THE INDIAN WINE INDUSTRY

India is not traditionally a wine drinking country. Prohibition in India & Higher Price Stringent and regressive government rules with different taxation Unfavorable rules for domestic marketing of wines in most states Lack of promotional activities for wine consumption

LARGE SCALE
Globalization and Liberal economic measures Rising incomes of the population Exposure to new cultures due to Globalization Relaxation of Government regulations and policies Growth in the number of foreign tourists

In 2000, the first wine bottle was sold.

Globalization Multiple business ventures had been started

Indias leading premium wine producer

Annual consumption growth of 25%

2nd Winery was established in 2004, to satisfy the demand

18 types of wines in the product portfolio

MATURITY

Decline phase

till yet.

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS Preference for Whisky Ban on advertising Religious beliefs Irregular weather Tax laws High land costs

Fast Growth of wine industry(2530%) Good infrastructure and climate for cultivation Health benefits More exposure to western culture especially amongst women

Higher drinking age Taste of wine is elite and acquired Poor awareness

Increasing market Increasing disposable income Increasing tourism Changing lifestyle Export potential

POLITICAL

LEGAL FACTORS

Central Government has changed the policies Local Government initiatives Changes in the Ruling Party Regional issues
ECONOMIC FACTORS
P

Changes in various Legal Acts Advertising laws have become liberal Foreign Trade & Investment Regulations Health & Safety Laws Taxation

Rising Incomes Earning at an early age Price Fluctuation by Global Commodity Markets Increasing price differential between on & off trade SOCIO-CULTURAL FACTORS Adopting the habits of the British Considered as a fashionable drink Recent upsurge in caf culture Gives a great snob value

ENVIRONMENTAL FACTORS

Corporate Social Responsibility Environmental Legislation & Energy Consumption TECHNOLOGICAL FACTORS

Influence of Digital and Viral Marketing Attractive Packaging and Bottling

SYCHOGRAPHIC SEGMENTATION
Super-core consumers
consume wine daily

Core consumers
consume wine at least 2 or 3 times a month

Marginal
consume wine at least 2 or 3 times a quarter

Non-adopters
consume alcohol but do not consume wine

Non-drinkers
do not drink any alcoholic beverages

GEOGRAPHICAL SEGMENTATION
Population
30%

Rural
70%

Urban

DEMOGRAPHIC SEGMENTATION
GENDER AGE
Traditionalists (born between 1900 and 1945) Baby Boomers (born between 1946 and 1964)
Females 48% Male 52%

Generation X (born between 1965 and 1977) Millennials (born between 1977 and 2000)

DEMOGRAPHIC SEGMENTATION Muslim (contd) 14%

Christian Sikh 2% [PERCENTAG Islam E] Buddhist 1%
Sikhism

Hindu 81%

Buddhism

Jainism

SHARE OF CONSUMER ENTHUSIASTS

12%

SHARE OF PURCHASE

25%
IMAGE SEEKERS
SAVVY SHOPPERS
TRADITIONALIST S

20% 15%
24% 15% 15% 8%

16%
14% 23%

SATISFIED SIPPERS

OVERWHELME D

13%

FUTURE TARGET AUDIENCE

40 35 30

Perceptions and attitudes of 246 consumers

25
20 15 10 5 0

Product

Place

Marketing Mix

Promotion

Price

P R O D U C T s

PRODUCT POSITIONING
Increasing brand awareness

Economically-priced brands Easy availability

P R O M O T I O N

P R O M O T I O N

WINE PUBLICATIONS & MAGAZINES

ONLINE/ SOCIAL MARKETING

BRAND NAME

APPROX. PRICE (MAHARASHTRA) R.s 1100 R.s 810

Rasa Shiraz Dindori Reserve Shiraz

Sula Riesling
Dindori Reserve Viognier

R.s 750
R.s 720

Sula Sauvignon Blanc

Satori Merlot Sula Cabernet Shiraz Sula Red Zinfandel Sula Chenin Blanc

R.s 570
R.s 510 R.s 498 R.s 474 R.s 474

WINE CONSUMPTION IN INDIA

Rest of India 20%
Bangalore 6% Goa 9% Mumbai 37%

Delhi 28%

PORTERS FIVE FORCE MODEL

Bargaining power of suppliers: Low to moderate

Threat of Substitute Products: High

Competitive Rivalry within Industry: Moderate

Bargaining power of buyers: Low

Threat of New Entrants : Low to moderate

PRODUCTION IN VINEYARDS

RETAILERS (E.G. HOTELS, RESTAURANTS )

CONSUMERS

STORAGE IN WAREHOUSE

DISTRIBUTION CHANNEL

D O M E S T I C

Chateau indage

Grover vineyards
Chateau dori Vinsura ND wines

Vintage wines (Reveilo)

UB group (Four seasons & Zinzi) Seagrams nine hills Vininicola Pvt. Ltd.

COMPETITORS

FUTURE STATEGY RECOMMENDATIONS

Target the young generation by using high end products Increasing urban mindset; increasing awareness and breaking the myths Wines Sweeter in taste with higher alcohol level preferred by Indians Participation In International Festivals like VINEXPO, Fetes De Geneva Starting educational Institutes like Rudd Centre for Wine Studies, Culinary Institute of America

FUTURE STATEGY RECOMMENDATIONS (Contd) Cook-Out sessions with International Chefs

Develop a Mobile application wherein guests can find information on wine consuption Indian restaurants based at different locations around the world should be used to market Sula wines Expansion in other alcoholic drinks sector Invite guests for stomping festivals where guests can make their own wines

Sponsor charity events such as wine tasting fund raising auctions Corporate Gifting