Agenda

1. Introduction – Main issues

2. Swot analysis
3. Porter’s five forces analysis
4. Third wine alternatives – Pros and Cons
5. Product positioning
6. Marketing mix
7. Conclusion and recommendations
 Introduction - Main issues
Problem statement:

Should the exceptional wine from 2009 be sold in bulk or as

third wine under its own brand?

This leads to different issues:

– How to promote it?
– How to price it?
– Who will be the target customers?
– How to supply enough quantities to ensure demand in the long
run?
– What should be the brand image and product positionning
compared to the Château’s first and second wine?
 Swot analysis
Strengths Weaknesses
1. Strong brand equity 1. Dependency on négociants
2. Experience and expertise in 2. No experience on launching new wine
winemaking 3. Snob appeal
3. Strong financial position 4. Weak marketing
4. Promotion

Opportunities Threats
1. New market demand growing 2. French wine loosing their position on
2. Discovering new geographical markets the US Market
3. Low level of rivals on the 3rd wine 3. Changing consumers` habits
market
4. On-line sells

1. Retail sales associates, sommeliers, wine journalists, critics

2. Weather
Porter’s five forces analysis
 Third wine alternatives
Alternatives Pros Cons

1. Sell in bulk for • Simpliest option • Narrow target market

negociants, • Cost minimization: • Inaccessible to the core
merchant specialization customer from traditional
market
• Reduce profits and loss of
control over final price

2. Sell in bottles • Uniqueness and excellence • No experiences in marketing

under own • Approach customers from • Too much brands on market
brand traditional market • Risky
• Improve and extend product
portfolio
• Increasing new vehicle to
direct communication and
sales
 Product positioning

Advantage
Target scope
Low cost Product uniqueness

Broad market Cost leadership Differentiation

(Industry wide) strategy strategy

Narrow market Focus strategy Focus strategy

(Market segment) (low cost) (differentiation)
Marketing mix
Conclusion & recommendations
Target market - Traditional markets (Core
customers)

Price - Sold at $97 to distributors

- Final price at restaurant $197
- Final price at retailers = $157
Promotion - Ambassadors
- Sommeliers
- Wine books
Brand image - High quality wine at
affordable price
Supply the long run - If needed, buy from other
estates and if successfully
growing then buy additional
estates
Thanks for your attention
Any questions?