WOMEN IN WINE: CAN

PRINCIPLES TURN A PROFIT?

SUBMITTED TO: SUBMITTED BY:

STEPHEN BODI UMA CHHETRI #149563207
HARSIMRAN SINGH #138495205
JASMEET KAUR #108200213
HEMAN MANOJKUMAR PANDYA #119013209

SUBMITTED ON: AUGUST 11, 2021

  EXECUTIVE SUMMARY
 BACKGROUND
 SWOT ANALYSIS
 SCR FRAMEWORK
 KEY ISSUES
 COMPETITIVE ADVANTAGE

CONTENTS 


CORE PROBLEM
ALTERNATIVES
 ALTERNATIVE SELECTION CRITERIA
 ALTERNATIVE ANALYSIS
 RECOMMENDATIONS
 FINANCIAL SUMMARY
 THE ASK
 EXECUTIVE
SUMMARY
 Women in Wine was South Africa's first wine brand owned and managed solely by black woman.

 55% of shares are owned by the founders, out of which 20% was unallocated. 

 The corporation exported all its wines to other countries, although only 20% of the product was exported,
with the remaining 80% sold in the domestic market. Even when they are successful, they are unable to sell
the wine in local market because of the gender-biasness behavior. 

 As company is not performing well financially, they are unable to cope up with the distribution channel, due
to which they are not supplying the wine to individual stores anymore.

 They came up two strategies to revive and expand their business, that are either focusing on innovative
marketing strategies or to acquire a land by getting the grant from government.

 To tackle with this situation, innovative marketing strategies is the best option as it could be implemented
through routine innovations. 

 In this strategy Women in Wine would need minimum initial investment, but it would benefit them in long run,
and as a result they would have a greater customer base.  
 BACKGROUND
Women in Wine (Pty) Ltd was the first wine brand in South Africa that was wholly owned and managed by black
women. The Stellenbosch-based company was created in 2006 by a group of 20 women, the majority of whom having
worked in the wine industry directly or indirectly. The founders owned most of the shares in Women in Wine (55
percent) through a separate business, Mentor (Pty) Ltd, which had been created for this purpose.
The company exported all the wines in its portfolio to other nations, but only 20% of the product was exported, with
the remaining 80% sold in the local market. Despite women's success in the wine industry, they have had difficulty
selling the wine in domestic market because, there is still a gender bias against them. The company does not yet own
a property where they can produce and harvest graphs and build a basement to store them. The government offers
minimal assistance. This restricts the company's ability to operate and expand.
Operating conditions in the Local and abroad had been especially difficult in the previous year due to restricted
marketing and export, and CEO Beverly Farmer believed the company needed to take quick action to improve its
fortunes.
Farmer has presented two options to the shareholders, allowing Women in Wine to achieve its fundamental goal of
providing black women – particularly farm workers – a substantial interest in a sector usually dominated by white
males and make profit.
 SWOT ANALYSIS
Strength:
Strong brand essence which is Women empowerment
All the founding members have the necessary knowledge and skills
to run the company.
Offers both low-cost and high-end wines.
Contract with Massmart wholesale and retail group that can assist in
warehousing, distribution and promotional activities.
Product distribution is via wine shops and online webstores.
Export in International markets.
Opportunity:
Market its product in a unique way in both the international and
domestic markets, considering consumer preferences and spending
power.
Collaborate with other Industry like Airline, Hospitality etc..
Weakness:
Only 20% of the whole production is exported.
Limited scope and challenges in domestic market
Facing financial problem and limited budget to build awareness of the
brand.
Do not own a property for business production and storage purposes
Limited support from the society and government
Lost an important listing with the Shoprite Checkers supermarket
group – South Africa’s second-largest retailer
Threats:
Threats of new entrance selling similar products in local market
Competing with well-established brand in local market
Stiff competition in International market from another high-end
winery
 SCR FRAMEWORK

• Women in the wine industry are in a dilemma because they have found success with one of
their product lines and are operating in the international market. However, the company is
experiencing financial difficulties as a result of discontinued or lost listings with well-
known companies. Furthermore, there is little potential in the local market because it is
Situation difficult for them to break into the South African market.

• The company is evaluating two options: focusing resources on establishing a more inventive
marketing strategy for the company or purchasing a site to enable diversification into hotel
and agricultural operations in order to accomplish its fundamental objective of empowering
Complications women and farmworkers.

• Women in the wine industry devise new strategies to boost business growth and expand
opportunities for women.
Resolution
 ISSUES BRAND NEEDS TO
ADDRESS

KEY ISSUES
The brand has limited financial resources which is
stopping them to expand their business.

The brand doesn’t own a land in which they can

cultivate the vines and use it as an asset.

Due to lack of aggressive marketing strategy, the

supply chain and brand awareness is getting
affected.
 COMPETITIVE ADVANTAGES
Competencies
• Cabernet Sauvignons Wine was a
part of South African Airlines as
their partner.
• 20% of the wine was exported to
countries like UK, Ireland, United
States, China.
• Women in Wine has listing with
South Africa’s second-largest
retailer.
• The company makes wine for every
sort of palate and was shortlisted in
2009 Ethical award.
• Has unique and strong brand
essence.
Technological Advantages
• The brand can create a website of its
own.
• Social Media advances can also be
leveraged by the brand.
Enablers
• Business Purpose: developing a more
integrated business model based on the
basic principle of improving the lives of
its farmworker shareholders.
• People: partnership between
professional women and farmworkers.
• Products & Services: product portfolio
created by black women sold to various
countries.
• Funding Program: Assistance from
Department of Trade and Industry and
SAWIT in terms of fund and training.
• Market Potential: From 2021 to 2028,
the wine market is expected to rise at a
rate of 6.4 percent, providing the
company with an ideal opportunity to
expand into new markets especially
United State which is the largest
importer.
 PROBLEM

HOW TO EXPAND THE BUSINESS

WITH LIMITED RESOURCES?
 There are three possible alternatives that could help Women in Wine in expanding the
ALTERNATI business with limited resources.
VESALTERNATE 1
INNOVATIVE MARKETING
STRATEGY
1. This approach would involve in
introducing innovative marketing
strategies, which would enable
Women in Wine to reach
consumers and would also
increase sales ultimately.
2. These strategies would be:
• Allocation of remaining shares
• Promote social media handles
• Marketing the empowerment of
local community.
• Offer payment plan for purchase
• Special offer and promotions
• Retaining profitable distribution
channel
• Demonstrate your expertise.
ALTERNATE 2
ACQUIRING THE PROPERTY
1. This approach would involve
in acquiring the property from
the government allocated
funds.
2. This strategy would help
Women in Wine in generating
profits from various other
activities they could do on their
farm, such as wine testing,
hospitality, etcetera.
ALTERNATE 3
E-COMMERCE AFFILIATION
1. This approach would involve adding
online elements to affiliate
marketing in both International and
domestic market.
2. This strategy would help the
company to broaden the consumer
and see higher profit margin and
eventually create an additional
revenue stream. For instance,
Women in Wine can join wine
affiliation program like Splash
Wines, Wine basket, Wine.com and
e-commerce giant like Amazon to
promote company’s products on
their own websites and social media
platforms, taking advantage of their
large audiences.
CRITERIA SELECTION FOR The criteria listed below would help Women in Wine to select the best alternative
THE RECOMMENDATION for them to expand their business.

Empowering
the local Revenue
women generation
community

Customer Brand
Base Exposure

Alternatives
Criteria
Will it empower the local women
community?
Will it generate revenue?
Will the customer base increase?
Will the brand get enough
exposure?
ALTERNATIVE CRITERIA
Alternative I
(INNOVATIVE MARKETING
STRATEGY)
NO, as the local community is
already involved in the wine making
process, the brand will market this in
its promotion.
YES, the revised marketing strategy
will increase the revenue of the
company
YES, the customer base will increase
as new marketing strategies will come
into play and the reach will expand
subsequently.
YES, with revised marketing strategy
the brand will reach to new customers
in domestic and international market
Alternative II
(ACQUIRING THE PROPERTY)
YES, by acquiring new land, brand
would be needing more force and
labor to maintain and vineyards.
YES BUT, the revenue will be
generated in long run as the vineyards
will give ROI after 3-5 years
NO, the customer base will not
increase till the time company turns
profitable and re-organizes it
marketing campaigns
NO, The exposure of the brand will
be limited till its current market
Alternative III
(E-COMMERCE AFFILIATION)
NO, they won’t be able to empower
local community as it would require
instant capital to increase the work
force.
YES BUT, the E-Commerce
affiliating will generate revenue as the
brand would be collaborating with
multiple online partners, but brand
would need to spend initially to
onboard their products
YES, the customer base is set to
increase as in long run the brand
would be exposed to new market
worldwide
YES, the brand will get enough
exposure as they would be dealing
with clients all over the globe.
 ANALYSIS OF THE ALTERNATIVES WITH SHORT-TERM
Alternative I- Innovative Marketing Strategy
IMPLICATIONS
Alternative II- Acquiring The Alternative III- E-commerce Affiliation
1. Liquidation of Remaining Shares: The company
can liquidate 20% of the remaining shares and
invest the capital collected from it into re-
launching the brand.
2. Promote social media handles: Women in wine
can choose the right platform like Twitter,
Instagram and Tiktok to share the content. It can
also stimulate audience participation and deliver
value.
3. Marketing the ‘Empowerment of local
community’: This will be part of the promotions,
which will communicate the audience about the
making of wine and people involved in the
process.
4. Offer payment plan for purchase: In order to
maintain a steady flow of business, the company
can implement a payment plan for distributors and
retailers. This will aid the organization in
maintaining a regular cash flow, increasing sales,
and generating revenue.
Property 
1. Purchase: Purchasing the land, when
government would approve the funds.
2. Sowing: After purchasing the land,
Women in wine could sow the seeds of
grapes which they use to make the
wines.  enhance profit margin.
 After purchasing the land and sowing, it
would take 3 – 5 years of time for grapes to
grew, in meantime would not have anything
to do expect selling the wine which is
already in stock.  marketing.
1. Collaborator: Women in the wine industry can
join affiliate programs such as Splash Wines,
Wine Basket, Wine.com, and e-commerce giants
like Amazon to promote their products to a global
audience. Affiliates pay a portion of each
"qualifying sale," which can help the company
2. Cost Effective: Affiliation marketing can help a
company save money by not requiring them to
invest a large number of money. As a result, they
can generate more income per dollar spent on
3. Boost Tariff Swiftly: Affiliate marketing
programs, when combined with other marketing
initiatives, will allow you to scale visitors more
quickly than before. After all, the more sites that
connect to the pages of your ecommerce site, the
more power you have to convert visitors into
purchases(IPIX, 2020).
 ANALYSIS OF THE ALTERNATIVES WITH LONG-TERM
IMPLICATIONS
Alternative I- Innovative Marketing Strategy
1. Special offer and Promotions: To attract
customers and increase sales, the company can
provide special deals and promotions. This can be
done in a step-by-step manner that is optimal for
them and the consumer, and a consistent plan can
be implemented.
2. Retaining profitable distribution
channel:Women in the wine industry can setup a
distribution store, reducing the number of channels
in their distribution chain. This will reduce the
expense of channel management, but it will also
result in less monitoring (Traver,2020).
3. Demonstrate your expertise:The company may
humanize the brand by giving people a “behind-
the-scenes” look. Follow up with consumers and
encourage them to post a review whenever
possible. Improving brand's reputation by
providing exceptional customer service. This will
help in attracting and keeping the
customers(Woodcock, 2020).
Alternative II- Acquiring The
Property
For long-term strategy, they would need to
wait for 3-5 years first and another year after
for getting the wine to get ready.
With the revenue generated from selling the
wine, then they will be able to promote the
business.
Alternative III- E-commerce Affiliation
1. Broaden the Consumer: Unlike conventional
stores, which are restricted to a specific geographic
area, e-commerce has no such restrictions on the
number of customers it may reach. By allowing
everyone who is seeking for the company’s
products to see them, e-commerce increases
visibility and sales.
2. Strong ROI: When a consumer follows an
affiliate's recommendation for a purchase rather
than purchasing an item of their own choosing,
they will spend more money. This will raise
demand, resulting in increased sales and a positive
return on investment.
3. Increase availability and convenient purchase:
The products will be accessible at any time and
from any location. Customers will have more
convenience as a result of this. This makes it
possible to distribute products to customers at any
time, increasing brand awareness.
 RECOMMENDATION Alternate 1 is the best option to pursue in this case study.
AND STRATEGIC
IMPLICATIONS
To expand the business with limited resources, women in wine needs to sell the 20% shares which are unallocated because
only through shares they would be able to raise funds. These funds would further help them in developing routine innovative
marketing strategies that could help them in reviving the wine business. 

Routine Innovative Marketing Strategy builds on a company’s existing technological competences and fits with its existing
business model—and hence its customer base.(“You Need an Innovation Strategy”)
These strategies could be: 

1. Promotion on social media handles 

• Creating Instagram, Facebook, Twitter and Snapchat page

2. Special offer and Promotions 

• Online contests, sweepstakes or giveaways can help with marketing the product to a wider audience
• Multipacks can be introduced to increase the volume of the sales

3. Demonstrate your expertise  

• Writing blogs and posting behind the scene videos the website www.womeninwine.co.za about how we make our
world class wine
• Asking customers to provide feedback on the brand website
RECOMMENDATION
AND STRATEGIC Alternate 1 is the best option to pursue in this case study.
IMPLICATIONS
4.  Marketing the “Empowerment of local community” 
• Engaging local women by providing them training and farming equipment can help market our brand even better. 
• Creating full time employment opportunities for women

5.  Retaining profitable distribution channel 

• Women in the wine industry can setup a distribution store, reducing the number of channels in their distribution
chain. This will reduce the expense of channel management, but it will also result in less monitoring (Traver,2020).  
• Online marketing platforms can also be used for facilitating local marketing efforts, print advertising, and digital
marketing

6.  Offer payment plans for purchase 

• Customers who are frequent buyers can be giving the opportunity to pay in instalments or motivating them to buy on
credit with slogans like, " Buy today, pay tomorrow"
 FINANCIAL SUMMARY
After incorporating of
Innovative Strategy
Financial Summary 20xx
Cash $ 70,000
Additional Cashflow (share allocation) $ 12,000
Total Cash $ 82,000
Revenue $ 125,000
Cost of Goods Sold $ 40,000
ASSUMPTIONS Gross Profit $ 85,000

 Initial Cash available is $70,000 Operating Expenses

Salaries $ 21,250
 Capital Generated from 20% share allocation is $12,000 Advertising & Marketing
Logistics
$
$
34,000
8,500
Misc. $ 2,000
 Revenue Generated is $125,000 Total Operating Expenses $ 63,750
 Income Tax is 25% Income Before Tax $ 21,250
Taxes $ 5,313

Income After Tax $ 15,938

 “THE ASK”

WOMEN IN WINE NEEDS FUNDS TO REBUILD THEIR

MARKETING STRATEGY AND RE-BRAND THEMSELVES
IN THE INDUSTRY
THANK YOU!
 WORKS CITED

• IPIX, Ecommerce Affiliate Marketing, 7 Benefits of Ecommerce Affiliate Marketing,2020,

https://www.ipixtechnologies.com/7-benefits-ecommerce-affiliate-marketing.html
• Lu, Lexi, Business West, 8 Effective ways to promote your business on social media, 2017,
https://www.businesswest.co.uk/blog/8-effective-ways-promote-your-business-social-media
• Pilcher,Jack, Save the high street, what E-commerce can do to help grow your business,2021,
https://savethehighstreet.org/e-commerce-help-grow-business
• Tarver, Evan, Investopedia, Business Essentials, What Are Some Ways to Make a Distribution Channel More Efficient?, 2020,
https://www.investopedia.com/ask/answers/071315/what-are-some-ways-make-distribution-channel-more-efficient.asp
• Woodcock, April Heavens, tabsite, How to demonstrate your expertise as a business, 2020,
https://www.tabsite.com/blog/how-to-demonstrate-your-expertise-as-a-business/
• “You Need an Innovation Strategy.” Harvard Business Review, 1 Sept. 2020, hbr.org/2015/06/you-need-an-innovation-strategy.