CRAFTING WINNING

STRATEGIES IN A MATURE
MARKET
THE US WINE INDUSTRY IN 2001
HOW ATTRACTIVE IS THE INDUSTRY ?
Total Alcohol Consumption in World
YES : The Wine Industry is highly attractive

10% The Industry is attractive as almost half of the

market is untapped by any alcoholic beverage
46%
Growing Heath related issues can lead a
44% substantial number of people to switch from
beer and other spirts to wine.

Even 1% growth in the wine drinkers can

Wine Drinkers Non-Drinker Beers & Spirits increase the revenues of the industry
substantially
WHAT STRATEGY SHOULD AN ESTABLISHED PLAYER
FOLLOW TO BE SUCCESSFUL IN THIS INDUSTRY?
Use Blue ocean strategy to launch new wine varieties with value
proposition of health benefits.

This value proposition can be used to target non wine drinkers and
widen prospective global customer base.

Use the existing marketing budget to do marketing of new product as

well as some promotional activities like free wine tasting, promotional
events (Pull strategy).

Strengthen the distribution channels to reach untapped market.

 SHOULD A COMPANY ENTER THIS INDUSTRY? IF
YES, WHAT SHOULD ITS STRATEGY BE?
Small Payers / Cottage Industries : NO
Buyer-
Power
(HIGH) Big Corporates with Financial backing : YES
Although it is easy to enter the market, its difficult to get
market share

Competitive
Costs have already been brought down and hence any further
Supplier Power
(LOW) Rivalry
Threat of New
Entry (HIGH)
reduction is difficult
(HIGH)
Company without a unique strategy should not enter the
market.
Requires a huge invest to establish one’s name and brand
Threat of
Substitutio
n
(HIGH)
THANK YOU !!