1.3. Challenges of oversupply & undersupply

Question 1

Oversupply

Give 3 actions of a wine producer if an oversupply is given!

Answer 1

1. ) Selling at a low price point
2. ) Finding new outlets or markets

3.) labelling it different
= restaurant, deep discounter, supermarket etc.

Question 2

Oversupply

Give 3 possible actions of wine producer if an oversupply is given!

Answer 2

1. ) Selling at a low price point
2. ) Finding new outlets or markets

3.) labelling it different
= restaurant, deep discounter, supermarket etc.

Question 3

Oversupply

What could be a bad consequence after selling the wine beac use of an oversupply at a lower price point?

Answer 3

affect the brand image

Question 4

Undersupply

Give 3 obvious market problems for a Producer if there is not enough wine to sell!

Answer 4

1. ) Disappointed clients
   
   • may switch to other brands = longterm
2. ) strained business relationships
3. ) Penalty of wholesaler (financially)

Question 5

Name 3 large companies in the wine scene!

Answer 5

1. ) E&J Gallo
2. ) Treasury wine estates
3. ) Accolade

Question 6

Oversupply

High volume, inexpensive branded chardonnay:

Give 4 points to what an oversupply leads!

& Name the economic threat!

Answer 6

1. ) low prices
2. ) competition to cheaper products
3. ) unsold wine in tanks
4. ) price below production costs

• Recession !

Question 7

Undersupply

List 3 consequences for a Producer and the market if an undersupply of large Volumes, inexpensive wine is given

Answer 7

1. ) increase prices
2. ) loyal Customer move away
3. ) less quality reach the volume

Question 8

Undersupply

List 3 consequences of an undersupply for super premium wines

Answer 8

1. ) increased price
2. ) wine sold on allocation
3. ) increased exclusivity