Novellino

...

Familiarity – Filipinos’ familiarity in wine was found to be close to none. As such, Novellino engages in sampling activities, advertising and social media engagements for publicity and promotions, hence, enabling them to increase brand awareness and to reach out to the young adult consumer base.

Current Campaign: “Pour out what’s special”

Novellino’s current marketing campaign aims to transform the company into a hipper and cooler brand, so as to be able to tap further into the younger working adult market. It revolves around the premise of the company’s ability to make every occasion perfect as long as there is a bottle of Novellino wine to be shared. This campaign capitalizes on its consumers’ special life moments by encouraging them to bring about the best in every occasion with the help of Novellino and see for themselves the promise of a pleasant surprise brought about by the wine purchase.

- Product Review

The Novellino brand carries a wide range of wine variants. The lightly fermented Rosso Classico is the all-time Novellino red wine favorite with its soft and subtle flavor. The Bianco Classico, on the other hand, is Novellino’s famed white wine. These two signature variants carry only 4.5% alcohol and that sweet wine experience perfectly suited for the Filipino palette.

Novellino is known for its relatively low alcohol content and its array of fresh and sweet blends that can be found in its casual wines, such as the Strawberry Passion, Luscious Peach, Wild Blackberry. The latest Sangria Novellino, characterized by sweet, rich and citrusy taste, also contains natural fruit extracts and ingredients which are harmoniously balanced according to the true Spanish tradition.

Bel Mondo Italia also carries Vivace, a line of bubbly wines that have a sweet character and vibrant finish. It comes in two variants – Rosso Vivace and Bianco Vivace, offering the consumers a choice between red or white wines, with 7.5% alcohol content, that are both rich, lively and fit for festive celebrations.

Wines with typical alcohol by volume are also offered. The 9.5% alcohol content and slightly effervescent taste offered by Rosso Tradizionale comprises Novellino’s semi-dry variant of wine. Novellino’s special house wine, Rosso Dell’azienda, which delivers a gentle, fruity taste and soft, silky texture contains 10% alcohol. It is a mixture of Cabernet Sauvignon and Merlot which is based from the rich traditions of the Breganze geographic area of the Veneto Region.

Full-bodied red wines, namely Cabernet Sauvignon and Merlot, comprises Novellino’s top-of-the-line varietal dry wines. Along with their complex bouquet and 12% alcohol content, these wines deliver an elegantly textured robust flavor with a “D.O.C.” classification, which guarantees strict abidance to the traditions of Italian winemaking.

With its array of wine choices, Novellino aims to cater to the market by focusing on the concepts of taste, price, and familiarity -- three factors they determine to be crucial in establishing their competitive advantage and catering to the needs of the Filipino market, who are, during that time, under the impression that wines are beyond their reach or are too strong and bitter for their taste.

- Review of Competition

Novellino targets the market of those interested in drinking wine but may not appreciate the European bitter taste, and would prefer a sweeter blend. Wines imbibe a sense of celebration, extravagance, and even high social standing. Essentially, Novellino targets the Filipino -- the Filipino’s love of sweeter drinks, get-together parties and flaunting of wealth.

Carlo Rossi, the closest competitor of Novellino in the Philippine wine industry, boasts its heritage and product variety. Compared to Novellino, Carlo Rossi’s genuine European heritage coupled with its authentic taste ensures it is not a threat to Novellino’s Filipino target market.

Franzia, coming in at a farther third, positioned itself to be the lovers’ wine.

However, the strongest competition of Novellino are soda, juice, alcohol and tea products. Essentially, products that are commonly used to accompany meals and social events. Novellino should take steps to expand the wine market although it competes against the aforementioned products.

- Review of Distribution

Novellino wines exports and distributes to foreign countries like Dubai, California, and Vietnam. The World Wine Co. Ltd. is the main distributor in Vietnam as Market Reach Distributors is in the Philippines. Here in the Philippines, you can buy their wines in supermarkets, convenience stores, and wine shops. Restaurants and bars also serve Novellino wines in their menu.

Novellino is currently looking for other places where they can distribute their wines. They take into account where most of the Overseas Filipino Workers are.

However, for the purposes of focus for this marketing plan, distribution lines and marketing practices in the Philippines only would be discussed, analyzed and given recommendations.

- Threats and Opportunities Analysis

- PESTDN (Political, Economic, Social, Technological, Demographic, Natural Environment) Analysis

- Political

- Taxes

Novellino is also affected by the Philippines’ tax laws. The very operations of Novellino requires inputs that are imported and are subject to import tax. Furthermore, the current Value-added Tax (VAT) rate of the Philippines is 12% made worse by the Php 30 (thirty pesos) levy of the Sin Tax Reform Act of 2012 that covers still and carbonated wines. Simply put, Novellino would have to balance the concerns of tax costs and competitive pricing.

- Driving Under Influence Laws

There is currently no DUI law in the Philippines. Given this, people may not be afraid to naturally drink alcohol to the point of drunkenness. This works against light wines and works for stronger spirits and beers. This suggests that Novellino should not make attempts to increase their alcohol content and instead focus on making and marketing the wines as chill and celebratory.

- Economic

- Increasing Consumer Spending and Disposable Income

According to the NEDA report, an average Filipino family spends