Divising a marketing strategy

Question 1

What is meant by a ‘saturated’ market?

How should marketing be strategized in such a case?

Answer 1

Saturated market : If a market already has enough products to satisfy consumers’ needs and there are few gaps for new products.

Strategy : This means products have to set themselves aside from others in the market by highlighting their uniqueness when compared to competitors: this could be their percieved quality, value or production ethos (organic, vegetarian, vegan etc.).

Question 2

What are bin ends?

Answer 2

Wines that are old/have been in stock a long time, or that have been discontinued.

Question 3

What are some examples of Multibuy/volume discounts?

Answer 3

Multi-buy/volume discounts

Buy One Get One Free (BOGOF)
Buy One Get One Half Price
Buy 3 for the price of 2
Receive % dicount when spending over certain amount or on certain # of bottles or more.
Buy 2 large glasses of wine, get the rest of the bottle free (hospitality-specific).

Question 4

What are some Pro’s and Con’s of Price promotions at POS

Answer 4

PROS :

Increase sales (during and after if successful) and brand awareness. Attract new customers.
Help shift old stock or discontinued lines (bin ends)
"Link saves" can encourage customers to try other types of product alongside the wine, thereby increasing overall sales.
CONS :

No brand loyalty : Consumers associate the wine with promotions so will only buy it when on sale and won’t buy it once the promotion ends.
The image of the wine may be damaged by the reductions.
Have been seen to encourage increased alcohol consumption.
Producers can be expected to cover the cost of price promotions, so may lose revenue.

Question 5

What does the marketing strategy need to accomplish in terms of

PRICE ?

Answer 5

Marketing strategy in terms of Price :

Purposefully under-pricing product at first, raise price later (‘penetration’ strategy).
Price high if wine is meant to be a ‘luxury’, special occasion, or ‘gift’ product.
Lower slightly to appeal to psychological associations, e.g. $9.99 instead of $10 (closer association to ‘9’ than ‘10’).

Question 6

What does the marketing strategy need to accomplish in terms of

PEOPLE ?

Answer 6

Marketing strategy in terms of People :

Choose correct medium for advertising, eg. social media, print, etc…depending on the target market.
Adjust attitudes, behaviors to create positive customer experiences, whether directly with consumers, or distributors with retailers, etc…
Sufficiently knowledgable staff to effectively sell products, whether at cellar door or to distributors/retailers.
Maintain consistent branding through all parts of the supply chain; eg. hold complimentary masterclasses for distributors, retailer staff etc…