Wine Industry in India

download Wine Industry in India

of 21

  • date post

    27-Nov-2014
  • Category

    Documents

  • view

    216
  • download

    1

Embed Size (px)

Transcript of Wine Industry in India

PROJECT ONStudy of the Consumer Attitude towards Wine as a product category vis--vis other liquor categories Submitted to: Prof.Ajeet Sharma

Submitted by: Abhishek Swami Gaurav Yadav Nehal Mittal Rashi Dawar Rini Bhattacharya Sagnik Ghoshal1|P ag e

1). ACKNOWLEDGEMENT 2). INTRODUCTION 3).OBJECCTIVE OF THE STUDY 4).RESEARCH METHODOLGY 5).RESEARCH DESIGN 6). CONSUMER BEHAVIOUR AND ANALYSIS 7).CURRENT SENARIO 8).EXECUTIVE SUMMARY 9).CONCLUSION 10).BIBLIOGRAPHY2|P ag e

Pg.3 Pg.4-5 Pg.6 Pg.7-8 Pg.9

Pg.10-15 Pg.16-18 Pg.19 Pg.20 Pg.21

AcknowledgementA task or project cannot be completed alone. It requires the effort of many individuals. WE take this opportunity to thank all those who helped me complete this project. We express my sincere gratitude to Prof. Ajeet Sharma for giving us the opportunity to undergo this project. We further thank his for lending a helping hand when it came to solving my problems related to the project. This project would not have been possible without his valuable time and support. We also thank IILM Graduate School of Management for an opportunity to undertake a Marketing Management project at the start of our PGDM course which helped us to understand deeply for those topics which are untouched. This project is an attempt to talk about the marketing strategies of the growing sector of malted health drinks and the response of the consumers using them.

3|P ag e

IntroductionWine, although perceived as the elite drink and an essential part of ameal in many cultures, continues to be by and large a tabooed product category in India. Efforts however are being made to bestow Wines with its rightful glory. Recently Karnataka state has declared that Wine would not be counted as a variant of Alcohol. The Wine Club continues to organize Wine tasting parties to make Wine all the more popular among countrymen

WINEWine is produced from grapes, and fruit wine is produced from fruits such as plums, cherries, or apples. Wine involves a longer (complete) fermentation process and a long aging process (months or years) that results in an alcohol content of 9% 16% ABV. There are basically three types of wine: 1. Premium Wines (Still wines) 2. Sparkling Wines 3. Fortified wines In the Still wine or premium wine category the Indian market is divided mainly into two major categories: White wines Red wines. This report primarily focuses on Premium wine vis--vis other liquor categories, and, the attitude of Indian consumers towards Wine.

4|P ag e

Indian Wine IndustryAround 4000 acres of land in India is under vines, about 3000 of which is in Maharashtra alone. Karnataka and Andhra are the two other states producing grapes for wines, the former producing premium varietals. These may not necessarily be the best wine grape growing regions. There are several unexplored areas, more importantly on the foothills of Himalayas in Himachal, Uttaranchal and Kashmir where wine grapes were grown before Phylloxera hit in late 1800s and the political situation precludes any fresh initiative. Two crops of grapes are possible due to tropical weather but only one crop is harvested in February-April, as in Southern Hemisphere though India is in the Northern Hemisphere, Nasik the wine capital, being at around 13 latitude. Indigo has been a pioneer and the biggest producer since its inception in 1984 with Sulfa growing fast and overtaking Grover a few years ago. Recession hit Indigo severely and the expansionist policies and the improper gauging of the market caused its downfall last year. It is currently in dire financial strait, with the very existence in doubt, making Sulfa the number one producer with around 250,000 cases sold last year. It is targeting 350,000 cases sales this year and will certainly cross this mark. Grover sold around 70- 80,000 cases and is targeting 110,000 cases, an ambitious target. Several new wineries have come up during the last few years-notable among them being The Four Seasons Winery- a subsidiary of the liquor king Vijay Mallya-owned United Spirits Ltd, the biggest Indian wine and liquor company in India. This Maharashtra winery selling around 40,000 cases last year is tipped to be the fastest growing winery during the next five years and is expected to overtake Grover. Period Ricardo started making Seagram s Nine Hills 4 years ago and is consistently inching forward while the other multi-national Diageo failed to make progress with its Malaya label and discontinued last year, at least for the moment. Vintage Wines, Mercury Wines, York Winery, Ventura, Chateau dory, Indus, Globes, Miasma, Big Banyan and Zama are a few of the wineries which have established themselves as the second wave that produce quality wines, but their sales levels are still small-less than 20,000 cases a year. Maharashtra winery Rona Wines went into partnership with an Italian winery last year. Vintage Wines which produces Reveille label has ventured into wines with Sangiovese grape with the help of their Italian consultant from Friuli.5|P ag e

OBJECTIVES OF THE STUDYMain Objective The main objective of this study is to Understand Attitude of various sections of Indian consumers towards wine as a product category .

Sub ObjectiveTo study consumers brand preference of wine in Delhi & nearby areas. To study consumption pattern of wine. To study the factors affecting buying behaviour of wine. Differentiating between perceptions towards wine vis--vis other liquor categories. Analyzing the change in perception with time. Scope for wines in India.

6|P ag e

Research MethodologyResearch methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Questions and deciding the types of data to be collected and the procedure to be used in this purpose

1.Descriptive Research:The objective of such study is to answer the who, what, when, where and how of the subject under targeting the wine consumers.

2).Data collection methods:After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data.

Questionnaires:This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. Primary questionnaire based survey of o Consumers o Bars and Pubs o Wine Shops Analysis of secondary data obtained from magazines and internet.

7|P ag e

Pie chart:This is very useful diagram to represent data, which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.

Bar chart:This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.

3.Sampling Methodology:Details of the sampling methodology, we have made questionnaire. The one is made for the Consumers No. of questions in questionnaires for customer: 11 Sample size : 50

8|P ag e

RESEARCH DESIGNThe design of research project is the plan that ties the data collected to questions, thereby linking the data to the conclusions to be drawn. Marketing research projects are either exploratory or conclusive in nature depending on the objectives.

Data Collection sourcesGathering the data from primary as well as secondary sources has completed the data collection process.

PRIMARY SOURCESPrimary data collection process was carried out personally through filling questionnaire

SECONDARY SOURCESThe collection of secondary data on liquor is a very tedious. However, secondary data are collected through following sources EXTERNAL SOURCES Business Magazines Newspapers ( Economic Times, Business Standard)

9|P ag e

CONSUMER BEHAVIOURThis is the most effective tool in marketing. In liquor industry advertising is not allowed by the Indian Government therefore they are indulged in surrogate advertising Products with similar brand name: - This is very common method used in the liquor industry, here companies introduced a non-alcoholic product with similar brand name and advertise it in full swing. Financially sound players use this tool.

As per the analysis done of the consumption of wine. Red wine has the largest share in terms of percentage consumption i.e. 55% whereas white wine has a share of 45%. The above represent the pie chart of total consumption.

10 | P a g e

In order to better understand how and why consumer make consumption pattern in the wine category. When we analyse the information from the questionnaire the factor that effect the consumer buying process we found out that 5% of the consumers are the one who consume wine daily and 15% are the one who consume once in a week. 30% of the consumer are the one who consume rarely. And 50% of the consumers are the one who consume wine only for tasting.

Once considering the principal attributes of the purchased wines, we found that 40% of the consumers buy the wine only for their taste. 30% of the consumers buy wine according to the quality of the wine whereas 10% buy the wine a