General Review

Question 1

Types of Market

Answer 1

Mature eg. Germany, Switzerland, UK, France
Established eg. Wine has strong historical growth . Ireland, South Africa, HK, Italy
Growth eg. Wine growth is mainstream US Canada Brazil
Emerging eg. Wine show potetnial for growth ..China Russia
NEw Emerging eg. New unknown but has potential , not necessarily established for route to market ..Thailand, Phillipines, Malaysia , India

Question 2

En Primeur

Answer 2

• selling wine before it has been bottled (12 months )
  -buy wine in the barrel but only receive when it has been bottled
  -risky
• only associate with reputable merchants who have matured and bottled
• following WW2 in Bordeaux, this was a way to ensure cashflow for the chateaux who had wine tied up in barrels for years
• covers all costs put to bottling
• much cheaper than end bottle
• could be used for investment wine .. cult wines
  -mostly wholesalers now who buy up stock and sell to retailers and dist.
  -important in fine wine trading
  -other regions who participate , Tuscany, piedmont , port, Rhone

Question 3

M & A

Answer 3

Merger is two business that are equal joining resources and capabilities to create a more competitive business
Acquisition - is a take over , when a larger business buys up smaller business to gain something, wine maker, land in Champagne, equipment , cut lower cost through eco incomes of scale , also to save failing businesses, conglomerates can fail see eg. Of Conviviality takeover of Bibendum or Carlyle Group takeover of Accolode wines when trade tariffs to China from US where high vs. free trade AUS to China

Question 4

Wine Investment Examples

Answer 4

Cult - handles wine portfolios , claim to increase value by 10 % per year , memberships start at 12.5K
Liv -EX - stock trading in the UK
Sothebys Auction house for unsold wine , rare wine
Eg of fraud, Hardy Rodenstock sold Thomas Jefferson collection ( fake)
Now use sophisticated anti - counterfeit systems and validation of provenance

Question 5

US Portraits of Buyers

Answer 5

Engaged Explorers, Premium Brand Suburbans, Contented Treaters, Social Newbies, Senior Bargain Hunters, Kitchen Casuals

Question 6

Brand Story Considerations

Answer 6

• where are the grapes grown, what is it like ?
  -producers history’s previous career , Longevity or existence
  ( Hardys 1851 Gallo 1933 Robert Mondavi 1960
  -story behind the label artist, bottle
• is it organic ,bio, vegan sustainable
  =creates authenticity

Also the story covers price, when and how the wine is sold
Can demand Price Premium ,

Strong Brand Name - needs to be east to pronounce not offensive in other languages
Can Also have a second name for different markets eg. Penfolds , Ben Fu ,
Geographical features eg. Cloudy Bay
Trade registration is vital

Question 7

Away from POS Marketing in ProMotion

Answer 7

-Ads, Campaigns, TV, Press, Cinema, Radio, billboards
- digital online ads
-Social Media
-Websites
-Online Shopping
-Smartphone Apps ( Vivino)
-Reviews and Awards
- Wine Tourism incl cellar doors
-Public Relations
-Sponsorship of events
-Events and Festivals
-Free Merchandise

Question 8

At POS Promotion

Answer 8

• Price Promotions ( banned in many places with Minimum Unit Pricing , Link Saves)
  -Competitions
  -Extravagant Packaging /Limited Edition
  -Staff incentives,
  -Staff Training
  -Consumer Tastings *