9 Flashcards
Marketing mix factors
The elements of the strategy are often referred to as ______
Product Price
People Place
Promotion
Once need/ wants/ objective has been identified, then company can devise the marketing strategy to achieve objectives.
Marketing strategy – Product -defined
What is being marketed?
Includes all the packaging
Branding
Any value added features?
Marketing strategy – Product
-should communicate appealing characteristics
-how will this satisfy their needs / wants
- label appeal- who consumer attracted to what kind of label
- marketing should describe the experience that product will deliver
- story of wine in branding
Marketing strategy- Product
Describe Saturated?
Already enough products to satisfy consumers’ needs
– few gaps between product types/ strong competition
- companies need to clearly explain differential than competitor
- higher quality/ better value, organic, vegetarian/ Fairtrade
Marketing strategy – Price
Cost includes product on shelf & includes delivery, discounts, consumer’s time & willingness to go and buy product
-ideally ____ is a balance reasonable profit for producer and a sufficient # of consumers willing to purchase
____ is affected by supply / demand & costs in supply chain
Marketing strategy – Price
-penetration strategies
A new product comes to market and price is set relatively low 0r enter the market on a price promotion
T0 undercut the competition
To reach a wider section of people
Expectation is that consumers will permanently switch to the new brand because of the lower price
-subsequent attempts to raise the price may or may not be successful
Marketing strategy – Price
-psychology of a price point
- people get more pleasure from wine they think is expensive
- consumers w/ lower wine knowledge who are buying wine for someone w/ greater knowledge may likely buy a more expensive bottle to meet the recipient’s expectations
Consumers may be more likely to buy wine priced at 9.95 than 10
Producers may reduce their price of their wine slightly to have retailer hit that desired price point.
Marketing strategy – People
1 The attitude and behavior of the target consumer
Or -depending on model
2 Refers to the relationship between the company, staff, partners, customers
-includes attitudes, skills, customer service
Marketing strategy – People
Wine producers should ensure they have sufficient trained staff to sell
- at cellar door or consumer events
- to distributors/ retailers
- make it easier to present a consistent message -producer’s vision
- may have winemaker or sales rep to highlight brand image & tell story
Marketing strategy – Place
-relates to where the product is sold: Target market shops:
Do G S S C H O W
Deep discounters Convinence
Global Travel Hybrids
Suppermarkets Online
Specialist shops Wine Inv Co
Marketing strategy – Place
High involvement buyers
- buy wine at independent specialist retailers
- premium supermarket chains but are increasingly attracted to deep discounters
- drink at specialist wine bars & fine dining establishment
- buyer is more experimental and would buy lessor know varieties
- distribution channels- often sold through specialist intermediaries
Marketing strategy – Place
-low involvement buyers
- supermarket, general bars, outlets
- simple aroma/ flavors profile that meet a certain quality standard
- tend to buy wine at supermarket and eat at general bars & non-destination restaurants
- products should be placed in outlets
- distribution channels- larger intermediaries, bulk shipped
Marketing strategy – Place
-consideration on country
Tastes vary from ____ to _____
May be necessary to produce wine with different aroma/ flavors, level of sweetness, alcohol
Legislation, taxation, and duty, or restriction on distribution may make some ____ more attractive than others
-producer may decide not to sell in a so-called price sensitive market
Maturity of market -focus on more or less mature market
Marketing strategy – Place
Model of wine market maturity by Wine Intelligence
-Markets can move up and down categorization M E G E N
Mature Market
Established Markets
Growth Markets
Emerging Markets
New Emerging Markets
Marketing strategy – Place
Mature market
Market where wine appears to have reached its potential with stable or decline volumes
-mature & established show greatest saturation and least growth but have the advantage of reliable trade & routes, & established culture
Germany, France, Switzerland, UK
Marketing strategy – Place
Established Market
Market with strong historical growth which is tailing off
-mature & established show greatest saturation and least growth but have the advantage of reliable trade & routes, & established culture
Australia, Netherlands, Ireland, Japan
Marketing strategy – Place
Growth Market
Market where wine is mainstream produce and /or experiencing growth
-Italy had been Mature but now experiencing growth
USA, Canada, Italy, Poland
Marketing strategy – Place
Emerging Market
Market where wine is experiencing growth and show potential from a relatively low base
-emerging & new may have potential for growth, carry most risk, do not have easy route to market
China, Russia, Brazil, Taiwan
Marketing strategy – Place
New Emerging Market
Market where wine is still a relatively new and unknown beverage, but showing some potential
-emerging & new may have potential for growth, carry most risk, do not have easy route to market
Malaysia, Philippines, Vietnam, Thailand
Marketing strategy – Promotion
Covers all the methods used to ______ a particular product
Marketing campaign should consist of a variety of elements to connect w/ as many members of the segment as possible
Psychographical and behavioral will include people from different geographical locations and a variety of demographic characteristics
Marketing Strategy – Promotion
Activities can be divided into 2 groups?
AT THE POINT OF SALE
AWAY FROM THE POINT OF SALE
Marketing strategy – Promotion
AT THE POINT OF SALE
-list ?
F P o L i C C I e S
Free Merchandise
Price promotions
Limited edition packaging/ presentation
Competitions Consumer tasting
Incentives Staff training
Marketing strategy – Promotion
AT THE POINT OF SALE – Price promotions
What is the goal of price promotions?
-increase sales of existing products,
-gain volumes sales for new products
-attract new customers
- shift old stock or discontinued lines (bin ends)
- increase sales & brand awareness
- big retailers expect producers to meet the cost of any promotion, including any loss in sales revenue, with the result that they may only be financially viable for larger producers
Marketing strategy – Promotion
AT THE POINT OF SALE – Price promotions
-Success of a price promotion
-Success cannot be judged until ended & price returns to normal
Success will be when the price returns to normal, customer will purchase higher than before the promotion.
Unsuccessful- no customer loyalty developed, customer return to buying previous product
Marketing strategy – Promotion
AT THE POINT OF SALE – Price promotions
-risks in price promotions?
Risk that it will not build consumer loyalty
Risk damage the image of the product in the consumer’s mind
-eg Champagne
Risk volume discounts -less likely to affect consumer’s image of product
-promote excessive consumption -Banned in Sweden & Scotland – minimum unit pricing
Marketing strategy – Promotion
AT THE POINT OF SALE – Price promotions
Promotions that carry less risk of devaluing the product image
Link Saves – consumer buys one product at a reduced price receives a reduced-price offer on another product from a different category
-suggests type of food that may go with that wine
Offer other discounts not on the wine but on ancillaries
-free delivery for order over a certain amount / # of bottles
Marketing strategy – Promotion
AT THE POINT OF SALE – Price promotions
Kinds of price promotions?
1 effectively reduce the price of a product for a limited time
- % discount of selected items -seasonal sales
- certain days -groups of people
2 multi-buy volume
-BOGO free, half price, -% off when you spend $X
Marketing strategy – Promotion
AT THE POINT OF SALE -Free Merchandise
- offers are common before national holiday or when alcoholic drinks are given as gifts
- buy this bottle of wine get 2 glasses free
- eg product:
Ice buckets, corkscrews, umbrellas
- items not directly related to wine
- rarely seen as valuable to consumer & is unlikely to create many additional sales
Marketing strategy – Promotion
AT THE POINT OF SALE -Limited edition pkg/ presentation
- super premium wine offer exclusive, elaborately designed packages
- which contributes to the luxury brand image
-packaging linked to major events
Football, world cup, Olympic games
Champagne Lanson tie to Wimbledon Tennis Championships
-consumers see as a bit of fun but does not tend to increase sales in long term
Marketing strategy – Promotion
AT THE POINT OF SALE -Competitions
-gives customer a chance to win something exclusive
Can be used to collect consumer contact details used for further promotions
Subject to data protection laws
-can be used to encourage consumers to buy a particular product
Volume sales…. Win a 2week trip to NZ
Marketing strategy – Promotion
AT THE POINT OF SALE -Consumer tasting
-cost to retailers for opening a bottle that they could have otherwise sold
- many distributors provide few free bottles
- low involvement consumers, nervous about spending money
- if like it- provides avenue to purchase again in future
- distributors host instore ____
- send rep from company or winemaker to tell story
- restaurants wine pairing dinner
Marketing strategy – Promotion
AT THE POINT OF SALE -Staff training
- less direct promotional tool- training staff on products
- Provided by retailer, distributor, or producer themselves
- eg. How made & tasting wine will enable them to tell the story and promote the product w/ confidence & enthusiasm
- works well in retail, bars, restaurants
Where there is high interaction between consumer & staff
-not work well in supermarkets
Marketing strategy – Promotion
AT THE POINT OF SALE -Staff incentives
- incentives for staff to sell - get paid visit to region
- funded by producer or relevant trade body
- in China market (this is considered bribery/ unfair competition)
