HINWA powerpoint

Table of contents

1. Organization overview -
● background
● product
● performance

1. Competitors analysis- ashu (divine wine and big master wine)

● Competitions
1. Environmental Internal analysis - bcg, business model canvas,- nins
● 5 forces
● Pestle
1. external analysis - swot, 5 porters, pestle - Hishi
● V
● Value chain
● Business canvas
● BCG
1. Three business levels of strategy - Blue ocean -safal
2. STP - hishi
3. Marketing mix- yuzu
4. Impact of future situation on our current situation, covid stuff-
5. Suggest new strategies( recommendation)
6. Implementations-
7. Risk and Preventions
8. ADD WHAT IS NECESSARY
 1. Organization overview - Gaurav 6.Current Strategy -Hishi Nins Saf (HNS)
● Background
● Vision and Mission ● Objective
● Product ● Marketing Mix(7ps)
● Performance ○ Price
1. Competitors analysis - Gaurav ○ Place
(divine wine and big master wine) ○ People
● Competitions ○ Product
○ Promotion
3.Internal analysis - bcg, business model canvas - Ashu ○ Process
○ Physical evidence
● Value chain ● 3 levels of business strategy
● Business canvas ○ Including Blue ocean strategy
● BCG ● Management Function
● HR management
4.external analysis - swot, 5 porters, pestle - Ashu
7. Recommendation/New strategy: HNS
● 5 forces ● Distribution channel
● Pestle

. 4.1 Segmentation, Targeting,Positioning Ashu

8. Implementation -HNS
5. Problem statement - Yuzen ● Objective
● Roadmap
● Sustainability trend ● Marketing strategy
● High number of substitutes ● CSR
● Climate change
● Risks
● Wine labelling
 COMPANY BACKGROUND
● Hinwa is a wine introduced by Makalu Wine Industries,
which is located in the eastern region of Nepal.
● It is one of the oldest wine company in the Country and
has earned a good reputation in the society. In order to
promote the organic wines made from indigenous wild
berries of the Himalayas, research for wine making
started in 1980s.
● The dream turned into reality since 1994 after
establishment of the Company.
● The demand for wine started to grow in Nepal since the
past two decades.
● Nepalese people started to get influenced by wine culture
from abroad. Thus, the commitment to produce wine &
supply to the consumers was even more desperate.
● Wine culture has been getting very popular with time as the culture of living &
visiting abroad have influenced & turned youths to wine drinking habits.
Nepalese market is filled with grape wines and the demand for wines have
soared.
● Hinwa wine is now a benchmark for organic wines in Nepal.
● While Nepal’s market is full with grape wines, they stand out from the crowd
because of their unique ingredients, which is local berries and as such they
been recognized as one of the famous wine company in Nepal
● Their aim is to get even bigger by exporting wines in future.
● They have a unique taste of the organic berries that can be found in the
mountainous regions of Nepal.
● With the years of experience and a team that has been working hard, Makalu
Wine Industries has been making great progress.
 VISION
Their vision is to be Nepal’s Premier
Winery and promote Nepali wine in global
marketplace.
MISSION
MWI was established with a passion to craft
the highest quality unique wines from the juice
of local indigenous barriers to satisfy each and
every customer. Their goal is to offer a unique COMMUNITY
portfolio of wines that provides something for
everyone. Our biggest strength are the people nearby
our production house. They are our biggest
contributor for supplying fresh hand-picked
fruits from the wild hills during the season.
 HISTORY OF HINWA

1994 2001 2010 2016 2019

Introduce Wine Demand of Gain popularity of New trend in wine Benchmark for
Culture by wine started nepali organic Industry of Nepal. organic wines in
manufacturing to grow wine in an Demand of wine Nepal. Because of
with 90 cases inside Nepal International was at high our unique
Platform ingredients
 PRODUCT
● Product refers to the item actually being sold. The product
must deliver a minimum level of performance; otherwise
even the simplest work on the opposite elements of the
marketing mix won't do any good.
● MWI currently has Hinwa red and white wine in 750ml
bottle and 4L pouch- all produced from locally hand picked
berries.
● It is in the process of adding on more flavors by using other
fruits like Grapes Kiwi, Mango, etc.
 WINEMAKING
Traditional wine making in Nepal
can be traced back to hundreds of
years ago. Earlier wines were
made from rice & millets. We
started our research to make
wines from fruits in early 1990s
and discovered raspberries &
barberry from our hills brings the
perfect texture for wine lovers.
PERFORMANCE
● The HR department at MWI identifies and prioritizes different work functions and
role types.
● For each role or role type, the outcome is a list of functions, results, tasks and
objective performance measures. It sets out the distribution of responsibility and
articulates who is required to perform, oversee and consult on specific tasks, as well
as providing clarity on how success will be measured.
● Effective job descriptions are prepared for each position that clearly outlines what
qualities and requirements are needed, the required functions, key result areas and
tasks, as well as how performance measurement will happening
● Employees are encouraged to continuously upgrade their skills for which appropriate skill development program opportunities are
provided.
● Similarly learning opportunities are also provided by way of various trainings, study leaves, exposure visits etc. All this is done by
identifying ‘gaps’ in skills and knowledge in relation to roles.
● Performance evaluation and appraisal processes takes place once a year to compare the standard of desired output with delivered or actual
output In terms of HR management MWI faces a unique challenge as they need to hire local people at the grassroot level for plucking and
sorting of the local berries. Since these local people are usually illiterate,
● It is challenging to the company to explain the systems to them. Also, the company needs to address the community’s demands that they
sometimes put on the company with regard to pay scale and allowances for the local people.
SEGMENTATION, TARGETING, POSITIONING
SEGMENTATION
Demographics

● Age: 21 and above

● Gender: Both Male and female.
● Income:: Upper and middle class people . Everyone can afford HInwa.

Psychographics

● Lifestyle: People who prefer westernization.

● Psychological influence: Foreign influence. Western culture.
● Interest: who want to have a new taste of wine like foreign people.

Behavioral

● User status: Middle and upper class.. And those who follow western wine drinking
culture.
● Spending habits: These people don't mind paying a bit extra for their brand.
 TARGETING POSITIONING
Measurability- size and power purchasing: according to
studies done in market, the size of this segment is Hinwa is positioned as an affordable
growing as most people are following western drinking
culture. Talking about purchasing power, almost wine that provides something for
everyone can afford Hinwa. everyone.
Accessibility- hinwa is accessible in most of the stores.
People can easily find hinwa.
Substantiality- the segment is profitable enough
Actionability - effective strategies to reach the segment
that hinwa uses is HRM
Target Market: As Hinwa is affordable wine that is
targeted to both males and females
Competitor Analysis

Organizations that want to succeed in the market need to analyze the strategies of their competitors. Competitor analysis is an important part of the

marketing planning process. Strong competitors can hinder business success and even lead to business failure. Competitor analysis helps companies

anticipate their behavior and exploit their weaknesses. It also helps companies identify their own selling points and can promote them in marketing

campaigns. Competitive analysis is an ongoing task, as successful competitors continually develop marketing strategies in response to changing

markets.
Competitor Analysis

● A firm’s position in the market could possibly affected by other companies’ ability to enter the market.

● Factors like the ease of entering the market, the cost and regulation to enter the market and ability to get a foothold in the industry all have

a serious impact in the business industry.

● If it is easy to enter a market for companies then the existing companies could be weakened by new ones. But on the other hand, if entering

a market has a lot of barriers then existing firms have the chance to take advantage of such situations.

● There is no barrier to entry in the wine industry in Nepal and any company with the financial backing and knowledge can enter the market.

● MWI was the first wine company in Nepal, but since its foundation there have been many other companies in the industry. This has

weakened MWI’s hold on the market as the consumers now have variety to choose from.
COMPETITORS
CANVAS
Canvas White Wine:Made from white grapes, the extract is fermented to a level where
sugar is not fully transformed to alcohol. Expert vintner's at SWB’s winery have gained
mastery in such a procedure, which ensures the wine’s sweet aromatic taste goes well with
spicyAsian cuisine.
 DIVINE WINES
DIVINE: One of the fast selling brands, and introduced in
2010 by Shree Mahakali Wine, Divine wines are made
from grapes, tea, spices, tea, and fruits.

Divine Wine Sweet Red:Intense in color, it has heavy

aromas of spices, tea leaves, and flowers. The rich fruit
sensation is complemented by warm alcohol and gripping
tannins. It is matured up to two- and-half years.Goes well
with both meat and vegetable dishes.
 BIG MASTER
Red Wine is considered to have naturally high amount
of sugar & it also contains polyphenol i.e. resveratrol
which increases the level of good cholesterol and
reduces the levels of bad cholesterol. It is also
supposed to improve blood vessel function.

White Wines are naturally lower in sugar than red

counterparts which is why they are ideal for diabetes
if you follow keto diet or just want to reduce your
sugar intake. Napa & Sonoma offer the best hints of
fresh citrus and elderflower that make White Wine an
excellent choice if you’re looking for a low- sugar
wine to cope with your medical and lifestyle reasons.
Porter's Value chain analysis (VCA)
Porter's Value chain analysis (VCA) is the process by which a company identifies the
key activities and support activities that add value to the final product and analyzes
these activities to reduce costs and differentiate.
The value chain represents the internal activities that a company engages in
converting inputs into outputs.
 Hinwa's value chain
Raw materials: these are the local berries i.e raspberries and gooseberries from
the himalaya

Manufacturing: the local berries are sent to plant in sankhuwasabha for

production of final product and are stored in the main warehouse located in
Biratnagar.

Marketing and sales: The marketing is done using various promotional tools like
social media, offers and discounts, retail promotion and word of mouth. The sales
take place all over Nepal. Head office is located in Kathmandu. Besides this, they
have plant in Sankhuwasabha and Dharan along with storage in Biratnagar.

After- sales service: The company is liable to take return of damaged products if
the seal is not broken. The company provides different offers for the highest
selling retailers like foreign trips, electronic items like tv, fridge and mobile
phones
•Firm’s infrastructure: Includes all those machineries and plants, their transport systems, their inventory.
•HR Management: Hinwa focuses on qualifications at HR. They believe in job equality.It doesn’t matter which
caste or ethnicity you belong to, if you have the qualification to do the work, no one can stop you from doing it.
•Procurement: The procurement starts with collection of raw berries from local people. The locals from eastern
side provides the required berries for the production of wine. They have an agreement for acquiring the raw
materials and then it is sent to the plant in Sankhuwasabha for furthur processing using transport.
•Technology: All the techs are not fully automated but most of the machineries and equipments are imported
from china whereas materials for packaging are imported from India. In present day, the company has added
more plants for increasing their production as the demand for wine is increasing in Nepal. They have been using
traditional machineries but have uplifted to modern techs for mass production.
 Hinwa's VC in manufacturing

The suppliers of Hinwa are the local indegeneous from the Eastern side of Nepal who
provides raw materials for wine making like the local berries i.e. raspberries and
gooseberries from the himalaya to the company .

The raw materials are transported to the plant in Sankhuwasabha for making of final
products which we call inbound logistics. Several processes like making of wine,
bottling, labeling and packaging is done here.

After Final products are ready, they are transported to the warehouse in Biratnagar
and kathmandu for distribution.

Then the Company distributes their products all over Nepal for their customers which
includes wholesaler, retailer and other local shops which is called outbound logistics.
Then the retailers makes Hinwa available for ultimate consumers .
Cost or Differentiation ??

•Nepalese market is full of Grape wines.

•Hinwa uses differentiation strategy. How ?
•Hinwa set themselves apart from the pack as they provide organic wines
using raw materials like local raspberries and gooseberries from the
himalaya. The company uses blue ocean strategy as it Pioneers as making
wine From Local Nepalese Berries. Other competitors make wine from
Grapes but Hinwa uses Berries to make wine which sets them apart from
the competitors, especially in the international market like China and India.
BCG Growth Matrix
The Boston Consulting Group's Product Portfolio Matrix (BCG Matrix) is designed to support long-term strategic planning by reviewing the
product portfolio and deciding where to invest, discontinue the product, or develop it. Allows companies to consider growth opportunities. This is
also known as Growth / Share Matrix.
1. Dogs: These are products with low growth or market share.
2. Question mark or problem child: A product in a high-growth market with a low market share.
3. Star: A product in a high growth market with a high market share.
4. Cash cow: A product in a low-growth market with a high market share
The Boston Consulting Group's Product Portfolio Matrix (BCG Matrix) is designed to support long-term strategic planning by reviewing the
product portfolio and deciding where to invest, discontinue the product, or develop it. Allows companies to consider growth opportunities. This is
also known as Growth / Share Matrix.
1. Dogs: These are products with low growth or market share.
2. Question mark or problem child: A product in a high-growth market with a low market share.
3. Star: A product in a high growth market with a high market share.
4. Cash cow: A product in a low-growth market with a high market share
BCG Growth Matrix
Following the instructions of BCG growth matrix,
we can know that Hinwa Wine have
High market share and Low market growth
which eventually tells us that
Hinwa lies in a Cash cow as it shows the similar characteristics.
 Business Model Canvas ( BMC)
The Business Model Canvas is also known as the BMC model. This is a graphic representation of some variables that
represent the value of your organization. The Business Model Canvas can be deployed as a strategic tool for developing
new organizations. It also analyzes the (business) status of existing businesses.They defined nine categories of the
Business Model Canvas called organizational components.

The components are:

● Major partners
● Major activities
● Key resources
● Value proposition
● Customer relationship
● channel
● Customer segment
● Cost structure
● Revenue flow
 Blogs, social
media
commmunity
Packaging

distributor

Advertisement, premium memberships

Warehouse cost, promotional variable,
taxes, service variable, rents, permit
fees, transport cost
External Analysis SWOT
SWOT is a business analytical tool that helps a business to analyze its environment and plan to build their future. These components give a
clear picture of what a company should do in order to achieve their goals and objectives in the given time period. SWOT analysis is
designed to facilitate a data driven look at the four different components of an organization. The four components of SWOT analysis that are
used to gather information and plan ahead are:
Strengths: This component describes the strengths of an organization and the areas that the company excels at. Strengths can be a strong
brand name, loyal customer base, unique technology, a strong balance sheet, and so on.
Weakness: Those factors that act as a hurdle for an organization to succeed and reach its optimum is categorized as weakness. These are
such areas where a business firm needs to improve to remain competitive in the market. These can include poor brand image, poor product
quality, bad service, lack of capital, and many more.
Opportunities: This involves positive external factors that could give the firm a competitive advantage. These situations can arise due to
economic, political, environmental and various other factors that give rise to such opportunities.
Threats: This refers to those factors that can harm or potentially harm the organization. These can involve factors that cannot be predicted,
for e.g., an earthquake or an outbreak of a virus. But also involves those factors that exists in the market and could potentially cause harm.
Strength Weakness
• Good brand name which is recognized all over Nepal. • Lack of locally availability of variety of fruits in Nepal.

• Organic products which are in high demand these days. • Remote location ， hard to access and high altitude.

• Years of experience, as MWI is the pioneer of wine industry in • Lack of availability of other raw material in the district.
Nepal.
• Long commute in the transportation of products.
• Strong goodwill due to its close working relationship with the
community.

• Excellent customer service.

• Good distribution of network. (Years of networking)

OPPORTUNUTY
THREATS
• Wine is a growing market in Nepal. • New market entrants.

• Diversification of products in the coming days. • Changing government regulations.

• Better infrastructure. • Entry of other wine industries.

• Cheap labor in the country and especially in the district. • Change in taste and preferences

• Use of digital marketing to attract new customers. • Import of international wines

• Locally produced goods preferred by Nepalese

PESTEL ANALYSIS
A PESTEL analysis is a framework or an analytical tool that is used to analyze and monitor macro environment factors that could be influential in
an organization’s performance. This economic tool is usually used while starting a new organization or entering an unknown market or foreign
market. It is often used with other business analytical tools such as SWOT and Porters five forces to give a better understanding and analysis.
PESTEL stands for political, economic, social, technological, environment and legal. All the factors are further discussed below
Political Factors

These factors include all about how and to what degree a government intervenes in the economy or a certain industry. Basically, all the influences
that a government has on your business might be classified here. This can include government policy, political stability or instability, corruption,
foreign national trading policy, tax program, labor law, environmental law and trade restrictions. Furthermore, a government may have a profound
impact on a nation’s education system, infrastructure and health regulations. These are all factors that need to be looked at when assessing the
attractiveness of a potential market. The political situation in Nepal is very unstable thus causing various problems for the company. The rules and
regulations are constantly changing and high tax on alcohol products makes it difficult to maintain a decent price level. Every political party would
want to impose their own rules, this makes it very difficult for the firm to follow all the procedures. The lack of educated people in the government
also creates a big chaos when a rule is created or an existing rule is modified. For example, a case in point- Recently during this fiscal year budget
the government had passed the budget with the following rule which read “Wine produced from grapes in Nepal are eligible for a 35% discount on
excise rate”. Everyone understood this to be applicable to all fruits but when the Excise duty officer was changed, she interpreted this to mean just
for grapes and not other fruits thus causing the cost of other wines to drastically shoot up and production to halt.
Economic Factors

Economic factors are determinants of a particular economy’s performance. Factors include economic process, exchange rates, inflation rates, interest
rates, income of consumers and unemployment rates. These factors may have an immediate or indirect future impact on a corporation, since it affects
the purchasing power of consumers and will possibly change demand/supply models within the economy. It also has an effect on the way companies
price their products and services. Since Nepal is a developing country the economy is relatively weak compared to other countries. Due to this the
exchange rates have soared up in recent times. The value of 1 dollar has gone from Rs. 100 to Rs. 117 in just a matter of months. This has a drastic
impact on the international business sector. The interest rates in Nepal are very high compared to other countries which makes it difficult for
companies to take loans.

Social Factors: This dimension of the general environment represents the demographic characteristics, norms, customs and values of the population
within which the organization operates. This includes population trends like the increase rate, age distribution, income distribution, career attitudes,
safety emphasis, health consciousness, lifestyle attitudes and cultural barriers. These factors are especially important for marketers when targeting
certain customers. In addition, it also says something about the local workforce and its willingness to figure under certain conditions. MWI has a
working environment that is suitable for the local communities. They have kept in mind about the local customs and traditions. While planning the
company declares holidays on those days that the local community celebrates their traditions. Compared to the past, drinking wine is more common
these days. Parties and celebrations nowadays all serve wine to meet the changing customer preferences. As wine symbolizes social status, people have
preferred drinking wine over other alcohol.
Technological Factors

These factors pertain to innovations in technology which will affect the operations of the industry and
therefore the market favorably or unfavorably. This refers to technology incentives, the level of innovation,
automation, research and development (R&D) activity, technological change and the amount of technological
awareness that a market possesses. These factors may influence decisions to enter or not enter certain
industries, to launch or not launch certain products or to outsource production activities abroad. By knowing
what's happening technology-wise, you'll be ready to prevent your company from spending tons of cash on
developing a technology that might become obsolete very soon due to disruptive technological changes
elsewhere The technological sector of Nepal is relatively weak. MWI is technologically dependent with
various companies from Indian and China. They import various machineries from these two countries. The
team at MWI tries to stay updated with all the technological changes happening around them, and tries their
best to upgrade their company along with the changes in the outer world.
Environmental Factors: Environmental factors have come to the forefront only relatively recently. They have
become important due to the increasing scarcity of raw materials, pollution targets and carbon footprint targets set
by governments. These factors include ecological and environmental aspects such as weather, climate,
environmental offsets and climate change which may especially affect industries such as tourism, farming,
agriculture and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting
how companies operate and the products they offer. This has laed to many companies getting more and more
involved in practices such as corporate social responsibility (CSR) and sustainability. MWI is affected by the lack
of raw material available in the country, as most of them have to be imported and is costly. Various fruits are being
imported to produce new flavors due to the lack of availability. The weather in the production house area is freezing
during the winter months, which makes it hard for workers to work during the winter season thus hereby halting
production for the two months in winter as cleaning and production is not possible due to the extreme cold.
Legal Factors: Although these factors may have some overlap with the political factors,
they include more specific laws such as discrimination laws, antitrust laws, employment
laws, consumer protection laws, copyright and patent laws, and health and safety laws. It
is clear that companies need to know what is and what is not legal in order to trade
successfully and ethically. If an organisation trades globally this becomes especially tricky
since each country has its own set of rules and regulations. In addition, you want to be
aware of any potential changes in legislation and the impact it may have on your business
in the future. Recommended is to have a legal advisor or attorney to help you with these
kinds of things. MWI has its own in-house legal advisor to ensure all legal compliance are
met and to address any issues that may come up in the near future.
Porter's Five Forces Porter's Five Forces is a straightforward business tool but a powerful
one in order to understand the competitiveness in the business environment, and for
identifying a firm’s strategy's potential profitability. This model is helpful when a firm and
its team want to understand the forces of the environment or industry that can have effects
on their profitability. This creates a path for companies to adjust their plans and strategies
to make profitability according to their business environment. For example, a firm can
make use of their strong position in the market when needed, or even try and improve
their weakness and try avoiding making mistakes.
1. Threat of New Entrants

A firm’s position in the market could possibly affected by other companies’ ability to enter the market. Factors like the ease of entering the market, the
cost and regulation to enter the market and ability to get a foothold in the industry all have a serious impact in the business industry. If it is easy to
enter a market for companies then the existing companies could be weakened by new ones. But on the other hand, if entering a market has a lot of
barriers then existing firms have the chance to take advantage of such situations. There is no barrier to entry in the wine industry in Nepal and any
company with the financial backing and knowledge can enter the market. MWI was the first wine company in Nepal, but since its foundation there
have been many other companies in the industry. This has weakened MWI’s hold on the market as the consumers now have variety to choose from.

2. Threat of substitutes

This refers to the scenario where substitute goods are available for the products that a firm is selling. This gives the customers a wide range of choices
thus harming the business process of a company. For example, if a new drink that could substitute the wine industry is introduced at a cheaper price
then there is a high possibility that a wine company will lose its foothold in the market. A substitute good that is better and cheaper can weaken the
position and threaten the profitability of a firm. There are various substitutes to Hinwa wine. People can easily change to direct substitute like other
wine companies. Recently there have been a lot of local competition and with the ease to enter the Nepali market, a number of foreign companies have
also entered. There are also indirect substitutes to the wine like beer, vodka and other alcoholic beverages.
3.. Bargaining power of buyers

This force is about the power of the buyers to affect the pricing strategy. Factors such as the number of buyers, the quantity of their order, the ease
of switching between products and services all affect a firm. This usually happens when there is a small number of buyer. It’s a simple economic
theory, where the demand will have an effect on price. Buyers do not have a lot of bargaining power as there is a huge and ever-growing demand
for wine. The western culture influence has also created a big market for wine as these days wine consumption is synonymous with parties and
events.

4. Bargaining power of Suppliers

This is usually determined by the power of the supplier to fluctuate the market prices. In this scenario the supplier holds the power over the market.
These are usually determined by the number of suppliers in the market, the uniqueness of the product or service and the cost of switching a
supplier. The more options to choose from, the easier it will be to switch to a relatively cheaper supplier. But in a market where there are a handful
of suppliers their position will be stronger. The supplier in the wine industry did hold power a few years back as there were a few local wine
manufacturing companies. But in recent times the market has seen a surge in the number of wine manufacturers, thus hereby decreasing the
bargaining power.
5.. Rivalry among existing competitors

This usually involves the number of competitors and the strength of those competitors in a market. The quality and service of the rival factories is
a huge game changer in this phase. Intense rivalries could have massive impacts, such as aggressive price cuts and highly impactful marketing
campaigns. On the other hand, market with less competition means more grip over the market and better the profits. Due to the sudden growth in
the wine sector in Nepal, a number of local wine companies have recently opened up, thus increasing the number of competitors. Also the entry of
foreign wines in the Nepalese market, have created rivalries and makes it more difficult to control the market.
PROBLEM STATEMENT
The Wine Industry is a very complex industry, because of the complex and scale if effects that are either created or have an impact on
the wine industry. The range of problems associated with the wine industry is broad. The company needs to be very careful with the
error they make as slightest of the errors may lead to huge problems for the company as the liquor industry is very carefully reviewed by
the Nepal government. Some of the problems faced by Makalu Wine Industry are stated in the following slides.
SUSTAINABILITY TRENDS

The wine industry is definitely engaged in sustainability, people in the wine industry are
engaged in the effectiveness of being sustainable in the market. In the wine industry being
sustainable is more often misunderstood of being organic or biodynamic. In our opinion
the drivers of the sustainability is the relation between the firm and sustainability. Already
many buyers around the world are drawn towards the wines that have less environmental
impacts while being produced and that trend might also come in Nepal as certifications are
being more valuable as the customers are more concerned about how the ingredients were
farmed.
HIGH NUMBER OF SUBSTITUTES

Makalu Wine Industries face a huge competition in the wine industry as there are many
wines companies available in the market. Many competitors also means that there are
many substitutes for their product if customers are not satisfied with their product, this
causes huge problems within the company as they have to be careful and manage to
provide good quality of wines to their customers and also maintain their reputation in the
market because if they fail to retain their customers then there is a huge chance that the
customer will go the competing brand in the market.
CLIMATE CHANGE

Climate change is one of the major problems in the wine industry because without the
good climate producers are not able to grow good quality ingredients which is used to
produce wines. The ingredients used to produce wine in Makalu Wine Industries are
berries. The climate change also hampers in the quality of the berries which ultimately
affects the taste of the wine.
WINE PACKAGING

The production company needs to specify the ingredients used to produce the bottle of
wine in their package. The wines also need to have seal of approval from the government
of Nepal. Even a slight error in the packaging would cause a huge loss to the company as
there needs to be repackaging of the wines.
CURRENT STRATEGY

Objective : To encourage traditional wine drinking culture in Nepal

(Traditional wine making in Nepal can be traced back to hundreds of years ago. Earlier wines were made from rice & millets. We

started our research to make wines from fruits in early 1990s and discovered raspberries & barberry from our hills brings the

perfect texture for wine lovers.)

MARKETING MIX - 7P’s

Marketing mix is a business model which contains of various marketing tools that a firm
can use to pursue their objectives and compete in the market. The typical marketing mix
contains of 4P’s i.e. Price, Place, Product, Promotion. However, nowadays firms use
advanced 7P’s in marketing mix which includes the 4P’s and other 3 P’s like Physical
Evidence, Process & People. All these elements are somewhat interconnected to each
other and also influence each other. All these elements are of great importance and if used
correctly they can be very efficient & effective. In recent times some companies have also
started using the 8P’s which basically refers to Productivity.
PRICE
● Price generally refers to the value that is assigned to a product. It depends on costs of production, segments
targeted, ability of the market to pay, supply - demand and number of other direct or indirect factors.
● There can be many different pricing strategies, each tied in with an overall business plan.
● In the case of Makalu Wine Industries once the price of a product is set and approval from the government is
given, the company has to set the price tag on the labelling of its products. This is the MRP price and the
wine cannot be sold at a lesser price than the MRP. However the company has set a separate price level for
distributors, wholesalers and retailers which is for 4L white or red wine pouch it costs Rs. 2,600/- and for a
750ml bottle the price is Rs.650/-
PRODUCT
● Product refers to the item actually being sold.
The product must deliver a minimum level of
performance, otherwise even the simplest work
on the opposite elements of the marketing mix
won't do any good to the firm.
● Makalu Wine Industries currently has Hinwa
red and white wine in 750ml bottle and 4L
pouch- all produced from locally hand picked
berries. It is in the process of adding on more
flavors by using other fruits like Grapes Kiwi,
Mango, etc.
PLACE

● Place refers to the point of sale. In every industry, catching the attention of the buyer and making
it easy for them to shop is main aim of an honest distribution or 'place' strategy.
● Retailers pay a premium for the right location. In fact, the mantra of a successful retail business
is location.
● Makalu Wine Industries production factory is located in Sankhuwasabha, a district in the eastern
remote side of Nepal. Due to the remote location, the area lacks many facilities that are
otherwise considered essential for any business entity. As such the factory has to coordinate with
their offices for every type of support like technical support, banking support etc. They have an
office located at Dharan which is about 100 kms away from the factory while the head office is
located in Kathmandu which is the capital city of Nepal.
 PROMOTION

● Promotion refers to all the activities that are undertaken to make the product or
service known to the customers and consumers. This can include advertising, word
of mouth, press reports, incentives, commissions and awards to the trade. It can also
include consumer schemes, direct marketing, contests and prizes.
● Makalu Wine Industries focuses heavily on promotion as it is a key aspect of its
success. All distributors and wholesalers are provided with various incentives like
bikes, televisions, cash and gold etc.at the end of each fiscal year. Since the past 2
years the company has added wine glasses (imported from China) with Hinwa’s logo
to every purchase of a box of Hinwa wine. This really boosted the sales as the
customers were satisfied with the quality of the glass. An external digital marketing
team has been hired to boost sales and promote the product via various media apps
like Instagram, Facebook etc.
PHYSICAL EVIDENCE
● This element of the marketing mix refers to the physical environment experienced by the customer and
includes the physical design and layout of the physical outlet and the layout of the corporate website.
● Design and layout are important as they have to form customer experience simple and easy. If customers
struggle to seek out what they need they're going to go with other brands. It is extremely important that
physical evidence is appealing to customers. It should also reflect how the business wants to be perceived by
its customers. For example, an upscale restaurant must make sure that the furniture, lighting and tableware
are appealing to its customers.
● Makalu Wine Industries does not have their own store as they are manufacturers. They work through retailers
and distributors. Although they have put up hoarding boards in the shops that sell their wine and have also
provided a wine shelf for those distributors and retailers to attract customers.
PEOPLE
● People are the ones that are involved in the entire process- manufacturing, operating, designing, managing,
selling..... the list goes on. The ‘people’ element of the 7Ps involves anyone directly, or indirectly, involved
within the business-side of the firm.
● There’s no use in creating an excellent brand, innovative product or amazing social media presence if they
don’t have the proper people behind them. It’s integral to the survival of the business business that the
company simply confirm that each one of their employees, regardless of how behind-the-scenes or customer-
facing they are, they have fair training and a substantial understanding of their role and therefore, the impact
is within the company.
● Makalu Wine Industries realizes the power of the people as the company very much relies in a mix of people
to get things done. They have an exceptional team which includes people from different parts of life. People
of different color, background, cast, religion all work as a team to achieve the goals and objectives. Right
from the grassroot levels to the very highest level, everyone is treated with the same respect. The employees
are also provided with an annual bonus from the company’s profits to keep them motivated .
PROCESS

● This is the 7th tool in the marketing mix and describes a sequence of actions that are taken in delivering the
product or service to the customer. Examining the method means assessing aspects like the sales funnel,
payment systems, distribution procedures and managing customer relationships.
● Each step and the methods that a firm chooses to use for these processes must be done in a way that
minimises the costs, whilst also maximising benefits and value for the customer. Assessing, adjusting and
optimising different parts of the process will help to streamline the business efforts whilst also ensuring that
the methods are up-to-date and in line with current trends.
● MWI has an effective process for production, management, sales and distribution. After the production of
wine, systematic process is in place for distribution and sales of the wine which is done via two regional hubs
– one at the Eastern region and one the Central region.
 3 LEVELS OF BUSINESS STRATEGY

○ Corporate strategy: Is to be Nepal’s Premier Winery and promote Nepali wine culture domesticall
and global market.

○ Business strategy: The company has chosen Differentiation strategy as its Porter's generic strategy
○ Blue ocean strategy: The company uses blue ocean strategy as it Pioneers as making wine From
Local Nepalese Berries. Other competitors make wine from Grapes but Hinwa uses Berries to
make wine which sets them apart from the competitors, especially in the international market like
China and India.

○ Functional strategy:
● HR and staffing
● Marketing 4ps
● Production
● Finance.
BLUE OCEAN STRATEGY

○ Develop a wine package like real juice (tetra pack)

○ Blue ocean strategy means having a product that the market does not even know
it needs.
○ Developing wine packaging in tetra pack would allow the company to have
smaller SKU and having Smaller SKUs leads to higher sales especially in
developing countries.
○ Having smaller SKU would allow the consumer to try new wine without the risk
of buying an entire bottle and not liking it.
○ People who cannot afford an entire bottle of wine would also be able to purchase
and try wine which would encourage wine drinking culture in Nepal.
MANAGEMENT FUNCTIONS
PLANNING PROCESS AT MWI
The board of directors and the top management team of Makalu Wine Industries meet before the start of the Nepali Fiscal
year. Various long-term plans are formulated during these few days and strategies are discussed for future implementation.
Plans are drawn up regarding the various sectors of the company and how to increase efficiency.

During the week-long process managers suggest their ideas and plans, to tackle any future problems and the ways to tackle
anticipated problems. Every department needs different and unique plan to function to their fullest. The team also consists of
an external marketing organization that handles all their marketing strategies. Proposals regarding new market targets, new
advertisement strategy and online marketing are all be pitched during this time. All the managers of different departments are
given an equal opportunity to present their plan and budget before the board of directors.

This helps the company formulate goals and aims that can be achievable together, as all departments will work towards this
overall goal. Goals and objectives for each department are also set and other factors such as wage, bonuses are also discussed.
The tactical planning and operational planning are usually done by the department heads or senior managers but are always
looked at by an active board member. Mr Ashray Ranjitkar is the board member as well as the director of the company of and
looks at all the planning process as he closely works with the managers and the workers.
ORGANIZING

This is a function of the management that involves developing an organizational structure and allocating
human resources to ensure the accomplishment of goals and objectives. The structure of the organization is
a framework within which effort is coordinated. This structure is usually represented by an organizational
chart, which provides a graphic representation of the chain of command within an organization. Decisions
made about the structure of an organization are generally referred to as organizational design decisions.

ORGANIZING PROCESS AT MWI

MWI has a unique but simple organizing strategy. The entire company has been decentralized to make the entire
process easier. There are various departments in the company that coordinate their activities with each other to
achieve the goals and objectives. These departments include a marketing and sales department, production
department, accounts department, human resource department and logistics and supply chain department. Each
manager of the various departments has the freedom to make small day-to-day decisions. They have the ability to
appoint a new staff or create a new position in the company, but these decisions have to go through the Human
resource department.
STAFFING
This process involves job identification and the right person for the right job.
Staffing is usually related to the Human Resource department but can be managed
by managers in a small organization. The process involves identification of
vacancies and people that fit the requirements of the particular job.

STAFFING AT MWI
This is usually handled and taken care by the human resource department at
MWI. They interview the candidates applying for a job and are responsible to
choose the best candidate that fits the position offered. They are also responsible
for looking after the working environment and planning for further training and
development of the employees.
LEADING OR DIRECTING

Leading and Directing involves the social and informal sources of influence to inspire
action taken by others. If managers are effective leaders, their subordinates will be
enthusiastic and motivated about exerting effort to attain organizational objectives.
LEADING OR DIRECTING AT MWI

MWI has a highly qualified team of board directors and managers who provide the
strategic leadership for the company. This motivates the workforce as they trust the
managers ability and instincts. This creates a good working environment, thus in turn
helping the firm achieve the stated goals during a certain time frame. All employees
are hired based on their qualification and their abilities
CONTROLLING
Involves ensuring that performance does not deviate from standards.Controlling consists of

three steps, which include

(1) establishing performance standards,

(2) comparing actual performance against standards, and

(3) taking corrective action when necessary.

Performance standards are usually stated in monetary terms such as revenue, costs, or profits
but can also be stated in other terms, such as units produced, number of defective products, or
levels of quality or customer service.
CONTROLLING AT MWI
The board members meet quarterly to review the progress made and challenges being faced so that corrective
measures can be take each quarter. This year especially due to the pandemic the company has faced a series of
unexpected setbacks and there was a need for the board to meet more frequently. At the of the Nepali Fiscal year
which falls in mid-July, the board of directors and the management meet once again to review the organization's
performance during the entire year. The MWI team compares their performance and outcome with the standards,
goals and aims that were set. The financial, marketing, sales and employee achievements are all compared with the
standards that were set earlier and the gaps are identified and discussed so that improvements can be made in the
future.During this time the founder of MWI is also present as he is still a member of the Board of Directors.
HR MANAGEMENT
Human Resource Management in MWI

MWI has various departments within the organization to help achieve their strategies and one such department is the Human Resource Management. The Company
has very strong policies when it comes to ensuring equal opportunities and protection of employee rights.

Employees of MWI are hired on the basis of qualifications for the position, without regard to tribal affiliation, race, color, religion, age, national origin, sex,
disability, HIV/AIDS status, marital status, or any other characteristic that may be protected by law. Its policy provides equal opportunity to qualified individuals in
all aspects of recruitment, hiring, training, promotion, layoff, termination, compensation and other terms of employment. Employment is contingent upon the
individual's ability to meet the essential tasks as defined in the position description, with or without reasonable accommodation.

MWI prides itself on being a diverse community. It recognizes and respect their team members’ differences in terms of their cultural, racial, economic, educational,
ethnic, and religious/spiritual backgrounds as well as in their abilities, interests, values, beliefs, and world views. It particularly values the benefits of diversity and
the greater innovation and creativity fostered by the different perspectives and experiences of their team members. Makalu affirms it is an equal opportunity
employer. Every employee has the right to work in surroundings that are free from all forms of unlawful discrimination. Makaludoes not engage in or tolerate
discrimination on the basis of race, color, gender, religion, age, sexual orientation, national or ethnic origin, disability including HIV/AIDS status, marital status,
veteran status and gender reassignment status.
HR management strategy at MWI is embedded within the overall organization’s strategy. It does not have a separate HR strategy as such. Every year, their strategic
plan is reviewed and prepared and during this process the HR plans for the year are devised and implemented upon. These plans are contingent upon the programs
planned for that year.

The HR department at MWI identifies and prioritizes different work functions and role types. For each role or role type, the outcome is a list of functions, results,
tasks and objective performance measures. It sets out the distribution of responsibility and articulates who is required to perform, oversee and consult on specific
tasks, as well as providing clarity on how success will be measured. Effective job descriptions are prepared for each position that clearly outlines what qualities and
requirements are needed, the required functions, key result areas and tasks, as well as how performance measurement will happen.

Employees are encouraged to continuously upgrade their skills for which appropriate skill development program opportunities are provided. Similarly learning
opportunities are also provided by way of various trainings, study leaves, exposure visits etc. All this is done by identifying ‘gaps’ in skills and knowledge in
relation to roles. Performance evaluation and appraisal processes takes place once a year to compare the standard of desired output with delivered or actual output
In terms of HR management MWI faces a unique challenge as they need to hire local people at the grassroot level for plucking and sorting of the local berries.
Since these local people are usually illiterate, it is challenging to the company to explain the systems to them. Also, the company needs to address the community’s
demands that they sometimes put on the company with regard to pay scale and allowances for the local people
RECOMMENDATION / NEW STRATEGY

● Distribution channel: Make a new flow of distribution channel for the pandemic

● Collaborate with various food network

● Form strategic alliance with delivery teams

● Product innovation: Develop a new product variation through packaging( blue ocean)
IMPLEMENTATION

● Objective : To increase reach of their target audience via sales ( During the pandemic)

● Roadmap : Add after retailer online channels (picture)

● Marketing strategy: “Collaborating with online Food delivering services such as (foodmandu, foodbuster,online liquor store)

and direct selling websites

● CSR : Over the budget of 2000 purchase give Books & Stationery worth Rs.500 back to the community berry farmers in need

(Buy one donate one)

● Risks: Complications faced due to the pandemic