9. Branding

Question 1

Describe the product life cycle

Answer 1

• Introduction
• Growth
• Maturity/stabilisation
• Decline

Question 2

Describe what marketing is needed in the introduction stage

Answer 2

• Getting the product to the market
• Gain recognition and reputation
• Distribution is limited

Question 3

Describe what marketing is needed in the growth stage

Answer 3

Increase distribution
Enlarge target market

Question 4

Describe what marketing is needed in the maturity stage

Answer 4

Highlight difference with competitors which will have entered the market

Question 5

Describe what marketing is needed in the decline stage

Answer 5

Take steps to extend life cycle e.g. improve product/packaging or reduce price

Question 6

Explain the importance of branding

Answer 6

Without branding, consumers would choose the lowest price for the intended style, and the more expensive options would decline

Question 7

Give an example of the benefit of branding

Answer 7

A consumer sees 2 bottles of Marlborough Sauvignon Blanc with the same quality, one medium priced from an unknown producer and one premium priced from the very well known Cloudy Bay. Many consumers will still choose the more expensive one

Question 8

Define “brand”

Answer 8

The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it

Question 9

How can a brand create a positive image in the consumers mind

Answer 9

• Substance
• Consumer trust
• Consumer engagement
• Brand story
• Price premium
• Longevity
• Strong brand name

Question 10

Explain substance, and give an example

Answer 10

• Consistent quality/style: Non Vintage Champagne in a house style

Question 11

Explain consumer trust, and give an example

Answer 11

As a result of consistency
- Supermarket own-brand wine, which will be favoured over unknown cheaper wine

Question 12

Explain consumer engagement, and give an example

Answer 12

Small changes to the market strategy should be considered carefully
- Cloudy Bay packaging changed in 2016 but stayed very recognisable

Question 13

Give examples of brand story

Answer 13

• Producers history
• How did the wine region establish
• Where are the grapes grown
• How is the wine made
• The name, label, bottle design
• Other people

Question 14

Explain price premium

Answer 14

Many consumers view high price as a guarantee of quality

Question 15

Explain longevity, and give examples

Answer 15

How long does the brand exist
- Hardys 1850
- Gallo 1930
- Robert Mondavi 1960

Question 16

Give examples of succesful brand names

Answer 16

Easy to remember

Easy to pronounce
- Penfolds becomes Ben Fu
- Lafite becomes La Fei in China

Innocent in all languages
- Mist (Saint-Tropez) means excrement in German

Geographical features
- Felton Road
- Cloudy Bay
- Blossom Hill

Company founder
- Champagne: Krug
- Taylor’s Port

Question 17

Give an example of trademark registration

Answer 17

In China, trademarks are given to the first person to file an application. Treasury Wine Estates had to enter a legal battle to cancel the prior registration of Ben Fu, by a person who did not use it commercially

Question 18

What are the different types of brands

Answer 18

• Brand position
• Private label
• Ladder brand
• Soft brand
• Luxury brand

Question 19

Explain brand position, and give examples

Answer 19

Where a brand sits in a market, often linked to retail price
- Symington Family Estates raised position by modernising production, updating image, introducing new high-end products
- Hardys, variety of brands positioned in different parts of the market to attract as much consumers as possible

Question 20

Explain ladder brands

Answer 20

• Accessible: inexpensive, great distribution
• Stretch: affordable for special occasions
• Aspiration: prestigious expression, cast identity over the entire ladder

Not helpful with low-involvement consumers

Question 21

Give an example of a Champagne ladder brand

Answer 21

• Accessible: Pol Roger non-vintage
• Stretch: Pol Roger vintage
• Aspiration: Pol Roger Cuvée Winston Churchill

Question 22

Give an example of a Bourgogne ladder brand

Answer 22

• Accessible: Bourgogne Rouge
• Stretch: Gevrey-Chambertin
• Aspiration: Le Chambertin Grand Cru

Question 23

Explain soft brand, and give examples

Answer 23

When a consumer prefers one product, for example because of its origin, region, GI, variety, style,..

• Pouilly-Fumé AOC: most producers are too small to become a well known brand, but they benefit from AOC reputation
• AVAs are growing in number, in California

Question 24

Explain a luxury brand, and give examples

Answer 24

Super-premium priced wines, inculding Champagne prestige cuvées, Bordeaux Premier Cru Classé, expensive Californian wine

Promote following assets:
- Scarcity (not always true)
- quality of fruit
- expenses during winemaking
- rich heritage

Promoting idea of luxury:
- Sponsor of luxury events
- Upmarket retailers
- Fine dining restaurants

Question 25

List the leading wine brands

Answer 25

• Yellow Tail - Australia
• Casillero del Diablo - Chile
• Gallo Family Vineyards - USA
• Jacobs Creek - Australia
• Barefoot - USA
• Gato Negro - Chile
• Carlo Rossi - USA
• Frontera - Chile
• JP Chenet - France
• Mouton Cadet - France