CONTENT 1. Acknowledgement 2 2. Preface 4 3. Introduction of Major Players in Beer Brands 7 4. Objective of Research 11 5. Liquor industry in India 13 6. Different alcoholic drinks 16 Process of making Beer 20 7. Product Profile 23 8. Company Profile 27 Parent unit of Mohan Meakin Ltd. 32
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MBA Summer Training Project Report on Mohan Meakin Bravaries
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CONTENT
1. Acknowledgement 2
2. Preface 4
3. Introduction of Major Players in Beer Brands 7
4. Objective of Research 11
5. Liquor industry in India 13
6. Different alcoholic drinks 16
Process of making Beer 20
7. Product Profile 23
8. Company Profile 27
Parent unit of Mohan Meakin Ltd. 32
Sister concern company of MML. 33
Product of the company 35
9. Competitors 39
10. Research Methodology 49
Various parameter used in research 53
11. Findings & Analysis 54
Option for other brand when preferred
brand is not available. 81
Are the consumers aware of the company’s name whose brand they drink? 83
Wholesaler & Retailer’s View 84
12. Conclusion 85
13. Recommendation 87
14. Limitation 91
15. Questionnaire 93
16. Bibliography 99
ACKNOWLEGEMENT
First of all would like to thank MOHAN MEAKIN LIMITED, Which
provided me a great opportunity of undergo my summer Training in
such a prestigious organization. Then I would like to Thank Mr B.N.
Verma (Regional Marketing Manager, Mohan Meakin Ltd) in whose
region I have done my training. I am especially thankful to to Mr.
Anand Mohan (Marketing Executive, Mohan Meakin Ltd.) under
whose kind guidance I have done my training.
At the end I would like to thank Mr.Pradeep Kushwaha & all those
who helped me during my training.
JITENDRA YADAV
PREFACE
Indian Liquor and beer industries share common characteristics arising
form a similar policy framework. Country liquor, Indian made Foreign
Liquor (IMFL) and beer are state subject, with each state controlling
the duty structure and distribution. Incidence of import and export
duties result in high cost of interstate movements which has resulted in
each state having attributes of a separate market.
This Market research has been done for Mohan Meakin Limited for
studying the “Market size of beer brand with respect to Mohan
Mikin & other competitors”. For this purpose market of Meerut has
been covered. For differentiating the behavior of consumers in this
market a survey has been conducted through questionnaires and
responses of consumers and retailers have been recorded.The results
may not be in accordance to the actual situation in the market because
of small sample size and the limitation of area, but serious efforts have
been put into get the best results.
Most Demanded
Brand Name
Company Name % of Mkt. Share
Haywards 5000 SAB Miller 33%
Mikin 10000 MML 29%
Kingfisher UB Group 24%
King Cobra Cobra 06%
Others ……... 08%
INTRODUCTION OF MAJOR PLAYERS IN
BEER BRANDS
During my research I found following major players in beer marke
As the summer season approaches the beer majors get active. This
season is heating up with United Breweries, SABMiller and Mohan
Meakins trespassing to each market shares.
All Indian beers are either lager (5 % alcohol – such as Australian
lager) or strong lagers (8 % alcohol-such as the popular MAX super
strong beer). International Breweries Pvt. Ltd. Have recently
announced an intention to work with Mohan Meakin to produce and
launch an India’s first brewery at Solan., Kingfisher, Haywards,
Foster’s, Royal Challenge are popular Indian beer brands.
The Indian beer industry has been witnessing steady growth of 7-9%
per year over the last ten years. The rate of growth has remained steady
in recent years, with volumes passing 100m cases during the 2006-
2007 financial year. With the average age of the population on the
decrease and income levels on the increase, the popularity of beer in
the country continues to rise.
The Indian beer industry has witnessed a big change during the last
five years. The industry was previously dominated by competition
between the Vijay Mallya-controlled United Breweries Group and the
Manu Chabbria-controlled Shaw Wallace. The scenario changed,
however, with the entry of SABMiller in India. The international beer
giant started by acquiring small breweries in the sought but then
completely changed the landscape with the acquisition of Shaw
Wallace’s beer portfolio for a reported US$13m in 2003. This gave
SAB Miller ownership of strong brands like Haywards 5000, along
with its existing brands. After the acquisition, SAB Miller focused on
spreading its footprint across India, including opening new breweries
in states where Shaw Wallace did not have a presence.
The SABMiller acquisition of Shaw Wallace gave the company a good
position in the strong beer sector (beer with an alcohol content of 6%
and over) which is the fastest-growing segment in the market. While
SABMiller’s Haywards 5000 is the biggest-selling strong beer brand (a
fact hotly contested by UB Group), UB’s Kingfisher is the largest-
selling beer brand overall in the market.
UB has been marking inroads into the strong beer segment during the
last year. Kingfisher Strong, shoes sales five years ago were only equal
to one-fifth of Haywards 5000, is now running neck and neck with
Haywards-indeed both companies claim market leadership of their
brands.
There are some smaller, regional players too; of them one of the most
important is Mount Shivalik Breweries, which owns brands like
Thunderbolt.
Mohan Meakin is also a strong regional player in the country, though
family rifts have prompted the family-owned business to put itself up
for sale. Consensus between family members is proving difficult to
reach, out, with companies such as SABMiller and UB showing
interest, the company’s fate should be decided soon.
OBJECTIVE
It is said that a well defined objective is half achieved. So make sure
that our concerns are being solutionised define the objectives of this
project.
The objectives are:
To determine the market position of beer produced by
Mohan Meakin Ltd.
To determine the perception of consumer towards beer
of MML.
To know the market share of Mohan Meakin Ltd.,
regarding to beer only.
To determine the competitor of Mohan Meakin Ltd.
To analyze the market expansion in future.
THE LIQUOR INDUSTRY IN INDIA
The alcohol industry is very important for the government. It generates
an estimated Rs. 16,000 crore per annum in spite of the fact that the per
capita consumption of liquor in India is the lowest in the world. The
total liquor industry is worth Rs. 2,000 crore. IMFL accounts for only a
third of the total liquor consumption in India. Most IMFLs are cheap
and are priced below Rs. 200 per bottle. Alcohol sales proceeds
account for 45% of the total revenue collection in the country.
Whiskey accounts for 60% of the liquor sales while rum; brandy any
vodka account for 17% 18% and 6% respectively. MNC’s share is only
10% and they have been successful only in the premium and super
premium ranges. Post WTO the government may have opened India to
foreign distilleries, but the duty has been increased from 222% to 464-
706%. This is due to the fact that there is a 100% customs duty, 150%
contravening duty, local taxes, distributor’s margin, retailer’s margin
and publicity charges. The cost is finally borne by the consumer.
Though the government claims that this is being done to protect the
domestic liquor industry, the domestic industry accounts for 99% of
the market share. This protectionist policy could prove to be
counterproductive and lead to smuggling. As of now, only 45% of the
sales are through legal channels and only 25% of this is duty paid for.
Within India itself, the policy of alcohol retail differs form state to
state. While some states like Maharashtra. Uttar Pradesh, and Tamil-
Nadu have a liberal policy, come states like Haryana and Andhra
Pradesh have had very bitter experience in trying to make these states
dry and have eventually had to withdraw the policy.
DIFFERENT ALCOHOLIC DRINKS
1. WHISKY
Whisky is amongst the most popular distilled liquor known all over the
world. It is made of malt and molasses spirit, which is obtained by
distillation of mash or cereal grains like maize, rice barley malt. Better
the malt better the whisky. Large quantities of IMFL are manufactured
in India and is the maximum sold alcohol. The content is whisky is
42.8%.
2. RUM
Rum is a distillate from the fermented juice of sugarcane of molasses.
RUM is characterized with its taste and aroma. Best rums are known to
come from Jamaica, West Indies etc. The alcohol content of Rum is
42.8%.
3. BRANDY
Brandy is generally obtained from fruits, thought the most commonly
used fruit is grapes. The best quality of brandy is cognac, which is
made in France.
4. VODKA
Vodka is a sprit resulting out of distillation at very high proof. This
results in virtual NPN existence of flavour in the resulting sprit,.
Which is neutral , even after dilution required for palpability. The
traditional source of making vodka has been potatoes.
5. BEER
Beer is not a distillate like the drinks mentioned above but it is a
beverage made by fermentation of malt obtained form carbohydrate
rich material barley. Hops are used to add taste while yeast is used to
ferment the beer.
Beer is to two types :
1. Pilsener or Lager
2. Draught
Lager Beer is the most common bottled Beer found in almost all
the retail shops in the country. This Beer is served chilled and is of
two ypes.
Mild Beer alcohol content of 6.75%.
Strong Beer alcohol content of 8.75%.
Draught Beer is served chilled in mugs and is generally available in
Pubs only. It can be stored for 72 hours only and does not have any
brand name. Mohan Meakins supports Draught Beer.
6. GIN
It is sweetened or un sweetend grain spirit flavoured with essential oil
juniper berries and some other product including anglica roots, orange
peel, cardamom, bitter almonds give it a kick and taste.
PROCESS OF MAKING BEER
INGREDIENTS:
The basic ingredients of beer are water; fermentable starch source,
such as malted barley; and yeast. It is common for a flavoring to be
added, the most popular being hops. A mixture of starch sources my be
used, with the secondary starch source, such as corn, rice and sugar,
often being termed an adjunct, especially when used as a lower cost
substitute for malted barley.
WATER:
Beer is composed mostly of water, and water used to make beer nearly
always comes from a local source. The mineral components of water
are important to beer because minerals in the water influence the
character of beer made from it. Different regions have water with
different mineral components. As a result, different regions are better
suited to making certain types of beer. For example, Dublin has hard
water well-suited to making stout, such as Guinness, and Pilzen has
soft water well-suited to making pale lager, such as Pilsner Urquell. As
a result, it is argued that the mineral components of water have an
influence on the character of regional beers.
STARCH SOURCE:
The starch source in a beer provides the fermentable material in a beer
and is a key determinant to the character of the beer. The most
common starch source sued in beer is malted grain. Grain is malted by
soaking it in water, allowing it to begin germination, and then drying
the partially germinated grain in a kiln. Malting grain produces
enzymes that convert starches in the grain into fermentable sugars.
Different roasting times and temperatures are used to produce
difference folours of malt from the same grain. Darker malts will
produce darker beers.
Nearly all beer includes barley malt as the majority of the starch. This
is because of its fibrous husk, which is important in the sparging stage
of brewing, and high concentration of amylase, a digestive enzyme
which facilitates conversion of starch into sugars. Other malted and
unmated grains (including wheat, rice, oats and rye, and less
frequently, corn and sorghum) may be used.
HOPS:
The flower of the hop vine is used as a flavoring and preservative
agent in nearly all beer made today. The flowers themselves are often
called “hops.” Hops were used in beer by jews in Babylon around 400
BC, and by monastery breweries, such as Corvey in Westphalia,
Germany, from AD 822, though the date normally given for
widespread cultivation of hops for use in beer is the thirteenth century.
Hops contain several characteristics that brewers desire in beer. hops
contribute a bitterness that balances balances the sweetness of the malt;
hops also contribute floral, citrus and herbal aromas and flavours to
beer; hops have an antibiotic effect that favours the activity of brewer’s
yeast over less desirable microorganisms; and the use of hops aids in
“head retention”, the length of time that a foamy head created by
carbonation will last. The bitterness of beers is measured on the
International Bitterness Units scale. Beer is the sole major commercial
use of hopes.
In the past, other plants have been used for similar purposes; for
instance, Glechoma hederacea Combinations of various aromatic
herbs, berries, and even ingredients like wormwood would be
combined into a mixture know as gruit and used in the same way as
hops are now used.
YEAST:
Yeast is the microorganism that is responsible for fermentation in beer.
Yeast metabolizes the sugars extracted from grains, which produces
alcohol and carbon dioxide, and thereby turns wort into beer. In
addition to fermenting the beer, yeast influences the character and
flavour. The dominant type of yeast used to make beer are ale yeast
(Saccharomyces cerevisiae) and lager yeast (Saccharomyces uvarum);
their use distinguisher ale and lager. Brettanomyces ferments lambics,
and Torulaspor delbrueckii ferments Bavarian weissbier. Before the
role of yeast in fermentation was understood, fermentation involved
wild or airborne yeast.
PRODUCT PROFILE
This research focuses the study of alcoholic product of Mohan
Meakins. Thus it is important for us to known what Alcoholic drinks
are. Alcoholic drinks are a mixture of alcohol or spirit water and minor
ingredients knows as cogeneries. The organic name of alcohol is ethyl
alcohol, which is derivative of hydrocarbon. Consumable alcohol has
no flavor, only careful section of congeneries which is added during
fermentation process lead to a palatable product. Therefore alcohol
drinks offered world over are blended to provide uniform blends,
bouquets and palatability.
The Indian liquor industry can be analyzed by segmenting into 3 parts :
1. Country Spirit
2. Indian Made foreign liquor
3. Foreign Liquor
1. COUNTRY SPIRIT:
This is the unorganized sector occupying about 70% of the liquor
market. Country spirits are distilled spirits mixed or unmixed with
spices or other ingredients in small quantities to import taste and
aroma. This spirit is most common among the lower class; it is
manufactured by local methods and has local names the most common
being Dhara.
2. INDIAN MADE FOREIGN LIQUOR:
This liquor is not the contemporary Indian liquor. In these category
products like whisky, rum, brandy and vodka are there. British’s had
brought in this liquor to India later they set up distilleries and brewery
to manufacturer it in India.
In post independence period there were 28 distilleries and 5-6
breweries. Today there are 233 distilleries and 75 breweries in India.
This shows the tremendous growth and acceptance of IMFL brands in
India.
3. FOREIGN LIQUOR:
This is the imported liquor includes Beer and IMFL brands but the
most common is scotch. Imported scotch is in great demand in
India but the Indian. Govt. bans the import of bottled scotch
whisky, though a limited quantity can be brought in for duty free
shops, five star’s hotels and in bulk for local bottling by joint
ventures.
COMPANY PROFILE
A saga that began over a century and a half ago, continues on its path
of service to the world with dedication, courage and an unflinching
commitment to quality. Over the years the Company has embraced
modernity and adapted to changing times. Yet, its basic values remain
the same-integrity, Craftsmanship, and Tradition. From old tradition
sprang Mohan Meakin where the sanctity of ancient culture,
technological development and craving for quality are artfully blended
into the products.
In the late 1820’s, Edward Dyer moved from England to set up the first
brewery in India (later incorporated as Dyer Breweries in 1855) at
Kasauli in the Himalayan Mountains. The Kasauli brewery launched
India’s and indeed Asia’s first beer, Lion, which was in great demand
by the thirsty British administrators and troops stationed in the
sweltering heat of India. Lion was much appreciated as a beer, and one
famous poster featured a satisfied British Tommy declaring, “as good
as back home!”.
The brewery was soon shifted to nearby Solan. (Close to the British
summer capital Shimla), as there was an abundant supply of fresh
springwater there. The Kasauli brewery site was converted to a
distillery, which Mohan Meakin Ltd. Still operate. Dyer set up more
breweries at Shimla, Murree Murree Brewery, Rawalpindi, Mandalay,
Quetta and acquired interest in the Ootacamund Brewery (South India).
Another entrepreneur, H G Meakin, moved to India and bought the old
Shimla and Solan Breweries from Edward Dyer and added more at
Ranikhet, Dalhousie, Chakrata, Darjeeling, Kirkee and Ceylon. After
the first World War, the Meakin and Dyer breweries merged and in
1937, when Burma was separated form India, the company was
restructured with its Indian assets as Dyer Meakin Breweries, a public
company on the London Stock Exchange.
Following independence, N.N. Mohan raised funds and traveled to
London where he acquired a majority stake in Dyer Meakin Breweries.
He took over management of the company in 1949 and built new
breweries at Lucknow, Ghaziabad and Khopoli (Near Bombay). The
company name was changed to Mohan Meakin Breweries in 1967 (the
word “Breweries” was dropped in the eighties as the company
diversified into other industries). On the death of N.N Mohan in 1969,
his eldest son Colonel V.R. Mohan took over as Managing Director.
He introduced a number of new products that are brand leaders today
but died in 1973, soon after taking the helm. In the 1970s the
manufacturing activities of the company were diversified into other
fields including breakfast cereals, fruit juices and mineral water under
the leadership of Brigadier Kapil Mohan (Col. V.R. Mohan’s brother).
Subsequently the word brewery was dropped from the company name
in 1982 to remove the impression that the company was engaged only
in beer making. New breweries were built during the seventies and
eighties at Chandigarh, Madras, Nepal and Kakinada near Hyderabad.
Today, Mohan Meakin’s principal brands are Old Monk rum and
Golden Eagle beer. Its other products include diplomat Deluxe,
Colonel’s Special, Black Knight Meakin 10,000 Summer Hall and
Solan No 1 whiskies London Dry and Big Ben gins, and Kaplanski
vodka. Asia’s original beer, Lion, is still sold in northern India.
PARENT UNIT OF MOHAN MEAKIN LIMITED
The registered office of Mohan Meakin Limited is situated at Solan in
H.P. and its manufacturing and bottling centers are located at
Solan H.P : Distillery, Brewery and Bottling
Kasauli H.P: Distillery
Lucknow U.P: Distillery
Mohan nagar U.P: Distillery, Brewery and Glass Unit, Bottling and Fruit Juice Unit.