Doing business in india is very different from rest of the world. Any company entering into the Indian market will have to study the political environment here. All the states have different rules for liquor. Some states like Gujrat are Dry states where the sales of liquor is completely banned. Some states have time limits i.e., after 8 p.m. the sale of liquor is banned. Even the age limit for drinking in India is under discussion. Right now it is 25, so Bacardi has to be very specific when targeting its customers. The advertisement of liquor is banned in India; Bacardi has cashed its international image to boost its sales in the domestic market. They have targeted the clubs and discotheques for their promotion.
The economy of India is changing. There is a rise in per capita income and as a result the disposable income of people specially living in urban cities is also increasing rapidly. The Carlsberg group has realized this potential and thus has targeted only the urban cities of india in their early stage to penetrate the market. According to the MD of the Bacardi Group, aimed to grab a market share of approx. 10 % by next 2 years, once that target is achieved, they will expand their base to other cities and rest of the country.
AS India is a big nation so it is impossible to categorize India under one segment. The northern part is completely different from the southern part. Per capita income is rising, but at the same time the gap is also rising between rich and the poor. Though we hope that this gap will be narrowing in the near future, but the scenario is a bit bitter right now. As people are getting aware about the harsh effects of alcohol. People are shifting towards non alcoholic drinks. There is a school of thought against the so called pub culture, but as they say change is inevitable that’s why BACARDI.
Group is relying on the change and has targeted the new Indian who is open to change.
Importing alcohol attracted heavy taxes from the government resulting in higher prices of the same. Therefore, to increase the base in the Indian market, it was advisable to set up plant in India itself. Bacardi has set up breweries in Gurgaon and goa to reduce the cost. According to the company sources, it is using an advanced technology to ensure that the alcohol that gets out is of better quality and great taste.
Environmental factors include the weather and climate change. As the climate here is generally warm, Bacardi increases the promotions for its breezer during summertime and for rum based alcohol it does its promotion during the winters.
Again The Bacardi Group is very careful about the steps it takes because of the political environment which could land it in trouble. As the laws are different for different states, Bacardi India has played smart in making a social networking website so that its purpose of marketing is also solved and it didn’t cross the line of the law as well.