n.d.rock final touch

8/8/2019 n.d.rock Final Touch

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EXECUTIVE SUMMARY

Project title: - A study on marketing analysis and strategic

distribution of wines.

Objectives of the project:-

Following are the objectives,

To determine the size of wine market.

To identify the market share of the other brands of wines

available in the market.

To identify the effectiveness of advertising and sales

promotion schemes of the company.

To identify the pricing aspects of the product.

To identify the market potential with reference to the various

marketing strategies of the company.

Research methodology:-

In research methodology we have used the following methods to

collect the information.

1. Primary data: - It is collected with the help of structured

questionnaire.

2. Secondary data: - It is collected with the help of

Company manuals and records

Websites on the internet

3. Research instrument: - Questionnaire


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4. Sampling plan:-

Universe: - All wine shop owners, distributors and

wholesalers.

Frame: - All the individuals between the ages of 20 to 65

years.

Sample size: - The project maintained a sample size of 25.

5. Contact method: - The method of personal interview was conducted

to gather information in detail.

Findings:-

Analysis and interpretation of information collected

Analysis of advertising information

Analysis of sales promotion activities

Analysis of the channel of distribution

Analysis of the prices

Analysis of impact of the advertisement

Recommendations:-

Price sensitivity

Promotional schemes

N.D Shoppe

Availability of the product

Database and information

Bottling and labeling


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INTRODUCTION TO PROJECT

WINES &VINERYARADS INNASIK

WINE PRODUCTION IN INDIA

India has about 1, 23,000 acres of vineyards, but only seven percent of

these acres are used for wines. Only five major wine companies are

currently producing wines in Maharashtra namely,

Chateau Indage Limited ,pune

N.D. wines, Nasik

Sula Vineyards, Nasik

Vinsura wines, Nasik

Vintage wines, Nasik


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The overall production of these units is approximately 210,000 cases

(Each case is of 12 bottles). In addition, they also import about 30,000

cases of wines in bulk and bottle them in other plants. About 120,000 cases

of inferior quality wine are produced by small local winemakers which is

called pro-wine.

CATEGORIES OF WINES

There are basically three types of wine:

1. Premium Wines (Still wines)

2. Sparkling Wines

3. Fortified wines

This report focuses on the largest and most important category of wines

(Premium wines), ignoring the cheaper country-made fortified wines,

which is also not yet made or regarded as quality wines.

In the Still wine or premium wine category the Indian market is divided

mainly into two major categories:

White and Red wines. Note: Sparkling is generally considered in White

category by many consumers. Further all the wines available in the above

categories is divided in following three categories


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INDIANWINE - BY SEGMENT

CONSUMER SEGMENTATION

The Indian Market largely can be classified into two Segments ,

1. Domestic

2. Foreign Tourists

1. Urban

The Urban population amounts to 48% of the total population in India and

the target segment amounts to 1% of the total urban population. E.g. the

Total Population of Mumbai is 1.5 crs The Total Urban population is 70

lacs, so the target population is 7lac. The characteristics of the target urban

population,

a. Income above Rs. 10 lac

i. Self employed

ii. Service class

b. Income between 3 lac to 10 lacs (Great Indian Middle Class)

i. Highly educated upwardly mobile

ii. Small business families

c. Income between 3 - 6 lacs

1. Upper Middle class

2. Rural

a. Large farming community

b. Small business class


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c. Govt. Service class

The tourism boom has resulted in 2.5 million of tourist visiting India last

year with a projected growth of 15 %. Embassies in the country also

provide good market for Indian wines.


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DISTRIBUTION CHANNEL FORWINE INDUSTRY

The importance of supply chain in wine industry.

For wine segment the distribution channel involves importers, distributors

& retailers the enclosed distribution chain will put more light on the level

and cost implication at various stages.

This is following:

WINERY

DISTRIBUTORS

WHOLESALERS

RETAILERS

HOTEL,RESTAURANTS

WINES TRADERS EXPORTS & IMPORT


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MARKETING STRATEGIES OF THE COMPANY

Stage -I: Creating awareness

It is imperative to create awareness about wine among Indian consumers,

primarily to shrift their preferences from other alcoholic drinks. The

liberalization policy has provided an entry to renowned foreign wine

brands into the Indian market. The availability of the foreign brands is

increasing as one can pick up the brand of one's choice from the

neighborhood wine store. Wine can be relatively light on the pocket (there

are a whole range of wines to choose from, starting at Rs. 280 per 750 mi.

Bottle) and fashionable.

In addition, recent reviews arc indicative that wine has positive health effects

In India, the target segment for the product has to be affluent and the young

"upwardly mobile" consumer.

Obviously creating brand awareness would be the primary target of

any marketing strategy and the launch of the wine needs to be done with a

"splash". Advertising of alcoholic drinks is banned in India and as such a

promotion through "wine & cheese" evenings or a dinner party would

be the only alternative.

Publishing of articles on wine in select food magazines, emphasizing wine

suitability to accompany Indian vegetarian and non -vegetarian food is also

worthwhile Creating retailer, dealers, and push for the brand: It is essential to

create a strong push strategy aimed at dealers and retailer for the brand.

This is the most crucial sales channel and a commission of around 12%

would have to be set aside for these sales channels. A beginning can be made


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with the training distributors on wine basics, and most importantly storage and

transportation requirements. This would be an important aspect in the

relationship building exercise and would also he beneficial to ensure that the

wine we produce is handled correctly.

Meeting with retailers would provide an opportunity to obtain key inputs in

understanding the preference and psyche of the target consumer within the

target market towns. The retailers could be taken for a guided tour to the

vineyards during grape crushing festival and/or to see the entire process as well

as the establishment. The F&B staffs of star hotels and restaurants are also a

crucial sales channel and promoting the brand with them before launch

would also be essential.

STAGE-II: PRODUCT PLACEMENT AND BRAND

POSITIONING

Intense promotional campaigns would need to be conducted at premier

locations such as up market Pubs, Bars andC

lubs, particularly pubs,where anything new is always welcomed and patronized.

Business & Recreation Clubs: - These are the places where wine is

consumed on a selective basis. Generally it is as these clubs where one can

find the real Connoisseur of wine. They are the people who are fond of

drinking different types of wine and make their own judgment of wine.

Premium Category Caterers: -Caterers will be an important segment to

market the company's wine as they organize events for the "elite".

Event Managers: This is a recent phenomenon in India and these

specialized professional agencies organize mega activities/ events,


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arranging corporate luncheons, dinners, conventions, etc, for which they are by and large the 'decision makers' in terms of food and wine. These

activities can be organized through a strong sales team, perhaps

organized district wise


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Maharashtra's grape policy 2001 (source MIDC)

Accordingly, to give impetus to the grape processing and wine industry in

the state, preparation of a separate policy was under active consideration of

the State Government.

Declaration as a Preferential Area:

As the Winery industry does not fall in the preferential area of granting

loans, the financial institution like NABARD does not grant loans in such

industries. Therefore to get the high price of the product for farmers and to

create better employment in the state, NABARD may be requested to

declare preferential area for Winery Induct rise, enabling to grant such

requisite loans.

Declaration as a Small Scale Industry:

Within the limits of investments prescribed for the Small Scale Industry,

wineries should be considered as a Small Scale Industry.

Concessions in Excise Duty:

For those wine industries whose production has been started before 19th

September, 2001, the excise duty will be charged at the rate of50 per cent

of the production expenditure incurred by such units instead of present 100

per cent rate. For those wine industries whose production have been started

or would be started on or after 19th September, 2001, the excise duty will


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be charged at the rate of25 per cent of the production expenditure incurred

by such units. Such concessions will be admissible for period of5 years.

Concessions in Sales Tax:

It has been decided with the consent of all states in the country that the floor

rate of Sales Tax on liquor will be at the rate of20 per cent. However, the

Wine Process is totally different from the Liquor Production Process and wine

unit is considered as agriculture process unit by the Central Government.

Therefore, to encourage the Grapes Processing Industry in the state, a request

will be made to the Empowered Committee of Finance Ministers of all states

constituted by the Government of India to reduce the floor rate of Sales Tax

on wine.

Wine Sales License:

Wine will be permitted for sale by Beer Bars and also licenses will be

given to Wine Bars to sell wine on the basis of Beer Bars.

Wine Sales License Fee:

An amount of Rs. 5000/- per year will be charged for License Fee for the

sale of wine

And this rate will not be changed for next 10 years.

Simplification in the system of License/Permission for Wine

Production:

If Wine production is taken in Winery Park as declared by the State

Government,

Wine Product License will be given at district level at the time of allotment

of Plot. In other places for Wine Production, by simplifying the system of


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License the Collector of the district level will be empowered with a

binding condition to issue licenses within 30 days.

Establishment ofWine Institute:

To maintain the quality of Wine at the International Level and to make

available trained manpower, a separate Wine Institute will be established.

For setting up of the Wine Institute, Government/ MIDC will allot the plot

at the nominal rate as given to the other educational institute. Such Institute

will look after the work of training, checking the quality of wine, research

and information centre for the Wine Industry. These institutes will be

established by forming separate trust firstly at Sangli and Nashik. For this

purpose, by choosing appropriate alternative from the following

alternatives, training institutes will be established:-

a) To help the existing trust for formation of training centre.

b) To establish training institute in joint venture with the existing trust.

c) To establish training institute by creating a separate trust.

One Window System:

For Winery Industry, essential license, plot, electricity supply, telephone

etc infrastructure will be made available with One Window System.

Establishment of Grapes Board:

A Grape Processing Industry Board would be established for Wine and

other Grape Processing Industry in Maharashtra. The Board will consist of

representatives from the concerned industry, Grapes producing farmers,

State Government, government laboratories, wine institute etc. The

organization and functions of similar kinds of Boards existing in other


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countries will be examined before establishment of Grape Board in

Maharashtra on same standards. The jurisdiction of the said Grapes Board

will be as under:

a) To inspect and control the Quality of Grape Cultivation and Wine

Production.

b) To give approval to Labels.

c) To inspect Quality and Standard Norms.

d) To draft various Schemes for Sale of Processed Grape Products on the

Global Level.

Facilities of Food Processing Industries:

The facilities which are given to the food processing industry units, will be

given to

The Winery Product Units by giving them the status of Food Processing

Units.

Wine Product Units - Permission for the Tourists:

In foreign countries, permission is given to watch the Wine Product Units.

In similar manner, in Maharashtra also, permission will be given to the

tourists to visit Wine Product Units for testing the, licenses will be given to

such Wine Product


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INDUSTRY PROFILE

1.The Indian alcoholic beverages market is gradually opening us as

quantitative restrictions are being lifted; import duties are being lowered

and domestic regulations are being simplified. These developments are

attracting the attention of foreign players, who are faced with a slowdown

in developed markets.

2. According to some recent reports, by 2009, the total supply of liquor in

the world will be close to 345 million hl. But consumption will be only

about 248 million hl. In such scenario, India would be an attractive market

for foreign players.

3. Alcohol is a broad term that covers three categories: spirit, beer, wine.

Spirit includes whisky, rum, vodka, brandy, and gin .India imports about 3

million liters of spirit and 7500 cases of wine from Europe. French wines

are still the largest imported, but wines from Australia and California are

making strong inroads.

4. Maharashtra has recorded a 60% growth in its wine production over the

last year. The state continues to dominate the country's wine industry,

producing 94% of India's grape wine. According to the Times of Indiawhich reported the story, the Maharashtra Industrial Development

Corporation's (MIDC) department of wine production show that 2.11 crore

liters of wine were produced across the state's 57 wineries this year, as

compared to the 1.32 crore liters produced last year. This represents an


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annual growth rate of40%.

The state's total investment in wine-making is around Rs. 328 crore and

close to 8,000 acres of land are now under cultivation for wine prod uction.

5. According to industry statistics, the domestic wine consumption has

increased from three million liters in 2003 -04 to 7.60 million liters in

2005-06 and 11.25 million liters in 2006-07. The Indian wine market is

growing at about 30 to 40 per cent and is expected to maintain this pace for

the next five to six years. Reports The Hindu newspaper.

6. The wine market is growing at 40 per cent a year, nearly three times as

fast as beer, Whisky or rum, which together makes up 45 percent of the

total. Export currently makes up about 10-15 per cent of total output. The

perception of wines as being up-market and sophisticated is helping in

bringing about this change. One sigh of the changes happening is the

emergence of wine clubs in a number of cities. The per capita

Consumption in India is only 0.07 liter/person/year.

7. According to a Times of India report, in 2008, India had 62 wineries

with total production at 2.25 crore liters. Of these, 58 wineries were in

Maharashtra, producing 2.11 crore liters. In 2009, another 10 more projects

were started at Nashik, Sangli, Pune, Solapur and Osmanabad taking

number of wineries to 68, but production dipped to 1.32 crore liters by

March, when the new crushing season started.


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8. Up to 80% of wine is consumed in the major Indian cities. The

consumption pattern is Mumbai (39%), Delhi (23%), Bangalore (9%), and

the foreign tourist dominated state of Goa (9%), where as Rest of India has

only 20%consumption.Not only has the number of imported wines

increased exponentially, the Indian producers, too have introduced a

number of new label and wine styles. Approximately 72 wineries are

presently operating in the country with a total production of 2.54 crore

liters annually Maharashtra is leading among the state with 68 wineries and

2.11 crore liters production.

9. A staggering 2.12 crore liters of wine is lying unsold for the past few

months across vineyards in Maharashtra. Wine producers have been forced

to cut production dramatically as the global recession has taken its toll on

the wine industry. It is not only affecting the vineyard owners but also the

farmers and importers. Everyone is suffering and the terrorist attacks in

Mumbai last winter only made matters worse.

10. The recession is hurting everyone including the farmers. Last year

many could demand Rs.35 a kilo for their grapes. Now they're getting

prices as low as Rs.10 and are even having to throw the grapes away in a

few instances.

Sources

1. Times of India article (www.indiawines.com)

2. The Hindu newspaper


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Today the overall sales are around 600,000 cases a year. Table wines

account for88-90 percent of the market and expensive varieti es of vintage

wines account for the remaining 10-12 percent.

Though the base of the market is small at 6 lacs cases / year. Currently the

wine industry in India is growing at the rate of more than 35% per annumn.

There are three big companies presently making 'Premium' wine are

Indage, Sula and Grover Vineyards. Others (Shaw Wallace, McDowells

and the six Goa-based companies) produce cheaper wines from table

grapes. However, more and more wineries are being set up with the aim to

produce mainly 'international style' wines, namely Vinsura, N.D and

Vintage wines.

While Indage is the market leader, Sula's volumes grew by over 65 per

cent last year. Already there are more than 50 wineries operational with

over 130 Indian brands. Australians being the best exporters are already

here with Howling Wolves wine Group (HWWG), Ironstone vineyards,

Green point wines. Others include Terraza, Casa Lapostolle from South

America along with old liquor majors in India like Seagram's and UDV.

Sopexa, a French marketing and promotion board has setup office in India

with a plan to increase French wine import in India by 50% in next two

years.

In the next few years, there would be over 100 wineries of varying sizes

operating in the country, and with the government support in reduction of

duties, the prices would reduce leading to the growth in this industry. We


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believe that this will lead to consolidation in the wine industry with few

big players and few small players in the market.

FILED WORK INWINE SECTOR

Not many people are aware that a host of new wineries have come up in

Maharashtra in the last two years, following the forward -looking 'Grape

Processing Industrial Policy of the state government announced in 2001.

I visited some of these units, most of the new vignerons are grape farmers

who have invested anything from Rs 50 lakh to Rs 5 crore (from Rs 5

million to Rs 50 million) to set up their units - and while it's early days as

yet, some of their wines are of a surprisingly good quality.

No surprise, since our farmers know how to grow good wine grapes (every

year is a Vintage' year!), and one cannot make good wine unless you have

the 'right stuff!

It all started with Sula vineyards the first winery in Nasik. They have

recently increased capacity from 200 to 900 liter of wine annually, and are

now bringing wines to us in every possible way. They make wines from

grapes ('Made in India'), import wines in bulk and 'Bottle in India, as well

as have a portfolio of imported (Bottled in Origin) wines from 10 different

countries ranging in price from Rs 700/bottle (Astica, Hardy's) to Rs 5,000

/bottle (Greppone Mazzi Brunello di Montalcino).

They've recently brought out a Dindori Reserve Shiraz (Rs 650/bottle)

which is to die for matured in wood for 12 months, the wine is mellow,


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smooth, fruity and spicy, and worth searching for as distribution is limited

even in Mumbai.

Sankalp Vineyards was the first winery in the Vinchur Wine Park (35 km

from Nashik), and has a range of wines under the brand Vinsura (with a

grapevine leaf on the label), all priced under Rs 500/bottle in Mumbai.

TheirChenin Blanc is medium-bodied, crisp and fruity, while the Sauvignon

Blanc is dry and herbaceous almost spicy; I thought the Rose (white

Zinfandel) was simply delicious, while the Red Zinfandel is a big, peppery,

almost brashly complex wine.

Their latest offering is a sweet dessert wine made from the Symphony

(Muscat) grape -- lip-smacking, watch the girls flip!

N D Wines is near Pimpalgaon, in the heart of the Nashik wine country.

Beautifully located on the banks of a lake with rolling vineyards in every

direction, this winery supplies much of the grapes and wine to better-known

producers - no wonder that their own varietals (sold under the same name as

the company, and recently re -priced at about Rs 400/bottle) are not well

known or widely distributed.

The last unit visited was the most interesting it was Vintage Wines and it was

different, as the owners (Suresh Patil is a farmer while his son Yatin an MBA)

are one of the few who have successfully cultivated the Pinot Noir and

Chardonnay grapes in this region.

What's happening in Maharashtra is nothing short of a revolution in wines and

wine making and the movement can only gather momentum.


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Maharashtra itself has 23,000 hectares under grapes - of which only about

1,610 hectares are wine grapes - so there's a huge growth potential.

Now this year in India there are 72 wineries are established. With time,

volumes and quality will increase and prices will decrease, so perhaps what's

needed is for all of us to drink more wine - after all, if "an apple a day..."

works, think what benefits a glass of wine a day will deliver! Cheers!


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BIG PLAYER INWINE SECTOR

1. INDAGE (CHAMPAGNE INDAGE)

Capacity: 30, 00,000Operations from: 1987 Brands/ Varietals

Export only

1. Anarkali Red2. Chhabri White3. Omar Khayyam BRUT4. Soma Red

5. Soma White

6. C.S.

Sparkling wine

1. Joie, cuvee close non-vintage.2. Marquis de Pompadour, Brut

2. SULA VINEYARAD (samant soma wine)

Capacity: 25, 00,000 liters

Operations from: 1997 Brands/Varietals

Sparkling:

1. Sula Brut2. Sula Seco

Whites:

3. Sauvignon Blanc4. Chenin Blanc5.Madeira white

Reds:

6. Sula Cabernet/Shiraz

7. Madeira red

Roses:

8. Blush zinfandel

9. Madeira rose


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3 .N.D WINE PVT. LTD


Operations from: 2004

Brands/Varietals

1. N.D. Sauvignon Blanc

2. N.D. Cabernet Sauvignon

3. N.D. Chenin Blanc

4. N.D. Syrah

5. N.D. Cabernet-Syrah

6. N.D. Sauvignon Blanc

7. N.D. Cabernet Sauvignon

4. VINSURA (Sankalp Winery)


Operations from: 2003

Brand and varieties

1. Cabernet Sauvignon

2. Zinfandel3. Sauvignon blanc

4. Chenin blanc

5. Syrah

And sparkling wines


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DOMESTIC PRODUCTION

Indage is the oldest wine maker (1986) with the largest product range (14

labels) and the highest volumes {30, 00,000 raises), two wineries at

Narayangaon in Maharashtra, and 500 acres of vineyards. Their business

is volume centric, and their portfolio covers all price ranges.

Grover has been operating since 1992 at Dodballapurnear Bangalore.

With only 4 labels and a market share Tahout 35.000 cases, its emphasis is on

steady growth. The company has 150 acres of leased land for their vineyards.

Sula, in the market since 1999 has a winery near Nasik, with 325 acres

of its own vineyards, the company also sources grapes from local growers. It

has 7 labels and a share of about 15,000 cases. Sula is by far the most

aggressive and "market savvy" producer. Balance 60,000 cases are

imported label wines.

McDowell Winery at Baramati produces 'Bosca' (only brand name usage)

from local grapes.

ND Wines is very well know brand in the market and widely accepted by

the customer as the premium wine maker . we have strong holds in major

states across India like Maharashtra ,Goa ,Diu Daman, Silvasa Rajasthan

,UP, Chandigarh , Karnataka , M.P ,Delhi etc .We Are very proud to

announce that N.D Wines is one of the wine served in prestigious and

luxuries trains Likes The Deccan Odyssey promoted by Maharashtra


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COMPANY PROFILE

N.D. GRAPES

Mr. Ashok Gaikwad and his friends together established N. D. Grapes Pvt.

Ltd. in the year 1993; N. D. Grapes started exporting table grapes to

various countries all over the world. After regular and stringent checks the

renowned supermarkets in the U. K. like Tesco and J. Sainsbury have

conferred the certificate of merit to N.D. Grapes for adopting world class

standard for preserving the fruit and maintaining and storage plants. N. D.

Grapes is the regular and sole supplier to J. Sainsbury, Tesco and Marks

& Spencers. Within a short period N. D. Grapes became the most favored

brand in countries like Hong Kong, Singapore, Malaysia, Africa, Europe

etc. N. D. Grapes is the first company to get the distinction of single largest

exporter of India.

N .D. WINES PVT. LTD.

After enjoying huge success N. D. Grapes have now ventured into ancient

and exquisite art of wine making under the banner of N.D. Wines Pvt. Ltd.

The beautifully landscaped winery is located on the lake side and

surrounded by lush green vineyard. At the winery the time tested art of

wine making has gained greater height under the expert eye of the famous

French wine master Mr. Jean Manual Jacquinot. The state of the art winery

is well equipped with all imported machinery made by th e renowned

French companies. With growing demand from the customers, we have

enhanced our crushing capacity from 200 tonnes to 1400 tonnes. N. D.


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Wine is geared up to fulfill the rising demand of todays international wine

market.

INFRASTRUCTURE

AtND Wines we believe Good taste is an important so ingredient so

utmost care is taken to produced the best quality wines is made as per

French standard with all imported machinery. The winery has a tank

Capacity of9, 00,000 liters for storage of wines. ND Wines adopts world

class manufacturing and storage techniques for making and preservingWines.

CORE COMPETENCY

N.D. Grapes is the single highest exporter of home grown grapes for past

several years. The 700 acres highly cultivable and spread out across the

foothills of the Sahyadri range has been the mainstay of our vine yards. N.D. Wines is the first winery in India to grow the world famous Cabernet

Sauvignon-reserve and Sauvignon Blanc- reserve used in making reserve

wines on the virgin soil. We have also mastered the art of growing Shiraz,

Cabernet Sauvignon, Chenin Blanc, Sauvignon Blanc the are specially

used in making different variety of wines.


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ACHIVEMENT

In short span of time N. D. Wines is very well known brand in the marketand widely accepted by the customers as the premium wine maker. We

have strong holds in major states across India like Maharashtra, Goa, Diu,

Daman, Silvassa, Rajasthan, U.P., Chandigarh, Karnataka, M.P., Delhi etc.

We are very proud to announce that N.D. Wines is one of the wines served

in prestigious and luxurious trains like The Deccan Odyssey promoted

by Maharashtra Government and Palace on Wheels promoted by

Rajasthan Government. N. D. has also won the international level

Excellence Award for Entrepreneurship from J.M.C.C.I. presented by his

Excellency S. M. Krishna Governor of Maharashtra in Jan. 2005.

MISSION

In continuation of our legacy to produce globally approved quality grapes,

now our mission is to offer world class Wines to all customers.

OUR VISION

With growing popularity of our wines in domestic market our vision is to

be the leader in world market and be known as the quality wine producer

from India.

Source: - www.ndwines.com


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PROFILE OF THE ORGANISATION

NAME OF THE ORAGANISTION

ND WINE PVT LTD

REGISTER OFFICE

NASIK

CORPORATE OFFICE

BHOPAL

FOUNDER AND CHAIRMAN OF THE ORGANISATION

ASHOK GAIKWAD

KEY LINE OF THE ORGANISTION

MANUFACTURING OF WINE


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PRODUCT OR BRA D OF I DUSTRY

1 .SYRAH

Thi wi i made from Syrah, grown on the virgin soil ofthe Sahyadri

hills located in Nasi , the climate here is very similarto that ofthe South

of France. Before pressing the grapes are specifically selected and picked

at perfect maturity level. N. D. Syrah has the color ofthe royalinsignia,

deep purple. The overpowering nose is a reminder ofthe warm climate of

the area, the strong aroma of bell peppers blends well with soft aroma of

cherries and blackcurrants, and N.D. Syrah feels velvety to taste with a

distinct peppery flavorthatlingers in the mouth.

N.D. Syrah goes well with Indian cuisine and is ideal with food cooked in

the Tandoor as well as with spiced vegetables.

Best served at: 18C.


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2. CABER ET SYRAH

This wine is made from Cabernet Syrah, grown on the virgin soil of the

Sahyadri hills located in Nasik. Before pressing the grapes are specifically

selected and picked at perfect maturity level. This wine has got a rich deep

red color and is perfectly balanced. Allthe characteristics ofthe nice fruity

aromas from the N.D. Syrah are present and are reinforced by the full

bodied structure ofthe N. D. Cabernet. The Length ofthis wine is perfect.

This wine is perfect with allthe Indian Foods.

Best served at: 18C


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3 .CABER ET SAUVIG O R ESERVE

This wine is made from Cabernet Sauvignon, grown on the virgin soil of

the Sahyadri hills located in Nasik. Before pressing the grapes are

specifically selected and picked at perfect maturity level. This wine comes

in a striking deep red color. The nose develops a lilting aroma of bell

pepper, cherries and blackcurrants. Cabernet Sauvignon tastes like the

warm Indian climate with a touch of silk. This exotic wine can be served

during and after dinner & goes well with all Indian cuisine.

Best served at: 18Cto 20C.


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4. GALAXY RED

This wine is made from Cabernet Sauvignon, grown on the virgin soil of

the Sahyadri hills located in Nasik. Before pressing the grapes are

specifically selected and picked at perfect maturity level. This wine comes

in a striking deep red color. The nose develops a lilting aroma of bell

pepper, cherries and blackcurrants. Cabernet Sauvignon tastes like the

warm climate of India, melting with the tannin coming from the mature

seed and the aftertaste lingers in the mouth.

This wine is ideally served at dinner with any Indian dish.

Best served at: 18Cto 20C.


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6. CHENIN BLANC

This wine is made from Chenin Blanc, grown on the virgin soil ofthe


selected and picked at perfect maturity level. The color ofthis wine is pale

yellow with touches of green. The intense nose develops the pleasant

aroma of pineapples, grape fruits and native guavas, besides the flowery

aroma of rose. The tangy taste ofthe N.D. Chenin Blanc tickles the palate

and leaves a lasting flavor and aroma of fruitin the mouth.

This wine is a perfect appeti er and goes well with food cooked in light

spices followed by fish.

Best served at: 10C.


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7. SAUVIGNON BLANC

This wine comes from Sauvignon Blanc grown on the virgin soil of the


selected and picked at perfect maturity level. N.D. Sauvignon Blanc comes

in enchanting pale gold green color. The nose develops exotic aromas ofblackcurrantleaves touched with a sweet whiff of pineapples, grapefruits,

bananas and guavas with a noticeable aroma of grapefruit. N.D. Sauvignon

Blanc carries a lemony flavor which leaves a tingling freshness in the

mouth.

This wine is an ideal appeti er that can be served with cashew nuts and

almonds. Itis suitable for alltypes of fish and steamedjumbo prawns and

goes well with delicately spiced Indian cuisines.

Best served at: 10C


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SCOPE OF THE STUDY

The scope of this project is large, which goes to many area of

marketing. In this project or study, we had to analyze the market strategies

for wines.

We also had to find out many facts about the domestic marketing potential

for Wine. We had to check out the market share of all available brands of

Wines in domestic markets.

We also had to analyze the demographic and psychological

characteristics of the markets. The effectiveness of the various marketing

strategies, planned by the company had to measured and analyzed.

We also had to measure the future marketing capacity of the company to

sell the Wines in domestic market. We had to make analysis of present

market conditions for Wines. So the findings of the project themselves have a

great scope as that will be useful for the company to start its plant and

marketing operations within the domestic market.


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1. PRIMARY DATA

2. SECONDARY DATA

1.PRIMARY DATA

According to the primary data collected in our research we came to know

that the state of ND wine has increased by 10% because of the

commercials of ND Wines to test this claim in Nasik region we

conducted the research.

We also want to know that whether the commercial has encouraged the

consumers for the consumption.

2.SECONDARY DATA

The project given by the company had to be carried out through research.

It was a qualitative as well as quantitative research based on the

secondary data available with the company As the research is totally

based on secondary data, following sources of the data are tested and

the required information was collected.

a) Company manuals and records

b) Magazines and Newspapers

c) Websites on the internet

3. RESEARCH INSTRUMENT

In research instrument questionnaire has been used.


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4. SAMPLING PLAN

After deciding on the research approach and instruments, the marketing

researcher must design a sampling plan which comprises of

1. Universe

2. Frame

3. Sample Size

4. Sample Method

1. Universe:

The universe of the research was all wine shop owner, distributer,

and whole seller.

2. Frame:

All the individuals between the ages of20 to 65 years.

3. Sample Size:

The project maintained a sample size of25. The sample size was

decided on the basis of available time, resources and budget of the

research.

4. Sample Method:

Non probability sampling method was used for selecting the

respondents. Since the city is very large the respondents that were

most accessible population members.

5. Contact method

The method selected is survey method.

A Survey was conducted by: Personal Interview

This method was chosen because along with the study of project's primar y

objective i.e. study of retailers, distributors and dealers and their awareness

about Wine & contact with manufacturer.


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DATA PRESENTATION AND DATA ANALYSIS

ANALYSIS OF RETAILERS QUESTIONNAIRE

There are 43 wine shoppers in Nasik among them 25 are surveyed &

following came into light which are presented in tabular and graphical

from in terms of percentage.


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Table No.1

There are 43 wine shoppers in Nasik among them 25 are surveyed

from that above 100% record of dirking habit of the people are drawn

about which drink are they recommended and finding is that the beer

and whisky are 25% respectively.

Chart No 1

1) Beverage preferred by customerBEVERAGE Preference in %

WHISKY 25%

BEER 25%RUM 20%

VODKA 15%

WINE 15%

TOTAL 100%


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T l N 3

3)Wi preferred by customer

BRAND Preference in %

SULA 30

N.D 20

VINSURA 20

INDAGE 13VINO 10

FLAMINGO 7

TOTAL 100

T e question was asked, which wine brand the customer most

preferred? From which the above data are collected & from wine

80%

20%

Have you keep N.D wines?

Yes

No


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Chart No.4

Table No.5

The reason for prescribing the particular wine brand from the wine

shoppers was the maximum sale of that particular wine brand i.e.

40%.

52%

2

%

8%

%28%

Wine recommended to customer by retailers

Sula

N.D

Vin

ura

Indage

5)Reasons for prescribing the above Wine

REASON In %

EXPERIENCE 15

MAXIMUM SALE 40

PROFIT MARGIN 10

DEMAND 35

TOTAL 100


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Table No.7

15%

5%

Have you seen the commercial of N.D wine

Y

No

7)What makes customer to shift from one wine brand to another

particularly in your outlet?

REASON In %

PRICE 15

TASTE 10

AWARENESS 40

HOARDINGS 25

OTHER 10

TOTAL 100


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The question was asked about the shifting of customers from one wine

brand to another, the wine shoppers gives the reason of awareness of

the particular wine brand. The hoardings of particular wine brand

also impacts on the customers mind to buy that particular wine brand.

The other reason was quality.

Chart No.7

INDIANWINE MARKET DATA

(Source by www. indiawine.com)

According to Indian market data by indiawine.com the currentlastthree

year data which given below according to volume, region, sales, revenue of

wine data is given below.

1. CATEGORY WISE DATA 2005-2009

A)Volume wise data in liter

15%

10%

40%

25%

10%

Reason for shifting from one wine brand to another

Pri

Tast

Awar n ss

Hoardings

Oth

r


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Table No. 8

2005-200 200 -2007 2007-2008 2008-200

Premium wine 354 30 443287 558542 25 2

Sparkling wine 47432 52177.2 573 3 3132

Sub total 4020 2 4 54 2 15 34 755724

Cheap fortified

wine

28551 2 7 2 314781 330520

total 687578 745254 30716 1086244

Chart No.8

CATEGOR WISE WINE DATA 2005-200

B)REVENUNE IN CRORESTABLENO 9


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CHARTNO 9

CATEGOR WISE REVENUNE IN CRORES

2005-2006 2006-2007 2007-2008 2008-200

Premium wine 161.7 1 6.8 254.7 315.8

Sparkling wine 34.2 36. 41.3 43.

Sub total 1 6 234 2 .60 360

Cheap fortified

wine

41.11 35. 8 37.77 3 .66

Total 237 270 333 3


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2. REGIONWISE DATA 2005-2009

A)VOLUME WISE DATA OF PREMIUM WINE

TABLENO.10

Region

Year North South West East Total

2005-06 110100 74078 191178 23184 398541

2006-07 137626 90376 238973 27357 494331

2007-08 172032 111162 298716 32008 613918

2008-09 213320 134506 367420 37129 752375

CHARTNO.10

REGION WISE VOLUME DATA


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B)REVENUE IN CRORESTABLE NO.11

CHART NO.11

REGION WISE REVENUE IN (CRORES)

0

50

100

150

200

250

300

350

400

2005-06 2006-07 2007-08 2008-09

I

n

o

s

Y

s

R

nu

in

o

s

! " #

$

%

South

&

est

East

Total

Region 2005-06 2006-07 2007-08 2008-09

NORTH 57 68 85 105

SOUTH 37 43 53 65

WEST 96 116 147 176

EAST 11 13 15 18

TOTAL 202 240 300 364


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FINDINGS

ANALYSIS AND INTERPRETATION OF INFORMATION

COLLECTED

a) Analysis of advertising information:As per the data collected by the questionnaire prepared for getting the

response of the retailers and consumers have analyzed that

advertisement really plays important role in attracting and influencing

the customers but it is difficult to do the advertisement of wine or

liquor products because as per the government rules we cannot show

the commercials of the wine on any media .As advertising done on the

basis of POP material ,banners and in direct hoardings of wines create

impact on the mind of customers and retailers, It helps to create

awareness among the consumer. Advertisement is helping to reach large

group of buyers. It is helping to increase sales. In the present marketing

scenario it has become life breath of the modern business economy.

b) Analysis of sales promotion activities:As we analyzed that customer rely more on the quality and taste of the wine

rather than the promotional gifts to push the sales.

In Nasik another part of the India there are very few wine drinkers, people are

more interested in hard drinks, in such case some times the promotional

schemes becomes useless. As a part of the promotional schemes free wine

tasting programmers is useless for the promotion because there are few

consumers which can afford wine and understand the taste of wine and

really know how to enjoy the wine, for lower end it is waste because to

convert them as a consumer or to influence them we have to make wine


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affordable for them and it is not possible, so we have to only target middle

and high income level consumers which can converted into potential

consumers. The most efficient way to promote the wines is to give good

incentives and launching schemes to the retailers because they come directly

in contact with the consumers. So they ca n influence the consumers by

directly recommending the wine to the consumer. Among the gift items free

wine opener plays important role in attracting the consumers. Tie -ups with

the barman can motivate the consumers.

c) Analysis of the channel of distribution:

As per the survey, I feel channels of distribution plays vital role in success of

the wines as per my analysis of the distribution channels in Maharashtra and

other parts the country, I have found that the distribution channel in

Maharashtra is very complicated and it is adversely affecting the wine market

of the Maharashtra. As the manufacturer cannot directly sale its product to the

retailers or bar owners and hotels, he has to follow the channel as per the law,

one cannot go the outlets so dealers are taking benefit of wine manufacturers

as the wine is not so much fast moving item in Maharashtra - so dealers are

taking advantage of small manufacturers, they are not ready to store and

market their wine, they are demanding extra margin and other facilities so

small wine manufacturers cannot fulfill their demand and they are not able to

compete in market.


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d) Analysis of the prices:

The wines as on comparing the prices of various wines in Nasik market we

came to know that Nasik market is the mix market.

Generally elite class consumers prefer the quality wine of the wine grape.

The middle end consumers demand the prices of those wines that are high in

comparison to the wines made up of table grapes. These consumers just

want to taste the wine and they are not regular drinkers. The prices of

Wines are less as compare to other brands of wines because wines are in

introduction stage and to increase the mar ket share price is important tool in

the hands of the manufacturers to capture the market but the prices are high

as compare to N.D. Wines, Flamingo, Figura, -indage, vinsura, vino etc,

because Sula target consumers are elite class and wines are made up of the

special wine grapes and cost of product is high so the prices are

reasonable and compatible.


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MARKET POTENTIAL

GENERAL OVERVIEW:

Though the market shares of wine among the alcoholic beverages in

surely but steadily increasing, still it is a very primary stage. The

challenge before the winemakers in India is to develop the domestic

market as a majority of the India consumer prefers beer, whisky, rum

and sometimes even home brewed spirits over champagne and wine.

The statistics on the Indian Made Foreign Liquor (IMFL) shows that

the consumption of wine in India is not more than 2% of the entire IMFL

consumption.

The international market is a promising arena for the India wine.

The Indian wine industry though at its infancy stage, is hoping to

change the supremacy it wine making countries in an effort to gain a

foothold in the international wine market. Though they get most of their

technology and advice from Europe, Indian winemakers are now promoting

themselves in a big way to catch the attention of the rest world. The favorable

climatic conditions and superior quality of Indian grapes would provide an

added advantage to attain this objective.

PER CAPITA CONSUMPTION OF WINE:

If the per capita consumption of India is converted in simple terms it is

equivalent to half of the tablespoon. Assuming the per capital

consumption in India goes to Consumption in India is only 0.07

liter/person/year.


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ADVERTISING

We wanted to test our claim at least with in our sample in Nasik Region.

Another major focus of study was to check if the commercial for N.D. had

in any way affected the consumer and influenced the distribution

channel. We wanted to study if the commercial for N.D. had in

anyway encouraged the consumer for the consumption.

PROMOTIONAL MEASURES

Packaging is obviously crucial and the bottle, labels, etc. must be distinctiveand eye catching. Initial sales could perhaps be accompanied with a pair of

wine glasses or some such promotional gift. The Company also intends to

introduce certain concepts for the first time in Indian market i.e. a press

release is essential while launching the product, particularly as direct

advertising is not permitted. The press can also be given tasters and also

wine tasters can be invited for this press release. The press may also be

actively involved in the educating process by having a similar guided

tour for them as suggested for the retailers. Various sales promotional

strategies are adopted by the company which is mentioned hereunder:

1. Providing Wine opener free with every two bonks of wine,

2. Merging the slow moving brands with fast moving like 5+1scheme,

3. 90 Days credit facility.

4. Showcase and other POP materials like tent cards, banners, display

stand.

5. Wine tasting programmed for retailers and consumers.

6. Online orders and free home delivery.

7. Corporate tie ups for business meets and conferences.


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PRICING

Price of any product plays very important role in success and

failure of any product. Price should always be reasonable in terms of

quality as wine is a luxurious product so quality plays an important

role in fixation of prices. Basically there are various types of wines

available in the markets, Wines are classifieds two broad categories

depending on the types grapes, hence prices are defined. Wines made of

table grapes are much cheaper that wine grapes. Mainly the wines of Sula,

Indage and N.D.Wines price range starts from Rs3OO to Rs.600 where

as prices of Figura, Margo starts from Rs-110 and above.

These wines are made up of table grapes, targeted to middle class

consumers

Where as the wines of Sula, Indage, N.D. Wines target elite class

consumers.

Prices of the brands of ND Wines are below,

BRAND PRICES OF 750 ML PRICES OF 375 ML

1 Galaxy red 195 115

2 Galaxy white 195 115

3 Chenin Blanc 375 205

4 Sauvignon Blanc 425 225

5 Cabernet Sauvignon 350 195

6 Cabernet Syrah 410 225

7 Syrah 450 330


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SWOT ANALYSIS OF ND WINE

STRENGTHS WEAKNESSES

y Nascent Stage, few players

y Growth rate per annum 30%

y Urban population increasingevery year

y Good Climate for growing winegrapes

y Poor Quality of wine

y Poor awareness on wine

y Stringent and regressivegovernment rules with different

taxation across various states.

y High custom duties and levies

for foreign players.

OPPORTUNITIES THREATS

Large domestic market with

increasing

Disposable income

Population, changing life styleaccepting new trend

Exporting potential to rest of the

world

Growing tourism in India

New player enter in fast in this

sectorForeign player also enter in

Indian wine marketThey tie ups with Indian winery

Liquor king Vijay mallya tieswith Indian winery

(United beverage limited)


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RECOMMENDATION

1) PRICE SENSITIVITY:There should be reduction in price of the Product so as to make it price

competitive, and to compete in the market with other companies.

2) PROMOTIONAL SCHEMES:More & more schemes should be provided to the dealers, so that an interest

could be created in the dealers mind to promote ND WINE PVT Ltd. The

dealers should be getting good margin on sales, so that they will be constantly

interested in selling and promoting the product.

3) N.D. SHOPPE:A separate ND Shoppe could be opened in various parts of the city which

would be exclusive company showroom, where all the varieties of N.D.Wines could be available for the people. This will help to increase the retail sales

of the company and also would help in creating a Brand name of the company.

4) AVAILABILITY OF THE PRODUCT:

The Product should be supplied and made available to the dealers on time, as

& when it is required by them. The company should also make sure that the

stock of the product should be available with the dealers too, so that the

customers get the delivery in time with no damage done to the product.


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5) DATABASE & INFORMATION:

Proper database about the dealers and customers should be maintained to

establish good relationship with outsiders. Required information about

the competitors, different markets, consumer preferences, changing

trends in markets etc. should also be available with the company. This

will help the company to maintain healthy relationship with there

dealers and customers.

6) BOTTLING AND LABELING:

Bottles are to be selected very carefully keeping in mind the cost

constraints and also the attractiveness. Generally bottle should be of

green colour. It is advisable to use different shapes of bottles for different

varieties of wine. Bottles may be of different size depending upon the

quantity of wine to be marketed

Packing of wine bottle with a wood-class label that attracts consumers

attention. The labels are to be got designed from graphic designers.

So, the above recommendations were made to the company, after the

findings and analysis of the study. The above points were true and were very

specific in nature. The company should be benefited by focusing on the

above point, which will help them in there future strategic.


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CONCLUSIONS

The winery units were started in Nasik valley due to special

incentives provided by the Government of Maharashtra.

Due to the establishment of wineries, the farmers are encouraged to

have more grape cultivation. The wineries provide market for their

products. Farmer can sell grapes to wine industry so that farmers get

double advantage as high quality grapes can be exported and less quality

grapes used for wine industry.

The wine produced competes not only with domestic industry but also

in international markets. This has led to opening of global market which

ultimately benefits to the govt. of country in terms of foreign exchange.

The wine industry also provides employment opportunities to the people

around the area in which it is located.

Initially wine manufacturer targeted upper middle class segment

because of high price, but industries are now able to target all segments of

people by introducing different quality of wine for different segments of

people as per their income level to the expansion of the market and by

providing intensive distribution of wine to sell Retailers, Bars and Hotels

etc.

The findings of research report will definitely have its scope regarding

marketing strategy formulation of wine marketing in India .


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