Final Review

Question 1

What are 4 possible transportation costs that contribute to the cost of a bottle?

Answer 1

Freight forwarder
Main mode of transportation
Premium on bottle vs bulk
Insurance

Question 2

6 costs that are incurred on the retail end of the supply chain (sales costs that contribute to the cost of a bottle)

Answer 2

Property
Labour
Equipment and materials
Storage costs
Delivery costs
Margin at POS

Question 3

Importation Costs (3) that contribute to the cost of a bottle?

Answer 3

Customs/duties/taxes
Labelling requirements
Distributor margin

Question 4

What are examples of conglomerates?

Answer 4

E&J Gallo
AXA insurance
Moet Hennessy-Louis Vuitton

Question 5

5 options for getting wine to POS

Question 6

What is a joint venture? Example?

Answer 6

When two supply chain businesses of a similar size form a separate entity and have joint control over it.

Mentzendorff (uk distributors) is partly owned by Bollinger and Fladgate

Vinalba owned by Buckingham Schenk (uk dist) and Winemakers herve and diane joyaux fabre

Question 7

Examples of specialist wine retailers?

Answer 7

Chain - OBrien’s In ireland
Hedonism wines
Berry bros and rudd
Caves de pyrene

Question 8

6 Talking points with wine investment?

Answer 8

• Type of company involved, examples
• Reasons for investment
• Type of wines in secondary market
• Where wines are initially purchased
• where they are resold
• risks

Question 9

3 considerations when identifying the product/brand to be marketed?

Answer 9

1. Product lifecycle
2. Branding & Brand image
3. Aspects/types of brands

Question 10

What are 5 aspects/types of brands?

Answer 10

Brand position
Private label 
Ladder brand 
Soft brand 
Luxury brand

Question 11

3 tiers of ladder brand?

Answer 11

Accessible
Stretch
Aspirational

Question 12

What is Brand position and what arr common categories?

Answer 12

Where a brand sits within a market, often linked to retail price. Brands may straddle multiple

Value
Standard
Premium
Super premium

Question 13

Two main methods of identifying the target market?

Answer 13

Segmentation

Market research

Question 14

What is segmentation?

Answer 14

Division of the market into distinct subgroups/segments each characterized by tastes, requiring a specific strategy

Question 15

What are 3 methods of segmentation?

Answer 15

4 variables

Hall’s wine lovers, wine interested, wine curious

Wine intelligence portraits

Question 16

What is market research?

Answer 16

The gathering and analysis of data about a particular segment to understand what they want and need

Question 17

What is the purpose of setting the marketing objective?

Answer 17

To help people in the company understand their roles in the marketing process and to help the company analyze whether the strategy is working.

Question 18

What is the marketing mix?

Answer 18

The elements of the strategy, a combination of factors that must work together for the strategy to work.

Question 19

What is product when devising the marketing strategy?

Question 20

What are the 5 stages of creating and inplementing the marketing strategy?

Answer 20

1. Identify the product/brand
2. Identify the target market
3. Set objectives of the marketing strategy
   4. Devise the marketing strategy/mix
4.  implement and monitor
   

Question 21

What is the price element of the marketing mix?

Answer 21

The retail price, including delivery and discounts, and cost in time and effort the consumer is willing to go to to purchase

Question 22

Considerations of the price aspect of the marketing mix

Answer 22

Pricing strategy, ie. penetration

Price is influenced by supply/demand, and costs

Psychological implications of price - premium feeling and using decimals etc.

Question 23

Six considerations for the place aspect of the marketing mix

Answer 23

1. Where the target market shops
2. What distribution channels are most effective
3. Regional consumer tastes
4. Regional legislation, taxation, duty and distribution policies
5. Regional price sensitivty
6. Maturity of market

Question 24

What are the five market maturities and examples, what is it relating to?

Answer 24

Mature - wine has reached its potential with stable or declining volumes, UK, germany france switzerland

Established, strong historical growth that is tailing off, irrland, south africa, italy, hong kong

Growth - wine is mainstream and or experiencing growth, usa, canada, brazil, poland

Emerging - experiencing growth and showing pitential, china russia turkey taiwan

New emerging - wine is still fairly new and unknown but showing potential, india malaysia phillipines, thailand