Specification Flashcards
(20 cards)
What are the four ranges for understanding the factors that contribute to the price of wine?
- Supply and demand
- Costs
- Legislation
- Currency exchange
What are the components and sub-components of supply?
- Production (areas under vine, the growing environment, grape growing and winemaking)
- Legislation
What are the components of demand?
- Social factors
- economic factors
- legislative and political factors
What are six major components of costs?
- Grape growing costs
- Winemaking costs
- Transportation costs
- Importation costs
- Sales costs
- Marketing costs
What are the four subcomponents of winemaking costs?
- Winery establishment
- general winemaking
- maturation
- packaging costs
What are the two subcomponents of importation costs?
- Taxes and duties
- distributors’ margin
What are the three subcomponents of transportation costs?
- Types of transportation
- bulk transportation
- insurance
What are the six subcomponents of sales costs?
- Property costs
- labour
- equipment and materials
- storage costs
- delivery costs
- margin at the point of sale
What are the three subcomponents of marketing costs?
- Labour (in-house vs third party)
- design and production of bottles and labels
- marketing campaign
What are six factors related to legislation?
- Tax
- duty
- trade barriers
- subsidies
- minimum pricing
- labelling laws
What are two factors related to currency exchange?
- Influence of fluctuations on costs
- methods to limit impact
What are six methods of limiting impact of currency fluctuations?
- fixing the price
- fixing the exchange rate
- options
- buying foreign currency
- trading in US$/€
- other bank accounts
What are 8 types of businesses engaged in production of wine?
- Estate
- grower
- grower-producer
- merchant
- co-operative
- custom crush facility
- virtual winery
- conglomerate
What are factors to consider in options for getting wine to point of sale?
- Importing and distributing options
- Retail options
- HoReCa options
- Direct to consumer
- Types of market
What are 4 importing and distributing options?
- Distributor
- joint venture
- use a broker
- direct to seller
What are nine retail sector options?
- Supermarket
- deep discounter
- convenience
- specialist wine retailers
- hybrid
- online retailer
- global travel retailer
- wine investment
- monopoly retailer
What are HoReCa options?
- Bars (specialist, general)
- restaurants (non-destination, casual, fine dining)
What are four direct to consumer options?
- Cellar door
- events
- wine club
- online
What are three types of markets?
- Free market
- monopoly
- three-tier system
What are 5 marketing concepts?
- Identifying the product/brand to be marketed
- analysing the current market
- identifying the target consumer
- setting the objectives of the marketing strategy
- devising the marketing strategy (the marketing mix: 5Ps and marketing options)
