2013

[RESEARCH PROPOSAL FOR PREMIUMIZATION IN LIQOUR CONSUMPTION]

Contents
Abstract ......................................................................................................................................................... 3 Background ................................................................................................................................................... 3 Premiumisation ......................................................................................................................................... 3 Research Objective ....................................................................................................................................... 4 Research Design/methodology/approach .................................................................................................... 4 In-Depth Interview .................................................................................................................................... 4 Focus Group Discussion ............................................................................................................................ 4 Observation............................................................................................................................................... 5 Data Analysis ................................................................................................................................................. 6 Expectations .................................................................................................................................................. 7 Exhibits .......................................................................................................................................................... 7

Abstract
Purpose of this paper is to examine the changing behavior of Indians in terms of alcohol consumption. Here I have given a qualitative research proposal to analyze the changing alcohol consumption in India. In-depth interview, focus group discussions and observation are the three methods of inquiry proposed in this research.

Background
India, a country of rituals and customs, has traditionally considered alcohol consumption as taboo. From the very early age, children in Indian homes are told that alcohol consumption is bad. It is a very big social taboo to drink socially in many parts of India even in 21 st century. Women, even in metro cities consider twice before drinking in front of others. So, all in all for the major part of last few decades alcohol consumption was seen not so good light by Indians. But, now the times are changing. Even though being a social taboo for major part of gone by years, India is worlds whisky market. It is a very attractive market for a lot of dome stic as well as international brewers. There are a lot of factors which has led to change increased alcohol consumption and not being considered a taboo. Higher disposable income, increased spending by middle class, women becoming more independent and drinking with men etc. has led to increased consumption and making the image of alcohol consumers acceptable in India. One of the major reasons for alcohol consumption being considered as taboo was misbehavior after drinking by irresponsible drinkers. There is a popular saying In India, people drink to get drunk.

Premiumisation
With increased consumption, the need for different kinds of alcohol has emerged. Liquor manufacturers are using premiumisation to move consumers from low end products to high end products. There are various reasons for consumers happily adopting high end, premium liquor. Mr Ashok Capoor, President and Managing Director, United Spirits Ltd said that one of the drivers is status. He said you want to show that you can afford a better drink Higher brand awareness has also meant that people are willing to spend more for better quality, recognizable liquor. According to a report by AM Mindpower Solutions, India is the world's largest whisky market, and companies in this segment are adding more premium products to get customers to spend more. But the issue faced by companies is that consumers are moving one step at a time i.e. they dont jump from low-end to very high end liquor but take time in changing their choice of liquor. Due to this, companies are adding more products in their portfolio. The addition of products is not random, but in a very thoughtful way that they are priced just slightly above the existing product so that consumers dont feel the pinch while buying.
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Research Objective
1. What are the factors that make people change their liquor brand?

Research Design/methodology/approach
In-depth interviews, Observation, Focus group discussions are the methods of inquiry recommended for this research and approach and reason behind employing each of this method is discussed later part.

In-Depth Interview
In-depth interviews are a useful qualitative data collection technique that can be used for a variety of purposes, including needs assessment, program refinement, issue identification, and strategic planning. In-depth interviews are most appropriate for situations in which you want to ask open-ended questions that elicit depth of information from relatively few people (as opposed to surveys, which tend to be more quantitative and are conducted with larger numbers of people). The various steps that would be involved in the process would be thematizing, designing, interviewing, transcribing, analyzing, verifying and reporting. Respondents Profiling: Around 40 Respondents are selected through Purposive sampling so to get a good sample mix. This kind of sampling groups participants according to preselected criteria relevant to a particular research question. So, this kind of sampling is necessary as we want individual to be someone who consumes alcohol. We cant do random sampling because we might have sample which doesnt consume alcohol. Also there is a minimum age limit in selecting the respondents, anyone above 25+ falls into the sample as this is the legal drinking age for Indians. A good mix of both male and female participants is necessary to get a realistic picture. Followed by this sampling strategy is writing an in-depth interview which contains lead questions to be asked during the interview. Lead questions are given in Exhibit 1.

Focus Group Discussion

A focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept,
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advertisement, idea, or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members. Group discussion produces data and insights that would be less accessible without interaction found in a group settinglistening to others verbalized experiences stimulates memories, ideas, and experiences in participants. This is also known as the group effect where group members engage in a kind of chaining or cascading effect; talk links to, or tumbles out of, the topics and expressions preceding it . FGD sessions need to be prepared carefully through identifying the main objective(s) of the meeting, developing key questions, developing an agenda, and planning how to record the session. The next step is to identify and invite suitable discussion participants; the ideal number is between six and eight. Approach: The crucial element of FGD is the facilitation. Some important points to bear in mind in facilitating FGDs are to ensure even participation, careful wording of the key questions, maintaining a neutral attitude and appearance, and summarizing the session to reflect the opinions evenly and fairly. A detailed report should be prepared after the session is finished. Any observations during the session should be noted and included in the report. Respondent profiling: Size of a group is fixed around 6-8 respondents. 36 respondents of six groups are selected through snowball sampling to get a good mix so that we can get wide range of information. This type of sampling is used because it is better when people know each other in the group, especially when the issue is a something related to liquor consumption. I believe that participants would be more comfortable talking about drinking liquor, if in a group all other are people who have enjoyed liquor consumption with each other.

Observation
Observational research (or field research) is a social research technique that involves the direct observation of phenomena in their natural setting. This differentiates it from experimental research in which a quasi-artificial environment is created to control for spurious factors, and where at least one of the variables is manipulated as part of the experiment. The main advantage of observational research is flexibility. The researchers can change their approach as needed. Also it measures behavior directly, not reports of behavior or intentions. The main disadvantage is it is limited to behavioral variables. It cannot be used to study cognitive or affective variables. Another disadvantage is that observational data is not usually general. It takes place on site, in the group's natural environment, and attempts to be nonmanipulative of group behaviors. The purpose is to aim for objectivity, while it must take into account the views of the participants. Respondents Profiling: Proposed to select around 50 respondents purposively. Usually high size of sample is advised as such a technique can be less reliable. Here the observer tries to see the
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behaviour of people when they are trying to buy alcohol. He tries to find out the behaviour differences when people are with their groups, or with their spouses. Observer tries to find out the behaviour of women while asking for liquor, and how does their behaviour change when they are with their close friends, or when they are with their relatives. Purposive sampling is necessary because we want people who consume alcohol.

Data Analysis
Stages of analysis, considering In-depth interviews is chosen as the method of data collection Stage 1: Thematizing- In this stage, it is important to clarify the purpose of the interviews. Once you have decided on your general purpose, then you can pinpoint the key information you want to gather through the in-depth interview process. In this one tries to decide how much information does one wants to extract, the level of personal questions that can be asked by the interviewer so that interviewee answers properly and in truthfully. Stage 2: Designing- After you determine what you want to know, you should design a way to elicit this information through the interview process. The interview guide should be designed to help the interviewer focus on topics that are important to explore, maintain consistency across interviews with different respondents, and stay on track during the interview process. Stage 3: Interviewing. In the beginning of the interview, it is important to make introductions, explain the purpose of the study, and put the respondent at ease. Your main responsibility is to listen and observe as you guide the respondent through a conversation until all of the important issues on the interview guide are explored. Stage 4: Transcribing. Transcribing involves creating a verbatim text of each interview by writing out each question and response. The interviewers side notes should also be included in the transcription, and properly labeled in a separate column or category. Stage 5: Analyzing. Analyzing involves re-reading the interview transcripts to identify themes emerging from the respondents answers. If the interviews raise more questions than they answer, then more interviews may be necessary to properly examine the issue at hand. Stage 6: Verifying. Verifying involves checking the credibility of the information gathered and a method called triangulation is commonly used to achieve this purpose. Triangulation involves using multiple perspectives to interpret a single set of information. A simpler way to use triangulation in a study would be to have two colleagues read and analyze the same set of transcripts, and then compare notes. If the notes agree, then the information is credible.

Stage 7: Reporting. Finally, it is important to share results from the in-depth interviews with internal and external stakeholders through a written or oral report; these reports should describe not only the results, but how the results will shape future work. When respondents see the information being used, they are more likely to participate in future data collection efforts.

Expectations
Qualitative research is a method of inquiry employed in many different academic disciplines, traditionally in the social sciences, but also in market research and further contexts. Qualitative researchers aim to gather an in-depth understanding of human behaviour and the reasons that govern such behaviour. The qualitative method investigates the why and how of decision making, not just what, where, when. Hence, smaller but focused samples are more often used than large samples. Through this marketing research, the expectation is to know the exact reasons why people change their liquor brand. This research will also give insights into changing behaviour amongst Indian men and women in terms of liquor consumption.

Exhibits
Exhibit1: Lead questions for In-depth interview Do you consume liquor regularly? If not, when do you generally consume liquor? How many times do you consume liquor? Is there any specific brand that you prefer? Why do you prefer the above particular brand? Since when have you been using this brand of liquor? Do you plan to change your liquor brand? What are the reasons why you want to change your brand? What are the reasons for you to change to a more costly brand? Is drinking a particular brand kind of status symbol for you? Do you buy a brand because you are aware of it or you are used to dinking it? According to you, is drinking a bad habit? Women have the equal right to drinking as men, do you agree or disagree?

Exhibit 2: Lead questions for FGD Why do you prefer a particular kind of brand? What are the reasons for you to move onto a new liquor brand? Both men and women have equal right to drink? Please discuss. Is drinking a particular brand more of a status symbol, rather than anything else?