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COONAWARRA WINES
Assignment 1
Date- 31/03/2015
Submitted by Rakesh Jha
PGDM- Semester 4
CLASS MARKETING 1
Submitted To - Prof. Jayanta Sengupta
Integrated Marketing Communications
IMC STRATEGY
IMC refers to the process of integrating and coordinating various
communication elements known as Promotional Mix. The promotional mix
consists of sales, advertising, sale promotion, personal selling, and public
relations. This in fact particularly the case for Coonawarra Wine, where strong
marketing communications is required to achieve strong brand identity is of the
utmost importance. Coonwarra maintains its strong reputation as a leading wine
region through its strong presence in the Australian domestic market.
To achieve this, an intense information gathering process was adopted that first
involved a preliminary secondary information-gathering phase during which the
various elements/aspects involved in the IMC process were identified and their
relevance linked to the wine regions real-life situation.
There are basically two model:1. The Integration Model (planning group level)
Internal- planned messages, strategic plan, mission statement, policies
where it has to be asked how the internal will be carried and further to
the next process.
Intra-regional- product and service messages where the action takes
places.
Communications- unplanned messages where basically, messages are
not arranged or driven in cordially manner but to make confirmation
and proceed to level 1 process. Its a cycle process.
According to the wine industry officer, the marketing plan has two major goalsto increase visitation and visitor yield and to increase sales. The bulk of the
associations investment and expenditure is in the area of hospitality and public
relations with activities such running the wine events and hosting of key wine
press and industry representatives. The region makes little use of paid
advertising. Such advertising that is commissioned centres largely around the
various formal scheduled events.
CUSTOMER/STAKEHOLDER FOCUS
Stakeholders would therefore include everyone from the person who prunes the
vineyard right through to the vineyard or winery owner. The concept can be
further widened to include members of the local community, the Penola and
District Business and Tourism Association (PADBATA), the local council and
so on. Being a small community, many informal links naturally develop when
people regularly cross paths.
The challenge arises for the regional tourism organisation, like any other
regional tourism organisation, in being able to cater for the different stakeholder
within the group. The target market is different to that of the regional tourism
organisational target market and as such the messages and the images are not
always as compatible as we would like them to be.
Bruce Redman said, the wine region is geographically not a neat fit with their
tourism region as perhaps it is in some other areas such as the Barossa. Within
their tourism region there are at least five other regions such as keen as there
were to see their particular region and their regional brand recognised,
differentiated, supportive and promoted. As such they are constantly working at
having not only the theme of food and wine supported within their region, but
also their regional brand (Coonawarra) recognised and supported by both in
their regional tourism organisation and the South Australian Tourism
Commission. This work needs to be ongoing and at the end of the day they have
to strategic in setting up the priorities, fostering relationships, supporting and
initiative activities that meets the vision and the goals of the organisation.
and distributed through cellar doors as well as the inclusion of the web address
on items such as signage at the Mt Gambier Airport and Coonawarra Cup
merchandise etc.. Having a bi-monthly cellar doors staff get-togethers which
have an educational component increases the invitation to local hoteliers,
restaurateurs, and tourism operator to come along to build relationships with the
vignerons and their staff and to learn a bit more about wine. In understanding a
number of wine tourism research initiatives we have been able to provide not
only our members but also our tourism partners and the general community with
an invaluable insight into visitation and drivers.
SWOT ANALYSIS
StrengthsQuality extends across a broad spectrum of wine varieties,
styles and price points, which is a very good thing
WeaknessThe domestic market for wine is very substantial, but it is still
dominated by low-price basic wines another weakness.
Water is also an issue here as it is in many wine regions.
Threats There are a number of very serious economic threats that cloud
the short term outlook.
Production costs are rising rapidly labor, grapes and other
inputs are increasingly expensive.
Land prices for new vineyard projects seem to be growing
exponentially.
Revenues are not increasing at the same rate, with the result that
margins are being squeezed.
countries
The new market with the greatest potential for Australia wines
may be Australia itself.
What is keeping the exchange rate stuck at an over-valued level? Politics and
fear, I suppose. Theres a presidential election in the fall and everything here has
taken on a political significance, so it is no wonder that holding the line on the
exchange rate (and denying that an inflation problem exists) would be political,
too.
Pioneering Work
In 1999, the modest Sula Vineyards with its iconic sunburst had its first crush,
and in 2000, sold its first bottle of wine.
constitutes
some
75
per
cent
of
Indias
wine.
In the process, Sula has placed itself firmly as Indias leading premium brand by
concentrating on quality. The wines are exported all over the world and feature
on the wine lists of some of the worlds finest restaurants, says Samant. Today
Sula Wines is Indias number one in terms of consumer perception and sale.
Challenges
It took more than two years to obtain the necessary licence to make wine. We
were the first company to apply for a licence in our state in 15 years, he says.
We decided to change tack with the powers that be: dont think of this initiative
as alcohol production, think of it as a benefit to grape growers, increasing rural
employment. And that struck a chord with the government.
Banks were not willing to lend as there was no track record. So Samant
borrowed from friends and family. My fathers bank eventually made me a
loan, solely on the basis of his 35-year custom with them, he says.
Another challenge was marketing. Not only were Indian wines not heard of,
they were more expensive than some French wines sold in India.
Broad-Based Clientele
When Sula started operations, they sold their wines in the four main cities of
India. Their customers were the wealthy Indians, tourists and expats, recalls
Samant.
Today the clientele is more broad based and the consumption has moved out to
the upper middle class in Tier-2 cities, such as the state capitals, and tourism
areas
in
Maharashtra
and
even
the
rural
areas.
But things are beginning to look up and Sula Vineyards hope to achieve doubledigit growth this month after 12 bad months.
In the meantime, Sula has been gaining market share even as the wine market
in India has been declining. It currently has 35 per cent of the market - which is
a lot for wine, Samant says. Thats definitely going to help us a lot when the
market picks up.
SWOT ANALYSIS
StrengthFastest growing market in wine industry (30% p.a growth rate)
Good climate for grape growing
Women/youth see health and sophistication in wine
WeaknessDrinking age (42% of population) is 25yrs of age
Poor awareness of wine and infrastructure
Wine
has
an
elite
taste
Brand Building
Sula had positioned itself as an indigenous wine made to international standards
with international techniques and know how. A number of consumables are
procured overseas and also adopted to the sub-tropical Indian conditions.
Sula celebrated the harvest season of 2005, by opening a 1 st wine tasting room
in India in its Nashik winery atop hill giving 180degree views. The winery and
vineyards are open to public for educational tours also there beyond, a 23
room resort.
Product and Pricing of Sula Wines Sula Wines has 5 basic types of wines.
Each of them has been mentioned here along with the pricing which i could
find. Pricing of Sula wines is general pricing and appears more of penetration
rather than premium pricing. Here are the products and pricing of SULA wines
Red Wines
sula
cabernet
shiraz
395
sauvignon
sulachenin
blanc*540
blanc*395
madera
white
205
viognier**
dia
white
riesling
samara white
Rose Wines
sula
blush
zinfandel-450
madera ros-205
Sparkling
sula
Wines
brut*
550
seco
Dessert
late harvest chenin blanc
PLACE
Wine shops
Wines
Sula Harvest
Internet marketing