PROJECT

ON
“Study of the Consumer Attitude towards ‘Wine’ as
a product category vis-à-vis other liquor categories”

Submitted to:
Prof.Ajeet Sharma

Submitted by:
Abhishek Swami
Gaurav Yadav
Nehal Mittal
Rashi Dawar
Rini Bhattacharya
Sagnik Ghoshal

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1). ACKNOWLEDGEMENT
Pg.3

2). INTRODUCTION
Pg.4-5

3).OBJECCTIVE OF THE STUDY Pg.6

4).RESEARCH METHODOLGY Pg.7-8

5).RESEARCH DESIGN Pg.9

6). CONSUMER BEHAVIOUR AND

ANALYSIS Pg.10-15

7).CURRENT SENARIO Pg.16-

18

8).EXECUTIVE SUMMARY Pg.19

9).CONCLUSION Pg.20

10).BIBLIOGRAPHY Pg.21

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 Acknowledgement

A 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.

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 Introduction

Wine, although perceived as the elite drink and an essential part of a meal 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

WINE
Wine 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-à-vis other liquor categories, and,
the attitude of Indian consumers towards Wine.

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 Indian Wine Industry

Around 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.

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 OBJECTIVES OF THE STUDY

Main Objective
 The main objective of this study is to “Understand Attitude of various sections
of Indian consumers towards wine as a product category”.

Sub Objective
 To 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-à-vis other liquor

categories.

 Analyzing the change in perception with time.

 Scope for wines in India.

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 Research Methodology
Research methodology is considered as the nerve of the project. Without a proper well-
organized 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.

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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

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 RESEARCH DESIGN
The 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 sources

Gathering the data from primary as well as

secondary sources has completed the data collection
process.

PRIMARY SOURCES

Primary data collection process was carried out

personally through filling questionnaire

SECONDARY SOURCES

The 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)

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 CONSUMER BEHAVIOUR
This 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.

Percentage
PercentageConsumption
Consumption

45%
45% White wine
White wine
Red wine
Red wine
55%
55%

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.

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

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Consumption Pattern
 Only at Wine Tastings
Only at Wine Tastings

Rarely
that effect the consumer
Rarely buying process we found out that 5% of the consumers are
the one who consume
Once a week wine daily and 15% are the one who consume once in a week.
Once a week
30% of the consumer Daily
are the one who consume rarely. And 50% of the consumers are
Daily
the one who consume wine only for tasting.

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Buying
BuyingBehaviour
Behaviour
45%
45% 40%
40% 40%
40%
35%
35% 30%
30% 30%
30%
25%
25%
20%
20%
15%
15% 10% 10%
10% 10% 10%
10% 5% 5%
5% 5% 5%
5%
0%
0%
Taste Quality Price Brand Name Availability Aroma
Taste Quality Price Brand Name Availability Aroma

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 according to the price
and availablility and 5% buy according to the brand name and aroma.

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 Brand
BrandLoyalty
Loyalty

80%
80%
60%
60%
40%
40%
20%
20%
0%0%
YES
YES NO
NO
Alcohol is a product which is not evaluated on functional features, it is a product which
is subjectively evaluated and hence branding is essential. Both the price and the brand
might considered as the two key factors influencing the final purchasing decision. Brand
loyalty is one of the attribute which leads to the ultimate reason of consumption of
wine. This behaviour based data enables us to interpret that most people are actually
brand conscious and loyal to the specific product and brand then a comparison is made
between those who are brand loyal and the others.

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 Gender
GenderConsumptions
Consumptions
35%
35%
30%
35% 30%
35%
30%
30%
20%
25%
25%
20% Male
Male65%
65%
15%
20%
20%
15% Female
Female35%
35%
15%
15%
10%
10%
5%
5%
0%
0% Red Wine White Wine
Red Wine White Wine

When we interpret the wine consumption according to the gender, we found out
that female consumption of wine is less i.e 30% in comparison with male
because women use packaging cues to define product quality more frequently
because they are less knowledgeable about wine. Also in this case the gender
based value consumption of wine is relatively even.

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 The Indian
beer Industry has been witnessing a steady growth rate of 9-10 per cent per year
for the last five years The alcoholic drinks market is broadly classified into five
classes, starting from beers, wines, hard liquors, and others. The Indian alcoholic
market has been growing rapidly for the last five years, due to the positive
impact of demographic trends and expected changes like rising income levels,
changing age profile, changing lifestyles and reduction in beverages prices. Beer
and wine are perhaps the oldest and most popular of all alcoholic beverages in
the world.

Alcoholi
c beverages are divided into three general classes: beers, wines, and
spirits. Among the three the beer is the most preferred one ie 55%.this is
because In pub, bar or restaurant, it is observed that beer is the most favoured
drink by Indians across all age groups, but spirits/liquor is most favoured while
partying at home. This is a result of the beer brands’ marketing efforts to
promote beer drinking as part of social interactions in the context of sports,
music, etc.

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 This Table shows the number of people who want to change brands and the
reason why they choose to change.

For example:-

Consumers are likely to switch from Sula Sauvignon Blanc because of its price
while it quality is something which pulls consumers towards it. There are 4 consumers
who would like to switch due to its price whereas 2 consumers would like to stick to the
brand due to its Quality.
From this table we understand the specific reasons why a consumer wants to
switch brand.

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 Current Scenario
The industry was hit badly because of recession. In fact, prior to the
onset, there was a terrorist attack in Mumbai in November 2008, killing
many people. This meant a disruption of the international tourist and business traffic,
making the business conditions tough overnight. Not only did the consumption go
down, the hoteliers clamped on the inventories and decided not to order wine until
the existing stocks were liquidated, even at a loss.
Moreover, the industry had been over- producing for the last three years in
anticipation of a higher demand the level of which was not commensurate with their
expectations. With concessions like zero excise duty, the number of producers had
increased-even the farmers with no experience of marketing or production got into
the fray.  In Maharashtra, half the wineries are either shut down or have stopped
fresh wine production due to the glut that has seen their tanks still full of wine. The
farmers are not getting paid for their previous supplies for months and many have
been forced to let the grapes drop. Last November, the unexpected rains destroyed
about 40% of the crops, bringing some equilibrium though it meant losses to the
growers.
The importers have been signing up with new foreign producers -sometimes without
evaluating the market requirements. Adding each such label means extra inventory
and money tied up in label registration costs which are substantial and different for
each of the 28 states (actually 33, if you consider ‘states’ like Delhi); every state
requires them to be registered and the annual license fees have to be paid in advance
to sell wine.
In the absence of any wine laws the quality is not consistent and varies widely from
producer to producer. Joining OIV might help formulate laws that would make them
achieve consistency and improve quality. Just as in the case of consumers, the
producers and the whole supply chain in fact, generally lack wine knowledge and the
end quality remains circumspect, though it has been improving consistently with the
new passionate suppliers coming in the fray.

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Future Trends

Although the growth rate has been monumental, it has

been on a very small base. It is highly dependent upon the
government policies. Wine is still viewed as liquor and the
policies are tightly controlled. It is not considered a food or lifestyle product. Of
course, the education and the non monetary trade barriers like cumbersome
documentation and procedures, allowing sale throughout India in the super-markets
making them more easily available, are important factors which when addressed will
improve consumption.
India has recently started making concerted efforts for exports which will help it
expand and improve quality. Indian Grape Processing Board was formed a year ago to
help promote Indian wines. For the first time, exhibitors took take part in Wines for
Asia, Singapore in 2006 under the Indian banner due to the efforts of Indian Wine
Academy, a private initiative, to promote Brand India. The Board followed it up last
year with a joint participation at the Hong Kong Trade Show and the London
International Wine Fair in May, with encouraging response.

Growth factors

Although the growth of wine consumption is highly dependent upon the government
policies, both at the central (Federal) as well as the state levels, there are various
sociological factors on which it is dependent. Religion plays a role but not directly and
only to some extent. Social mores are more influential.
The wine consumption has increased due to higher availably of Indian wines but it is
also been a result of the changing life-style, especially of the young and women. The
health benefits of wine have been exposed enough for many liquor drinkers to switch
or at least shift partly to wine. International travel and growth of business and
interaction with foreign businesses has also helped. Significant migration of Indians to
countries where wine is an integral part of food and life-style in general induces the
visiting friends and relatives to consume wine.

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 Doing Business with India

Though in the long term this industry has a bright future due to the huge potential
demand, it is a difficult and long term market with many speed breakers and bumps–
not for the faint hearted or smaller pockets. It needs constant nurturing in terms of
support and visits by the foreign producers and has to be with good understanding of
partnership with the importer. The Indian producers have to constantly improve
quality, maintain consistency and use marketing skills which include opening new
markets and ingenious sales policies. Collaborations in technology, equipment and
foreign equity participation will be extremely rewarding. Export markets have to be
conquered at competitive prices even though it is a niche market.
A lot will depend upon the government policies but the role of educators, importers,
producers and the supply chain cannot be undermined.

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 EXECUTIVE SUMMARY

This report traces the growth and development of the Indian wine industry from its
inception to the present day and examines the scale and turnover of India’s wine
industry, its exports, promotional ventures, best-known brands etc. It maps the
locations of vineyards, identifies the leading players, and provides their annual
turnover. The report compares the Indian and global wine markets, and the attempts
made by the Indian wine industry to become a global entity. It analyzes the Indian
government’s initiatives, at both the Central and State levels to support this effort, and
the promotional ventures taken up by the leading players to establish themselves in the
global market.
The report also studies consumer trends, the changing perception about wine in the
country, and the factors fuelling this change. Identifying opportunities for growth, the
report analyses the steps that are being proposed (new vineyards, joint ventures,
branding, pricing etc.), and their implementation.

Exhibit I: Growth of wine consumption in Indiain 2004 

(in Mn litres) 

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 CONCLUSION
Even as the wine industry in India exhibits a surge in
production, it will take both, time and significant effort, to
challenge the established wine producing nations. Industry
observers believe that the burgeoning growth of new wineries
needs a strong marketing plan, and the industry has to unite
for the promotion of wine both, as a product and as a lifestyle
statement..

Marketing and wine industry experts are detecting long term

interest in wine consumption that spills over into merchandising, marketing, high medium
and low tier brands and coordinating accessories for the home. Luxury wine accessories
come at every price level.

The target growth rate will be attainable only if the major grape producing states like
Karnataka, Andhra Pradesh and Punjab follow the Maharashtra model of liberalizing rules
regarding production and marketing of wine. Apart from the policy changes to increase
production, the quality of Indian wines also has to be constantly upgraded to meet
international standards.

Besides legal constraints, there is still a need to develop a market, as there is no

indigenous, grassroots wine culture in India. Wine consumption is primarily still restricted
to the affluent, and what is commonly referred to as the “westernized” segments of the
population.This will greatly benefit consumers at the two ends of the market spectrum: at
the top end, where sophisticated consumers will start accepting domestic produce as
premium wines; and at the bottom end where new and price sensitive consumers will try
the product and thus support the small, emerging wineries. The figure has been growing at
an annual rate of over 9% is expecting a 15% rise in its overseas sales this year and so are
the other major wineries. While the foundation for a world-class wine industry now exists
in India, for the country to become a major player on the world stage will require
sustained and concerted efforts by both, the industry and the government.

Indian wine market has entered a phase of rapid growth. This is fuelled by the entry of
major companies and professionals that are well funded and know the Indian spirits

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market well. All that is needed now is that the Indian retail market should measure up to
the challenge. Wine enthusiasts would certainly raise a toast to that .

BIBLIOGRAPHY

1.) http://www.indianwineacademy.com/item_10_400.aspx

2.) Multiple aspects of Indian Wine Industry 

-Karnika Seth

3.) academyofwinebusiness.com/wp-
content/uploads/2010/05/Casini.pdf

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