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

WINE’S &VINERYARADS IN NASIK

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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 INDIAN WINE - 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

5
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.

6
E
N
W
IS
D
R
O
T
U
Y
B DISTRIBUTION CHANNEL FOR WINE 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:

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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

8
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 and Clubs, 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 19 th
September, 2001, the excise duty will be charged at the rate of 50 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
be charged at the rate of 25 per cent of the production expenditure incurred
by such units. Such concessions will be admissible for period of 5 years.

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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 of 20 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
License the Collector of the district level will be empowered with a
binding condition to issue licenses within 30 days.

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Establishment of Wine 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
countries will be examined before establishment of Grape Board in

13
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 India
which 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
annual growth rate of 40%.
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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 production.

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 for 88-90 percent of the market and expensive varieties 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

18
believe that this will lead to consolidation in the wine industry with few
big players and few small players in the market.

FILED WORK IN WINE 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,

19
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.
Their Chenin 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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 MARKET PLAYER AND WINERIES

There are numerous producers small and big across four major wine
producing regions in India. There are private individual’s spreads out all
over the country trying their hand at producing wines in their own back
gardens. But the major producers are, listed below
1. N.D. WINES
2. SULA VINEYARDS (Samant Soma Wine)
3. VINSURA (Sankalp Winery)
4. INDAGE (Champagne Indage)
5. BOSCA (Baramati Grape Industries)
6. BLUESTAR WINERY
7. DAJEEBAH WINES (Data cone Wine Industry)
8. FLAMINGO WINES
9. GROVER VINEYARDS
10. N.C. FINE WINES
11. PRATHMESH WINES
12. PRINCESS (In-Vogue Creations)
13. PYRAMID WINES
14.RAJDHEER WINES
15. RENNAISSANCE WINES
16. SAILO WINES (V.M. Agro soft)
17. SAIKRIPA WINERY
18. SHAW WALLACE
19. VINBROS&CO.
20. VINICOLA

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This are the wine industry which doing good wine business in India
and also outside the country but are in India the Maharashtra Main three
wine industry show there performance in wine market This are the
follows:

BIG PLAYER IN WINE SECTOR

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1. INDAGE (CHAMPAGNE INDAGE)

Capacity: 30, 00,000

Operations from: 1987 Brands/ Varietals

Export only

1. Anarkali Red
2. Chhabri White
3. Omar Khayyam BRUT
4. 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 Brut
2. Sula Seco

Whites:
3. Sauvignon Blanc
4. Chenin Blanc
5.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

Capacity: 9, 00,000 liters

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)

Capacity: 2, 00,000 liters

Operations from: 2003

Brand and varieties

1. Cabernet Sauvignon
2. Zinfandel
3. 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

26
Government and “Palace on Wheel’s Promoted by Rajasthan Government.
ND 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 June 2005.

27
 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 Mark’s
& Spencer’s. 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 the renowned
French companies. With growing demand from the customers, we have
enhanced our crushing capacity from 200 tonnes to 1400 tonnes. N. D.

28
Wine is geared up to fulfill the rising demand of today’s international wine
market.

INFRASTRUCTURE
At ND 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 of 9, 00,000 liters for storage of wines. ND Wines adopts world
class manufacturing and storage techniques for making and preserving
Wines.

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 market
and 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

PROFILE OF THE ORGANISATION

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 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

BANK → HDFC

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 PRODUCT OR BRAND OF INDUSTRY

1 .SYRAH

This wine is made from Syrah, grown on the virgin soil of the Sahyadri
hills located in Nasik, the climate here is very similar to that of the South
of France. Before pressing the grapes are specifically selected and picked
at perfect maturity level. N. D. Syrah has the color of the royal insignia,
deep purple. The overpowering nose is a reminder of the 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 flavor that lingers 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: 18ºC.

32
2. CABERNET 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. All the characteristics of the nice fruity
aromas from the N.D. Syrah are present and are reinforced by the full
bodied structure of the N. D. Cabernet. The Length of this wine is perfect.

This wine is perfect with all the Indian Foods.

Best served at: 18ºC

33
3 .CABERNET SAUVIGNON RESERVE

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: 18ºC to 20ºC.

34
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 after taste lingers in the mouth.

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

Best served at: 18ºC to 20ºC.

5. SAUVIGNON BLANC RESERVE

35
 \

This wine comes from Sauvignon Blanc 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
green gold color. The nose develops a pleasant aroma of pineapple,
banana, guava and the typical aroma of grapefruit. Sauvignon Blanc is
tangy, with a rich freshness that leaves behind a lingering citrus and lemon
flavor in the mouth.

This richly flavored wine is the perfect appetizer that goes well with any
variety of fish, as well as steamed lobster.

Best served at: 10ºC.

6. CHENIN BLANC

36
This wine is made from Chenin Blanc, 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. The color of this 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 of the N.D. Chenin Blanc tickles the palate
and leaves a lasting flavor and aroma of fruit in the mouth.

This wine is a perfect appetizer and goes well with food cooked in light
spices followed by fish.

Best served at: 10ºC.

7. SAUVIGNON BLANC

37
This wine comes from Sauvignon Blanc 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. N.D. Sauvignon Blanc comes
in enchanting pale gold green color. The nose develops exotic aromas of
blackcurrant leaves 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.

38
This wine is an ideal appetizer that can be served with cashew nuts and
almonds. It is suitable for all types of fish and steamed jumbo prawns and
goes well with delicately spiced Indian cuisines.

Best served at: 10ºC

OBJECTIVE BEHIND SETTING THE WINE

PRODUCTION INDUSTRY

The following are the objectives behind the setting up a winery

1. To promote wine in India.

2. To fill the gap and provide high quality wine at affordable prices.
3. To promote the Indian wine with Indian food concept both in India and
abroad.
4. To export up to 25% of production. The winery will develop a
vineyard near its location in near future to produce high quality
grapes, and the entire wine production system will be set up in to
ensure that world class wines are produced.

39
 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

The need was felt at "ND Wine Pvt.Ltd.to estimates the markets
potential wines in domestic & export market- The research had to be
carried out with preference to wine marketing. In this research we had
to find out the size of the potential markets, existing brands of wines in
the market, and their market share.

Following are the objectives of the study

 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.

40
 Considering the above objectives, we had to carry out a research and
find out the facts and figures, which later had to be analyzed and
presented to the company. While working on this project we
had to collect various information for the company we had
recommend suggestion to the management, which could help
them to design better strategies for market penetration.

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.

41
The research methodology comprises of the following steps.

1. Research design
2. Data source
3. Research instrument
4. Sampling plan
5. Contact method
6. Data processing and analysis
7. Finding
8. Recommendation
9. Conclusion

1. RESEARCH DESIGN

Research design is a plan, structure, strategy of investigation

conceived so as to obtain answers to research question and control
variance.

There are three types of research design system.

• Exploratory Research
42
 • Descriptive Research
• Casual Research

2. DATA SOURCE

There are two types of data:

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

43
 c) Websites on the internet

3. RESEARCH INSTRUMENT

In research instrument questionnaire has been used.

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 of 20 to 65 years.
3. Sample Size:
The project maintained a sample size of 25. 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

44
 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 primary
objective i.e. study of retailers, distributors and dealers and their awareness
about Wine & contact with manufacturer.

DATA PRESENTATION AND DATA ANALYSIS

ANALYSIS OF RETAILER’S 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.

45
Table No.1
1) Beverage preferred by customer
BEVERAGE Preference in %
WHISKY 25%
BEER 25%
RUM 20%
VODKA 15%
WINE 15%
TOTAL 100%

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

46
2) Have you keep N.D.Wine?
Yes No
80% 20%

Table No:-2

This question is of major importance, we found that 80% of wine

shoppers have keep different N.D Wine brands.

Chart No.2

47
 Have you keep N.D wines?

20%

Yes
No

80%

Table No 3

3)Wine preferred by customer

BRAND Preference in %
SULA 30
N.D 20
VINSURA 20
INDAGE 13
VINO 10
FLAMINGO 7
TOTAL 100

The question was asked, which wine brand the customer most
preferred? From which the above data are collected & from wine

48
brands which Sula, N.D&Vinsura and Indage are 30%, 20% each and
13 % are mostly recommended.

Chart No 3

Wine preferred by customer

10
7 30

Sula
13 N.D
Vinsura
Indage
Vino
Flamingo

20 20

Table No. 4

4)Wine recommended to customer by retailers

BRAND Recommendation in %
SULA 52%
N.D 20%
VINSURA 18%
INDAGE 10%
TOTAL 100%

The wine brand that mostly recommended by the wine shoppers was
sula with highest 52% and others like N.D,Vinsura and Indage are
20%,18% and 10% respectively.

49
Chart No.4

Wine recommended to customer by retailers

10%

Sula
18%
N.D
Vinsura
52% Indage

20%

Table No.5

5)Reasons for prescribing the above Wine

REASON In %
EXPERIENCE 15
MAXIMUM SALE 40
PROFIT MARGIN 10
DEMAND 35
TOTAL 100

The reason for prescribing the particular wine brand from the wine
shoppers was the maximum sale of that particular wine brand i.e.
40%.
Demand was also one of the important reasons i.e. 35%.

50
Chart No.5

Reason for prescribing the perticular wine brand

15
35

Experience
Maximum sale
Profit margin
Demand

40
10

Table No.6

6) Have you seen the commercial advertisement of N.D Wines?

Yes No
15% 85%

The question was asked about the commercial advertisement of N.D

Wine, 85% of the wine shoppers hadn’t seen any commercials of N.D
Wine.

Chart No.6

51
 Have you seen the commercial of N.D wine

15%

Yes
No

85%

Table No.7

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

52
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

Reason for shifting from one wine brand to another

10 15

10 Price
25 Taste
Awareness
Hoardings
Other

40

INDIAN WINE MARKET DATA

(Source by www. indiawine.com)

According to Indian market data by indiawine.com the current last three

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

53
Table No. 8

2005-2006 2006-2007 2007-2008 2008-2009

Premium wine 354630 443287 558542 692592
Sparkling wine 47432 52177.2 57393 63132
Sub total 402062 495462 615934 755724
Cheap fortified 285516 299792 314781 330520
wine
total 687578 745254 930716 1086244

Chart No.8

CATEGORY WISE WINE DATA 2005-2009

B) REVENUNE IN CRORES

TABLE NO 9

2005-2006 2006-2007 2007-2008 2008-2009

Premium wine 161.7 196.8 254.7 315.8
Sparkling wine 34.2 36.9 41.3 43.9
Sub total 196 234 29.60 360
Cheap fortified 41.11 35.98 37.77 39.66
wine
Total 237 270 333 399

54
CHART NO 9

CATEGORY WISE REVENUNE IN CRORES

55
2. REGION WISE DATA 2005-2009

A) VOLUME WISE DATA OF PREMIUM WINE

TABLE NO.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

CHART NO.10

REGION WISE VOLUME DATA

56
 B) REVENUE IN CRORES

TABLE NO.11
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

CHART NO.11

Revenue in crores
400
350
I 300
n North
250
c South
200 West
r
o 150 East
r Total
e 100
s
50
0
2005-06 2006-07 2007-08 2008-09
Years

REGION WISE REVENUE IN (CRORES)

57
 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 sometimes 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

58
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 can 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.

59
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 market 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.

60
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.

61
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 distinctive
and 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.

62
 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 type’s 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

63
SWOT ANALYSIS OF ND WINE
STRENGTHS
 Nascent Stage, few players
 Growth rate per annum 30%
 Urban population increasing
every year
 Good Climate for growing wine
grapes
OPPORTUNITIES
Large domestic market with
increasing
Disposable income
Population, changing life style
accepting new trend
Exporting potential to rest of the
world
Growing tourism in India
64
WEAKNESSES
 Poor Quality of wine
 Poor awareness on wine
 Stringent and regressive
government rules with different
taxation across various states.
 High custom duties and levies
for foreign players.
THREATS
New player enter in fast in this
sector
Foreign player also enter in
Indian wine market
They tie ups with Indian winery
Liquor king Vijay mallya ties
with Indian winery
(United beverage limited)
 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.

65
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 consumer’s
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.

66
 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.

67
The findings of research report will definitely have its scope regarding
marketing strategy formulation of wine marketing in India.

BIBLIOGRAPHY

 “Marketing Management” By Philip Kotler

 “Marketing Research” By G.C.Beri
 “Agrowon” newspaper
 Company manuals and records

WEBSITES

 www.ndwine.com

 www.wineindia.com

 www.indiawine.com
 www.agrowon.com

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