EXAM OPERATIONAL MANAGEMENT (M9)

Question 1

Which two French labeling terms fall under the eu PGI (Protected Geographical Indication) label?

Answer 1

IGT (Indication Géographique Protégée)
VdP (Vin de Pays)

Question 2

What is the maximum bottle format of DOC or DOCG?

Answer 2

5L

Question 3

What was the only classified ‘outstanding A’ wine in Australia in 1991?

Answer 3

Penfolds Grange Shiraz

Question 4

What are the 3 new terms to indicate origin in Chile?

Answer 4

Costa
Entre Cordilleras
Andes

Question 5

What is the main difference of classification between Bordeaux, Burgundy and Alsace?

Answer 5

Bordeaux: based on estate
Burgundy: based on terroir
Alsace: based on grape variety

Question 6

What are the top 5 main wine producing countries (2019?)

Answer 6

1. Italy
2. France
3. Spain
4. USA
5. Argentina

Question 7

What are the top 3 countries in amount of ha under vine (also table grapes)

Answer 7

1. Spain
2. China
3. France

Question 8

What is te estimated % of worlds wine production that gets exported?

Answer 8

44%

Question 9

What is the newest innovation in terms of bulk wine export?

Answer 9

Flexitank

Question 10

Name 5 recent events that thread the international wine trade

Answer 10

War
Brexit
Corona virus
Commercial war - import taxes
Downfall general alcohol consumption

Question 11

Name a few consumer trends on the rise

Answer 11

Dry white
Foreign wines
Original wines
Fruity, easy drinking wines
Artisanal wines
Wine on ice
Wine in cocktails
Wines by the glass
Original labels

Question 12

What do we mean with ‘competitiveness’ in wine industry?

Answer 12

It’s ability to occupy a strong position in a market and to face actual or potential competition (Technical-, Economic-, Marketing factors)

Question 13

Which factors contribute to competitiveness?

Answer 13

Country health
Succes in domestic and foreign market
Natural conditions
Vineyard production power
Quality and diversity of the wines
Production cost
Structuring/coordination
Capacity to adapt
Capacity to build brands

Question 14

How much % take the courtier / negotiant / cavist on the original bottle price?

Answer 14

Courtier: 2%
Négociant: 18%
Caviste: 200-300%

Question 15

Name two different approaches of determining the selling price

Answer 15

From a production perspective (what is the production price and the margin that we need to make = selling price)
From consumer perspective (what is a good price for the consumer regarding reputation/quality etc = selling price)

Question 16

Argue why the consumer sets the sale price and not te producer

Answer 16

Because the consumer needs to want to buy it. If the wine is not put into the right market it will never get sold. So think about consumer needs and wishes is a requirement

Question 17

Give the breakdown of production costs:

Answer 17

Vineyard cost
Vinification and ageing cost
Botteling cost
Marketing cost
General cost (electricity/water/rent etc)

Question 18

Why do marketing? (3)

Answer 18

New consumers
New markets
New trends (every 10 years)

Question 19

Name 8 aspects what can influence a buyer to buy a specific bottle (product perspective)

Answer 19

Price
Brand
Blend
Origin
Packaging
Type
Trend
Availability

Question 20

With what specifics can you describe a consumer?

Answer 20

Age
Origin
Social group
Habits
Buying power (willingness to buy)

Question 21

What tis the marketing mix? (4x P)

Answer 21

Product
Price
Place
Promotion

Question 22

What do we call the silent seller in wine?

Answer 22

The bottle packaging = first communication tool! (goal to attract and give information

Question 23

How would you describe the P of Promotion in the marketing mix?

Answer 23

The communication to promote the act of purchase

Question 24

Give examples of media communication vs non-media communication

Answer 24

Media: avertising/radio/posters/website etc
Non-Media: events/fairs/tastings/objects/relationships

Question 25

Name 5 examples of ‘new’ communication tools

Answer 25

Influencers: famous people / YouTubers etc
Social networks: next to having a website
Mass media: glossaries
Wine contests: medals
Wine guides: Parker etc

Question 26

What can be reasons for a wine not to sell?

Answer 26

Faulty wines
Unsuitable to consumer tastte
Not original
Unknown
Wrong market

Question 27

What is marketing?

Answer 27

Research to consumer behaviour
Helps shape public perception of the product
Maintains relationships with consumer
Motivates consumer to buy

Question 28

Name the 3 steps of marketing

Answer 28

Market segmentation (identification)
Market positioning (strategy)
Marketing mix (operational plan)

Question 29

What is the most important P. Give examples

Answer 29

Product! Color, grape variety/ blend, vinification, style, packaging, brand etc

Question 30

Why do you need accounting?

Answer 30

Because you want to know:
Which products are succesfull
Which business decisions were effective
Financial status of the company

Question 31

Give the 3 parts of a balance sheet

Answer 31

Assets/actif (ressources, investments, stock)
Liabilities/passif (financial obligations)
Equity Amount of money that a company must return to its shareholders if liquidated