DELAMERE V I N E Y A R D WHAT ARE DELAMERE'S STRENGTHS AND WEAKNESSES? WHAT DOES IT DELIVER TO CUSTOMER THAT OTHER VINEYARDS DO NOT? WHAT DOES IT TAKE TO BE OUTSTANDING IN THE WINE BUSINESS? Strengths : Richardson himself, who has extensive expertise and experience related to wine making, places a focus on quality and a particular attention to details. (Ph.D. and work history) Location (the right climatic conditions) and grape varieties (pinoti noir and chardonnay) preference derived from study and the work of the past Concentrated plantation leading to the blending of the wine produced the existence of more complex chemical components in high-quality wines. Fully integrated operations and internal business processes premium market segments for target consumers. Experience in the field of winemaking, potential changes, and their effects on output. Cellar door channel to interact with and get feedback from customers directly. Weaknesses : Boutique wineries who enjoyed creating wine and could endure losses over an extended period of time exacerbated rising average quality demand and intense rivalry in the target market segments. Weather dependence on the crop and the environment while crops are being cultivated is quite unclear. Industry with a lengthy production lead time and low returns on capital. High pinot noir sensitivity (Prone to oxidation and loss of chemicals, Wine pigmentiation etic.) Around 500 chemicals are produced by manual labour (hand plucking, foot pigeaging), the use of open fermenters (prone to oxidation), and a lack of professional guidance during the wine-making process. Customers of Delamere are permitted to tour the winery and see the production on their own before making a purchase. Only the highest-quality wines, hand-selected by Richardson, are provided to them. If one is willing to pay the price and enjoys the process, the wine they purchase is guaranteed to be enjoyed. Additionally, it takes customer feedback into account to modify the wine-making process and wine quality as necessary. To succeed in the wine industry, one needs to possess the following qualities: Risk tolerance In this industry, there are many uncertainties. Everything could be lost at any point in the process. Despite the potential for significant profits, the investor must be prepared to lose all of their money. Capital: Making wine is obviously a capital-intensive process. A person launching this firm should have enough money and funding from specific sources. In this instance, a fine wine is comparable to a personality and an expression. Without passion, it is very difficult to create a wine's unique personality, which is a highly dangerous process. Knowledge and information This covers knowledge of the wine-making process, academic research results, climatic variations, and the effects of process variation on wine, including preventive actions. government endorsements: This is essential because everything else seems pointless without it. WHAT TYPE OF UNCERTAINTY DOES RICHARDSON FACE? The uncertainties faced by Richardson are as follows: - Pinot noir grapes were a variety that contained fewer pigments in comparison to other varieties, resulting in lesser colour concentration(deep purple), a property that wine drinkers preferred. - The specific taste derived is a combination 500 aromatically active organic compounds developed across the different stages of development. Even when all procedures are kept constant and the wine is grown at the same locations they could end up with strikingly different flavors. - The experience of wine arises from factors like aroma associations with childhood experiences, combination of foods, cultural conditioning and personal sense of identity leaving the experience with a high sense of variability. - The industry experiences a large gap between demand and supply and varying lead times making forecasting a difficult task - The wholesalers are more comfortable with consistent products making it difficult to bring them on board. Due to these uncertainties Richardson is faced with three project options: 1. Attempt to redesign his procedures in such a way that the oxidation during winemaking is eliminated to get rid of the unforgettable bitter aroma and unattractive browning colour. 2. Richardson could invest in developing a effective means of deepening the colour of Pinot Noir to appeal to the Australians, his main target market. 3. He could explore the possibility of a mix of whole bunch and destemmed grapes during fermentation or move to full whole bunch. Each combination could subtly influence the taste and character and carried its own risks and costs. WHAT DOES 'QUALITY' MEANS IN WINEMAKING? • Quality in winemaking is hard to define • The specific taste experience gained from any given wine derived from the complex interaction of more than 500 aromatically active organic compounds • These compounds were initially shaped by genetic makeup of the grapes, but they developed during growing, ripening, fermenting, and maturation stages • Most of the drinkers tvpically referred to as taste derived from the wine's smell • The taste depended on: the association of aroma with childhood experiences, combination with foods, cultural conditioning, and personal sense of identity • According to Richardson "The subjectivity of quality is a cultural thing. You can't go into a lab and say, That's quality WHAT PRINCIPLES AND CONCEPTS SHOULD PRODUCTION SYSTEM SUCH AS WINEMAKING? ONE APPLY TO IMPROVING A Choices available at each stage: Growing grapes: • The variety of grape to plant • Placement of the vines • Machine picking or hand picking Crushing: • Alternatives for the berry and other vegetal material combination when crushing • Should some grape juice be drained to concentrate the remaining juice • Whether to macerate before fermentation Fermentation: • Yeast choice • open or closed type of fermentation vat • What to do about malolactic fermentation or chaptalize Maturation: • use previously used or new oak barrels • Whether to leave the wine with lees • Whether to fine and filter Bottling and packaging: • The three red wine products bore separate labels TQM: • Constant experimentation with various possibilities at each stage, removing those that provide undesirable results. • Enhancing the customer experience through ongoing input from clients and insightful remarks from experts • The staff members are liable for overall quality and have received thorough training in the procedures. • From the quality of the grapes, through the wine-making process, to the bottling and marketing of the finished product, quality is monitored and guaranteed at every step. • By continuously improving, this will raise the quality of wine. TQM: • Constant experimentation with various possibilities at each stage, removing those that provide undesirable results. • Enhancing the customer experience through ongoing input from clients and insightful remarks from experts • The staff members are liable for overall quality and have received thorough training in the procedures. • From the quality of the grapes, through the wine-making process, to the bottling and marketing of the finished product, quality is monitored and guaranteed at every step. • By continuously improving, this will raise the quality of wine. Inventory Management: • Inventory management system can track production of each and every bottle • Important to track the selling of wines through all the 3 channels • The inventory management system should be integrated with vineyard production. 5S: Sort: Removing the unnecessary machinery, vats, and materials Set: Order the remaining objects so that they are easier to use Shine: Maintaining a clean and healthy work environment. Preventing spoiling in open fermenters is very crucial. Standardize: Continually exercising fundamental process control based on prior knowledge. Sustain: Making sure that the personnel practise the aforementioned principles on a regular basis. WHAT SHOULD RICHARSON DO? HOW WILL HIS PERSONALITY AND EXPERIENCE SHAPE HIS DECISION? Richard should go with option 2. It suggests that consumers would pay a high premium for the perceived quality of cellar doors. The cost of the expense will be recovered in three years due to the price increase. The second alternative that is available is option 1, which has a lower effective cost and greater performance due to enhanced consistency that wholesalers demand. The final option that Richardson would select would be option 3, which has a higher effective expense. This is a bad decision because the money spent can never be recovered. Despite the possibility of increased aesthetic reliability of wine production decreasing because of production unpredictability EFFECT OF PERSONALITY AND EXPERIENCE Based on the experience and personality the option 3 would be better for Richardson because he is more of an experimental person, while option 2 was mentioned as being better for the organization. Richardson can move forward with option 2, but he can also set aside time to test out alternative options. He could then Tool 4 Tool 5 hire a few people to handle the routine work that has become relatively standardised. THANK YOU Dyuti Bhattacharyya - 21PGP066 Kushali Sindhia - 21PGP118 Madhulika Kadu - 21PGP123 Pragya Kothari - 21PGP171 Sadiya Tabassum A - 21PGP197 Saim -21PGP200
