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1 of 84
Definition
- Undifferentiated or mass – appealing to the whole market, or a
large section of it, with a single product; for example, many branded
wines available in supermarkets and other large retailers.
- Niche – aiming a product at a specific segment of the
market; many wines are niche products.
- Multiple – either appealing to numerous segments with one
brand (each segment will potentially require a different marketing
approach) or launching several brands each targeting different
segments.
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What are the 3 broad options What are the advantages and
for marketing strategies? disadvantages of selling DTR?
What are the 6 key stages What are the 4 sets of variables
of marketing? segmentation is based on?
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2 of 84
Definition
+ take advantage of market knowledge (key players, trends,
preferences, retailers' requirements)
+ help with administration and logistics
+ can absorb the risks of lost/damaged product
+ experience and staff to deal with legal compliance issues
+ particularly helpful where there is a language barrier
+ greater resources to promote
+ can increase exposure of individual producers' wines
- distributor will charge a fee
- producers can lose control over how their wine is marketed and
where it eventually ends up on sale
- distributors cannot give undivided attention to any one producer;
may drop those which are not selling
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What are two ways that members
can be paid by co-ops? When What are some promotional
is each common? activities that can occur at the POS?
What are the advantages
and disadvantages of selling What are the advantages and
via a distributor? disadvantages of grower contracts?
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,3 of 84
Term
Why do supermarkets tend to stock private labels? Where do these
wines come from?
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+ no expenses of managing vineyards
+ no need to purchase land
+ flexibility in bad vintages
- little control over grape growing and winemaking
- may be forced to purchase grapes on spot market in bad vintages
- supermarkets tend to stock big brand labels that are easily
comparable across a number of retailers and do not promote
cutomer loyalty to the supermarket
- large producers enticed by a the opportunity to sell high V
+ estate retains control of entire process
+ all profit belongs to the estate
+ estate can market and sell their wines directly
+ marketing benefits ("authenticity", stories)
- high cost of equipping and running the vineyard & winery
- need to rent equipment
* larger estates are more financially viable
- typically a producer must first apply to become an approved supplier
- producers may then need to submit samples of wines which are tasted
and judged
- process may take many months
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4 of 84
Term
What is the Loi Evin? When was it introduced?
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1. Introduction
2.Growth
3. Maturity/stabilization
4. Decline
- introduced in 1991
- has greatly restricted the advertising of alcoholic drinks and is considered
a significant factor in the reduction in wine consumption in France
- labor (varies due to topography, organic/BD farming)
- machinery and equipment running costs (e.g. fuel and maintenance)
- vineyard materials (e.g. replacement vines and trellising)
- vineyard treatments
- water
- electricity
to move a product away from being a commodity to the extent that consumers
will want to buy that product even if it costs more than the minimum possible
price
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