Strategic planning for Novellino Wines

• Main Author: Avila, Michelle Q.
• Format: text
• Language: English
• Published: Animo Repository 2002
• Subjects: Wine and wine making > Philippines; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2776
• Institution: De La Salle University

The country's climate is not ideal for growing high quality grapes for wine. However, the local company maintained that such disadvantage shouldn't stop Filipinos from appreciating the extending appeal to the low to middle-income families who are just starting to learn to like wine. This is the vision that went into the recent establishment of the Knutts Place Winery, which is located in Valenzuela, and produced wines made of imported grapes must concentrate from the Asti region of Italy. The winery is a joint venture of Knutts Place, MarketResearch Distributors, Inc. and Belmondo Italia Corporation, owner of the trademark Novellino. It has 10 stainless steel tanks, which ferment the grape concentrate, and produce as much as 40,000 750ml bottles per tank. Novellino wines are the only locally produced wines that use grapes sourced from Italy and are produced using the Italian wine making process. What distinguishes Novelluino from all other imported wine products in the country is that it is the only wine produced with the Filipino wine drinker in the mind. Introduced in the latter part of 1999 (although it only started commercial operations in year 2011), Novellino came in two flavors- the non-sparkling Classico and the bubbly Vivace, both of which were sweeter than most otherwines and have the red and white wine variety. To date, there are nine variants of Novellino wines being sold in the market. The product is innovated by tweaking its taste to suit the Filipino tatse, whic, according to a market research done by the company, has preference for sweeter and fruity wines, especially the beginners in wine drinking, which the company's primary target market. The generic strategy of focused differentiation, offensive and defensive strategies, as well as specific functional strategies were proposed to improvecompany performance, taking into consideration the results of the industry and company analysis. Weakness of the company that were identified were likewise addressed in the proposal strategies. The propsed company vision is to be the leader in wine manufacturing and distribution in the Philippines, and to be recognized for its innnovation and production of wines that best cater to Filipino tatse and preferences. Its mission, on the other ahnd, is to educate and expose Filipinos to wine drinking and extend its appeal to low to middle inome families by producing quality wines suited for FIlipino taste, at affordable prices. The following are the objectives of the company for the next five years: (1) to increase the gross sales by at least 28.5% (annual gorwth for wine consumption) and (2) to increase market share by at least 5% per annum.