WSET DIPLOMA D2 EXAM (ACTUAL 2025)
QUESTIONS AND VERIFIED ANSWERS
How can those in the wine industry mitigate the effect of
exchange rate fluctuations?
- options
- fixing the price in the currency of the importer at the date of
ordering
- buying currency to cover specific orders
- entering a contract to fix the exchange rate
- trading in USD/EUR
- opening a foreign currency account in a local bank
- opening an account in an overseas bank
What is a deep discounter?
- shares many of the features of a supermarket but sells at
lower prices
- rarely, if ever, have any form of price promotion
- Trader Joe's
- take a lower profit margin than traditional supermarkets,
relying instead on the volume of sales for their profits
- product range is limited - a more streamlined product range
is cheaper to maintain
,-often work with less well-known producers with lower
overheads
- often buy directly from producers
What types of brands do convenience retailers typically stock?
Why are they typically more expensive than supermarkets?
- brands popular with the local customers
- the premises are smaller, making rents proportionately
higher; tend to be premises which were designed for other
purposes, making them less efficient; employ a higher
proportion of staff relative to their size than supermarkets
What is the aim of retail monopolies? How is this achieved?
- limit consumption of alcohol
- high pricing (encouraging sales at "responsible prices")
- no incentive for price reduction or promotion
Why is it hard for producers to enter a monopoly market?
- 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
Define marketing. What is its ultimate aim?
- the management process which is responsible for
identifying, anticipating and satisfying consumer requirements
profitably
- to create profits, whether this is through volume of sales
(attracting new consumers, encouraging existing consumers to
buy more) and/or value of sales (convincing consumers that it
is worth spending more money on this product, compared to
its lower-priced competitors)
What are the 6 key stages of marketing?
1. identifying the product/brand to be marketed;
2. analysing the current market;
3. identifying the target market;
4. setting the objectives of the marketing strategy;
5. devising the marketing strategy (the 'marketing mix');
6. implementing and monitoring the marketing strategy.
What are the 4 stages in a product life cycle?
, 1. Introduction
2. Growth
3. Maturity/stabilization
4. Decline
Describe what marketing strategy should be used in each
stage of the product life cycle.
1. Introduction – The strategy should focus on getting the
product into the market and gaining recognition and
reputation. Initially, distribution may be limited to a few
carefully-selected channels to begin with.
2. Growth – The product should be increasingly widely
distributed and aimed at a broader target market, to encourage
strong growth.
3. Maturity or stabilisation – The strategy should highlight the
differences between the product and the other competing
products which, by now, will have entered the market.
4. Decline – Faced with the prospect of declining sales, a
company may take steps to extend the life cycle, perhaps by
improving the product, updating the packaging, reducing the
price to make it more competitive or seeking new markets.
QUESTIONS AND VERIFIED ANSWERS
How can those in the wine industry mitigate the effect of
exchange rate fluctuations?
- options
- fixing the price in the currency of the importer at the date of
ordering
- buying currency to cover specific orders
- entering a contract to fix the exchange rate
- trading in USD/EUR
- opening a foreign currency account in a local bank
- opening an account in an overseas bank
What is a deep discounter?
- shares many of the features of a supermarket but sells at
lower prices
- rarely, if ever, have any form of price promotion
- Trader Joe's
- take a lower profit margin than traditional supermarkets,
relying instead on the volume of sales for their profits
- product range is limited - a more streamlined product range
is cheaper to maintain
,-often work with less well-known producers with lower
overheads
- often buy directly from producers
What types of brands do convenience retailers typically stock?
Why are they typically more expensive than supermarkets?
- brands popular with the local customers
- the premises are smaller, making rents proportionately
higher; tend to be premises which were designed for other
purposes, making them less efficient; employ a higher
proportion of staff relative to their size than supermarkets
What is the aim of retail monopolies? How is this achieved?
- limit consumption of alcohol
- high pricing (encouraging sales at "responsible prices")
- no incentive for price reduction or promotion
Why is it hard for producers to enter a monopoly market?
- 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
Define marketing. What is its ultimate aim?
- the management process which is responsible for
identifying, anticipating and satisfying consumer requirements
profitably
- to create profits, whether this is through volume of sales
(attracting new consumers, encouraging existing consumers to
buy more) and/or value of sales (convincing consumers that it
is worth spending more money on this product, compared to
its lower-priced competitors)
What are the 6 key stages of marketing?
1. identifying the product/brand to be marketed;
2. analysing the current market;
3. identifying the target market;
4. setting the objectives of the marketing strategy;
5. devising the marketing strategy (the 'marketing mix');
6. implementing and monitoring the marketing strategy.
What are the 4 stages in a product life cycle?
, 1. Introduction
2. Growth
3. Maturity/stabilization
4. Decline
Describe what marketing strategy should be used in each
stage of the product life cycle.
1. Introduction – The strategy should focus on getting the
product into the market and gaining recognition and
reputation. Initially, distribution may be limited to a few
carefully-selected channels to begin with.
2. Growth – The product should be increasingly widely
distributed and aimed at a broader target market, to encourage
strong growth.
3. Maturity or stabilisation – The strategy should highlight the
differences between the product and the other competing
products which, by now, will have entered the market.
4. Decline – Faced with the prospect of declining sales, a
company may take steps to extend the life cycle, perhaps by
improving the product, updating the packaging, reducing the
price to make it more competitive or seeking new markets.
