COMPANY

ANALYSIS : UNITED
SPRITS LTD

Presented by: Amit Atom

1st year MBA
 INTRODUCTION

• Manufacture, purchase and sale of alcoholic beverages.

• Market leader with over 59% market share of Indian spirit
business
• USL started as a trading company called McDowell and Company
in 1826
• In 1994, United Spirits Limited (USL) is created.

FIRST UP 2
CONSULTANTS
 OBJECTIVES

• Study of company strategy

• Key Success Factors
• SWOT Analysis
• Porter’s five forces analysis

FIRST UP 3
CONSULTANTS
 COMPANY DETAILS

• Launch of McDowell's No.1 Brandy in 1964 is an instant success.

• wide range of brand portfolio
• Brands spanning across various price points (Popular, Prestige, Premium
and Luxury)
• Prestige and above brands which represent about 63% of net sales
• sells over 1 million cases annually from 15 brands.

FIRST UP 4
CONSULTANTS
 COMPANY STRATEGY

• Strengthen and accelerate its core brands

• Upgrade its route to consumer and leverage economies
of scale.
• Renovation to keep pace with evolving consumer tastes
• Acquisition and merging
• Technical center is located in Bangalore, which
develops new products, conducts research and
development, flavor testing and quality management

FIRST UP 5
CONSULTANTS
 KEY SUCCESS FACTORS

• Focus on Brand imagery

• Focus on value to customer
• Developed synergies through merger and acquisition
• Dominance at point of purchase and consumption

FIRST UP 6
CONSULTANTS
 STRENGTHS WEAKNESSES
 Leading company  Government regulations-

 Strong distribution system

 Weak margins less on wine market-
 Well established key brand

OPPORTUNITIES THREATS
 Changing lifestyle-  Tax
 Duties and polices adopted by the government
 Increase in disposable income  Competition
 Health conscious

FIRST UP
CONSULTANTS
 Threat of
new
entrance
(low)

Porter’s five forces analysis

Bargaining
Competitive Substitute
power of rivalry product
customers (Medium) (high)
(low)

Bargaining
powers of
supplier
(Medium)

FIRST UP
CONSULTANTS
SLIDE TITLE
SUGGESTIONS

• Focus on wine segment and Beer

segment
• Target to non-alcohol drinkers by
launching nonalcoholic beverages
• Increase the price of premium
products
• Create a primary distillation
facilities
FIRST UP 9
CONSULTANTS
 CONCLUSION
• strong growth in the last few years.
• investing more in key Brand, forming new
route to reach various customers
• use of innovative promotional strategy
• offer different prices range to meet the
customer preference
• Rapid urbanization makes USL to focus
more on premium products.
• Company remains the leader in Indian
alcohol industry
FIRST UP 10
CONSULTANTS
 FIRST UP
CONSULTANTS

THANK YOU

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