Prepared By: 13-01-1198 Ezgi duman 13-01-1200 Yeliz ayangiL 13-01-1202 Gökhan ÜNNÜ



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DIREN WINERY

While receiving his education at Agriculture Vocational Senior High School of Bursa between 1940 and 1943, our founder M. Vasfi Diren developed a particular interest in oinology as a special branch of agricultural arts after having heard of the statement of a French scientist who reportedly had said that he would be surprised to hear the death of a person who eats an apple a day and drinks a glass of wine and of the declaration attributed to Germans to the effect that eating a little and drinking a lot is the key to longevity. This interest was further reinforced by the fact that the Central Anatolia is the homeland of grapes. Throughout the centuries, vineyards abounded in the Tokat Province and became a model for vineyards and vegetable farms elsewhere. After his conquest of Istanbul, Ottoman Emperor Mehmet II ordered vineyards to be created in Beykoz through gardeners brought from Tokat. When a Jesuit school was opened in Tokat in 1881, the missionary teachers carved terraced vineyards into the mountains there. These vineyards still exist today. The most predominant grape species of Tokat is the Narince, which bears the transportation well because of its thicker skin. It has an amberish colour and well suited for making wine and treacle because of its high yield of juice. It is also much appreciated as a table grape. Taking all these into consideration and after a preparation of 18 years, Mr. Diren began the production of wine on 5 October 1958 with the belief that the overall national development was possible only through the agriculture and that the required resources for industrialisation could be secured solely from the agriculture. In the first year, he produced 15 tons of wine at his home converted into a winery.

Having won the first prize in the 1st Wine Contest held in Manisa in 1963, his interest in the matter had reached new heights and, for further development and growth, he established close ties with the Faculty of Agriculture in the University of Ankara and with the Management of Institutes of State Monopolies. In his visit to Germany's Rhine and Moselle regions, renowned with their wine industries, he studied the existing facilities at close quarters, prepared his project aiming at a production of 1,5 million liters per annum and placed his order for new machinery which arrived here in 1964. Having noted the high technical education levels of the personnel of these wineries operating with advanced technologies he decided to have his children to receive their education in this field both within Turkey and abroad. He sent his sons Orhan Ziya Diren to France and Ali Rıza Diren to Germany between 1968 and 1973. His brother Erol Diren became a mechanical engineer at the Engineering Faculty of Istanbul Technical University and his sister Nihal Diren Suner received her degree of food engineering at Ankara University's Faculty of Agriculture. The group, working as a family company from the very start have pursued this activity under the guidance, determination, resourcefulness and will and, with the encouragement received from the founder M. Vasfi Diren, registered an unprecedented success story throughout the past 45 years. The Company is proud of having its name placed in the list of leading wine producers of the world and received an imposing number of prizes, awards and certificates. The bulk of wines produced from the Narince grapes of the region are exported.

The Marketing Management Process

Developing and managing a marketing plan can be a very long and involved process. Entire books are written on this subject so this section will give a very basic and simplistic overview of the process.


1. Marketing Research and Segmentation

This initial step is aimed at identifying the markets and/or a specific niche or niches that exist for wine, analyzing the competitive situation and assessing the organization’s strengths and weaknesses. A market is a group of people or organizations with wants to satisfy, money to spend, and a willingness to spend. Alternatively, a market is any person or group with whom an individual or organization has an existing or potential exchange relationship. Those who drink wine is a market. This can be further broken down into niches such as:

 those who are health conscious,

 those who love the taste

 those who love specific varietals,

 those looking for prestige and admiration,

 those looking to get wasted.

Each of these sub-categories may also have sub-categories.

A market analysis focuses on those markets that have a need and/or want they need fulfilled and the willingness and ability to purchase a specific wine. Once potential markets have been developed factors such as market size, growth, and accessibility can be assessed as well as market demographics (age, gender, education level, expenditure patterns, family life cycle stage, income, ethnicity), psychographics (personality, life style, behavioral intentions, usage rates, attitudes, interests, opinion, cultural factors, and technological aptness.

The competitive situation that exists in the industry can be assessed according to, for example, who potential competitors would be for specific markets, their strengths, weakness, and what their overall plans for their product includes. This may include the price they are offering, how they are promoting their wines, where their wines are being distributed, etc.

Developing the winery’s strengths and weaknesses is also important. Does the winery offer exceptional wines at moderate prices? Does the winery offer outstanding customer service? Does the winery have brand name recognition? Etc.

There are several practices and data sources to find this information. They include;

observation,

secondary,

 primary research methodologies.

For a winery, discovering all of these factors would probably not be cost effective. It is up to a winery to develop which factors are most important to obtain and develop.



Research Methodology

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Segmentation

To get a product or service to the right person or company, a marketer would firstly segment the market, then target a single segment or series of segments, and finally position within the segment(s).

Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. The world is made up from billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment'.

Segmentation is a form of critical evaluation rather than a prescribed process or system, and hence no two markets are defined and segmented in the same way. However there are a number of underpinning criteria that assist us with segmentation:



  • Is the segment viable? Can we make a profit from it?

  • Is the segment accessible? How easy is it for us to get into the segment?

  • Is the segment measurable? Can we obtain realistic data to consider its potential?

The are many ways that a segment can be considered. For example, the auto market could be segmented by: driver age, engine size, model type, cost, and so on. However the more general bases include:

  • by geography - such as where in the world was the product bought

  • by psychographics - such as lifestyle or beliefs

  • by socio-cultural factors - such as class

  • by demography - such as age, sex, and so on.

A company will evaluate each segment based upon potential business success. Opportunities will depend upon factors such as: the potential growth of the segment the state of competitive rivalry within the segment how much profit the segment will deliver how big the segment is how the segment fits with the current direction of the company and its vision.

There are many ways that a segment can be considered. Pamukkale şarapçılık A.Ş. segments the market by geographic, demographic and behavioral variables.



Geographic Segmentation

Finding where prospective buyers live is a straightforward way to define markets and very important to market segmentation. Knowing the location of target customers influences location of premises, transport and product type decisions. Geographic profiles include:



  • Location - relevant to position of sales premises, delivery services and promotion campaigns

  • Region - relevant to different needs of urban and rural customers, climatic considerations

  • Residence - age, type and value of property relevant to type of customer and needs for products

Shiraz works well with spicy and strong dishes as well as dishes covered with thick sauce. So we ca say that our product addresses especially people in the south and southeast of Turkey. Pamukkale Şarapçılık has common sales out of Turkey such as European countries. For example it has a branh in Germany. The price of it is expensive for Turkey but it’s not so much for European people.They can buy it, they can afford it!
Demographic Segmentation

Demography - population characteristics - segments customers by major personal traits, some of which are changeable. All strongly influencing buying, these include:



  • Age - relevant to needs, tastes and interests

  • Gender - relevant to needs and product development

  • Family life cycle - relevant to interests, needs

  • Culture - relevant to customs/religion, needs, tastes

Consumers needs and wants change with age. We can suggest Shiraz for middle age group or over and also young people!

Gender has no matter on consumption of shiraz. But income level is very important. Because our special wine has a hihg price than the others. Consumers who have middle level of income or over ca buy it, others can’t afford in Turkey. For example you ca find this type in Migros but not in Tansaş. Because customers who shop in Migros has a middle level income or over.

Also people who shop from A type markets, who eat dinners or lunchs in a luxury restaurant or who would like to visit wie boutiques can buy Shiraz.
Psychographic Segmentation
According to the doctors’ advices, people go towards drinking a goblet of red wine with meals. Consumers who are interested in these advices and who think that one glass of wine will be healthy, start to drink red wine. And also if they want red wine of high quality, they will choose Shiraz of course!

People who would like to test different tastes, will choose Shiraz too. Because it contains the aroma of tropical fruits and has a intense, spicy flavor, especially the aroma of pepper.


Socıo - Economic and Behavioral Segmentation

Most socio-economic aspects of customers lives can easily change. Purchasing power depends directly on income, whilst actual or perceived social position may influence needs, tastes and interest. Customers can be segmented by:



  • Income - relevant to buying power

  • Occupation - relevant to cultural interests and tastes

  • Class or social position - relevant to needs, cultural interests, tastes

Wine consumption increases during chrismas. They push people to buy red wine, esp. Shiraz also in other important days. Because special days should be celebrated with a special wine ,they say. They offer Shiraz for st. Valentine’s day, birthdays, wedding aniversaries.

People who can’t give up “raki culture” wouldn’t like drinking wine. But Pamukkale Şarapçılık tries to attract them too and change their mind.

Also they try to attract heavy users because their consumptio is a lot. They analyze loyalty patterns in wine market. They starat with its own loyal customers. They fix their needs and they focus on them. Then they study on less loyal buyers. They detect which brands are most competitive with its own. Doluca is o e of the competitors. So they attempt to improve their positioning against Doluca, by using fairs, festivals etc.


Targetting
Targetting is the second stage of the segment, target position process. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them. Resources and effort will be targeted at the segment. It's like looking at a dart board or a shooting target. You see that it has areas with different scores - these are your segments. Aiming the dart or the bullet at a specific scoring area is 'targeting'. There are three main types of targeting. They are considered below.



The first is the single segment with a single product. In other word, the marketer targets a single product offering at a single segment in a market with many segments. For example, British Airway's Concorde is a high value product aimed specifically at business people and tourists willing to pay more for speed.


Secondly the marketer could ignore the differences in the segments, and choose to aim a single product at all segments i.e. the whole market. This is typical in 'mass marketing' or where differentiation is less important than cost. An example of this is the approach taken by budget airlines such as Go/Easyjet in the UK and Ryan Air in Eire.


Finally there is a multi-segment approach. Here a marketer will target a variety of different segments with a series of differentiated products. This is typical in the motor industry. Here there are a variety of products such as diesel, four-wheel-drive, sports saloons, and so on.
Pamukkale Şarapçılık has a target mass of elite level for Shiraz. Also education level is university degree. They don’t like drinking coke, beer or raki with meals. This group prefer red wine but they want the best quality. So they choose Shiraz. Age ad gender is not important for wine choosing.

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