Appoint a Distributor Flashcards
What does a distributor do?
-buys wine from range of producers and sells to range of retailers
-generally in same country they sell
-may/not hold stock of the products in their portfolio
-may/not have exclusive rights to import/distribute certain products in their market
What are the benefits of distributors to producers?
-knowledge of the market- incl key players, consumer preferences, and current trends
-contacts= saves time
-aware of diff retailers requirements and preferences= focus on most appropriate targets for particular wine
-admin= logistics company, collection, transportation and del of wine (also absorbs risk of lost/damaged wine)
-importing= experience and staff to deal with legal compliance issues eg duty payments and labelling requirements
-language barrier
What are the disadvantages of distributors?
-price= reduces profit
-selling to hospitality sector= higher costs, larger staff and higher margins
-lose control over how wine marketed and where ends up on sale
-may not reflect brands image= vital both parties agree clear marketing and sales plan
What are the benefits of a larger distributor?
-increase exposure- eg portfolio tastings w wide range of potential customers
-retailers buyers prefer buying through distributers- easier to buy from 1 point of contact than many separate producers
-producers can get their wines in front of retailers that couldn’t achieve on own
What are the disadvantages of a large distributer?
-lots of clients= can’t give undivided attention to 1 producer
-overall marketing strategy may not be ideal for individual wine
-may drop those not selling in sufficient quantities
What are the advantages of smaller distributers who specialise in particular countries/regions?
-beneficial to smaller producers from those countries/regions looking to enter new market
If a producer has a range of wines, what could they do?
-appoint separate distributers for diff wines
-but more money and time finding distributers- takes wm out of winery
