Alcohol surrogates in India

Reason for existence: Barriers

There are a thicket of regulations to navigate. Each state enforces its own rules, taxes and
legal drinking age, which runs as low as 18 in the state of Goa to 25 in Maharashtra.
Gujarat, Gandhi's birth state, remains dry

TV advertising for alcohol is banned across India

But companies get around the rules with so-called surrogate advertising in which
marketers sell bottled water, compact discs and other goods emblazoned with booze
brand names as a way to raise awareness.
Region-specific boost by governments

In India:
65,000 1 per 18,000
licensed people
outlets across In China:
the country 1 per 300
people

In 2006, the Maharashtra government started to

issue beer shop licenses for outlets that can only
sell beer and wine, but not spirits
Number of beer shops has increased sharply driving
high growth in beer shop volumes accelerating
growth of the overall market
Advertising and marketing trends in India

Beer
Some points to note

SABMiller advertises "Miller Time" clocks for High Life, which was
introduced last year and is positioned with a work-hard, play-hard
mentality

A lot of the attention is on India's "strong beer" segment. But rather

than talk about a beer's alcohol strength, SABMiller recently
shifted strategy, using the tagline "strengthen your resolve" for its
top-selling Indian brand, a strong beer called Haywards 5000. The
message pushes the notion that people drink beer -- even strong beer
-- to remain in control, vs., say, doing a shot of whiskey

Carlsberg, which entered India in 2006, launched its premium

Carlsberg Elephant beer in India in 2011, positioning it as "the new
royalty of strong beer
 Brand and their associations

Brand Baseline Personality, cues, associations Surrogate

Corona A refreshing slice of life Mexico, relaxation

Kingfisher Ultra The Emperor of Good Times Ultimate Taste & Smoothness Fashion

Carlsberg Probably the best beer in the world Quality, Premium-ness Club glasses

Budweiser King of Beers American imagery

Kingfisher Blue Blue Freedom Beer for the young and the adventurous Adventure Holidays
Leisure, lifestyle, fun
(Sports - Cricket, Racing, Fashion, Food,
Kingfisher King of Good Times Music Fest) Packaged Drinking Water,

Miller High Life Work hard, play hard 'Miller Time'

Fun Starter Nights, Non-

Tuborg The fun starts here Fun, clubbing, partying alcoholic malt beverages

Fosters Australian for Beer Raw Australian Machismo Packaged Drinking Water
Vodka
 Overview

Vodka accounts for a small percentage of The market has been segmented, as follows:
the total liquor market Super Premium/ Luxury Segment Grey Goose,
Total size of the market is 5 million cases Belvedere, Finlandia, Smirnoff Black,
annually Premium segment Smirnoff (All others), Eristoff,
Vodka is considered a white spirit. The Wodka Gorbatschow, Ice
white spirit market is growing at 25% Semi Premium segment Shark Tooth, Magic
Has been growing at a rate of 35-40% Moments, Fuel, Romanov Red
annually in the last 5 years Regular segment White Mischief, Romanov,
Aristocrat, Class

Around 90% of the market is from the entry level and mid
priced brands. Rest is from the premium category

USL owns 80% of the market share in the entry level

segment
 Across segments, vodka is seen as a party drink
Consumers associate vodka with party music/tracks, gigs
or musical extravangazas
The feel that vodka is seen to give is feeling upbeat -
revolving around high level of socialising, unhindered
enjoyment and music

Consequently, the category code for vodka is seen as

liberation

All brands have surrogates related to music, party or

theme nights based on music genres

Music CDs are the most commonly used surrogate,

especially for the semi-premium and regular brands
 Imagery key outline for a few brands

Brand Essence Personality Tagline Surrogate

Smirnoff Individuality Confident and Powerful I choose Theme Musical Nights,

Party, Music CD
Eristoff Wild Fantasy Wild, Unconventional, Anything can happen in Music CD
Highly Energetic the land of the wolf

WodkaGorbatschow Purity Being Pure, and true to its Whoever you are, be pure Music CD
core, Bold

Romanov Wanna More Hip, Trendy, Colourful, I always crave for more Music CD
Desirable from life

Class 21 Forever 21 (Young) Contemporary, trendy, Thank God for 21 Music CD

youthful, showy

White Mischief Being Flirtatious Stylish, Mischievous, A little Mischief. A lot of Music CD
Flirtatious, Youthful fun
Surrogate: Music CDs
 Current communication - Print

Surrogate: Musical Nights

Whiskey
 Overview

In India, whisky is now seen as a drink for both older and younger consumers A contemporary and stylish
one, as compared to the erstwhile (perceived) imagery of a drink for the mature and evolved individuals.

One of the fastest-growing whiskey markets, it is estimated to be worth about $10 billion by 2013.

Over the past 20 years, the countrys growing middle-class with its disposable income, particularly among
youth, has increasingly quaffed whiskey.

Indians consume 200 million cases of whiskey a year, of which less than a million cases are imported foreign
liquor.

Source: NY Times, July 8, 2013

 Across segments, whiskey is now seen as a stylish drink.
Consumers associate whiskey with relaxing and unwind
The choice of the brand in the category expresses ones
Identity and personality

The category code for whiskey used to be seen as

maturity and discernment (for the premium brands)
However with increasing no. of young consumers in the
category fold, the shift from this to style and show is
observed in case of some brands
 All brands have surrogates related to Water, CDs and
Soda

Water and Soda are the most common across the

category, with premium brands associating with Fashion
tours and accessories.

Most brands provide water and Soda for their surrogate,

as it provides a brand experience for consumers at touch
points like retail and on premise.
 Brand and their associations

Brand Baseline Personality, cues, associations Surrogate

Packaged Drinking water, fashion,
Signature Style and Fashion golf accessories
Bagpiper Khub jamega rang' Bonding and friendship Water & Soda, cassettes & CDs
Black Dog Let the world wait Unwind CDs
McDowells Mera No 1 Water and Soda
8 pm Whiskey Aath ke thaat' Evening unwind Water
Signature Gentlemen of style Stylish Fashion Tour
Teacher's High recognition and respect Awards
Royal Stag Make it large Seeking Higher Grounds Music CDs
Johnny Walker Keep walking Encouragement Soda
Blender's Pride Make the world a stylish place Fashionable Fashion Tour
Royal Challenge Desire for Achievement Golf accessories and mineral water
Officers Choice Awaken the officer in you Righteousness Water
AC Black Kuch Bhi Ho sakta Hai Apple juice
100 pipers True legend Heritage Music CDs
Bagpiper
8 pm
Signature
Royal Stag
Royal Challenge
Blenders pride
100 Pipers
 THE OBSERVATION

Surrogates, for long, used to be seen as a mean to circumvent the communication

restrictions imposed on mass media from the time the law came into existence
Therefore, most of the brands used common elements like packaged drinking water or soda
that, as product, were seen to have very little connect with the brand essence or imagery-
building messages
The use of soda or water as the surrogate seemed to have a product connect as mixers
with hard liquors

Vodka brands, on the other hand, used music CDs as surrogate that adhered to the
category code of partying, music and enjoyment/liberation
 RECENT TREND

The recent socio-economic changes have given rise in aspirations of Indian consumers
There has been a substantial change in the needs, wants, desires and lifestyle of the young
Indians

More drinkers are coming into the fold across categories and brands are vying for their
attention through imagery building communications and/or associations

Brands have also started to re-look at their surrogates through the lens of consumers needs,
lifestyles or aspirations

As a result the brands have moved beyond the usual

and started bringing certain brand relevance and message connect in their surrogates
with an eye on the consumer segments
 HAYWARDS : Hausla Award. Gives connotations of strength of resolve (of the drinker, to be in control) and
connotes moving ahead in life in a broader perspective

Tuborg: Fun Starter Nights. Gives the fun-seeking TG a platform of enjoyment and expression coupled with
different genres of music OR non-alcoholic malt beverages that gives the brand a chance to broaden their target
base to ALL in the family across ages and genders

Kingfisher Blue: Adventure Holidays. Gives the differentiation-seeking TG a push for freedom from the mundane
routines of daily life

Blenders Pride : Fashion Tour. It appeals to the need to appreciate finer things in life

Signature: Golf accessories and Fashion. Gives a positive rub/boost to the intense need and aspirations of the
consumers to be seen as at par with the upper crust (the sophisticated and the successful) of society
 To sum up
Today more and more leading alco-bev brands are carefully choosing and using
their SURROGATES that help drive in the imagery further

CONSUMER SEGMENTS
(their needs, aspirations, desires and BRAND ESSENCE &
expectations from alcohol) BRAND EXPERIENCE
Brandy
Brandy brands available in a store in Bangalore

SOURCE: Livemint June 2013

 Overview

Brandy category has almost doubled since 2008.

Its contribution to the alcobev industry has grown from 17% in 2008-09 to 25% in 2012-13

It has seen growth rate of 11% from 63.58 million cases to 70.62 million cases in 2012-13

Tamil Nadu contributes roughly 65% of all brandy sales and the southern states together account for more than
95% of the market

In India, Brandy was considered for people who drank for the kick and not so much the taste.
That has changed in the past two years

Brandy is seen as a warm, no-nonsense drink for people with serious intentions and some what reserved in
nature.

Source: Live Mint, June, 2013

 Brand and their associations

Brand Baseline Personality, cues, associations Surrogate

Morpheous The spirit of France captured in a goblet success, ambition and dreams Music CDs

Kyron Discover French grandeur French grandeur Music CDs

McDowells No 1 Celebrations For moments of celebrations

Mansion house simply special For special people

 The category, in terms of imagery building is at a nascent stage in India. It is reflected in the brandy brands
associations/surrogates not much thoughtful direction is seen in this regard

As a result, so far the category is found to adopt a more generic approach towards latching on to a surrogate

Recent exceptions : Morpheus and Kyron are premium brandies and it is seen that these 2 brands have Music CDs
as their surrogate, to appeal to a comparatively sophisticated audience

Brandy is localized only in Southern states and so far semi premium brandies like Mansion House are not seen
with mainstream communications that mandates for surrogates

Mansion House as a brand has been the official cheers partner in the previous IPL for Chennai Super Kings
However it is not known whether the brand has taken up IPL as a property that can be used as a long-term
surrogate

Source: Collective understanding and observation of the market

THANK YOU