Introduction

The area of Wine Marketing has not been recognised as a formal area within
marketing or business. However, the number of practioners world –wide and now the
number of academics working in this area has grown. As little as 10 years ago, the
major journal in the area, The International Journal of Wine Marketing, was the only
outlet for publishing in this area. Programs, like the diploma of Wine Marketing at
the University of Adelaide (formerly Roseworthy Agricultural College), were limited
in number and scope. Most of these programs used standard marketing and business
textbooks, with added assignments for the wine industry. This was mainly due to the
dearth of empirical research in wine marketing.
In a short period of time this situation has changed dramatically. There are now
university programs in various aspects of wine marketing and wine business in most
wine producing countries and a few of the major wine consuming countries, like the
UK. Many of these programs are offered at postgraduate as well as undergraduate
level and are beginning to utilise the growing body of research on this sector.
What do we know empirically about wine marketing? This question is much too
broad to answer within the confines of one paper. Wine marketing includes many
sub-areas of research. Traditionally, we would speak of the 4 Ps of marketing,
product, pricing, promotion, and placement and their concomitant areas in wine
marketing, such as branding, new product development, pricing, public relations,
managing the sales force, and distribution. Beyond this, the area wine marketing
should include specialty topics, such as consumer behaviour for wine, wine tourism
and cellar door (direct sales), supply chain management from the vineyard and
supplier to the end user, labelling and packaging, wine events, medals and show
awards, promotional activities, exporting including market choice and channel within
market choice, selecting and managing agents, protecting intellectual property (names
and logos), and world regulation of wine and alcohol. Each of these areas has seen
some research in the past decade and each could be the subject of a review such as
this one.
The area of wine choice behaviour was chosen for its critical influence in many of the
other areas cited enough. If we can understand how consumers choose wine, then we
have a much better framework to decide pricing, packaging, distribution, advertising,
and merchandising strategies. These strategies then set the agenda for further
development in the related areas of supply chain management, sales management, and
even export management. First, a brief overview of the differences between wine
marketing and FMCG (fast moving consumer goods) will be provided. This paper
will then review the key, but limited research in wine choice behaviour. The review
will be summarised and the key areas for future research outlined.
Why does wine need a special review, rather than rely on existing research in
consumer choice behaviour? Wine is sold in grocery stores in most major consuming
countries. In fact data from Euromonitor (2001) that grocery and discount store
channels account for over 50% of wine sold in Italy, and over 70% of wine sold in the
UK, the US, Germany and France. In some countries, like Australia, wine is not
legally sold in supermarkets, but over 50% of the specialist retailers are owned by the
major supermarket chains. These facts should indicate that wine is a fast moving
consumer good, or packaged good (in the US). But, where most supermarket
categories have 10 or so brands, wine typically has over 700. In some supermarkets
well over 1000 different wines are stocked. Also, consumers purchase brands of
products, and the brand names are the key unit of decision (Ehrenberg 1988).
Although more and more wines, especially those from the New World, carry brand
names, there are many different cues on the package that influence purchase, eg., the
region, sub-region and country of origin, the vintage date, the grape variety or blend,
the producer or negotiant (blender of the wines), style (eg, bottle fermented, late
harvest), the wine maker, and the specific vineyard. The result is that consumer
choice for wine is more complex than the choice for many other products. It might
be argued that automobiles are one of the few product categories that rival the
complexity of the wine category, but cars are not purchased so frequently.

1.4 RESEARCH METHODOLOGY

Methodology is the process of collecting the information and helps to find out the
solution to the topic selected by the researcher. Where as research helps to study and find
out the techniques with the proper process. It is a systematic way of presenting
information.

In order to collect the required information for the project the following methods
were adopted:

PRIMARY DATA:
The concern staff of Sula Wines was interviewed personally. The data was collected with
the purpose of evaluation.

 Discussion with the finance manager regarding the figure of balance sheet.

 Collection of information related to working capital from other members of the

accounts department of the organization.
SECONDARY DATA:
Secondary data is provided by the organization. The needed information is collected
from:

 Balance sheet of Sula Wines 2004-08

 Books of accounts of Sula Wines 2004-08

 Annual reports of Sula Wines 2004-08

The present study is aimed at to analyze the working capital analysis of Sula Wines,
by coving yearly financial data supplied in the company’s financial accounts.

METHODOLOGY OF THE STUDY

Methodology of the project

o Safety health and environment measures are studied. For research part
collected data in two parts.

DATA COLLECTION
1. Primary data
2. Secondary data

1. Primary data: - the primary data are those, which are collected fresh and
for, first time and thus happen to be original in character.

For that different methods used like-

a) Questionnaire: - it is considered as the heart of a survey operation. It is very
effective source of data and information.

b) Open ended interview with

o Operators
o Supervisors
 o Canteen contractor
o Environment consultant
o Managers
o Administration dept.
o Personnel dept staff.

2. Secondary data: - these are sources containing data which have been
collected and compiled laid for another purpose. The secondary sources
consist of readily available compendia and already compiled statistical
statements and reports whose data may be used by researchers for their
studies. Secondary sources consist of not only published records but also
unpublished data.
o Internet
o Magazines
o Safety, health and environment journals
o Books

COMPANY PROFILE

Name of the company: Nashik Vintners Pvt. Ltd.

Year of establishment: 2000

Address: Gat 36/2, Govardhan village
Off Gangapur-Savargaon Road,
Nashik – 422 222.

Name of Group:

Nature of Production: Wine Manufacturing

Industry Category: Grape Wine Industry.

Managing Director: Mr. Rajeev Suresh Samant

PRODUCT PROFILE

ROSÉ

Sula blush zinfandel Madera rosé

 RED

Dindori reserve Shiraz sula red zinfandel

SPARKLING

Sula brut* Saco

WHITE
Sula sauvignon Blanc* sula Chenin Blanc*

Madera white Viognier**

Dia white samara white

Riesling
 DESSERT

Late harvest Chenin Blanc

PRODUCT PROFILE

ROSÉ

Sula blush zinfandel Madera rosé

RED
Dindori reserve Shiraz sula red zinfandel

SPARKLING

Sula brut* Saco

WHITE
Sula sauvignon Blanc* sula Chenin Blanc*

Madera white Viognier**

Dia white samara white

Riesling

DESSERT
 Late harvest Chenin Blanc

HISTORY OF THE SULA WINE LIMITED

Situated 180 km northeast of Mumbai, Nashik is India's largest

grape-growing region, but had traditionally never been used to
grow wine grapes. Wondering why, an enterprising, Stanford-
trained engineer named Rajeev Samant quit his hi-tech Silicon
Valley job in 1993 to do some investigating. A little research
quickly showed that the Nashik climate was not only perfect for
wine grapes, but was also on par with winegrowing regions in
Spain, California, and Australia. His determination doubled,
Rajeev returned to California in search of a winemaker. In
Sonoma County he found Kerry Damskey, an eminent
Californian winemaker, who enthusiastically agreed to help start
a winery on Rajeev's 30 acre family estate.

In 1997, the duo took the revolutionary step of planting French

Sauvignon Blanc and Californian Chenin Blanc, varieties that
had never before been planted in India. The first Sula wines,
released in 2000, were widely acclaimed as India's best white
wines.

Since its inception, Sula has rapidly established itself as India's

leading premium wine brand, helping spark a wine revolution
that has seen consumption grow at 25% annually and several
new wineries come up in the Nashik area. In November 2002,
Wine Spectator - the world's No.1 wine magazine - did a five-
page feature on Sula, a proud first for an Indian winery.

A second winery with three times the capacity of the first was
completed in late 2004 to keep up with demand, and a third

million litre winery started operations in 2006. Sula has

expanded from the original 30 acre family estate to about 1500
acres (owned and contracted) under plantation, both in Nashik
as well as in nearby Dindori, India's upcoming wine region.
Varietals planted include Cabernet Sauvignon, Shiraz, Zinfandel
and Merlot along with Chenin Blanc, Sauvignon Blanc,
Viognier and Riesling. In addition to having a wide national
distribution network within India, Sula also exports its wines
internationally, as well as importing and distributing wines from
leading producers worldwide.

In 2005, Sula proudly launched its first reserve wine, the

Dindori Reserve Shiraz, as well as India's first dessert wine, the
Late Harvest Chenin Blanc. The winery and vineyards are open
to the public for educational tours, and the beautiful Tasting
Room invites visitors to enjoy their favorite Sula wines amidst
spectacular views of the vineyards and surrounding lakes and
hills. The nearby Sula amphitheatre is an impressive location for
events and social gatherings and is available for bookings.
Visitors can now spend a few nights in paradise at BEYOND,
Sula's new exclusive accommodation on the vineyards with a
beautiful lake view.

Firmly committed to remaining at the forefront of Indian wines,

Sula continues to experiment with new varietals, engage in
sustainable agriculture, support the local rural economy, and, of
course, make wines of outstanding quality and superb value.

SULA WINE – MILESTONES”

“The conviction to take the un-chartered path”

1992- Stanford-trained engineer, Rajeev Samant quits his

job as Finance Manager at Oracle in Silicon Valley and
heads home to his family-owned Lands in Nashik,
India…

1993 – Samant realizes that since Nashik is the largest

table grape growing region, it has potential to grow wine
grapes as well and so he begins his research….

1994 – Samant goes back to Sonoma Country, California

where he enlists friend and renowned winemaking
consultant, Kerry Damskey, to help him start building
the winery in Nashik….
 “To make good wine you need a beautiful winery”

1995 – Damskey takes on the adventure to visit Nashik

for the first time in his life….

2000 – Sula vineyards release its first 3 wines. The

country has never seen Sauvignon Blanc, Chenin Blanc,
or Methode Champenoise sparkling wine quite like
these…

-Not only Sula faces problems with Government

regulations and licensing policy, but people are hesitant
to taste Indian wines. However, a great new wine
coupled with an ever greater persistence cannot be
ignored for long and soon people begin to warm up to
the idea….

2001 – It takes the 6 months to make the first dispatch

from the winery. Sula’s first year is a success with 4,000
cases being dispatch from the winery.

“Sula wines – a runaway success”

2002 – ‘Wine Spectator’, the world’s no.1 wine

magazine, does a five-page feature on Sula, a proud first
for an Indian wine, but good wine in general !
 2003 – Sula crosses 40,000 cases of wine for the year
and people come to recognize Sula as the leader in
Indian wine

PRODUCTION PROCESS
GRAPE PRESS CHILLING

PACKING FERMENT-ATION SETTLING

BASE WINE COLD TREATMENT BASE STILL WINE

SUGAR & YEAST BOTTLING

SPARKLING WINE PROCESS

RIDLING AGEING 6-8 MONTHS BOTTLING LABELING

DISGORGING DOSING & CORKING LABELING DISPATCH

  MAJOR CUSTOMER

Italy Finland
USA-California Germany
USA-New York Japan
Belgium Nigeria
CANADA-Ontario Spain
CANADA-Quebec South Korea
UK United Arab Emirates
France

BALANCE SHEET

2007 – 2008
( Rupees In Lakhs )

Particulars 2007 2008 Increase Decrease

A) Current Assets  
a) Cash & Bank Bal. 196.78 187.96 0 8.82
b) Inventories 2168.46 3225.13 1056.67 0
c) Loans & Advances 528.01 951.50 423.49 0
d) Sundry Debtors 1315.69 2038.38 722.69 0
e) Other Assets 2.42 4.27 1.85 0
  4211.36 6407.24 2204.7 8.82
B) Current Liabilities  
a) Sundry Creditors 963.87 1594.74 0 630.87
b) Provision for Taxation 230.09 445.97 0 215.88
  1193.96 2040.71 0 846.75
Total Increase/Decrease 2204.7 855.57
Working Capital (A-B) 3017.4 4366.53 1349.13
  There is a Net Increase in Working Capital by Rs. 1349.13/-(lakhs)

Interpretation & Analysis:

We see that there is a net increase in the working capital, because in the year 2007-08
there was increase in the inventories & sundry debtors. Even though there was increase in
creditors

DOMESTIC WINE(MAHARASHTRA)
Vineyards are multiplying in Maharashtra, as farmers see ever more advantages to
switching to wine grape-growing. Nashik is the current centre of the boom. Enterprising
table grape farmers have shifted to growing wine grape varieties, with generous
subsidies from the state government encouraging the move. The government of
Maharashtra has issued over 70 licenses in the last couple of years for setting up new
wineries.
Further, the state’s revenue department has introduced a zero excise duty regime with
4% sales tax on locally produced wines. This is the most progressive action yet-taken on
the Indian wine scene, and hopefully, other states will follow Maharashtra’s lead.

Present scenario of Wine Industry in MAHARASHTRA

With special reference to Sula.(intro)

Introduction:-

Preview… The macro behavior

The tiny wine industry in India is slowly coming of age as the buzz about its reputation
spread among the cognoscenti. For a hot country known for its spices and tea, it is
difficult to imagine that its wine industry would attract any attention. Even five years
back no one spoke of Indian wines or their flavours, and the drink was almost unknown
to Indian palettes. But the picture is fast changing. Though only a small number of
vineyards produce grapes for wines, their reputation is spreading among the
cognoscenti.

The infant Indian winemaking industry is hoping to get a foothold in the international
wine market. Indian wines have begun to find space on the menus of Indian restaurants
abroad, there is a buzz among the globe-trotting elite about the French or California
wines they taste, and Indian wines have begun to be noticed by masters of wine around
the world.The history of wine making parallels that of civilization. References of wine
have been found in Egypt and Phoenicia dating as far back as 5000 BC, and by 2000 BC
wine was been produced in Greece and Crete. European explorers in the 16 th century
introduced the wine to the new world.

Today wine is synonymous with culture and convivial lifestyle around the world,
complementing food, entertainment and the arts. An international report says that
there are some 8 billions hectares of vineyards across the world , each of these vineyards
reflects the terrier, history, culture and the tradition of its region.

Wine plays a major role in the economies of many nations, which produce more than 26
billion liters of wine annually. Fierce competition for market share has led to increased
diversity and innovation within the wine industry, much to the benefit of the consumer.

Over the past decade, wineries around the world have gone to great lengths to enhance
their consumer education efforts. As a result, consumers in the New World are
becoming much more knowledgeable about wines. At the same time, New World
wineries in countries such as Australia have learned to sell to consumers in the U.S.
much more effectively than French vineyards, for instance, because they recognize how
to market to consumers who may not be experts on wine. Italian wineries also have
begun to develop effective marketing and consumer education efforts for the U.S.
market. The French, in particular, have not been as effective; consequently, their export
performance has lagged behind other wine-producing nations in recent years.

At the retail level, wine sales are increasingly shifting to supermarkets, wholesale clubs,
and the like. These changes in the retail and distribution channels present substantial
challenges for wineries, of course, Smaller vineyards often can find it more difficult to
secure shelf space and all wineries find themselves facing pricing pressure from the
retail and distribution channels.

PRODUCT PROFILE:-

Wines can be classified into following types globally.

1:- Still wines

 A: - White, red, rose wines.

 B: - Dry, medium dry and sweet wines.
 C: - Vintage wines
 D: - Aromatized wines.

2:- Sparkling Wines

 A: -Champagne.

3:- Fortified wines

 A: - Dessert wines.

Wines are categorized using a number of different methods. Sometimes they are
grouped into different categories by grape variety, region of origin, by color, by the name
of the wine maker or viticulturalist, or by production technique.
Three basic groups of wines are most easily distinguishable for the consumer: table
wines, sparkling wines and fortified wines. Table wines, also known as still or natural
wines, are produced in many different styles and make up the majority of wines on the
market. Traditionally consumed as part of a meal, table wines contain between 10 and
14 percent alcohol and are further classified by their color, sugar content, and the variety
and origin of the grapes that were used. Depending on the grape variety and wine-
making technique, wines can be white, red, or pink in color. Most table wines are
fermented until they are dry i.e, all the grape sugar has been turned to alcohol by the
yeast. Slightly sweet or off-dry wines are made by stopping the fermentation before all
the sugar is gone or by adding grape juice back to the wine afterwards.