Key considerations in wine marketing Flashcards
Free market
A ‘free market’ is one in which producers are relatively free to choose whether to sell directly to a consumer or retailer or through an intermediary.
Monopoly
A government-run monopoly for the retail sale of alcoholic drinks: Sweden, Norway, Canada
Three-tier system
A system used within the USA to control the direct sale of alcoholic beverages.
* Suppliers
* Distributor
* Retailer
What is the aim of a monopoly?
to control alcohol consumption
What is the process for a producer to be listed with a
monopoly?
- producer approval, tender and blind-tasting selection system
- lengthy process (seven to eight months from successful tender)
- final decision
Marketing
The management process responsible for identifying, anticipating and satisfying consumer requirements profitably.
What are the main considerations when producing a marketing strategy?
- identifying the product/brand to be marketed
- identifying the target market
- setting the objectives of the marketing strategy
- devising the marketing strategy (the ‘marketing mix’)
- implementing and monitoring the marketing strategy.
What is a brand?
The set of physical attributes of a product or service, together with the beliefs and expectations surrounding it - a unique combination which the name or logo of the product or service should evoke in the mind of the audience.
Identifying the product/brand
to be marketed
- substance
- consumer trust
- consumer engagement
- brand story
Ladder branding
Accessible: the least expensive with the greatest distribution and the one that consumers will buy most often
Stretch: affordable, but only for special occasions
Aspirational: the most prestigious expression of the brand. Most of the brand’s consumers will never buy it as it costs far more than they are willing or able to spend on wine; however, it should cast its super-premium identity over the entire ladder.
Product Lifestyle Cycle
- Introduction – The strategy should focus on getting the product into the market and gaining recognition and reputation. Initially, distribution may be limited to a few carefully selected channels to begin with.
- Growth – The product should be increasingly widely distributed and aimed at a broader target market to encourage strong growth.
- Maturity or stabilisation – The strategy should highlight the differences between the product and other competing products, which will have entered the market by now.
- Decline – Faced with the prospect of declining sales, a company may take steps to
extend the life cycle, perhaps by improving the product, updating the packaging, reducinghe price to make it more competitive or seeking new markets. Each of these will need to
be communicated to prospective customers through an appropriate marketing strategy.
SWOT: strengths
Examples:
* Established reputation in wealthy, growing markets
* Reliable and affordable supply chain
relationships
* Capability to scale up production
SWOT: Weakness
Examples:
* Lack of expertise or experience
* Lack of suitable production facilities or
equipment
* Weak financial position, lack of budget to invest
SWOT: Opportunities
- Political – availability of financial subsidies
- Economic – a weak currency may
increase competitiveness in export markets - Social – increased consumption of a style of wine by a certain demographic
- Technological – new production
techniques that increase the quality or
efficiency of production. - Environmental – climate change providing opportunities for regions on the cool margins of wine production
- Legal – tight production regulations part of the marketing of the product’s integrity
SWOT: Threats
- Political – high taxes, strict or complex
legislation - Economic – a weak currency means
equipment that needs to be imported is
more expensive - Social – reduced availability of skilled
labour in region of production - Technological – global availability of
techniques can threaten local wine styles - Environmental – climate change making viticulture unsustainable in some regions
- Legal – tight production regulations limit a producer’s options for product/packaging
