The Hannover Messe - Essay Example

Frey Vineyards has been in the business of organic wine making for over two decades, and represents some of the best produce to be found in California. This region produces some of the most exciting new wines in the world, and has found wide appreciation and dedicated customers around the world, including from Europe. Frey Vineyards is also a pioneer in the production and marketing of bio-dynamic wines. We have a proprietary process which allows us to bottle and to present wines without the addition of sulfites, thus avoiding extraneous pungency, and allowing the natural flavors and aroma of our produce to be enjoyed by wine lovers everywhere. Our organic and bio-dynamic certifications enable wine lovers enjoy their favorite beverage without compromises on health and ecology concerns. Frey Vineyards is pleased to arrange a series of awareness activities and events for organic and bio-dynamic wines at your April 2007 event. This will lend a unique touch to the Messe, with the financial prospects of more than 20% returns on an investment of about $100 thousand which would be required on your part. A detailed proposal is enclosed. We would be pleased to address any questions that you may have, and will take the liberty of establishing fresh contact with you once the ensuing festive season is over, if we have not heard from you by them. We need to start preparations before the end of January 2007, in order to have all arrangements at Hannover in place not later than the end of next March. Please accept our best wishes for the New Year. (Signed) Executive Summary The Hannover Messe is a global event which attracts the magnates of the business worlds of all major economies. It is a path breaking event with a reputation for innovation and value. People from all walks of life, look forward to participation here. Most visitors to the Hannover Messe have high disposable incomes and refined lifestyles. They attend similar events at regular intervals, and would expect variety and creativity at the famed Hannover Messe. Germany has always been at the vanguard of the movement against chemical inputs in all forms of agriculture, though it hosts a few of the biggest manufacturers of such products. Organic farming is highly appreciated is this part of the world. Renewable energy and organic produce go together, with a mutual benefit in terms of branding. Refreshments are essential at any Messe, so there could hardly be a better occasion to launch a new form of healthy and safe wine. There is a clear confluence of business interests of the Hannover Messe and Frey Vineyards. Similar values drive both organizations, and the business event in April 2007 is a suitable occasion for collaboration. The proposal is for wine tasting sessions, seminars on organic and bio-dynamic wines, and order booking with physical spot sales of the products of Frey Vineyards during the April 2007 Messe. This would give the event a unique touch, and offer the Hannover Messe an interesting commercial opportunity as well. The interest of Frey Vineyards would be to launch its product range in Germany. Both organizations could extend the collaboration to other countries in future. Hannover Messe would have to make a token investment of about $100 thousand towards providing facilities for wine tasting, and seminars at the event, international advertising, and providing local logistic and legal support for the import of the products of Frey Vineyards. The latter would provide material for tasting, and technical background for the event at its cost. The Hannover Messe could expect a return of about 20% on its initial investment, apart from the non-financial benefits on image and foot fall. A series of actions on various fronts should start immediately on approval of the proposal by the Hannover Messe. A PERT analysis shows that the actions with long lead times must start not later than en January 2007 for completion by the end of March in the same year. Applicant Company Description Redwood Valley is an especially scenic part of California, with no signs of the urban degradation which so haunts our world of today. The Frey Vineyards are situated in the bounteous soil of this glorious land. The farm has grown grapes for almost half a century, though Frey Vineyards has exited as an independent brand only since 1980. The Frey family does not merely own the farm and the company, but each of the key members has specialized in an advanced aspect of wine making. Frey Vineyards has established a vanguard position in the organic wine production segment of California. Frey Vineyards is also a pioneer in making bio-dynamic wines, and in production without the pungency of added sulfites. Every bottle from this distinguished house is special and adds grace to any occasion. Bio-dynamic farming involves techniques of sustainability. The Frey Vineyards are the first in all of California to achieve the prestigious Demeter certification. Bio-dynamic farming involves rearing farm animals and growing plants and herbs in the vicinity of the vineyards for bio-diversity which is area specific. Organic wine grown in a bio-dynamic environment has flavors all of its own, and adds greatly to the pleasures of enjoying this beverage. The product from California is distinct from its peers in Europe and other parts of the world and is admired by enologists everywhere. The family ownership and management structure of Frey Vineyards adds a quaint property to the brand, assuring consumers of diligence in keeping the final product free of chemicals, pesticides, and other such toxins. This is a key advantage for regular wine drinkers, as the intensive use of fungicides can cause high levels of chemical residues to build up in human tissues. The traditions of the Frey Vineyards, and the unique qualities of its products would contrast in splendid manner with the modernity and technologies on display at the Hannover Messe. Visitors are sure to be delighted to have opportunities for wine tasting, and for learning more about the technicalities of organic and bio-dynamic wine production. The absence of added sulfites will also give established wine lovers a new experience. Frey Vineyards could be one of the most sought after participants at the Hannover Messe. Zinfandels are amongst the best entries in the Frey Vineyards wine list. The California soils are perfect for this type of wine. Aged in French Oak, the product from Frey Vineyards is delightfully adorned with berries. It has won a silver medal in a California competition. The company’s white Zinfandel is highly acclaimed, and is nearly perfect for gourmet dining and during cocktails. The late harvest Zinfandel is sweet and has won many awards. The Cabernet Sauvignon has also won a bronze medal locally, and is said to go especially well with chocolate. Frey Vineyards rounds off its collection of red wines with a Merlot, which accompanies a red meat course with distinction. Frey Vineyards has a Chardonnay with a fantastic hue. It goes especially well with white meat and with appetizers. Grapes from both the Frey Vineyards, and from neighboring farms, go in to this wonderful product. The company’s Gewurztraminer is very dry, and has enchanting fruit and herb flavors. The white Sauvignon is highly recommended to accompany ethnic food. Frey Vineyards also has an economical natural white, which can be enjoyed on a picnic, or with a casual meal. The company also has a natural red, which is one of the top selling wines from Frey Vineyards. Frey Vineyards will launch a Pinot Noir during the time of the Hannover Messe. It is a light red, and has already won local awards. It adds a special touch to all the organic wines from this company. Though the concept of bio-dynamic wines is relatively new, Frey Vineyards has an excellent collection in this category. All products in this category are certified by the internationally recognized Demeter organization. Demeter’s standards are far higher than normal organic certification, though Frey Vineyards are certified as being organic also. Demeter’s focus, which is on sustainable and ecologically sound agronomic practices results in a whole new set of values for the customers of Frey Vineyards. Though there are a few other sources for bio-dynamic wines, the unique feature of the products in this category from Frey Vineyards is that no sulfites are added, allowing the full expression of natural flavors. Sulfites can cause allergic reactions, apart from their modifications of taste, so the products of Frey Vineyards are unique from the safety stand point. The company uses a special fermentation process, with unique yeast cultures, but no animal products. The products of Frey Vineyards meet vegan specifications. The bio-dynamic range of wines includes some exceptional reds and whites as well. All of them are notable and multiple award winners. The Petite Sarah can be kept in the cellar for up to 6 years. French oak is used in its production, with some wild stains of yeast. It has a memorable flavor of a mixture of fruits. The Zinfandel from the bio-dynamic range is especially recommended with formal Italian cuisine. There is a Syrah which goes well with both elegant desserts and with cheese. A Cabernet Sauvignon and a Merlot complete the range of red wines in the bio-dynamic category. A white Sauvignon and a Chardonnay are both outstanding white wines in the bio-dynamic range pf Frey Vineyards. Both are excellent with exotic cuisines and special meals. Frey Vineyards is family owned, and hence financial information is not in the public domain. However, it is an established and reputed player in the U.S. wine industry. The company’s wine making methods, and its unique wine list, make it a high potential entrant for key wine markets outside the United States. The company does source material from neighboring farms which are also certified, so it has the base for future expansion of business. Its abiding commitment to the environment is certain to find appeal in the entire European Union. Visitors to the Hannover Messe will be thrilled to know that wines from a farm and a family of such rare distinction are on display and available for tasting and purchase at the exhibition grounds. It will add a unique and pleasing touch to the otherwise serious nature of the event. Since Frey Vineyards is largely engrossed in the technical aspects of fine wine production, it has no knowledge of doing business in foreign climes. The Hannover Messe authorities, renowned for their commercial and organizational abilities, and with their ambitions of conducting expositions in countries other than Germany, can provide the ideal vehicle for the introduction of Frey Vineyards to the world outside the United States. The commitment of the Hannover Messe to sustainability issues in the energy field will blend well with the sulfite-free technology of Frey Vineyards, and the concepts of organic and bio-dynamic wines from California. The family structure of the company, and the extensive knowledge of various aspects of wine production, will be a tremendous draw for domestic visitors to the Hannover Messe, and for delegates from abroad as well. The Frey family and the oak and yeasts they use are all of European descent, so it is entirely appropriate that their exposition to the world should take place at Hannover. Frey Vineyards has an average of at least a thousand cases of each of the products in its list, so the stage is well set for an international launch. Proposal Details The Hannover Messe is a premier business event for major corporations of the world. New technological developments are showcased at this venue. It is a meeting place for business leaders eager to seek new revenue lines for their enterprises. The vibrant domestic economy has been a traditional mainstay of the Hannover Messe, but during the recent past, companies from the emerging world have also started to make their presences felt here. The technical nature of products and discussions at the Hannover Messe act as filters to keep away casual visitors. Business people and leading technologists make up the typical visitor profile at the Hannover Messe. It is an unusual and rare congregation of wealthy people with refined tastes. The proportion of people with interests in wine and various advanced aspects of enology would be exceptionally high at the Hannover Messe. Germany is at the center of the global movement for environmental conservation. Most of the major initiatives against pollution and human toxicity have started in this country. Germany has the most stringent laws concerning chemical toxicity, and is primarily responsible for setting tough standards in this regard throughout the European Union. German consumers can be trusted to value organic and bio-dynamic produce of all kinds most highly. Environmental concerns are holistic in nature. People who worry about the future of the planet do not make compartments of their minds. Anyone who is interested in renewable energy would also be a supporter of organic and bio-dynamic produce. There is a natural synergy between the focus of the Hannover Messe with respect to renewable energy and the values which govern the business of the Frey Vineyards. It is this line of reasoning which governs the substance of this business proposal. The spirit behind the Hannover Messe is a perfect launching pad for organic and bio-dynamic wines. Such beverages of sublime quality have an integrated role with business events at the highest levels. There is nothing to rival a glass of wine to smooth the way for difficult negotiations. Fine dining is a part of every industrial exposition, so it is an occasion during which there are continuous requirements for wines of distinction. There is a commonality between the aims of the Hannover Messe and the business of the Frey Vineyards, and both stand to benefit from an association in equal measures. Hannover could just a starting point for a global collaboration between these two outstanding organizations. There are many opportunities to promote the wines of Frey Vineyards at the Hannover Messe for the common benefit of both entities. This requires close coordination, which should start with a detailed enumeration of the possibilities and a plan of action. It will also form a basis for detailed financial budgeting. Promotion will be a first and important activity related to the presence of Frey Vineyards at the Hannover Messe of April 2007. All prospective visitors should receive prior intimation of the related events at least three times during the first quarter of calendar 2007. This will enable them to allot time for wine tasting sessions and to attend technical seminars on the unique properties of wines from Frey Vineyards. Companies participating at the Hannover Messe should also be told about the availability of the products of Frey Vineyards for hospitality at their booths, as well as for any events which they may plan to host. Frey Vineyards may offer some limited selections free of charge for the best booths, and all participants can negotiate special rates for their own supplies through the Hannover Messe. The official caterers to the Hannover Messe, as well as fine restaurants in town should also be informed about the participation of Frey Vineyards at the fair. Their customers would probably want to order items from the California wine list after attending the tasting sessions and technical seminars on sulfites, bio-dynamic farming and related concepts. They would need to incorporate the available selections and their prices in their menus. Some Hannover establishments, and ones in nearby cities, may wish to organize their own events to exploit the business opportunities created by the Frey Vineyards launch. This will be a valuable opportunity for the Hannover Messe authorities to spread their wings of influence as well. Mass media has to be ruled out because of the ceiling of $250 thousand on project expenses. No useful purpose can be served by limited exposure in the newspapers and television. Therefore, the vital aspect of promotion has to be served entirely by limited direct selling efforts. Frey Vineyards should be an integral part of the welcome ceremonies at the Hannover Messe. All visitors can be offered complimentary passes to the tasting sessions. This will also serve to regulate entry, and to keep the free sampling within budgeted limits. The number of passes issued should be regulated on a daily basis, so that interest is sustained throughout the duration of the Messe. All participants should be invited to contribute to reception activities, so that the number of visitors who are accommodated goes up as high as possible. Flyers on the entire wine list of Frey Vineyards should also be distributed at all entry points to the Messe. Passes to tasting sessions could also be distributed through hotels where delegates will stay, and should be linked to the commercial support of these establishments for Frey Vineyards in their bars and restaurants. The Hannover Messe authorities will need to provide a suitable enclosure for the wine tasting sessions. Frey Vineyards should be able to create an ambience similar to their California farm, to give an authentic and value-added touch to the experience. Sanitary facilities related to wine tasting sessions should be provided, as well as trained watch and ward staff to prevent undue crowding. Wine tasting is not something to be enjoyed at just any time of day, so the authorities will have to provide for peak capacities during mid-morning and early evening periods. It would be best if the wine tasting sessions could be at many locations across Hannover rather than at the Messe venue alone. This will also serve as an opportunity to underwrite some of the investment with assured sales. Frey Vineyards will be willing to provide support staff and all resources to implement wine tasting at each venue in a suitable manner. It would be best if the seminars could be scheduled before or after the wine tasting sessions. The Frey family is large enough and adequately trained to conduct the seminars at multiple locations in the Messe and surrounding parts of Hannover simultaneously. Additional experts from neighboring farms of California from where Frey Vineyards procures grapes can also be drafted and flown to Hannover for this purpose. Frey Vineyards has excellent photographs of its farm from which ready-to-use multi-media presentations can be prepared. April is an important month for grape cultivation in California, so it will be wonderful if the Hannover Messe could arrange a video-conferencing link between its own location and California for real time viewing of the agronomy and ageing practices. However, the main thrust of the seminars should relate to the special strengths of Frey Vineyards. The effects of sulfites, and the nature of bio-dynamic farming, should be the main subjects for the seminars. There could also be some subjects related to enology in general, and related to the properties of California wines relative to European ones. A final element of the activities of Frey Vineyards at the Hannover Messe 2007 should relate to building lists of consumers, sellers, and influencers. The wine tasting sessions and the technical seminars will be the right occasions to build names, email addresses, and consent to send follow-up mailing. The type of communication after the Messe will depend on customer category. Consumers will probably appreciate continuing information on new wines from Frey Vineyards, and arrangements for direct shipments outside the United States. Sellers and institutions with large volume requirements will also want to know how they can access the products of Frey Vineyards, and the kind of business support which they can expect. Enologists will be interested in news about awards won by Frey Vineyards, and detailed information about the bio-dynamic registration process. The investments made for the Hannover Messe 2007 cannot realize the full potential of returns unless names and addresses are gathered for continued communication with strategic customer groups. Sales at site during the Messe will count for immediate returns on investment. The Hannover Messe will have to provide logistic and legal support to Frey Vineyards, so that there is full compliance with German and EU regulations with respect to import, pricing, and sales of wines. Frey Vineyards has never made commercial shipments outside the U.S. and uses distributors even within its home country. Therefore, the entire burden of seeking due approvals from various relevant authorities must rest with the Hannover Messe authorities. However, Frey Vineyards will take unilateral action to ensure protection of its trademarks outside the United States. The Hannover Messe and Frey Vineyards must arrive at a legally binding agreement in writing, to take this proposal forward. It should specify the nature of the relationship, how tasks will be divided between the two entities, and the structure of expenses and revenues for both parties. There will also be the matter of jurisdiction in the event of a dispute. It is premature to decide on these matters at this stage, but time must be set aside for the construction of such an agreement. There will also be legal expenses involved in this part of the exercise. The absence of such an agreement makes it difficult to make a final financial budget at this stage, but some numbers can be targeted in order to give some dimensions to this proposal. There is budgetary limit of $250 thousand for this project, so it is suggested that this modest ceiling be split as $100 thousand being the share of the Hannover Messe, with the rest being spent by Frey Vineyards. It would be best if the Frey Vineyards share is allocated to shipping and insurance costs from California to Hannover, and for material to be provided for the wine tasting sessions. Some amounts will have to be allocated for travel to Hannover, and for the legal expenses to which reference has been made earlier. There will be some miscellaneous expenses related to the seminar materials, which Frey Vineyards should overlook at this stage. The first priority for the Hannover Messe share should be for legal and regulatory clearance expenses. It is estimated that this may not account for more than 10% of the $100 thousand budget. Another 10% should be set aside for unforeseen expenses and contingencies. The remaining $80 thousand should be used for promotion in terms of communication expenses related to letting visitors know in advance that Frey Vineyards will participate at Hannover Messe, and using it as an attraction to maximize foot fall during the event days. It is assumed that the exhibition grounds have adequate amenities to hold seminars and wine tasting sessions without any significant new infrastructure. There will be some miscellaneous expenses related to hire of crockery and provision of light refreshments, which the Hannover Messe may consider overlooking at this time. Intense and coordinated activity must start at the earliest if this proposal is acceptable and of interest to the Hannover Messe. The CPM/PERT method will have to use the project on cost and time tracks, and each of the parties may like to nominate coordinators from their respective sides. There will have to be at least one prior meeting between the head of the Frey family and a senior executive from the Hannover Messe before detailed operations commence. The ensuing festive season should not lead to delays which cannot be recovered in time, and hence the authors of this document will take the liberty of following this report with at least one direct contact with the Hannover Messe authority. Works Cited Hanover Messe, 2006 Accessed December 200 from http://www.hannovermesse.de/homepage_e?x=1 Frey Vineyards, 2006, Accessed December 2006 from http://www.freywine.com/freywine/wine-list.html Sant, T, 2003, Persuasive Business Proposals, AMACON Division of the American Management Association Read More