Devising the marketing strategy Flashcards
(40 cards)
Define PRODUCT
The item being marketed.
including all packaging and branding
+any value-added features like gift wrapping
Define PLACE
This relates to where the product is sold.
A company needs to identify where its target market shops, such as supermarkets, deep discounters, specialist wine shops or online, and focus on those outlets.
What does the marketing strategy need to accomplish in terms of
PROMOTION
Marketing strategy in terms of PROMOTION:
- Tailor promotions according to different psychographical and behavioral segments; a single type of promotion will not be enough to appeal to an entire segment.
- Awareness of legal constraints from country to country, e.g. in termes of alcohol advertising, price promotions
Define ‘Established market’
4 egs
Markets with strong historical growth which is tailing off
Ireland, S. Africa, Italy, HK
PROS and CONS of COMPETIONS at POS
PROS:
- Wines can apper more atractive given the possibility of winning something. This can increase sales.
- Customer details can be collected to be used for other marketing purposes
CONS:
An expensive way of encouraging sales, and few people will benefit from the prize.
Define ‘Emerging market’
4 eg’s
Markets where wine is experiencing growth and shows potential from a relatively low base.
China, Russia, Turkey, Taiwan
Define ‘Mature Market’
4 eg’s?
Markets where wine appears to heve reached its potential with stable or declining volumes.
Germany, France, Switzerland, UK
What is meant by a ‘saturated market’
How should marketing be strategized in such a case?
Saturated market: IF a market already has enough products to satisfy consumer’s needs and there are a few gaps for new products.
Strategy:
This means producers have to set themselves aside from others in the market by highlightning their uniqueness when compared to competitors: this could be their perceived quality, value or production ethos (organic, vegetarian, vegan etc.).
What does the marketing strategy need to accomplish in terms of
PLACE?
Marketing strategy in terms of PLACE:
- Choosing effective distribution channels; smaller production, premium wines through specialist intermediaries, big brands through larger intermediaries.
- Choosing the right country; tastes vary, may be necessary to produce wines with different flacor/aroma profiles, levels of sweetness/ alcohol.
-Be aware of legislation, taxation, restrictions of target country.
Define ‘Growth market’
4 eg’s?
Markets where wines is a mainstream product and/or experiencing growth.
USA, Canada, Brazil, Poland
PROS and CONS of STASS TRAINING / INCENTIVES at POS
PROS:
- Staff more efficient at selling:
Educating staff helps them effectively sell the product, thereby making it more appealing to consumers.
-Staff encourage to perform better:
Staff can be encourages to create more sales by presonal incentives, making them more invested in their work.
CONS:
- In Some regions incentivising staff by awarding prizes is considered bribery, and therefore illegal.
- It may be costly initially to train all staff to a high level.
What are the 9 Marketing methods AWAY from POS
Marketing methods AWAY from POS:
Advertising
Sponsorship
Websites
Social Media
Smartphone Apps
Wine tourism
Events/Festivals
Rewiews/Awards
Public Relations
What does the marketing strategy need to accomplish in terms of PRICE?
Marketing strategy in terms of PRICE:
- Purposefully under-pricing product at first, raise price later (‘penetration’ strategy).
- Price high if wine is meant to be a ‘luxury’ special occasion, or ‘gift’ product.
- Lower slightly to appeal to psychological associations, e. g. 9.99$ insteod of 10$ ( closer association to 9 than 10).
Define PROMOTION
This covers all the methods used to advertise a particular product
PROS and CONS of PRICE PROMOTIONS at POS
PROS:
- Increase sales (during and after if succesful) and brand awareness. Atract new customers
- Help shift old stock or discontinued lines (bin ends)
- ‘Link saves’ can encourage customers to try other types of product alongside the wine, thereby increasing ovearall sales.
CONS:
- No brand loyalty: Cconsumers associate the wine with promotions so will only buy it when on sale and wont’t buy it once the promotion ends.
- The image of the wine may be damaged by the reductions.
- Have been senn to encourage increased alcohol consumption
-Producers can be expected to cover the cost of price promotions, so may lose revenue.
PROS and CONS of ADVERTISING
-Great exposure: Can reach a arge and varied group of consumers.
- Effective Campaigns can remain in the minds of consumer for a long time.
- Certain avenues of advertising, such as print media, can be more effective than TV/Cinema/Radio promotion, as wine often has a ‘story to tell’. Print media is useally a cheaper alternative to visueal/audio outlets. Good for high-involvement consumers
CONS:
Can be very expensive:
- To purchase airtime/ ad space, especially via media such as TV, cinemas, national press.
- To conctract the servives of an outside ad agency
- Certain countires completely ban advertising alcoholic beverages (eg. the UAE), while others severely limit it (e.g. France’s Loi Evin).
Companies must complywith different laws in different markets, creating additional administrative workload.
PROS and CONS of FREE MERCH at POS
PROS:
- Sales can increase, particularly around holidays, as these products make good gifts.
- Increase brand awarness
CONS:
- Doesn’t increase brand loyalty: Merchendise may not be viewed as exclusive/special because it is available to everyone.
Addtional costs of giving away free merch.
What is penetration strategy in relation to new wines?
Under-price the wine to try and persuade price concious customers to try a new wine, with a hope that they will permanently switch to this brand after the price is raised.
Define PRICE
This is the amount which a consumer pays for a product.
It includs any additional costs such as delivery as well as discounts.
It also includes the cost (in time or effort) which the consumer is willing to go to in order to buy the product
What are the 5 different ‘Market Types’, as posited by Wine Inteligence?
Mature Market
Established Market
Growth Market
Emerging Market
New Emerging Market
PROS and CONS of SPONSORHIP
PROS:
Exposes the brand/logo to a very large audience, eg. low-involvement sports fans watching evenrs such as the Tour de France, sponsored by Chilean wine brand Cono Sur.
Can give the brand exclusive rights to being served at hospitality venues at certain events, essentially granting them a captive audience.
Can be cheaper than producing actual advertisements
CONS:
Still quite expensive eventhough it can be cheaper than producing actual advertisements
Subject to same legal restrictions and bureaucracy as regular advertising
Viewed by some to be inapproprate to asociate alcohol consumption with sporting events, which theoretically promote health and well-being
PROS and CONS of WEBSITES
PROS:
Great exposure: Can reach a large and varied group of consumers throughout the world
Online shop can be incorporated
Lot of space for information:
- Different types of information can be offered to consumers, including photos and videos, details regarding winemaking, food and wine pairings, information on upcoming events.
- Different levels of information to different levels of interest, e. g. detailed technical sheets for high-involvement vs bacis information for low involvement.
CONS:
The website must be attractive and easy to navigate
Cost of creating: need to hire an outside web design company or hire dedicated design-focused staff members.
Cost of maintaining: additionally roung-the-clock support will be required in order to cope with any technical issues or website crashing
SEO: atracting consumers to the site can be difficult, as most consumers rarely scroll past the first hanful of results provided by a search engine such a Google.
Laws: There are ethical impications as well; though most websites advertising/selling alcohol to verify that they are of legal drinking age, this relies on assumption tha visitors are being honest.
PROS and CONS of LTD EDITION PACKAGING/PRESENTATION at POS
PROS:
Collectable: collectors and investors may see wines packaged in exclusive packaging as collectable/desirable.
Gift: Can be seen as a more original gift than a regular bottle
Brand awarness: The packaging is distinctive and can help raise brand awareness.
CONS:
Sales don’t tend to increase in the long-term, particularly as the wine is not typically presented in this way.
PROS and CONS of SOCIAL MEDIA:
PROS:
Possibility, to engage in dialogue with consumers, rather than simply talking at them.
Especially effective with reanching younger consumers (Millenials).
Can potentially provide invaluable free promotion.
Allows ‘ordinary’ customers to leave ‘peer’ reviews, which can habe significant effect on consumers’ purchasing decisions, especially with consumers who often trust fellow social media users more than established critics
CONS:
Must include information other than pure promotion/advertising, as this can bee seen to alienate followers = costly/time-consuming
Need to employ a community manager: Monitor and maintain their social media presence, which can add to costs.
Risk of bad reviews, contents from customers
