of American Express Bank International, Managing

Director, Emerging Markets Group at Lehman Brothers Inc., New York and General Partner and

Vice Chairman of RRE Ventures, LLC. Mr. Menon has served as a Member of the Board of

Directors of U.S.-India Business Council, Asean-U.S. Business Council, President of India-

America Chamber of Commerce in New York, etc. Mr. Menon holds Masters Degree in

Economics from Maharaja's College of the University of Kerala, India. He resides in Short Hills,

New Jersey, U.S.A.

Mr. Menon is Director in Viteos Capital Markets Services Limited.

Mr. B.M. Labroo

Mr. B. M. Labroo, aged 75 years, is an Industrialist and has wide experience in marketing,

finance and corporate governance. Mr. Labroo is an M.A. in Political Science from Punjab

University and is the promoter and Chairman of Asahi India Glass Ltd.

Mr. B M Labroo is a member of the Audit Committee, Shareholders/Investors Grievance

Committee, and Chairman of Compensation Committee.

Mr. S.K. Khanna

Mr. Sudhindar Krishan Khanna (Mr. Khanna), aged 54, is a qualified Chartered Accountant. He

ranked 3rd in the UK in the Intermediate Examination of the Institute of Chartered Accountants in

England & Wales and 1st in the Finals with the prize of the best paper in Law. Mr. Khanna joined


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Accenture, London as a Senior Consultant in the year 1977 and promoted to Partner in 1986.

Mr. Khanna possesses a very large range of experience in advising clients in strategy,

reengineering and technology across a range of industries at the Chairman/CEO level in

approximately 20 countries. Mr. Khanna was responsible for setting up all of Accenture business

in India which today is approximately 40,000 people, and is the largest geography for Accenture.

He recently retired from Accenture after 30 years - his last position being Global Managing

Partner Outsourcing, based in London.

Mr. Khanna also speaks at a variety of global conferences and interacts with the media globally.

Mr. Khanna is a Charter Member of TIE which is a Global Technology Networking/ Mentoring

Organization. He is also on the Board of IBPN (Indo British Partnership) and on the Board of the

India Advisory Group, which advise the UK and Indian Government on strengthening India -

British economic ties.

Mr. Khanna was appointed as additional Director of the Company on June 01, 2007 and will hold

office as Director up to this Annual General Meeting.

Mr. Khanna does not hold any share in the Company.

MARKET SHARE

The Indian spirits industry today is pegged at 236 million cases and USL has a 59% market share

in India in the segments it operates in.

Indias Largest Beverage Alcohol Group and The Largest in the World.

Total worth of its spirits division brands is over $ 5 billion US Dollars.

Market Leader with over 59% market share of India Spirits Business.

114 million cases in the year 2010-11.

Portfolio comprises of a wide range of Brands including 21 Millionaire Brands.


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USL has dominant market share & the fastest growing brands in most key segments

category USL Market Share (%) Brand Ranking

BII Scotch

Premium

Scotch

44% Black Dog 12 Yr (Rank # 1, Fastest

Growing Premium Scotch)

Regular

Scotch

6% Black Dog 8 Yr (Fastest Growing

Regular Scotch)

Whiskey

Premium 60% Royal Challenge (# 2), Signature (#

3),

Antiquity (# 4, Fastest Growing

Premium Whisky)

Prestige 61% Mc Dowell's No 1 (#1), DSP Black

(#3, Fastest Growing Prestige

Whisky)

Regular 55% Bagpiper (#1), OTW (# 3, Fastest

Growing Regular Whisky)

Vodka

Premium -- -

Prestige 7% Red Romanov (#2)

Regular 83% White Mischief (#1), Romanov (#2)

Regular Rum 56% McDowells Celebration (#1), Old

Cask (#3, Fastest Growing Rum)

Regular

Brandy

67% Mc Dowells No 1 (#1), Honey Bee

(#2, Fastest Growing Regular

Brandy), John Exshaw(#3)

Regular Gin 79% Blue Riband

ADVANTGES AND DISADVANTAGES OF SALES PROMOTION


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DISADVANTAGES OF SALES PROMOTIONS

While sales promotion is a powerful and effective method to produce immediate short term

positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is speed

up the killing of a bad product.

Increased price sensitivity

Frequently promoted brands in the product category, especially on the basis of price, make

consumers and traders more price sensitive not only for the promoted brands but for other brands

as well in the same product category.

Consumers wait for the promotion deals to be announced and then purchase the product. This is

true even for brands where brand loyalty exists. Customers wait and time their purchases to

coincide with promotional offers on their preferred brands.

Quality image may become tarnished

If the promotions in a product category have been rare, or the product happens to be of high

involvement category, the promotions could have a negative effect about its quality image.

Consumers may start suspecting that perhaps the product has not been selling well, the quality of

the product is true compared to the price or the product is likely to be discontinued because it has

become outdated.

Dealers forward buy and divert stocks

In case of deals for the trade, many dealers forward buy, in excess of their inventory

requirements. This is particularly happens if a product is low bulk, much in demand and the

inventory holding costs are favourably low. This is true both for wholesalers as well as retailers.


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Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some

of the stocks in non-deal areas. Forward buying of excessive stocks on deals or quantity discounts

can lead to diversion of some of the stocks in non- deal areas.

Wholesalers and retailers do not hesitate in selling these excess stocks in non- deal areas on prices

that are less than the list price, but keeping some reasonable margin for themselves. This is likely

to have a negative effect on price discrimination efforts of the company as dealers and those areas

would not be buying even the normal requirements from the company.

Merchandising support from dealers is doubtful

One of the trade promotions tool is to offer promotional allowances to trade people to motivate

them to provide merchandising support and to pass on some benefit to consumers. This generally

is the condition attached with such promotional allowances. In many cases, the dealers do not

cooperate in providing the merchandising support nor do they pass on any benefit to consumers.

The retailer might not be willing to give support because he does not have the place, or the

product does not sell much in his shop, or may be he thinks the effort required is more than the

commission/benefit derived.

Short-term orientation

Sales promotions are generally for a short duration. This gives a boost to sales for a short period.

This short-term orientation may sometimes have negative effects on long-term future of the

organization. Promotions mostly build short-term sales volume that is not maintained. Heavy use

of sales promotion, in certain product categories, may be responsible for causing brand quality

image dilution.


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The argument given in favour is that companies should develop superior products or services

which are better than competitors and consumer should be convinced through appropriate and

focused advertising about the superiority of the product and its image.

This will result in lasting brand identities reflecting consumer values. Then there will be no need

to offer any extra benefits; only the lasting brand image will keep customers loyal to the brand.

Advantages Of Sales Promotion

The main advantage of this tool is that it has a very Strong consumer response

Such discounts offer immediate value and strong consumer response.

The Flexibility and convenience of implementation is another advantage. Price offers are

extremely flexible in the sense that the producer has total control on the number of units being

promoted and the market area in which the offer will be given.

If different packs of the same brand are available, the marketer can choose the one size that is not

selling well.

A discount offer may rapidly lose its advantage if competitors announce a similar offer. In fact,

competitors are very likely to retaliate leading to the danger of triggering a promotion wall in

which no one benefits except the consumer.

Such discounts are short term and are unlikely to produce any long-term gains because the

incentive is to purchase now by creating sense of urgency. When the discount is withdrawn the


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sales may fall below the level of pre-promotion period.

And in the long run the sales would return to pre-promotion period level.

METHODS OF SALES PROMOTION

Step 1

Identify the potential customers. To create a sales promotion, you must first come to understand

whom you are trying to sell the product or service, so you can then choose a methodology that

appeals to the customer. Create a scenario that describes who the customer is, how they think and

feel, what they like to do, what their household income is and how the product or service benefits

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