Marketing and wine

Marketing and wine

It is important to understand the consumer, Wine it is not a service but a product. As it is not a necessity product, we can say it is a luxury product.  To sell it, we have to rise « desire »by either make it affordable for type consumers who look more of quantity, or go for somethings more «unique». Try to convince the consumer of an experience more special. The global production is slightly slowing down in some part of the world, people have more consuming choice. There are more type of alcohol offers, but it is also, sometimes, consumers choose healthier live style and drink less but better quality.

Understanding the market, it is choosing the consumer and deciding the wine style, the marketing strategy and the price range where we want to be on. To look at competitors is important for understanding better the market.

Prices 

They are determined by different factors

  • Initial value of the product : Grape, additive, labour, infrastructures (rent, maintenance or development), power, aging time and spoilage
  • Marketing value : packagings, features, certifications, times, labours, communications, event, promotions
  • the market location (transport, benefice expected from intermediaries like restaurants, retailer shop, etc)
  • Risk (spoilage transport, not good payer, etc.)

The example of Misha Wilkinson for example, her husband and her target Asia mainly. It is a part of the world developing, with not to many competitors and some trade/business class are wellthy. Their distributors pass mainly by hotel and restaurant, so they offer a while range of wines to have enough styles to match with a whole dinner. They decided to go for small, enough to do most of it by their self and sell quality with a story with it. The wine come from a single vineyard close by a lac, right exposition. They choose the land, they planted the first vine there, they do it with passion…. Must be good, is it not?! Compare to a big corporate who optimize all with quantity and speed to sell wine in bag’n’box…. Both can make profit but have opposite strategy.

So pass the product who is supposed to fit to the market, marketing is also made, to « bring » it to the consumer. Distributors can partly make the job, but it is not always easy to have them as buyer…. So many options are possible in this globalization context. Many « tools » can be used but depends who you want to reach. Website, articles, medals, sponsoring event or business, promotions, innovation, etc. There are limit as alcohol is not an healthy product, each country has legislation who can limit advertising and promotions but I think, creativity is key in this field anyway.

References

https://nzwinepodcastnewzealandwinestories.simplecast.com/episodes/nz-wine-podcast-60-misha-wilkinson-mishas-vineyard

CCO410 Nmit powerpoint

https://marketing.sfgate.com/blog/15-of-the-most-effective-wine-marketing-tactics

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