Reaching the End Consumer within a free market - Retail Flashcards
What are the main retail outlets where wine is sold?
- Supermarkets
- Deep Discounters
- Convenience Retailers
- Specialist Wine Retailers
- Hybrids
- Online Retailing
- Global Travel Retailers
- Wine Investment Companies
What kind of wine is being sold in Supermarkets?
Large volume wines
Give some examples of Supermarkets
- Wal-Mart (USA)
- Woolworths (South Africa)
- Carrefour (France)
- Tesco (UK)
- Target (USA)
So if Supermarkets are buying large volume wines, what are some examples of wine you could expect to see there?
- Meiomi
- Yellowtail
- Oyster Bay
- Jacobs Creek
- Barefoot
- Justin
- Kendall-Jackson
What is something that Supermarkets are doing to retain brand loyalty?
They are creating private labels that can only be sold in their stores
What are some of the negatives for producers that comes with working with Supermarkets?
The supermarkets have a lot of buying power and control on pricing, so generally producers are making less money selling to supermarkets than they would be otherwise.
The contracts with supermarkets have very strict requirements which detail quality, time of delivery, manner of delivery, packaging, and labeling. If these requirements are not met, the supermarket may be within their rights to just refuse the wine.
What types of wine do premium Supermarkets, like whole foods, tend to buy?
Premium supermarkets tend to buy more artisan wines under the producers label, and not their own.
What is one key difference when it comes to the large volume wines and the artisan wines?
There will always be more of the large volume wine, but once the artisan wine is out, it is out.
What is the main difference (business wise) between Supermarkets and Deep Discounters?
Supermarkets will sell less at a higher price, while deep discounters will sell more at a lower price.
How do Deep Discounters charge low prices while keeping their cost down?
- The stores are more basic with product on pallets instead of shelves
- Not in prime locations, keeping rent low
- They have a more limited and streamlined selection of products
- Private label wines
- They work with lesser known brands and buy whatever stock is available
What are some examples of Deep Discounters?
- Trade Joes
- Aldi
- Lidl
- Netto (Denmark)
What is a Convenience Retailer?
A convenience retailer is a business that is located closer to peoples home and is generally open 24/7.
They generally carry the major brands and sometimes will charge more for the wines. Most consumers are okay with the higher price since they do not have to travel as far.
What a Hybrid Retailers?
They are a combination Specialist Wine Retailers that also have a bar area where customers can drink they wine they buy in the shop.
These bars usually sell some kind of food as well.
What are the benefits of a Hybrid Retailer?
The bar in the Hybrid Retailer generally have a rotating BTG list that can help inform consumers about lesser know wine regions and grapes, or new wines that have arrived at the store.
What is an advantage that Online Retailers have over most other retailers?
They do not have the need for expensive retail shops, which means they can take the reduced overhead and stock more wines that may have otherwise been passed on.
