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 to brand name.

INDEX Sr.No. TOPICS Page No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 12. 13. Objectives Methodology Sales and Promotion Advertising Types Of Advertising Branding About Company Advantages and Disadvantages Of Sales and Promotion Methods Of Sales and Promotion Tools Of Promotion Steps To Effective Sales Promotion Why Sales Promotion Scenario Of company before and after Sales and Promotion Pros and Cons of these Strategic Implementaions Suggestions 6 8 10 24 29 30 61 63 65 66 67 68 69

14. 15.

Conclusion Bibliography

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.

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.

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 and coupons, 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

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.

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 when the 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 savings on 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.

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 freestanding 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

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 or incentives. 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,

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 through prime 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.

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

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 receives all 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, trade deals 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.

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 a local 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

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.

ADVERTISING
Advertising or advertising is a form of communication for marketing 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; or new media such as blogs, web sites or text messages. Commercial advertisers often seek to generate increased consumption of

their products or services through "branding," which involves associating a product name or image with certain qualities in the minds of consumers. 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 of persuasion, such as a public service announcement (PSA).

TYPES OF ADVERTISING Radio advertising Radio advertising is a form of advertising via the medium of radio. 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 or network in 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 of promotion that uses the Internet and World Wide Web for the expressed 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 email 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

Cadillac

cars

were

used.

Similarly,

product

placement

for Omega

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 Runner includes some of the most obvious product placement; the whole film stops to show a Coca-Cola billboard. 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.

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 to endorse 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

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 or airships to create or display advertising media. Skywriting is a notable example.

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.

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 horse associated 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.

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 UB Group 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.

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 Limited 2. United Spirits Limited- Spirits and Wines Branch

3. United Breweries Limited- Beer Branch 4. Kingfisher Airlines 5. Mangalore Chemicals and Fertilizers Limited 6. UB Engineering

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 Dalmore, 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 aroma 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 produce the Dalmore and its because of the wholesomeness of the river many other Highland

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 located 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 process where whisky not only absorbs the flavors of the wood, but also the islands sea breeze passing 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

Established 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 thats how Whyte and Mackay had been known for using the unique double marriage process

in blending their whisky which not only guarantees a smooth, mellow and distinctive character but 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 Blender brings together the finest malt whiskies, then returns them to sherry casks to marry for another 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

The birth of the great whisky took place almost 125 years ago when James McKinley from the second generations of the Leith Scotch-whisky blending family launched the masterful whisky by 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 the 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

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.

For 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 It 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 like 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.

Both 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 beautifully 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

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 infusion 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 select the right procedure for maturation. The kind of imagery it lends to its customers goes in to prove its leadership in the market. As the UB Group acquired Shaw Wallace in 2005, Royal Challenge 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 matured 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

greater accomplishments in product, packaging, marketing and promotions. In the beginning, it had 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

whisky 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.

Its aroma has a subtle vanilla-like sweetness and no wonder which gives it a light, smooth and warm finishing. McDowell's No.1 Platinum

The No.1 spirit of leadership.

A true leader is he who thinks, and acts unconventionally. Bearing testimony to this belief is McDowells No.1 Platinum - A brand that celebrates real leaders. As drinking whiskey is perceived as a sign of achievement among todays youth, McDowells No.1 Platinum serves as an inspiration to the young leaders of tomorrow to dream big and work towards achieving it. Based on the insight, in todays world successful leader is he who makes unconventionality a way of his life, the brand reaches out across different media to awaken the leader in each of us.

A leader in his own right.

It is said, the task of a leader is to get his people from where they are, to where they have not been. Case in point is MS Dhoni having led the Indian team to victory in the World Cup 2011.

Gifted with leadership qualities that have inspired millions, it is no surprise that MS Dhoni fits the bill to be the brand ambassador for Mc Dowells No. 1 Platinum. Undoubtedly one of the best captains of all time, MS Dhoni embodies the brands ethos - Think and lead differently. And this platinum partnership certainly is a great unison of two iconic brands that synergize each other in an immaculate manner.

Defining leadership. In its endeavor to emphasize the true essence of unconventional leadership, McDowells Platinum No.1 recently shot a television commercial (TVC) starring MS Dhoni. The authentic plot of the TVC revolves around the thought Successful leaders think differently. And takes us to the last over of the final T20 match in September 2007, where Dhoni, being the epitome of unconventional leadership, led India to a glorious win. This inspiring TVC, features a stirring narration by the captain himself. Further, its also a visual treat that offers a grand mix of stunning visuals and mind-blowing graphics. Currently on air in all leading TV channels and out-of-home media, it aims at reinforcing in the consumers minds the brands philosophy The No.1 Spirit of Leadership.

Bagpiper Bagpiper 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.

Bagpiper 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

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 Mc Dowells Celebration Rum is the 2nd largest rum in the world and a market leader in India. Available in 2 variants - No.1 Celebration Rum and No.1 Celebration Rum Dry & White, both of 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 creating 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 personnel you 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 Wines. (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 through 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 production 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.

Pinky Its 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 maximum 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 care 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 blend 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.

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. Chairman

Vijay

Mallya

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.

Dr. Mallya is a Member of Parliament and on the board of several public companies in India and abroad.

Mr. Vice Chairman

S.

R.

Gupte

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. President and Managing Director

Ashok

Capoor

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,

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.

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 IndiaAmerica 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

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.

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

category BII Scotch Premium Scotch Regular Scotch Whiskey Premium

USL Market Share (%)

Brand Ranking

44%

Black Dog 12 Yr (Rank # 1, Fastest Growing Premium Scotch)

6%

Black Dog 8 Yr (Fastest Growing Regular Scotch)

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 Regular Regular Rum -7% 83% 56% Red Romanov (#2) White Mischief (#1), Romanov (#2) 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

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 Increased of a price bad product. 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.

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 nondeal 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 from requirements dealers from is the company. doubtful

Merchandising

support

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.

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

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 them or fills a need they have. Step 2 Plot your product in the life cycle, which is composed of four main stages: introductory, growth, maturity and decline. Sales promotion efforts are different in each stage because the needs of the audience are different in each stage. Determining where your product falls in the product life cycle reveals how you should be marketing your product. Generally, products in the introductory stage require sales promotions to bring awareness to customers; growth products offer sales promotions that differentiate it from its competition; maturity requires more of a reminder type sales promotion using coupons and special sales; and the decline stage is typically where cost cutting measures occur to cut down on sales promotions. Step 3 Choose a sales promotion. Start off by choosing one method to implement as a sales promotion. You may start by offering coupons to customers. Coupons can work for almost any stage of the product life cycle and coupons can be distributed in a variety of ways. You can distribute coupons online via email, in stores where the product is sold, on your business website, in direct mail-your own direct mail campaign or in coupon supplier mailers such as Value Pak and Red Plum. Step 4

Track the response rate. When you implement the sales promotion, track the response rate of the method. For example, coupons may include a coupon code that customers have to input in online orders or provide during a phone order to claim the savings. If the sales promotion is successful generates a profitthen you can mimic the sales promotion in future campaigns. If not, you can modify the existing sales method or add a new method to the mix. Step 5 Implement a new sales promotion. Try out a new sales promotion, such as giving away free samples for customers to try. You may combine giving away free samples with a coupon so after a customer tries the product, likes it and decides to buy it, the user also has the added incentive of saving money to buy the product. Step 6 Repeat Steps 3 to 5. Continue to add and subtract sales promotions until you find the marketing mix that works best for your business. important techniques of sales promotion (1) Rebate: Under it in order to clear the excess stock, products are offered at some reduced price. For example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of time. (2) Discount: Under this method, the customers are offered products on less than the listed price. For example, giving a discount of 30% on the sale of Liberty Shoes. Similarly giving a discount of 50% + 40% by the KOUTONS. (3) Refunds: Under this method, some part of the price of an article is refunded to the customer on showing proof of purchase. For example, refunding an amount of 5/- on showing the empty packet of the product priced 100/-. (4) Product Combination: Under this method, along with the main product some other product is offered to the customer as a gift. The following are some of the examples: (5) Quantity Gift:

Under this method, some extra quantity of the main product is passed on as a gift to the customers. For example, 25% extra toothpaste in a packet of 200 gm tooth paste. Similarly, a free gift of one RICH LOOK shirt on the purchase of two shirts. (6) Instant Draw and Assigned Gift: Under this method, a customer is asked to scratch a card on the purchase of a product and the name of the product is inscribed thereupon which is immediately offered to the customer as a gift. For example, on buying a car when the card is scratched such gifts are offered TV, Refrigerator, Computer, Mixer, Dinner Set, Wristwatch, T-shirt, Iron Press, etc. (7) Lucky Draw: Under this method, the customers of a particular product are offered gifts on a fixed date and the winners are decided by the draw of lots. While purchasing the product, the customers are given a coupon with a specific number printed on it. On the basis of this number alone the buyer claims to have won the gift. For example, Buy a bathing soap and get a gold coin offer can be used under this method. (8) Usable Benefits: Under this method, coupons are distributed among the consumers on behalf of the producer. Coupon is a kind of certificate telling that the product mentioned therein can be obtained at special discount. It means that if a customer has a coupon of some product he will get the discount mentioned therein whenever he buys it. Possession of a coupon motivates the consumer to buy the product, even when he has no need of it. Such coupons are published in newspapers and magazines. Some companies distribute coupons among its shareholders. Sellers collect the coupons from the customers and get the payment from the company that issues the same. (9) Full Finance @ 0%: Under this method, the product is sold and money received in installment at 0% rate of interest. The seller determines the number of installments in which the price of the product will be recovered from the customer. No interest is charged on these installments. (10) Samples or Sampling: Under this method, the producer distributes free samples of his product among the consumers. Sales representatives distribute these samples from door-to-door.

This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea, Toothpaste, etc. Thus, the consumers willy-nilly make use of free sample. If it satisfies them, they buy it and in this way sales are increased. (11) Contests: Some producers organise contests with a view to popularizing their products. Consumers taking part in the contest are asked to answer some very simple questions on a form and forward the same to the company. The blank form is made available to that consumer who buys the product first. Result is declared on the basis of all the forms received by a particular date. Attractive prizes are given to the winners of the contest. Such contests can be organised in different ways.

TOOLS OF PROMTION The 4 Ps of marketing are product, price, place and promotion. All four of these elements combine to make

successful marketing strategy. Promotion looks to communicate the companys message across to the consumer The four main tools of promotion are advertising, sales promotion, public relation and direct marketing. Advertising

Advertising is defined as any form of paid communication or promotion for product, service and idea

Advertisement is not only used by companies but in many cases by museum, government and charitabl

organizations. However, the treatment meted out to advertisement defers from an organization to an organization.

Advertising development involves a decision across five Ms Mission, Money, Message, Media and Measurement. Mission looks at setting objectives for advertising. The objectives could be to inform, persuade, remind or reinforce. Objective has to follow the marketing strategy set by the company. Money or budget decision for advertising should look at stage of product life cycle, market share and consumer base, competition, advertising frequency and product substitutability. Messages development further is divided into four steps, message generation, message evaluation and selection, message execution, and social responsibility review.

Once the message is decided the next step is finalizing the media for delivering the message. The choice of depends on reach of media, frequency of transmission and potential impact on customer. Based on this choice of media types are made from newspaper, television, direct mail, radio, magazine and the internet. After which timing of broadcast of the message is essential as to grab attention of the target audience. Checking on the effectiveness of communication is essential to companys strategy. There are two types of research communication effect research and sales effect research. Sales Promotion Promotion is an incentive tool used to drive up short term sales. Promotion can be launched directed at consumer or trade. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. Consumer incentives could be samples, coupons, free trial and demonstration. Trade incentive could be price off, free goods and allowances. Sales force incentive could be convention, trade shows, competition among sales people. Sales promotion activity can have many objectives, for example, to grab attention of new customer, reward the existing customer, increase consumption of occasional users. Sales promotion is usually targeted at the fence sitters and brand switchers. Sales promotional activity for the product is selected looking at the overall marketing objective of the company. The final selection of the consumer promotional tools needs to consider target audience, budget, competitive response and each tools purpose. Sales promotion activity should under-go pretest before implementation. Once the activity is launched it should be controlled as to remain within the budget. Evaluation program is a must after implementation of the promotional scheme. Public Relations Companies cannot survive in isolation they need to have a constant interaction with customers, employees and different stakeholders. This servicing of relation is done by the public relation office. The major function of the public relation office is to handle press releases, support product publicity, create and maintain the corporate image, handle matters with lawmakers, guide management with respect to public issues.

Companies are looking at ways to converge with functions of marketing and public relation in marketing public relation. The direct responsibility of marketing public relation (MPR) is to support corporate and product branding activities. MPR is an efficient tool in building awareness by generating stories in media. Once the story is in circulation MPR can establish credibility and create a sense of enigma among sales people as well as dealers to boost enthusiasm. MPR is much more cost effective tool than other promotional activities. Direct Marketing The communication establishes through a direct channel without using any intermediaries is referred to as direct marketing. Direct marketing can be used to deliver message or service. Direct marketing has shown tremendous growth in recent years. The internet has played major part in this growth story. Direct marketing saves time, makes an experience personal and pleasant. Direct marketing reduces cost for companies. Face to face selling, direct mail, catalog marketing, telemarketing, TV and kiosks are media for direct marketing. Advertisement, Promotional activity, Public relation and direct marketing play an essential role in helping companies reaches their marketing goals. STEPS TO EFFECTIVE SALES PROMOTION 1. Target your effort

Promotions can spur purchases by established customers, reel in new customers, draw customers from competitors, get current customers to buy differently, and stimulate business during slow periods. But rarely can one promotion accomplish all of those objectives at once. As a result, you must decide which of the following is most important so that you can target your effort:

Do you want customers to purchase more frequently, buy in greater volume, or be attracted to new or different offerings?

Do you want to lure new customers into your business? Do you want lapsed customers to give your business another try? Do you want to boost business during slow hours, weekdays or particular seasons?

After carefully and thoughtfully defining the audience and the change you want your promotion to inspire, ask yourself this question: If you offer a time-limited incentive, is it likely that the customers you've targeted will respond? If so, continue to the next step. 2. Plan your incentive

A well-thought-out, properly targeted promotion prompts customers to take action by offering one of these incentives:

Price savings, including discounts, coupons or added value offers Samples or trial offers to provide a low-risk way to try new products or services Events or experiences to generate crowds, enthusiasm, sales, publicity As you decide on your incentive, keep these facts in mind: Price offers must be strong enough to compel, but reasonable enough to keep your business out of red ink. Avoid uninspiring 10 to 20 percent discounts, but also avoid very deep discounts unless they promote a loss leader to generate other higher-margin sales, or unless they'll attract valuable new customers into your business. Coupons always make a comeback in penny-pincher markets, which means they're hugely popular these days. Even young consumers and affluent shoppers--groups that traditionally shun coupons--are using them, boosting the typical 1 to 2 percent redemption rate by nearly 20 percent. Printed coupons are still the most widely circulated, but printable coupons, distributed on web sites and via e-mail, provide a terrific way to test price offers with business friends and fans before incurring costs to promote the offer more widely via other media. Samples work in all lines of business to let customers try before buying. The key is to sample products that are so great they'll win raves and repeat business.

Online-based businesses need to promote free samples prominently in an effort to attract links, visitors, site registrations and publicity. They can be the start of a prosperous relationship with new customers.

Retailers can turn sampling into promotional events. Think of Costco on weekends. Another great example: Este Lauder works with retailers to offer women free mini-makeovers that end with customer photos (against an Este Lauder backdrop). These are then e-mailed to participants for use on their social networking pages.

Service businesses would do well to give away mini versions of their offerings. For example, five-minute shoulder massages or one-hour home decorating consultations. Or, for higher-ticket service businesses, samples can take the form of affordable introductory packages that allow prospective customers to wade into the business relationship, gaining trust for the business while also receiving a valuable service. Events and experiences draw customers for celebrations, product launches, special appearances or presentations, and other activities that combine entertainment with brand and product presentations. When hosting an event, make sure to go all out. A half-hearted, poorly attended event is worse than no event at all, so plan, decorate, train your staff and publicize accordingly. 3. Know what you want to achieve

Promotions work especially well when consumers are in need of a jolt to take buying action. Just be clear about what you want to achieve. Set the number of sales you want to ring up, dollars you want to bring in, customer names you want to collect, buying patterns you want to change, or any other objective you want your promotion to achieve. Then determine what your desired change will mean financially to your business. By knowing the potential bottom-line impact of your promotion, you'll have the information you need to allocate a promotion budget, dedicate staff time and invest the energy necessary to host a strong promotion that will deliver business-boosting results over the time period it covers.

WHY SALES PROMOTION Sales promotion is a blend of marketing activities and promotional items to intensify the efforts of your sales force, induce your intermediaries to stock and sell your products, and to persuade your customers to purchase the offering within a specified, limited time period.

Why

customers

respond

to

sales

promotions

* They have a positive feeling about your brand which is linked to an unconditional stimulus such as * a discount

Reinforced reward - in-pack discount voucher and once tried they keep coming back. * Their * 'Foot * Sales * Price perception - perceived benchmark by customers. Used by quoting the reference price and sales * Decision making process - end of isle items trigger recognition to purchase or seeing a machine in a magazine and it reminds you to place an order for a service or part.. price to assist the customer to calculate the savings. force promoting benefits to alter customers perception of the offering. in the door' technique sample is tried to gain a larger order. attitude changes after trial repeat purchase.

Type

Of

Sales

Promotion

Objectives

* Encourages * Challenges o Set o Train * Induce * Persuade * Persuade * retailers to give a particular brand shelf space distributors to promote (push) a brand in their promotional activities wholesalers to carry a new product line more distributor sales people up more store displays sales force to locate and qualify new prospects sales force to move slow moving items

Encourage retailers to support sales promotion campaign by carrying more inventory

Sales promotion is one of 6 elements in the marketing mix and should thus be used against the background of the firms overall marketing communication strategy.

A firm selling expensive machines would not get involved in a sweepstake but would rather create a quality image through their distribution network by advertising in trade magazines and include personal selling in the mix.

How

sale

promotion

affect

sales

* Brand switching - does not only occur with price promotions. Customers might also buy the brand most readily available, or the brand on display. This is why there is rivalry amongst marketers for the * Repeat o to o product extension - to purchase same brand of microwave after a refrigerator was bought * Purchase o purchase o load * Category o give the customer another reason to buy - baking soda to remove stains and odors. o expansion customer to beat competitors promotion two for the price of one larger volumes bulk buying acceleration create a habit of purchasing the offer purchasing end of isle locations.

Increase the consumption rate - recipe/technical books with a product showing new ways to use the product

What

sales

promotion

can

do

* Stimulate * Find * Rekindle * Counteract * Facilitate * Increase * Reduce * Neutralise * Obtain * Retain * Increase * Reinforce advertising product usage by loading up consumers existing users by encouraging repeat purchases trial purchases from consumers competitive advertising and sales promotion stock and increase turnover merchandising shelf space the introduction of new products to the trade seasonal slumps in sales sales of a mature product new prospects sale force enthusiasm for a new improved or even mature product

Types

of

sales

promotions

Internal

Sales

Promotion

Timing is very important. It should not become a regular routine event. Launch and feedback are two important factors. Campaign promotion will contribute to keen participation and constant feedback will keep enthusiasm at a high level.

Sale

promotion

to

distributors

This is to introduce new or improved products and to increase shelf space. Sales promotion can be in the form of trade allowances such as a price reduction if certain quantities have been reached. Cooperative advertising when the cost are usually split 50-50. Trade contest and incentives can be extended to the distributors management and staff.

Point

Of

Purchase

One of the most important form of sales promotion. Displays are designed to attract attention and enhance the attractiveness of the products displayed. They come in various forms - Posters, mobiles, wobblers, shelf talkers, coupon dispensers, in-aisle display, end of aisle display, front of store display, standees, dump bins etc.

Specialty

advertising

Sale promotion that uses a number of materials and useful articles to carry your brand, such as T shirts, calendars, pens, diary etc

Trade

Shows

Provides effective opportunity to introduce new products and attract local and international dealers and distributors.

Sampling Offers a trial run and one of the most effective way to introduce a new or old product. Nivea cream had a very effective promotion with young ladies in leotards with blue balloons handing out samples.

Couponing This is a growing sales promotion technique in South Africa but we are far behind USA who redeem an estimated 8 billion coupons per annum.

Premiums A free give away to encourage customers to purchase the offering. Dunlop Tyres new give away is a cooler box with an assortment of picnic plastic containers inside.

Contest

and

sweepstakes

A contest requires the participant to apply a skill to create something such as a slogan, new idea or concept - Five Roses Tea uses this form of promotion to great effect. the prize is usually a fantastic holiday. The degree of consumer involvement is high as it appeals to the human desire for a bargain.

Sweepstakes are a game of chance with every entrant having an equal chance of winning- Readers Digest and charity organisations.

This type of promotion creates a high level of consumer awareness and a renewed interest in products can be achieved.

Sales promotion is a very effective way to increase sales and price incentives are very effective where low brand loyalty exists. A mix in the offer could be a small reduction in price, a new benefit, being readily available and a challenge to try. PROS AND CONS OF THESE STRATEGIC IMPLEMENTATIONS

SUGGESTIONS AND FINDINGS CONCLUSION BIBLIOGRAPHY