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Mining Banquet: External Analysis

The document discusses the alcohol industry in India, focusing on the banquet hall market in Delhi. It analyzes key trends like the expanding mid-income group and influence of young adults. State government controls create challenges for industry players. Sales data for various alcohol segments in Delhi private retail and banquet halls is presented, showing higher sales during wedding season months. The outlook expects continued industry growth driven by economic expansion and evolving consumer preferences.

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sumit
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60 views11 pages

Mining Banquet: External Analysis

The document discusses the alcohol industry in India, focusing on the banquet hall market in Delhi. It analyzes key trends like the expanding mid-income group and influence of young adults. State government controls create challenges for industry players. Sales data for various alcohol segments in Delhi private retail and banquet halls is presented, showing higher sales during wedding season months. The outlook expects continued industry growth driven by economic expansion and evolving consumer preferences.

Uploaded by

sumit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MINING BANQUET

Target Segment Secondary Research


To understand the market and
Unlicensed banquet halls
understand about product,
which serve liquor under P-10
players, offerings
license

Primary Research
To understand
consumer preferences and
buying habits
Retailer/ banquet owners
preferences
Competitor strategies

EXTERNAL ANALYSIS
External analysis is being done to gauge the industry from an outsiders perspective to
understand its potential/ attractiveness/ forces operating in the industry.

Who are the stakeholders in the industry?


Customers
Banquet halls
Private Retailers

The Alcohol Industry in India at a glance


KEY TRENDS AND DEVELOPMENTS
Expanding mid-income group supports sales growth
India is seeing good growth in disposable income levels, with the country benefiting from
expansion in its mid-income group. The country's mid-income group is particularly strong in
major cities but is also seeing strong growth in rural areas. Mid-income consumers are
meanwhile increasingly interested in quality and branding, rather than simply using
alcoholic drinks as a means of becoming intoxicated.
Growth in this group is thus resulting in many trading up from economy spirits, desi liquor
and illicit spirits to the leading brands. Many of the leading players in alcoholic drinks thus
saw a strong share gain in 2015.
Outlook
India's mid-income group is expected to continue to expand in the forecast period. India is
one of Asia's fastest-growing economies and is expected to see real GDP growth of around
7% annually in the forecast period. This will result in many consumers trading up within
alcoholic drinks. This trend is expected to benefit the on- and off-trade alike in the forecast
period, with both channels seeing 5% volume CAGR. Mid-income consumers are likely to
socialise with alcoholic drinks both at home and in the on-trade more frequently as
disposable income levels rise.
Young adults shake up consumer trends

Young adults aged 20-35-years-old are rapidly growing in number in India. These consumers
are increasingly well educated and focused on quality, health and aspirational lifestyles.
They are also increasingly receptive to new global trends. These consumers are also
benefiting from rising disposable income levels and are thus having a growing influence on
sales of alcoholic drinks in India. This group notably drove strong growth in many niches at
the end of the review period, being interested in new areas of alcoholic drinks. Areas such
as imported premium lager, RTDs/high-strength premixes and still light grape wine are all
benefiting from strong sales to this group, achieving 17%, 20% and 12% total volume growth
respectively in 2015. This group is meanwhile often disinterested in more traditional Indian
alcoholic drinks, notably often shying away from desi liquor and economy spirits and
preferring products with stronger branding and a higher quality positioning.
However, young adults are also easily swayed by online marketing and social media.
Consequently, many traditional brands focused on targeting this group online.
Outlook
Young adults aged 20-35-years-old are expected to increasingly shape trends in alcoholic
drinks in the forecast period. These consumers are not only set to rise in number but will
also become increasingly affluent. They will thus become the target of many leading
alcoholic drinks players' marketing, with this in turn likely to result in a growing focus on
online marketing. Video-on-demand and social networking sites such as Facebook will thus
become more prominent forms of marketing in the forecast period.
This age group is focused on quality, authenticity and brand heritage. This is expected to
benefit many global brands with a strong image, particularly within premium spirits.
State government controls create burdens for players and bolster illicit sales
Alcoholic drinks taxation and legislation is controlled by state governments in India, with this
resulting in wide variations in trading conditions across the country. Many states are heavily
reliant on alcoholic drinks taxes for their annual budgets, with this creating the temptation
to hike taxes in times of economic difficulty. Other states are meanwhile increasingly
influenced shifting towards prohibition as they seek to reduce social problems or due to
religious reasons. State government decisions are often difficult to predict and continued to
pose heavy constraints to players in alcoholic drinks at the end of the review period.
Outlook
The Indian national government is keen to reduce alcoholic drinks consumption in the
country, believing that excessive consumption contributes to considerable social and health
problems. The national government is also keen to standardise taxes across the country.
However, it appears likely that alcoholic drinks taxes and regulation will remain in the
control of state governments in the forecast period, with the latter fighting to retain control.
Alcoholic drinks taxes remain important to many state governments' revenues, while other
states are keen to take more stringent controls over alcoholic drinks sales

What are our sales in the current scenario?


Data has been plotted monthly with respect to the cases of
particular segment sold per month in the Delhi region in the
private retail segment.
It has also been taken as a proxy to show that the sales
spiked during the months of November, December, February
and April . They are primarily the season for marriages.
BIO segment
Pr Blend Scotch
5000.0
4000.0
3000.0
2000.0
1000.0
0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

SP Blend Scotch
4000.0

3000.0

2000.0

1000.0

0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

UP Blend Scotch
200.0

150.0

100.0

50.0

0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

Pr Vodka
2500.0

2000.0

1500.0

1000.0

500.0

0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17
SP Vodka
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

Tequila Total
120.0

100.0

80.0

60.0

40.0

20.0

0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17
Tequila
120.0

100.0

80.0

60.0

40.0

20.0

0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

Aus Wine
1200.0

1000.0

800.0

600.0

400.0

200.0

0.0
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

Grand Total Sale of all segments


12000.0
10000.0
8000.0
6000.0
4000.0
2000.0
0.0

BII Segment
Scotchblend-Std Total
35000
30000
25000
20000
15000
10000
5000
0
July Aug Sept Oct Nov Dec Jan Feb March April

Whkyadmx-Value Total
250000

200000

150000

100000

50000

0
July Aug Sept Oct Nov Dec Jan Feb March April

Wine Total
12000

10000

8000

6000

4000

2000

0
July Aug Sept Oct Nov Dec Jan Feb March April
Vodka-Regular Total
10000

8000

6000

4000

2000

0
July Aug Sept Oct Nov Dec Jan Feb March April

Cheap Total
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
July Aug Sept Oct Nov Dec Jan Feb March April

Rum Dark Regular Total


80000
70000
60000
50000
40000
30000
20000
10000
0
July Aug Sept Oct Nov Dec Jan Feb March April
Grand Total
800000
600000
400000
200000
0

Whkyadmx-Regular Total
80000
70000
60000
50000
40000
30000
20000
10000
0
July Aug Sept Oct Nov Dec Jan Feb March April

Brandy Total
1200

1000

800

600

400

200

0
July Aug Sept Oct Nov Dec Jan Feb March April
Growth Drivers
Nominal GDP of Delhi: 6.22 lakh Crore INR (2016-2017)
Delhi has 656 Banquet Halls

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