Marketing being a core element in the strategy of board and objectives of the Indian Grape Processing Board, it should form a central marketing agency with public and private shareholders from the wineries whose aim should be not only to market the wine but marketing a wine life style as a whole, writes Rajiv Seth.
Mahatma Gandhi and Dr. Bhimrao
Ambedkar, two leaders in the drafting of the Indian constitution, were
teetotalers in their days, who believed that it was the responsibility of the
states to regulate alcohol.
Constitution and
Misconception
Article 47 of the Indian
constitution states that "The state shall regard raising the level of nutrition
and the standard of living of its people and the improvements of public health
as among its primary duties and, in particular, the state shall endeavor to
bring about prohibition of the consumption except for medicinal purpose of
intoxicate drinks and drugs which are injurious to health".
In this background it was the
primary duty of policy makers to de-link wine from liquor, so as general public
could better understand the difference between Wine and other alcoholic
beverages. Furthermore a blanket ban on advertisements for all alcoholic
products took away any opportunity of providing a window to masses, about the health benefits of
wine and that resulted in irresponsible drinking habits in rural and urban
youth.
The Marketing Mission
One of the foremost objective of
newly formed Indian grape processing board under
MFPI is
- To focus on market research and information, domestic and international
promotion of Indian
wines.
- To promote cooperative efforts, backward and forward linkages between
growers and wine industry in general.
Thus it is evident that marketing is
a core element in the strategy of board and its objectives. At present lack of
awareness and ignorance in key issues of marketing is a major barrier to the new
upcoming wineries in India. Collaborative marketing can overcome this barrier by
creating a strong and positive image for Indian wines. It provides benefits
which are not obtainable through generic or individual marketing. Other benefits
of collaboration are the opportunity to participate in formal strategy, cost
efficiency, harnessing individual efforts for category expansion rather than
destructive competition and an open door for small companies who would otherwise
not gain market access.
Objectives
l Help in the progress of community acceptance of wine by highlighting its
health benefits
and advocating socially responsible wine
consumption.
l To help the small Wineries to sell wine under common label to relieve
them of the
burden of high label registration fee every year by launching
common Wine India logo Brand similar to the pattern of Wine Australia Logo.
l Establishing the same sales office for multiple brand sales to help wine
producers cut administrative and distribution cost, in all the major markets of
India namely Delhi, Mumbai, Bangalore and Goa.
l Establishing temperature controlled privately owned public bonded
warehouses for wine industry, in all the major wine markets namely Delhi,
Mumbai, Goa and Bangalore.
l To counter any emerging monopoly of local distributors or agents so the
interest of small producers are safe guarded.
l Communicate to regional communities, governments and key decision makers
the economic contribution of the grape and wine industries.
l To help the wine producer to cut the execution time of export orders by
providing cash flow.
l To provide facility of cellar to producer who can store their wine en
masse. (Bottled and in crates) so that they are able to react very quickly to
export orders.
l To explore the possibilities of providing sales channels to foreign wine
producers on commission basis to encourage the healthy competition.
l Improve market access and distribution opportunities :-
F By exploring the possibilities of selling wine through places like Delhi
Haat, Big Bazar, Reliance Fresh and other marketing channels.
F By exploring the possibilities of selling wine by using alternative
channels like Coffee Shops eg. Barista, Cafe Coffee Day etc.
F By promoting sales of wine in Banquet Functions like marriages and social
events.
F By capturing sales in corporate world by direct marketing channels.
F Setting up wine sales kiosks along national highway eating joints / rest
houses etc. to promote sales.
F By exploring the possibilities of developing private labels of premium
wine for celebrities of sports, Bollywood stars and other famous personalities,
by explaining them how this way they could contribute to the economic upliftment
of grape growers by promoting wine culture.
F By promoting Indian wine logo through ministry of external affairs in all
the diplomatic mission across the globe.
F By promoting Indian wine logo through ministry of defense in all the
distribution channels of defense services..
l To explore the possibilities of barter trade with foreign Wine
companies.
l To help the wine importers by providing them bonded warehousing facility
on rational rates based on charges per bottle policy rather then percentage on
cost of wine.
l Help in attracting FDI in industry aimed at enhancing market
competitiveness of Indian wine industry.
l Designate a single industry body to be responsible for aligning all
industry funded promotional activities with market development objective of this
strategy and to implement promotion action plan.
l Maximise the contribution of the Indian grape processing board in raising
the knowledge and understanding of Indian wine.
l Place a high priority on developing International markets that have
strong chances of high growth such as China, Japan and Korea.
l Create a National Wine Tourism Strategy Plan.
l Establish India as a globally recognised wine tourism destination which
will integrate with incredible India campaign.
l Secure a place for India as the world leader in low price segment of
wines.
l Pro-actively negotiate agreements to facilitate improved international
market access.
l To create a dedicated responsible trained sales team for marketing Indian
wines.
l To enhance the image and reputation of Indian wine.
l To ensure the Indian wine presence in the global wine market.
l To set up E-commerce channels of distribution within and out side the
country.
l To pro-actively participate to promote Indian wine clubs in Domestic and
International Markets.
l Publishing small pocket leaflets to educate masses about the difference
in wines and spirits, and health benefits of drinking wines.
The Business Model of Central
Marketing Agency
The business model of the central
marketing agency should be of a private company, with public and private
shareholders, whose aim should be not only to market the wine but marketing a
wine life style as a whole.
The IGPB should form an association
of wine producers to collectively raise the initial funding requirements for
this marketing agency. Each operating winery member (out side the wine park)
will be asked to compulsory pay a
membership fee of Rs. 50,000/- as the one time membership fee. Plot holders in
wine parks of MIDC will also have to contribute Rs. 20,000/- each. Since MIDC has two wine parks in
Maharashtra, one in Nashik and the other in Sangli and total no. of plots in
these two wine parks is approximately 200. A sum of Rs. 40 lacs will be
collected from these plot holders. Besides this at present a total no. of 58
wineries are currently producing wine out side wine parks. So a sum of Rs. 29
lacs will be collected as membership fee. Thus taking the total sum to Rs. 69
lacs. This collection by the association will be used to wards purchasing shares
in central marketing agency. Other than this preferential shares should be offered to existing wineries, and a total target of Rs. 100 lacs should
be achieved.
Besides this, MIDC (Maharashtra
Industrial Development Corporation) should be a partner in this project as it is
the main agency identified by Maharashtra Government for the development of the
wine sector, MIDC on its part should at least come up with Rs. 100 lacs as share capital thus taking the total capital to Rs. 200 lacs
(2 crores).
Eventually, public, private institutions and venture capital firms
should be targeted to raise the funding. The idea to raise funding through some
foreign wineries by offering them membership and thus access to Indian markets
through this channel can be worked out besides offering participation of wine
importing firms will be an added advantage.
The assumption is to have an initial
capital of Rs. 500 lacs (5 crores) through various partners.
The two promoting partners namely
association of wine producers and Maharashtra Industrial Development Corporation
would keep a 20% of shares each.
Furthermore, promoting partners
would have golden shares for some basic decisions in company development, such
as:
- Majority representation in the Board of Directors;
- Majority representation in the Marketing Committee;
- Right of veto on crucial subjects.
The company can foresee distribution
of dividends.
Rajiv Seth
 Rajiv Seth became the first Indian
in the year 1987 to receive a gold medal from Wine and Spirit Education Trust,
London. Presently he is making continues efforts in educating the lab assistants
of a number of wineries on procedures of micro vilification through his
manuals.
The views expressed in the article
are the personal views of the author-editor
|
