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WSET Diploma > Considerations In Wine Marketing > Flashcards

Considerations In Wine Marketing Flashcards

1
Q

What are the 5 Ps?

A 
Product
Price
People
Place
Promotion
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2
Q

What is the definition of “People” in 5Ps?

A
  • Relationship between the company, its staff, its partners and its customers
  • includes aspects such as employee attitudes and skills and customer service (target consumer / business consumer e.g. Distributor)
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3
Q

What is the aim of price promotions ?

A
  • increase sales of existing products
  • gain volume sales for new products
  • attract new customers
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4
Q

What is the definition of marketing according to the Chartered Institute of Marketing

A

The management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably

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5
Q

What are the key stages of the Marketing Strategy? (5)

A
  1. Identifying the product/brand to be marketed
  2. Identifying the target market
  3. Setting the objectives of the marketing strategy
  4. Devising the marketing strategy (the ‘marketing mix’)
  5. Implementing and monitoring the marketing strategy
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6
Q

Define SWOT

A

Strengths, Weaknesses, Opportunities, Threats

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7
Q

What are the internal features of SWOT?

A

Strengths and Weaknesses

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8
Q

What are the external features of SWOT?

A

Opportunities and Threats

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9
Q

How can SWOT help an organisation?

A

To determine if various factors favour the organisations success in achieving an objective. (strategic fit)
When factors do not favour, what can be done to achieve a better strategic fit
When there are risks, how can these risks be managed?

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10
Q

What is the definition of branding?

A
  • Set of physical attributes of a product or service, together with the beliefs and expectations surrounding it
  • a unique combination which the name or logo of the product or service should evoke in the mind of the audience
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11
Q

What is the product lifecycle?

A

Introduction, Growth, Maturity/Stabilisation, Decline

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12
Q

What needs to be done for introduction stage of the product lifecycle?

A
  • Focus on getting the product into market
  • Gain recognition and reputation
  • Distribute only at few carefully selected channels
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13
Q

What needs to be done for growth stage of the product lifecycle?

A
  • Increasingly widely distributed

- Aim at broader market to encourage strong growth

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14
Q

What needs to be done for maturation stage ?

A
  • Strategy used to highlight differences between product and other competing products that are in the market
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15
Q

What needs to be to done to avoid decline stage?

A

Actions taken to extend lifecycle:

  • Improve product
  • Update packaging
  • Reduce price → more competitive in market
  • Seek new markets
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16
Q

Why do wines need branding?

A
  • Seeks to move product away from being a commodity
  • Consumers would want to buy that product even if it costs more than the min possible price
    e. g. mid-priced sauvignon blanc from New Zealand vs Cloudy Bay Sauvignon Blanc at higher price → consumer likely chooses Cloudy Bay due to branding
17
Q

What is ladder branding?

A
  • Intended to give consumers easy to understand “rungs” to help them trade up to a higher-priced and better-quality expression of the brand
  • Range benefits from the identity of the most prestigious expression of the brand
18
Q

What are the 3 rungs of ladder branding?

A

Accessible, stretch, aspiration

19
Q

What are the examples of ladder branding?

A
  • Champagne (Champagne House): Pol Roger NV → Pol Roger Vintage → Pol Roger Cuvee Winston Churchill
  • Burgundy (Soft brand of the region): Bourgogne Rouge → Gevrey-Chambertin → Le Chambertin Grand Cru
20
Q

What is the downside of ladder branding?

A

Strategy works less well on wines bought by low-involvement consumers → could cause them to think the ‘stretch tier’ is already overpriced and unaware of the existence of the aspiration tier wines

21
Q

What is a soft brand?

A
  • Describe cue used by a consumer when choosing to buy one product in preference to another
  • e.g. country of origin (Australia), region (Rioja) , geographical indicator (Pouilly-Fume), grape variety (Merlot), style of wine (oaky chardonnay)
22
Q

What is the trend of using soft brands in wine industry?

A
  • Wine-producing countries and regions promote themselves and use the exclusivity of the patch of land to promote the wines
  • GI is created for marketing purposes (e.g. California AVAs)
23
Q

What is a luxury brand in wine industry ?

A
  • Tend to be super-premium priced wines that very few consumers can afford
  • e.g. Champagne prestige cuvees, Bordeaux Premier Cru Classe, most expensive Californian Wines
24
Q

How to build a luxury brand in wine?

A
  • Super premium pricing
  • Create perceived scarcity to charge large premium → every part of the marketing strategy promote the idea of luxury
  • e.g. Sponsorship of exclusive / luxury events (e.g. Oscar, Wimbledon)
25
Q

What is “brand position”?

A
  • Where a brand sits in the market - usually set at launch so it can hit an intended price point
  • Linked to retail price: might need to reduce price to remain competitive
26
Q

How to describe a brand position?

A
  • Value, Standard, Premium, Super-premium
27
Q

What can be done about brand positions from producers’ point of view?

A
  • Modernising production, updating brand image, introduce new higher-end product
    e. g. Symington Family Estate: raising Cockburn’s Port position by the above
  • Low-end of the market should not be ignored → opportunity to do volume sales and appeal to mass market
28
Q

What is a private label?

A
  • Supermarket / Deep Discounters bottling wines that are sold under their brand
  • The wine could be from famous producers, but the producer name would not appear on the label
29
Q

What is market segmentation?

A
  • Division of market place into distinct subgroups or segment, each characterised by particular tastes and requiring a specific marketing strategy
  • Division needs to be meaningful, not so small (so it is possible to be profitable)
30
Q

What features are looked at for market segmentation?

A
  • Geographic variables (where consumers live)
  • Demographic variables (age, gender, ethnicity, family status, income, level of education, occupation, socioeconomic status)
  • Psychographic variables (lifestyle, personality, values and beliefs, interests)
  • Behavioural Variables (what benefit do they want, when do they buy wine, where do they buy wine, level of brand loyalty, level of interest in wine, early or late adopters)
  • Note: psychographic and behavioural variables are better predictors of how people would behave comparing to geographic / demographic variables
31
Q

What is the downside of market segmentation for wine industry?

A

No global model of consumer segmentation - each country is different

32
Q

What is the global model of wine market segmentation?

A
  • High involvement

- Low Involvement

33
Q

What are the definitions of high involvement and low involvement consumers?

A
  • High involvement - deep interest in the wine they drink, keen on trying new product spend more on wine
  • Low Involvement - little interest in the detail of what they drink, stick to few products, unlikely to spend much on wine
34
Q

What is the definition of market research ?

A

Gathering and analysis of data about particular market segment to understand what the segment wants or needs → verify segmentation exercise before marketing campaign starts

35
Q

What do the 3 ladders mean?

A
  • Accessible : least expensive, greatest distribution, consumer buys this most often
  • Stretch: affordable, but only for special occasion
  • Aspiration: most prestigious expression of the brand.
    Most of the brands consumers will never buy it as it costs far more than they are willing or able to spend on wine → super-premium identity over entire ladder

WSET Diploma (13 decks)

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