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Wine sector in
Exploring the wine sector in the the Nashik
Nashik district of India district
Surendra Kansara
Symbiosis Institute of Operations Management,
a Constituent of Symbiosis International Deemed University, Pune, India 203
Received 5 October 2018
Revised 4 May 2019
17 July 2019
Abstract 28 August 2019
10 September 2019
Purpose – In India, Nashik District of Maharashtra State is a major Indian wine-producing region. This Accepted 22 September 2019
study aims to critically explore multiple aspects of an area and bring to the forefront of various sociological or
educational variables (Kerlinger, 1973). The variables can help in the generation of the conjectures and
premises.
Design/methodology/approach – Methodologically, to explore the wine sector in the Nashik District of
India total 304 number of wine products and its pricing along with a total 26 number of wineries attributes
has evaluated by collecting details of different product attributes of wine products and retail pricing. These
were regressed with backward integration to arrive at the characteristics that govern wine prices. Concerning
their motivation for wine tourism, a survey of 197 visitors conducted. Seven winery owners/ officials were
interviewed that includes the Coordinator of the Wineries association. The interview schedule included open-
ended questions. Thus, providing more in-depth insight into the wine sector in the Nashik District of India.
Findings – An investigation of the wine industry in the Nashik district of India suggests the potential for
combined effects between wineries, local communities and the economy by discovering the sociological or
educational variables associated with the considered geographic region.
Research limitations/implications – The research is the field study aimed at discovering the relations
or interactions among sociological or educational variables. There can be variables beyond the considered
variables affecting the wine product mix and pricing, wine tourism motivation factors and the factors
responsible for the economic development of the region.
Originality/value – The empirical research throws light on an unexplored wine-producing region and its
potential impact on livelihood. The exploratory study discovers the interactions among educational variables,
as asserted by Kerlinger (1973). It can also help in the generation of premises about the wine sector from the
area.
Keywords India, Wines, Econometric model, Pricing, Regression, Developing countries, Economic
growth, Survey research, Psychometric/ qualitative, Exploratory study, Discovery through field study,
Product attributes
Paper type Research paper

1. Introduction
Wine is a drink made from fermenting grape juice. It is evident through literature that
ancient Indians knew to make wine in the form of Aasava and Aarishtha. The literary
work on the Ayurveda (Lad, 2006) concerning the old Sanskrit work Charaka Sutrasthana:
composed initially by Agnivesha and after that compiled by Charaka, Sharangdhar Samhita:
A treatise on medicine, Sushruta Sutrasthana authored initially by the Sushruta who is
known as an ancient physician. Aasava and Aarishtha are medicinal formulations that
contain alcohol generated by natural fermentation and soluble substances; mainly herbs. International Journal of Wine
Business Research
The different grape varieties grew in different climates around the world. Yuanbo et al. Vol. 32 No. 2, 2020
pp. 203-217
(2017) argued that “vineyards location and climate variables have an immediate impact on © Emerald Publishing Limited
1751-1062
grape quality and quantity.” In India, grapes are grown mainly in the State of Maharashtra, DOI 10.1108/IJWBR-10-2018-0058
IJWBR Bangalore region in Karnataka, some part of Tamil Nadu and Himachal Pradesh. The
32,2 manifestation of the wine sector in the Indian State of Maharashtra is recent. It started when
the Maharashtra State Government introduced the Grape Processing Policy in the year 2001
declaring the wineries as small-scale industries. The scale decided by the prescribed limit of
the initial capital investment. Through the said policy, the Maharashtra State Government
offered a concession in the excise duty and the sales tax to promote the wineries. The
204 government also facilitated wine sales licenses by charging decidedly fewer sales license
fees and simplified the legal permission requirements for wine production given the status
of the food processing industry. The provisions lead to setting up of the wineries in the
Nashik District. According to the Nashik Division of the State Excise Office, there are 39
wineries in Nashik. The ownerships format of the wineries’ predominantly has Private
Limited Companies as defined in the Indian Companies Act enforced by the Ministry of
Corporate Affairs of Government of India. The above-stated form of ownership means a
small legal business entity in which the owner’s liability restricted to the shares held and
limited to 50 or fewer shareholders.
According to the Indian Agricultural and Processed Food Products Export Development
Authority, the Maharashtra State leads in grape production. Amongst different grape
growing districts that include Sangli, Ahmednagar, Pune, Satara, Solapur and Osmanabad,
the Nashik District leads in grape cultivation and production. It is the grape-producing
region having the highest yield per Acre of land used for grape cultivation as it has
favorable climate conditions. The Longitude and latitude of the Nashik District are 73°47’
East and 20° toward the North, respectively. The District comes under the Hot Tropical
Zone. The grapes cultivated during the period from December to April every year.
According to the Ko†ppen climate classification, the Nashik region comes under the “Aw”
category. Grainger and Tattersall (2016) argue that vine needs around 1,400 h of sunshine
per year, with an average of 6-7 h per day during the growing season. The growth of the vine
takes place at temperatures above 10°C. Annual rainfall of 500 to 850 mm considered ideal
(ibid). The temperature in the Nashik region ranges from minimum-maximum 21-28°C in
August to 18-33°C in March. During summer the temperature in the Nashik reaches as high
as 41°C, and during the winter the temperature reaches as low as 8°C with bright sunshine.
For reaching proper vine development and ripening of the fruits, the heat from 25°C to 30°C
considered suitable according to the Agribusiness Handbook on Grape Wines published by
(FAO, 2009).
The wine grapes varieties that raised in the Nashik include Chenin Blanc, Chardonnay,
Malbec, Merlot, Riesling, Sauvignon Blanc, Shiraz, Tempranillo, Viognier and Zinfandel.
According to the report from National Horticulture Board of the Government of India, 2016-
2017 (third advance estimate of the area of production of horticulture crops), the grapes
including of table and wine varieties cultivated in the field of 136,000 hectares land with the
production estimate of 2,784,000 metric tons. The manifestation of the wine industry in
Nashik is about 15 years. With the excellent potential for market growth, there is good
potential ahead for the growth of wineries. The young wine industry has to define the
market so that they can compete and survive. The survival can likely achieve by offering the
right product having the bundle of different attributes. The study presented attempts to
understand the bunch of different traits and their effect if any, on the pricing of the wine.
Tourism has called the worlds’ one of the most significant industries. It associates with
many prime sectors of the world’s economy (Fennell, 2003). Since the past few years; wine
tourism is gaining popularity in this region, especially from domestic tourists. The reason
can be as asserted by Brown and Getz (2005) that specific appellation-of-origin preferences
that influence the tourists. George (2006) argued the primary motivators for wine tourism as
wine tasting, wine buying and secondary motivators as socialization and entertainment. Wine sector in
The increasing prevalence is tempting stakeholders to apply their efforts towards the Nashik
maximizing the benefit. The wine tourism is a secondary activity to the wine industry that
can contribute to regional development in developing countries like India. Over the past 78
district
years the wine tourism in Nashik region is increasing at the rate of above 20 per cent year on
year basis. With mainly private stakeholders putting their effort to maximize the benefits,
understanding the “voice of the customer” is a critical step toward developing marketing
strategies to benefit the customers and other stakeholders. Regardless of the increase in 205
wine tourism, the different factors that can directly affect consumer experiences remained
unexplored. This paper attempts to critically examine various aspects belonging to wine
product mix (Kotler et al., 2015) and wine tour of the region. The wine product mix is all wine
products a particular winery offering. Nashik District in India has immense potential for
developing wine tourism, but it lacks in defining the brand, infrastructure, which is an
obstacle in capitalization on tourism. This study by considering a given fact intends to
explore the reason for people visiting the region. The study also throws light on the wine
product mix (ibid) and pricing practices of the wineries and is essential as no similar
research has been done so far exploring the considered geography. The field study is an
attempt to discover the interactions among educational variables, as asserted by Kerlinger
(1973). The educational variables included in the study classified as product mix attributes
and its pricing, the characteristics of the wineries, and the visitors’ motivation to visit the
region. The opinions of the other stakeholders affected by the wineries took into account to
explore the wine region.

2. Literature review
Bode (1992) attempted to show that “making, classification, marketing and enjoying wines,
is not as new as some of us today think they are.” And also argued that “a few 1000 years or
so ago, types of comments and opinions about given wines were much the same as they are
today”.
The things have of it the intrinsic properties and the extrinsic properties are due to the
other things related. Lancaster (1966) argued that the inherent properties of the goods
closely connected to the manner consumers react toward these goods. The intrinsic and
extrinsic properties determine the price. Rosen (1974) argued that differentiated products
could explain by a vector of measured characteristics that are measured, product prices and
the specific amounts of features associated with each define a set of implicit or hedonic
prices. Researchers based on hedonic pricing conclude that price discounts or premiums are
a result of the different characteristics of a product. Wine pricing studies (Benfratello et al.,
2004) that compare taste specifications versus reputation finds that the reputation
outperforms the taste variables. Sensory quality awards have a definite price impact on
wine (Schamel and Anderson, 2003), studies on hedonic wine pricing concentrate on region
and place of origin (Bicknell et al., 2005). Some research observes attributes such as quality,
cellaring, grape region and variety, grape vintage and size of the winery to be statistically
significant in explaining deviations from average wine prices (Oczkowski,1994). Costanigro
et al. (2007); analyzed the availability of label information about wine prices, labeling and
packaging of wine and how do they impact market price (Mueller, 2009). Camillo (2012)
argued that consumer education concerning the wine, wine-related activities, and channels
of communication, wine taste, origin, quality and price rank are significant factors that
influence the buying behavior of Chinese consumers. Ying Yu et al. (2009) reports that
Chinese domestic brands constitute the maximum proportion of wine purchases, and the
consumers are sensitive to price and wine origin country. Concerning wine as goods
IJWBR Amerine and Roessler (1976), Lecocq and Visser (2006) argued consumer tastes as highly
32,2 heterogeneous. Oczkowski (1994) and Lecocq and Visser (2006) reported a positive
correlation between wine price and its appreciation. Goldstein et al. (2008) asserted that the
price affects the experienced utility of goods and the relationship between the wine rating
and wine price is small.
Caiazza et al. (2016) asserted that the business model is a relatively new concept, research
206 is lacking in business model innovation in specific industry sectors, and one such industry is
the agro-food industry. The study also finds that theory is not yet well-developed in the
survey of the agro-food area. Vrontis et al. (2016) analyzed a model of achievement based on
the traditions and innovation that can offer a competitive advantage to a mid-sized family
firm operating in the Italian wine sector and asserted that a winery under consideration as a
combination of tradition and innovation regarding products and processes. Researchers also
argued that innovation and culture are not opposite, and a blend of the two appears crucial
to achieving and maintaining a sustainable competitive advantage. Jovanovi
c et al. (2017)
analyzed influences of socio-demographic and behavioral factors on the frequency of wine
consumption, as well as the importance of the brand and advertising on the selection and
argued that these factors show the dominant influence in all analyzed variables.
Wine tourism is considered to be tourism to taste wines and purchase, preferably from
the source. Such tourism is found to be financially beneficial to the region. Carlson (2004),
while reviewing the wine tourism, argued that it extends beyond the wine cellar to almost all
areas of the regional economy, the urban areas that generate the majority of wine tourists.
Wine tourism experience Roberts et al. (2006) mentioned; surpasses the limited experience of
drinking wine. Brown and Getz (2005) asserted that wine tourism encompasses benefits
linked to essential needs and attributes associated with wine regions attempt visitors to visit
there, which, in turn, shapes the attractiveness of that region. Karlsson and Karlsson (2017)
while describing the types of wine tourism mentioned that “wine tourism is becoming
extremely important for wine producers and also argued based on some published report
that shows 60 per cent of American Wineries’ sales are direct to consumers.” Alant and
Bruwer (2004) provided a theoretical framework consisting of three dimensions of
motivation to the wine tour. The frame includes visitor, wine region and dynamics of visit;
means either for the first time or repeat visitor. As conceded by Getz et al. (2005), local
features are likely to influence the wine tourist’s destination selection criteria. Charters and
Ali-Knight (1999) empirically established the relationship between a level of visitor interest
in wine and motivations for wineries visits. Hall et al. (2000) while arguing on the factors
affecting wine tourism concluded that wine tourism is increasingly integrated into product
development and promotion of tourists in the Mediterranean but questioned their
contribution to rural restructuring. Lee et al. (2016) while exploring the critical service
quality dimension at a winery in China argued that a variety of wines, the quality of the
wines, staff attitudes are crucial factors that influence Chinese wine tourists. Billore (2018)
argued that initiatives concerning rural tourism on the rise in Japan. The growth is due to
the need to rejuvenate the local economies, arts and cultural heritage. Rod and Beal (2014)
based on their observations, argued that cultural intermediaries facilitate the adoption of
wine consumption in emerging Asian markets directly through promoting it as a social
accompaniment. Wine can enhance local cuisine. The researcher called cultural
intermediaries to individuals involved in the adoption of wine in to one’s non-traditional
wine consuming society.
Although the literature reviewed has linked different constructs with wine tourism, no
research so far analyzed the geography considered in this research. With this background,
this paper aims to initiate discussion on the factors that are likely to drive the wine sector in
Nashik with particular reference to the product mix pricing and visitors’ motivation for wine Wine sector in
tourism substantiated by interviews of the winery owners or the employees of the wineries. the Nashik
district
3. Research methodology
The scientific studies aimed at discovering the relations or interactions among sociological
or educational variables in the social structure called Field Studies (Kerlinger, 1973). The
presented research is the field study. Katz (1953) divided the field studies as exploratory and
hypothesis testing. The exploratory studies seek for what is rather than a prediction of
207
relations. Exploratory studies, according to Kerlinger, 1973 have purposes of discovering
variables in the field situation, establishing the relationships among the variables, and of
pursuing the groundwork for more rigorous and systematic hypothesis testing. The
presented study discovers relations among different variables such as wine product
attributes, winery attributes and its impact on wine price, wine tourists and their motivation
to visit the region, the contribution of the wineries if any into the economic development of
the area. Nonavailability of the recognized sensory quality ratings (Schamel and Anderson,
2003) posed restrictions concerning the study on the wine pricing basis. Besides no
availability of sensory evaluations, diverse research findings concerning what affects the
wine price and nonavailability of the relevant research about the demography considered for
the presented study, it thought necessary to take into account the intrinsic and extrinsic
properties of the wine products.
The systematic inquiry carried out based on the three different factors and the
stakeholders to get an insight into the wine sector in the Nashik District. That included wine
product mix the wineries offering and its pricing, interviews with either winemakers or
professionals, and a survey of the visitors to the region. The product mix and its pricing
evaluated to develop the insight concerning the pricing as argued by Rosen (1974) that
differentiated products can explain by a vector of measured characteristics that are regular
product prices, and the specific amounts of features associated with each define a set of
implicit costs. As part of exploring the opportunity of the development of tourism, a survey
conducted concerning visitors’ motivation for wine tourism. The study as envisaged above
followed by the interviews with the wineries owners or professionals to substantiate
the observations concerning the economic impact on the region. As the wine sector is in the
infancy and no literary evidence available to support the arguments related to it,
the integration of the three surveys as explained likely to provide an opportunity to generate
the discussions and debates concerning the wine sector from the new region.
The product mix of a total 304 number of wine products and its pricing along with 26
number of wineries attributes has evaluated by collecting details of different product
attributes of wine products and retail pricing. These then regressed with backward
integration to arrive at the characteristics that govern wine price. The hypotheses framed
that either the product or winery attributes considered do not impact the standard rate of the
wines. All the product attributes discussed in this research are based on the literature
reviewed, and opinion from wine experts was also sought to ensure face validity. The
product mix offer and its pricing were valid from December 2016 onward till completion of
the data collection until February 2017. During the same time frame as specified, a survey
conducted, which included close-ended questions concerning visitors’ motivation for wine
tourism. A questionnaire administered, and the visitors (sample size = 197 No.) were asked
to rank the significance of their decision to the wine tour. All factors given ranking by
individuals participated in the survey. The factor analysis not performed to restrict the
scope of the study. The elements were selected based on literature review and expert
opinion. A questionnaire consisted of questions belonging to demographic information
IJWBR factors; gender, age, education level along the issue of ranking the factors leading to their
32,2 motivation in participating in wine tourism in the region. All these factors of motivation
considered listed in Table V. The respondents were told to rank their preferences from 1 to
11 as a total of eleven elements. Rank 1 regarded as the highest preference and position 11
lowest. Then, individual level means calculated and reported.
A brief interview with seven winery owners/officials along with the Coordinator,
208 Wineries Association, was conducted by asking an open-ended question about wine tourism
environment, opportunities and challenges if any. The interview schedule primarily
consisted of the issues concerning the wineries and the wine products. The wine product
detail related questions targeted towards bottle label requirements as per bye-laws, wine
color, usage of the screwed cap or the cork in the packaging of the bottle, availability of the
particular grape variety. The wineries related questions targeted towards checking oak
barrels availability for maturation, other statutory requirements regarding storage capacity
provision, and the installed capacity, getting the recognition as a wine tourism destination
and its needs, brief detail concerning the product distribution set-up and the sales. The
questions based on the raw material requirement, and its availability, workforce
availability, geographic dividend also included.

4. Data analysis
The descriptive statistic in Table I below shows how the data set covers a wide range of the
products and price spectrum.
As stated in the literature, a separate regression model was formulated to drive the price
of the wine, which presumed to be affected by the following variables (Case 1). All the
variables listed assigned the codes from 1 to 11 and the same systems used to report the
analysis separately in Table II below.

4.1 Case 1- the list of the variables

 Grape varietal mentioned or not mentioned on the label on the wine bottle.
 The color of the wine (Red or White).
 Wine bottle packaged with cork.
 The alcohol content in the wine expressed in per cent.
 Late harvested grape used for producing wine. (Late harvested grapes help in
generation of more alcohol as the sugar level in grape increases).
 Wine stored for maturation in controlled conditions for a prolonged time.
 An existence of carbon dioxide into wines. (The presence of carbon dioxide into
wines gives wines bubbly nature).
 The wine matured in an oak barrel.

Variable Mean SD Coefficient of variation Minimum Maximum

Table I. Price (INR)* 496.7 249.3 50.2 150 1600

Descriptive statistics Notes: The above Table I shows the Mean price of the wine available in 750 mL package size along with
of the dependent the standard deviation among the amount, minimum and maximum price observed to be Indian Rupee
variable price (INR) 150 and INR 1600. *Price/s: in INR applicable locally, (1 US$ = approximately, 68 INR)
  The ownership of the wine producer is a sole owner- partnership or registered under Wine sector in
IndianCompany Law. the Nashik
 Type of wine is port wine. (Port wines mean partly fermented grape juice leaving district
residual sugar into the wine).
 Rarely used grape varietal.

Table II presents the coefficient associated with each variable along with the p-value and 209
variance inflation factor with adjusted R2 = 80.8 per cent from Case 1.
The variable numbered seven, the existence of the carbon dioxide into wines was
observed to be affecting more than the rest of the variables. The coefficient value of this
variable is the largest amongst all variables considered in the model Case 1. The model also
proved to be statistically significant while analyzing the variance with all p-values
associated with the variables; well below 0.05 with maximum p-value being 0.02 and rest all
tending to 0 along with variance inflation factor (VIF) well below 10. The low VIF signifies
that no correlation exists between the predictor variables. Similarly, a separate regression
model was formulated to derive the average price of the wine offered by a particular winery;
which presumed to be affected by the following variables (Case 2). All the variables listed
assigned the codes from 1 to 10 and the same system used to report the analysis separately
in Table III below.

Variable codes Coefficient t p VIF

Constant 20.2 0.36 0.716 Not applicable

1 174.9 10.17 0.00 1.87
3 110.6 7.41 0.00 1.78
6 243.5 12 0.00 1.43
7 385.7 7.85 0.00 1.04
8 373.7 10.43 0.00 1.36
9 202.6 3.57 0.00 1.05
10 64.5 2.32 0.021 1.17 Table II.
11 112.4 3.12 0.002 1.01 The significant
variables from Case
Notes: Table II represents the Beta Coefficients associated with the variables considered in Case 1, along 1, their beta
with the corresponding p-values that observed to be significant for the variables provided in the table. The
variable numbered ten, “type of wine is port wine” coefficient is negative, indicating the inversely coefficients, p-values
proportional effect on the price. The Variance Inflation Factor observed less than 2 for all the significant and the variance
variables that signify no correlation between the price predictor variables inflation factors (VIF)

Variable codes Coefficient t p VIF

Constant 300.6 8.90846 0 Not applicable

1 0 3.0653 0.006 Less than 2
5 6.8 2.45998 0.023 Less than 2 Table III.
6 111.9 2.98606 0.007 Less than 2 The significant
10 190.1 3.7931 0.001 Less than 2 variables from Case
2, their beta
Notes: Table III represents the beta coefficients associated with the variables considered in Case 2, along
with the corresponding p-values that observed to be significant for the variables provided in the table. The coefficients, p-values
VIF found less than 2 for all the significant variables that signify no correlation between the price predictor and the variance
variables considered in Case 2 inflation factors (VIF)
IJWBR 4.2 Case 2- the list of the variables
32,2  Storage capacity (Liters)
 Installed capacity (Liters)
 Project cost incurred while establishing the winery (Indian Rupee million).
 The organizational form of a winery is a proprietary/partnership or registered under

210 Indian Company Law.

 Some products (750 mL size) the winery offers.
 Winery recognized as a Wine tour destination.
 Consultant or mediator managed international distribution setup.
 ISO certification to the winery.
 The winery has a global distributor.
 Oak barrel availability for maturation.

Table III presents the coefficient associated with each variable along with the p-value and
variance inflation factor with adjusted R2 = 64 per cent from Case 2.
The variable numbered ten was observed to be affecting more than the rest of the
variables as the coefficient value is the largest amongst all variables considered in Case 2
(Table IV, Table V).

Table IV.
Demographic
information of the
Demographic variable Details
sampled population
for the survey Gender (Male/Female) 52.7% Men, 47.3% Women
concerning visitors Mean Age (Years) 51.2
motivation Education level (Graduation) 89.8% At least graduated or above

Rank: calculated from individual

Motivating factors ranking mean

Tasting wines 1
Gain knowledge about wine 2
To get insight into the winemaking process 3
To buy wines 4
To experience the winery environment 5
Easy access to the region 6
Enjoy the rural natural landscape 7
To enjoy local cuisines with wines 8
Out of curiosity to participate in a different activity 9
To accompany a family/ friend 10
Table V. For socialization 11
Rankings of various
Notes: Table V represents the motivating factors leading to the tourism participants’ motivation for the
motivating factors wine tour in the region and their ranks that arrived by calculating the mean of all the factor rankings. Wine
for wine tourism tasting emerges as a significant motivating factor for wine tourism engagement, followed by the motivation
participation to gain knowledge about wine and winemaking process
4.3 Other observations Wine sector in
Among all the wineries in Nashik, only seven wineries offer wine tour, and four own full- the Nashik
fledged accommodation facilities have minimum accommodation fair INR 5,000 to a
maximum of INR 8,000 (US$75-US$120) per night stay suggests attracting niche segment of
district
the market. From the past four years, 70 to 75 thousand tourists engage in wine tourism
every year, including 5 to 6 per cent foreigners mainly from European countries and with
age group above 50 years. Two multinationals are involved in wine-producing with one
having an origin in France becoming operational from new vintage. One wine producer with 211
brand name goodwill organizes two-three days wine festival once in a year attracting more
than 20,000 visitors.

5. Findings and discussions

5.1 The product mix evaluation
The product mix of a total 304 number of wine products and its pricing along with related
attributes of the whole 26 number of wineries were regressed separately with backward
integration to arrive at the characteristics that govern wine price. It observed that variables
numbered 1, “grape varietal mentioned or not mentioned on the label on the wine bottle,” 3,
“Wine bottle packaged with cork has a significant impact on wine prices.” Besides these the
variables 6 to 9 that includes, “Wine stored for maturation in controlled conditions for a
prolonged time,” “an existence of carbon dioxide into wines,” “the wine matured in oak
barrel,” and “the ownership of wine producer is a sole owner-partnership or registered under
Indian Company Law,” 11, “rarely used grape varietal” also has a significant impact on wine
prices. Winery related attributes numbered 5, of the number of products of the 750 mL
packaging, 6, “Winery recognized as a Wine tour destination,” and 10, “Oak barrel
availability for maturation” do play a role in average wine prices of wineries under
consideration as coefficients are not 0. Product mix driven by statistically significant
variables, value pricing, which is in line with the perception of value associated is
happening. The wine products under the influence of statistically substantial variables,
which are nothing but the features of that product attracting more prices but few wineries
are selling their wine products considerably below the average rate. This type of pricing
happens under the loss leader strategy (Young wan et al., 2014) where for encouraging sales;
goods are sold at a lower price. Price discrimination appears as pricing strategy adopted by
remaining wineries. Under price discrimination; different rates charged for different
markets.

5.2 Ranking the wine tour motivation factors

The motivating factors are leading to the tourism participants’ motivation for the wine tour
in the region. Their ranks arrived by calculating the mean of all the factor rankings. Wine
tasting emerged as a significant motivating factor for wine tourism engagement, followed
by the motivation to gain knowledge about wine and winemaking process. The socialization
factor appeared as the least significant in the ranking.

5.3 Analysis of the opinion collected through interviews

5.3.1 Employment opportunities. Literature related to wine tourism; Gammack (2006),
Sparks and Jane (2006), Barth and Salazar (2010) and Kunc (2010) suggests that wine
tourism generates employment and enhance the social well-being of a local community.
According to the respondents; wineries in Nashik District employed people from the local
region or sometimes drew help from family members in the case of wineries owned by the
family. During grape harvesting season from January to April; use workforce from nearby
IJWBR villages on a contract basis but getting it becomes a problem due to the high demand during
32,2 harvesting. Some wineries support professional schools by allowing their students to
perform internship projects. Few wineries having proximity to the city by providing
educational aspects stated that they “encourage schools to visit the winery and try to engage
children in cultural part in winemaking and drinking,” which could have some positive
impact on the way of acquiring knowledge about the heritage and passionately enjoying
212 wine. The response signifies that wineries not only employees local peoples but also assist a
relatively younger group within locals and also reflect the potential or opportunity to impact
positively on the local community.
5.3.2 Wine sales. Wine market in India; as stated earlier is growing by twenty per cent
annually, and some winery owner substantiated this by responding that “almost all wines
sold during the first half of the new harvesting year.” “We execute the contract with grape
grower farmers” is also a response from winery owners, thus ensuring the sale of their
produce at the farm itself helping farmers entering into the contract to save on logistics.
“Tourist visits wineries on a tour package, which includes either limited or unlimited wine
consumption based on packaging. Among these tourists, many are neither wine consumers
nor they know wine. The scenario is likely to enhance through winery visit where we show
the tourists winemaking process right from crushing of grapes to bottling and aging.” The
comment suggests and supports tourists has given rankings to their motivation in wine
tourism, not dissimilar from tourist’s motivation to a wine tour. Given the number of visitors
visiting every year; there exists the enormous potential for direct cellar door sales to tourists.
A respondent who grows grapes and also purchases from small grape growers for the
wine production mentioned that “it is difficult to convince local people regarding wine prices
as they make a comparison based on the prices asking that why it is so different in amounts
ranging from INR 150 to INR 1600 per bottle of 750 mL.”
It is appropriate to note that oak trees do not grow in this region; it needs to be imported,
which is a costly matter in the current context. Although six wineries import oak barrels, all
can not afford to frequently import either or to import for stocking the empty barrel making
it a significant production cost factor. This argument gets justified with findings from the
product mix and its pricing analysis; where coefficients corresponding to the availability of
oak barrel with winery have a higher weight.
5.3.3 Development of communities and social benefits. There was evidence of wineries
directly contribute to community development when an official who is viticulturist from one
of winery commented that “many times I go and speak to farmers in the local community
about growing grapes, inform them about good practices in grape cultivation.” The
response implies that wineries know their potential in the development of communities.
Almost, all wineries owners having wine tour facilities expressed that “maintaining
vineyard is nothing but maintaining the scenic landscape and preserving the areas from
urbanization.” The response is critical because of the increasing pressure of urbanization
and associated disadvantages.
To satisfying the potential requirements for social gatherings; few wineries started
offering their venue for marriage ceremonies. These ceremonies are colorful and last for
several days and generating different kinds of conditions about food, drinks and lodging. In
India, marriages are a significant and mutually beneficial social event as two separate
families come and join together with other family members and friends. A few hundred
invitees participate in such a ceremony. The scenario implies that wineries owners are
aware of adding value to culture-driven tourist products.
5.3.4 Branding. Creating of name and image of a product into consumers’ minds aims to
establish a presence in the market and to attract consumers. Wineries Association in Nashik
has created the property for the wine producers in the form of getting Geographic Indication Wine sector in
titled “Nashik Valley Wines” under the concerned act. The climate and soil factors are non- the Nashik
reproducible, and therefore, originate grapes differently. The grapes being primary raw
material in making wine gives particular characteristics to the wine. According to sources in
district
Wineries Association; this unique property created in the form of Geographic Indication will
help in brand establishment internationally.

6. Conclusion, implications and scope for future research

213
Few wineries are selling their wine products considerably below-average price, and that
happens under loss leader strategy (Young wan et al., 2014) where for encouraging sales;
goods are sold at a lower price. Price discrimination appears as the pricing strategy adopted
by some wineries. Under price discrimination; different rates charged for different markets.
All wines are getting sold because of the growth of the wine market.
The wineries not only employing local peoples but also assist relatively younger groups
within locals and that reflects the potential or opportunity to impact positively on the local
community. Wineries are found to be directly contributing to community development. It
also noticed that for creating name and image of a Nashik wine product into the consumer’s
mind that aims to establish a presence in the market; Wineries Association in Nashik
generated a geographic indication.
Although the current manifestation of the wine industry in Nashik District in India is
about 15 years, all the above-discussed aspects are contributing to the livelihood of a local
community, and these aspects are attractive. The benefits of wine sector development are
likely to be the generation of employment and diversification of rural economies.
Incorporation of innovative business models based on advanced theories followed by wine
production can help to revitalize rural economies in the form of job creation. Infrastructure
appropriateness is likely to play a significant role for visitors to get attracted to wine-
producing areas, which can benefit local economies. An investigation of the wine industry in
the Nashik district of India, which is in the nascent phase suggests the potential for
combined effects between wineries, local communities and the economy. The research
throws light on unexplored wine-producing geography and its potential impact on
livelihood. The analysis can help in the generation of premises about the wine sector from
this unexplored wine region. The research is the field study aimed at discovering the
relations or interactions among sociological or educational variables (Kerlinger, 1973). There
can be variables beyond the considered variables affecting the wine product mix and
pricing, wine tourism motivation factors. Hence, further research can be relating to the
following broad areas.
Visitors motivation to visit the region beyond the factors considered in the presented
study, their perception about the wine products and their impact on wine pricing if any can
be studied. The manifestation of the recognized wine region is a recent one and because of
the other part of the world, perhaps, unaware of the wine-producing area; the effect of the
“Cost of Search” as argued by Lynch and Ariely (2000) can also be studied. Pedler and
Aspinwall (1999) demonstrated that the learning organization ensures sustainable
performance. The learning became the developable commodity, as claimed by Garratt
(1987). The presented study has thrown light on the wine pricing analysis based on the
product mix and wineries attributes. It can help wineries in pricing analysis. The hypothesis
that Indian wine consumers’ tastes are highly varied can also be tested based on argument
by Amerine and Roessler, (1976), Lecocq and Visser, (2006) that wine consumer tastes as
highly heterogeneous. Oczkowski, (1994), Lecocq and Visser, (2006) reported a positive
correlation between wine price and its appreciation. Goldstein et al. (2008) asserted that the
IJWBR price affects the experienced utility of goods and the relationship between the wine rating
32,2 and wine price is small. Therefore, the hypotheses can be verified that there exists positive
correlation between the wine price and its appreciation, and the price affects the experienced
utility concerning the area.
The economic impact of the wineries on the supplier farmers envisaged from the study.
More detailed analysis can be carried out in this regard quantifying the effect. The product
214 attributes identified in the research influence the wine price. Further research on the wine
consumers’ awareness of wine products can provide insight. The wine sector comparison
studies concerning international wine markets and consumer behavior similarities and
differences can establish through research. The study explores the wine product distribution
and sales with limited scope to identify the variables influencing the wine price. Hence,
further investigation can be carried to understand the supply chain management practices,
the innovative business models as the need for social gathering and wine tourism expected
to rise, and so forth.

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Corresponding author
Surendra Kansara can be contacted at: surendra.9326948759@gmail.com

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