CATTIER AND ITS WAY

FORWARD
DONE BY
HARI BALAJI S G (2113031)
LAKSHMI NARAYANAN S (2113053)
KIRAN S (2113050)
PIREETHAM N (2113068)
SARVAMANGALA SWARUBINI M (2113090)
CHALLENGES FOR CATTIER AND WINE
INDUSTRY
• Cattier was facing challenges on multiple front.
• Extreme competition from cheaper local sparkling wines and UK
European sparkling wines.
• Economy has suffered over several years .
• Unemployment remained high.
• Overall consumption of champagne was in decline.
• Brexit- Led the French exports to the United Kingdom more Expensive.
• Difficulty in vintage and harvest conditions.
• Competitive threats - Intensified.
CONCENTRIC DIVERSIFICATION
Why?
• Huge wine-producing capacity of France
• Growing demand for Rose wine
• Preference for off-trade wine
• Growing trend of high income customers above age 65
• Cost-efficient non-champagne sparkling wine
“On the whole, growing wine industry-opportunities-explore in the
same industry”
CONCENTRIC DIVERSIFICATION
How?
• Merger/Acquisition of rose-wine producing firms
• Introduce greater number of Champagne sparkling wine products for
above 65 age customers
• Partner with groceries/speciality stores
• Acquire firms that produce non-champagne sparkling wine products
WINE INDUSTRY
• Wine consumption in the US
https://www.statista.com/statistics/233734/average-wine-
consuimption-of-the-us-per-resident/