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WSET D2 Wine Business > 7 > Flashcards

7 Flashcards

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1
Q

Marketing (from the Management persepecive) defined?

A

-the management process which is responsible for identifying anticipating and satisfying customer requirements profitability

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2
Q

Marketing -defined by the customer’s perspective?

A

Return on investment capital

Ownership of something perceived as valuable

Social status

Experience the wine brings

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3
Q

Marketing- AIM of marketing?

A

Create profit through:

-volume of sales: attracting new, encouraging existing

  • value of sales: convincing customers of price vs. lower options
  • campaigns cost money and resources to achieve adequate level of profit
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4
Q

Overview of the marketing process?

A

P A T O D I M

1 identifying the PRODUCT/ brand to be marketed

2 ANALYZING the current market

3 identifying the TARGET market

4 setting the OBJECTIVE of the marketing strategy

5 DEVISING the marketing strategy (the marketing mix)

6 IMPLEMENTING and MONITORING the marketing strategy

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5
Q

Produce life cycle- Introduction

A

The strategy should focus on getting the product into the market and gaining recognition / reputation

Initially, distribution may be limited to a few carefully selected channels

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6
Q

Produce life cycle- Growth

A

The product should be increasing widely distributed and aimed at a broader target market, to encourage a strong growth

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7
Q

Produce life cycle- Maturity / Stabilization

A

the strategy should highlight the differences between the product and the other competing products which, by now, will have entered the market

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8
Q

Produce life cycle- Decline

A

A company may take steps to extend the life cycle by improving the product, updating the packaging, reducing the price to make it more competitive or seeking new markets

Each of these will need to be communicated to prospective customers through an appropriate marketing strategy

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9
Q

What is the goal of branding?

A

Seeks to differentiate a product to the extent that consumers will want to buy it even if it cost more than the minimum possible price

Name recognition brings status to consumer, trust to the consumer

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10
Q

What is the definition of brand?

A

CIM- the set of physical attributes of a product or service, together with the beliefs and expectation surrounding it

A unique combination

The name or logo evokes in the mind of the audience

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11
Q

A successful brand with a positive image in the consumer’s mind can be achieved through?

A

Successful ___ can be achieved: L e S s S T E P S

Longevity Story

Substance Trust

Engagement

Price premium

Strong brand name

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12
Q

Branding is achieved through substance:

(positive image in the consumer’s mind can be achieved)

A

Consistently deliver the same level of quality and style

Eg Champagne house produce a NV wine in a house style that is consistent from year to year & is not marked by vintage variation

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13
Q

Branding is achieved through consumer trust

(positive image in the consumer’s mind can be achieved)

A

As a result of this consistency, consumer come to trust a brand always to give them what they want.

-low involvement consumers will therefore regularly buy favorite brand of wine in preference to a cheaper, unbranded alternative which they do not know

-important factor in the success of supermarket brands

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14
Q

Branding is achieved through consumer engagement

(positive image in the consumer’s mind can be achieved)

A
  • The consumer should have relationship with the brand and will ask for it by name
  • strategy is aimed directly at them- although this will clearly not be the case
  • b/c of the closeness of the relationship, even the smallest minor label redesign risks alienating loyal customers
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15
Q

Branding is achieved through brand story

(positive image in the consumer’s mind can be achieved)

A
  • Successful brand ________ which consumers can relate
  • Creates an emotional attachment between the consumer and the brand
  • Purpose is to create a sense of authenticity which links it to a particular place in a way that bulk wines can not do
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16
Q

Branding – brand story

What goes into making a brand story?

A

-what is the producer’s history?

Generations? Previous careers?

-where are the grapes grown?

Single vineyard / estate grown? Topography?

Unusual grape? -how was the wine made? Organic? Biodynamic? Processes?

-why that label design?

17
Q

Branding is achieved through price premium?

(positive image in the consumer’s mind can be achieved)

A

Many successful brands command higher prices than similar generic products

Many consumers view higher prices as a guarantee of quality

18
Q

Branding is achieved through longevity

(positive image in the consumer’s mind can be achieved)

A

Many leading brands have been in existence for a long time

Eg. Champagne brands

Some other are relative newcomers :

Hardys (1850s)

Gallo (1930)

Robert Mondavi (1960)

19
Q

Branding is achieved through strong brand name

(positive image in the consumer’s mind can be achieved)

A
  • easy to remember
  • easy to pronounce (especially sold in different countries with different languages)
  • what does the name mean in several languages
  • innocent in one language and previous in another.
20
Q

How does the translation of brand name need to be considered?

A
  • may have need of different brand name in different markets
  • connotation to resonate with that new other people better

Design may have better appeal with a target market over others

Change design – appeal to a secondary market

21
Q

How does geographical features of a brand name need to be considered?

A

May be successful bc brand names have reference to a __

  • product may be very closely linked to agriculture and land
  • give the wine a sense of place

Links the product to its heritage * sense of longevity

Eg Champagne (Krug) or fortified wines (Taylor’s Port)

22
Q

How does a trademark registration of a brand name need to be considered?

A

In China given to the first person/ company to file an application rather than being based on usage

-expensive legal battles to gain the right to own a brand name

23
Q

How does a company measure the strength of the brand name?

A
  • not a tangible asset
  • brand equity w/ includes components such as
  • brand awareness- the extent consumers are familiar
  • Brand image- how consumers perceive the brand
  • specialists consultants to calculate the financial value of their brand equity to include as an asset on a balance sheet
24
Q

Types of branding include?

A

P P L L ea S e

Brand Position

Private Label

Ladder brand

Luxury brand

Soft Brand

25
Q

Types of branding -Brand position

A

Where a brand sits within a market and the cues used to indicate that position

  • position is usually set at launch with an intended price point
  • value point should not be ignored à potential for high volume sales
26
Q

Types of branding -Brand position

-categorizing brand common methods include?

A

Value

Standard

Premium

Super premium

27
Q

Types of branding -private label

A

Wine may be produced by well known producers, but producer name will not appear prominently on label

-only available from the retailer or restaurant that created the brand

28
Q

Types of branding -private label in the supermarket

A
  • sell larger volumes and high level of market exposure
  • buy directly from producer, no / little intermediary costs
  • spmkt employee is / works with winemaker ensure quality
  • expertise may help producers to improve the quality of wines which they sell elsewhere
29
Q

Types of branding -ladder brand

A

Are intended to give consumers easy to understand rungs to help them trade up to a higher priced and better-quality expression

1 Accessible- the least expensive with greatest distribution -consumer to buy most

2 Stretch- affordable but only for special occasions

3 Aspiration- the most prestigious expression of the brand. Most of the brand’s consumers will never buy it as it costs far more than willing -should cast its super premium identity

30
Q

Types of branding -ladder brand examples in champagne & burgundy?

A
31
Q

Types of branding -soft brand

A

Term is sometimes used to describe any cue used by a consumer when choosing to buy one produce in preference to another

-eg. Country of origin -Australia

Region - Rioja

Geographical indicator – Pouilly-Fume

Grape variety- Merlot

Style of wine- Chardonnay

32
Q

Types of branding -soft brand – geographical indicators usage

A

Regionality produces identity of brand

-eg Sauvignon Blanc from Lorie Valley labelled Pouilly-Fune AOC

Most producers are too small to become known

But benefit from the AOC’s reputation in the wine market

EU, GIs are used for marketing purposes

Ever growing number of AVAs in CA

33
Q

Types of branding -luxury brand

A

No agreed upon definition

-tend to be super premium priced- only few customers can afford

-promote the idea of scarce/ perceived or real

-promote quality fruit, no expenses spared during winemaking

-promote idea of luxury, positioning in the market upmarket retailers

WSET D2 Wine Business (12 decks)

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