BUSINESS RESEARCH METHODOLOGY

PROJECT
Determination of market characteristics of the
Alcoholic Beverage Industry
Group Members:
Rohan Chavan
Swapna Desai
Diptee Karatkar
Amruta Manjrekar
Neel Kumar

406
409
433
444
458
1

Determination of market characteristics

Market Characteristics:
The distinguish feature, attribute, trait, quality or property which
helps in analyzing the market is known as market
characteristics.
For Eg. Size of the market, Uniqueness of the market etc..

Determinants:
Determinants are those various factors which directly impacts
the various characteristics of market and market behavior.
For Eg. No. of buyers and suppliers, Nature of the Product etc..

Why Alcohol Beverage Industry ?

India is the 3rd highest consumer of alcohol

One of the biggest source of revenue to the exchequer

Has been growing at a constant rate, due to changing social

norms and acceptability of alcohol.
Attracting new consumers across age, gender and income
groups
The most tabooed segment in India
3

Determinants of characteristics Alcohol

Beverage Industrys

Age & Gender

Income Factor
Brand Perception
Taxation
Marketing
Sales

Pricing of the Product

Brand Loyalty
Competition
Demand
Entry Barrier
Substitution

Data collection

The Sample Population Majorly India including other countries

Sampling Method Simple Random Sampling
Method of data collection Structured Survey Questionnaire
Primary Data closed ended survey
Secondary Data Research papers available on the Internet

The questioner is created using Kwiksurvey.com, which was

circulated through the communications mediums like emails,
Facebook, Twitter, Whatsapp, among others.

Data Analysis
On the basis of
Age
7%

3%

44%

18 to 26
27 to 34
35 to 43

47%

On the basis of
Gender % of
alcohol
consumption

44 and
Above
100
80
60
40
20
0

On the basis of
Income

30
5.9 %
%
Female

16%

18%

2.51
to 5

8%
16%

60.0
1%
2
%Male

0 to
2.5

5.1 to
7.5
41%

7.51
to 10

No

Have you ever purchase

brands after watching
advertisement?

Given a choice what would

you prefer?

16.78 %

21.68
%
78.32
%

83.22 %
Yes
No

Indian
brands over
foreign
brands

Consumption frequency of the

consumer surveyed
80

Most preferred alcoholic

beverage
2.5 %

Other

71.6

3.5 %

70

Gin

60
occasion
ally

50
40
23

20

Rum

9.8 %

Wine

17.3 %

Vodka

30

10

6.6 %

25. 3 %

Beer

35 %
3.4

Whiskey
2

10

15

20

25

30

35

40
8

Increase in income influence selection of Brand

14%
31%

55%

Switch to
expensive
brand
Continue
with the
same brand
Move to
imported
brand

Decrease in income influence selection of Brand

23%

77%

Switch to
cheaper
brand
Continue
with the
same
brand
Switch to
country
liquor

Increase in price of alcohol

influence consumers choice
of a brand
7.5 7.4 %
%

35.8 %

49.3 %

Switch to
cheaper
brand
Continue
with the
same brand
Continue
with the
same brand
with less
conumption
Switch to
comparative
ly expensive
brand

Decrease in price of alcohol

influence consumers choice
of a brand
7.4 % 16.9 %

Switch to
expensive
brand
Continue
with the
same brand

75.7 %

Continue
with the
same brand
with more
conusmptio
n
10

Hypothesis

11

Hypothesis 1
Hypothesis (H0): Irrespective of income group, incase of increase of
disposable income of the consumer, the consumer would continue
with consumption of same alcohol brand.
Hypothesis (H1): Irrespective of income group, incase of increase of
disposable income of consumer, they will not continue with same
Observed
Expected
alcohol brand
.

Income
0 to 2.5
2.51 to 5
5.1 to 7.5
7.51 to 10
ABOVE 10
Total
Calculated
(O)

Continu
e with
Same
Brand
14
30
11
4
12
71

Move
to
Import Switch to
ed
Expensiv TOTA
Brand e Brand
L
2
5
21
9
16
55
1
10
22
3
4
11
1
10
23
16

45

132

Income
0 to 2.5
2.51 to 5
5.1 to 7.5
7.51 to 10
ABOVE 10
Total
Expected

Switch
Continu
Move to
to
e with
Importe Expens TOTAL
Same
d Brand ive
Brand
Brand
11.30
2.55
7.16
21
29.58
6.67 18.75
55
11.83
2.67
7.50
22
5.92
1.33
3.75
11
12.37
2.79
7.84
23
71.00

16.00

45.00

132
12

Cell
(1,1)
(1,2)
(1,3)
(2,1)
(2,2)
(2,3)
(3,1)
(3,2)
(3,3)
(4,1)
(4,2)

(Oij-Eij) 2 (Oij-Eij) 2/Eij

0.64756722
7.31
2
0.11688311
0.30
7
0.65115440
4.66
1
0.00586854
0.17
5
0.81666666
5.44
7
0.40333333
7.56
3
0.05868544
0.69
6
1.04166666
2.78
7
0.83333333
6.25
3
0.62089201
3.67
9
2.08333333
2.78
3
0.01666666

Using Chi-Square Test

At D.O.F = 8 and Significance Level @0.05 the
critical value is 15.507
Since Calculated Value of Chi Square is Lower
than Critical value, i.e. 9.048 < 15.507, Hence
(H0)
Null hypothesis is Accepted, i.e.
Irrespective of Income group, Most of the
People Continue with Same Brand if
Increase in Income

13

Hypothesis 2
Hypothesis (H0): Irrespective of income group, incase of increase of price
of alcohol (due to various factors) most of consumer will continue with
same brand of alcohol
Hypothesis (H1): Irrespective of Income group, incase of increase of price
Switchwith
of alcohol (due
to various Switch
factor) most consumer would
not continue
Same
Same
Continof alcohol
Switch
to
Switch
to
same brand
Brand
Continu Brand
Income

0 to 2.5
2.51 to 5
5.1 to 7.5
7.51 to 10
ABOVE 10
Total
Calculated

ue
to Compar
With
with
Cheap itively Total
Less
Same
er Expensi
Consu
Brand
Brand
ve
mption
Brand
12
9
0
0
21
30
21
2
2
55
10
9
1
2
22
5
5
1
0
11
14
5
2
2
23
71

49

Income

to Compar
e with With
Cheap itively Total
Same Less
er Expensi
Brand Consu
Brand
ve
mption
Brand
11.30 7.80 0.95
0.95 21
29.58 20.42 2.50
2.50 55
11.83 8.17 1.00
1.00 22
5.92
4.08 0.50
0.50 11
12.37 8.54 1.05
1.05 23

0 to 2.5
2.51 to 5
5.1 to 7.5
7.51 to 10
ABOVE 10
Total
132 Expected 71.00 49.00

6.00

6.00 14 132

Cell
(1,1)
(1,2)
(1,3)
(1,4)
(2,1)
(2,2)
(2,3)
(2,4)
(3,1)
(3,2)
(3,3)
(3,4)
(4,1)
(4,2)
(4,3)
(4,4)
(5,1)
(5,2)
(5,3)
(5,4)
Total

(Oij-Eij) 2
0.50
1.45
0.91
0.91
0.17
0.34
0.25
0.25
3.36
0.69
0.00
1.00
0.84
0.84
0.25
0.25
2.65295
12.51659
0.911157
0.911157

(Oij-Eij)
2/Eij
0.043945
0.186125
0.954545
0.954545
0.005869
0.016667
0.1
0.1
0.284038
0.085034
0
1
0.142019
0.205782
0.5
0.5
0.214445
1.466007
0.871542
0.871542
8.502104

Using Chi-Square Test

At D.O.F = 12 and Significance Level @0.05 the
critical value is 21.017
Since Calculated Value of Chi Square is Lower
than Critical value, i.e. 8.5021 < 21.017, Hence
(H0)
Null hypothesis is Accepted, i.e.
Irrespective of Income group, Most of the
People Continue with Same Brand if
Increase in Price of Alcohol

15

Hypothesis 3
Hypothesis (H0): Irrespective of gender, due to surrogate marketing sales
doesnt increases
Hypothesis (H1): Irrespective of gender, due to surrogate marketing sales
increases.
Observed
Surrogate
marketing
TOTA
Gender Surrogate
doesnt
L
marketing
increases
increases sales the sales
Male
14
70
84
Female
12
36
48
Total
Expected
26.00
106.00
132
(E)

Expected
Gender
Male
Female
Total
Expected
(E)

Surrogate
marketing
Surrogate
doesnt
marketing
increases
increases sales the sales
16.55
67.45
9.45
38.55
26.00

106.00

TOTA
L
84
48
132
16

Cell
(1,1)
(1,2)
(2,1)
(2,2)
Total

(Oij-Eij) (Oij-Eij)
2
2/Eij
0.3916083
6.48
92
0.0960548
6.48
89
0.6853146
6.48
85
0.1680960
6.48
55
1.341074

02

Using Chi-Square Test

At D.O.F = 1 and Significance Level @0.05 the

critical value is 3.841
Since Calculated Value of Chi Square is Lower
than Critical value, i.e. 1.3411 < 3.841, Hence
(H0)
Null hypothesis is Accepted, i.e.
Irrespective of gender, due to surrogate
marketing sales doesnt increases.

17

Conclusion
The data obtained by us through the survey buttresses
objective of the research.
That brand loyalty is a strong determinant, but
Brand substitutability is the truth and hence availability is
important.
Increase or decrease in disposable income of consumer
does impact the consumption.
Increase or decrease in tax rates are determinants.
18

Conclusion

(contd.)

Surrogate advertising impacts brand recall and sale to an

extent, hence a determinant.
Indian brand carry a baggage and hence imported brand
preferred.
Whiskey as product is preferred choice followed by Beer.
Consuming alcohol is becoming a social norm.
Law of the land is not implemented strictly.
19

Bibliography

Paper on India Consumer Alcoholic Beverages ANAND RATHI

Research Methodology Methods & Techniques C. R. Kothari
Liberalizing Liquor Trade in India
Country profile on Alcohol in India by Shekar Saxena
INDUSTRY101 ITS STRUCTURE & ORGANIZATION by the
American Medical Association (2004)
Report on Alcohol Marketing and Regulatory Policy Environment
in India by Public Health Foundation of India (Nov, 2013)
Taxation by International Centre for Alcohol Policies (2006)
Report on Effects of Total Liquor Ban on Gujarats Economy by
Prof. Tanu Sachdeva Prof. Jasneet Soni (CASIRJ 2014)
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Thank
you..

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