1. Wine export analysis to United States of America from marketing
perception.
Case Massaya
Introduction
When a country wants to build its economy to be successful, should choose a viable
sector that can gives him profit for a very long term, and because in Lebanon our
government in building all our economy on just one sector called tourism which is related
to uncontrollable outside factors that can be affected by others such as tourisms, politics,
war… that’s why I’m trying to tell my government that we are able to be a more
powerful country by focusing on other sector which can be more viable to the future and
we can make our self control over it such as industry, that can be a very good sector to
invest in it, especially that Arab investors usually like to invest in Lebanon but they
always make touristic projects so why we don’t push them to make industrial projects so
we can build a right economy for Lebanon.
So I choose to make export analysis from a marketing perception to prove that Lebanese
industry if it’s powered by the government can succeed not only to satisfy the Lebanese
need so we reduce imports but also can go world wide through exportation and makes our
economy stringer and more powerful which reflects on the social, economical situation of
Lebanon,
Massaya is not the biggest wine company in Lebanon and we will see later in this export
analysis that it's making a very big development and is very strong in this field so if this
little company is doing all that, can we imagine what a big company or a whole sector
can do for the Lebanese economy?
So I’m expecting from my project if it’s possible to draw the attention of our government
to change the country focus from just one sector which is tourism to be also on other
major sector which is the industry maybe we can save Lebanon before it's to late.
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2. Chapter 1
History of Massaya
Massaya, “Twilight” is the brainchild of two dynamic Lebanese brothers who have
harnessed the potential of their fabulous terroir to the know-how of two French wine-
making dynasties. Since Biblical times, Lebanon has been acclaimed for its prized Bekaa
Valley wines. Today, this bijou winery, with its clay-limestone vineyards, nestled
between the mountains and the Mediterranean, produce a range of unique wines that
captures the spirit of the Levan.
The story of Tanaïl Property goes back to the early 70's as the Ghosn family acquired an
Estate planted with table vines. At First, they made homemade Arak from the grapes
grown on the property.
Sami and Ramzi Ghosn the second generation owners, learned to love nature and its
greatest produce - wine - during their childhood; in 1975, the civil war raged in Lebanon
forcing the Ghosn’s to leave their Estate, nevertheless they always knew a day will come
where they would return. Seventeen years later Sami Ghosn, by then an architect working
in Los Angeles, returned to Lebanon and revisited the war-ravaged family estate. The
land worked its magic and he decided to give up everything in order to devote himself to
bringing the domain back to life. He revived the distillation of homemade arak and
entrusted marketing to his brother Ramzi, who was at that time settled in France,
managing his own restaurant company.
The famous blue bottles of Arak turned into an instant success. Tanail was reborn from
its ashes but Sami Ghosn had still greater ambitions. As far as he is concerned it is no
coincidence that the Romans chose the Bekaa Valley as the site to build the temple of
Bacchus in homage to their God of wine and grapes.Massaya is situated in Tanaïl, the
heart of the Bekaa Valley, home to some of the oldest and most original motifs of ancient
wines and wine-making. The Bekaa is once again proving it can produce great wines and
Massaya, whose name is Arabic for the delicate beauty of the Bekaa’s twilight, with
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3. its French and Lebanese partners is proud to perpetuate this ancient tradition. Massaya bottles 5
wines per vintage: 1 rosé, 1 white and 3 red.
With wine making tradition dating back 5000 years the Phoenicians, the ancient dwellers
of Lebanon, were tending vineyards, making wine and trading with A very special place,
the vineyards of the Tanaïl Estate are located at an altitude of 1000 meters above sea
level in the Bekaa Valley, where the slopes are protected by Mount Lebanon and the Anti
-Lebanon mountain ranges. Free of frost and disease, the Bekaa Valley enjoys a unique
climate with long gentle summers, wet winters and an average temperature of 25 degrees,
perfect for viticulture.
What makes a grand cru in the Bekaa? If Massaya wines enjoy a very special soil, they
also benefit from the special attention they receive. Their development has become an art
form. The grape varieties are traditional, but the results are exciting. Beyond the above
stated facts, Terroir (of the Bekaa Valley) should be understood in a larger
perspective, as it includes in its significance the wine cultural heritage of Lebanon; it is
definitely not by coincidence that the Romans built the temple of Bacchus in Baalbeck,
some 30 minutes away from the Tanaïl Estate and its Massaya winery. Thus Massaya
carries on a wine tradition dating back 5000 years and that went through multiple stages
with the Phoenicians, the Romans, and the Arabic and French influences ultimately
contributing in making of Lebanon the Levant reference in terms of food refinement and
wine elegance.
Reference: http://www.massaya.com/
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4. Some information about Massaya export products
Exportation definition: According to the act, business, or process of exporting goods or
services
Massaya is a company that exports its goods and specially the wine into several countries
such as:
• Europe
• USA
• Australia
• U.K
• Syria
• Canada
• Jordan
Europe: Massaya doesn’t consider Europe as an exportation region from an economical
point of view because it already has offices in France and it has a partner ship and
alliance so Europe is for Massaya a domestic market. That covers 80% of its countries.
So behind Europe Massaya has the largest exportation of wine to USA and then to U.K.
And I’m going to choose the biggest country that Massaya export to it its wine and this
country is USA.
Before starting with Massaya’s SWOT analysis I will list the different products I’m
going to define what what is the SWOT analysis and also I’m going to put elements that
helps us to understand what each of the elements of the SWOT analysis should include in
it:
Definition of SWOT: According to Albert Humphrey the SWOT analysis is an
extremely useful tool for understanding and decision-making for all sorts of situations in
business and organizations. SWOT is an acronym for Strengths, Weaknesses,
Opportunities, and Threats. Information about the origins and inventors of SWOT
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5. analysis is below. The SWOT analysis headings provide a good framework for reviewing
strategy, position and direction of a company or business proposition, or any other idea.
Completing a SWOT analysis is very simple, and is a good subject for workshop
sessions. SWOT analysis also works well in brainstorming meetings.
I. Strengths:
1) Capabilities?
2) Competitive advantages?
3) Resources, Assets, People?
4) Experience, knowledge, data?
5) Location and geographical?
6) Price, value, quality?
7) Certifications?
8) Systems, IT, communications?
II. Weaknesses
1) Lack of competitive strength?
2) Reputation, presence and reach?
3) Financials?
4) Timescales, deadlines and pressures?
5) Cash flow, start-up cash-drain?
6) Morale, commitment, leadership?
7) Processes and systems, etc?
8) Management, succession
III. Opportunities
1) Market developments?
2) Industry or lifestyle trends?
3) Technology development and innovation?
4) Global influences?
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6. 5) New markets, vertical, horizontal?
6) Niche target markets?
7) Geographical, export, import?
8) Business and product development?
9) Information and research?
10) Partnerships, agencies, distribution?
IV. Threats
1) Political effects?
2) Legislative effects?
3) Environmental effects?
4) IT developments?
5) Market demand?
6) New technologies, services, ideas?
7) Sustaining internal capabilities?
8) Seasonality, weather effects?
Reference: http://en.wikipedia.org/wiki/SWOT_analysis
Each firm when it decides to enter a market should take into consideration its strengths,
weaknesses, opportunities and threats, the SWOT of the main competitors in entering this
specific market. And Massaya like all firms has made this SWOT analysis so it can
understand and make the best strategy that offers to it the opportunity to succeed in this
market.
I. Strengths: Massaya consider that it has lot of strength points such as:
1) Innovation: Massaya was the first wine firm that uses the Scrumcap for the
wine bottle instead of using Cork which is more practical it was the leader
in using such innovation.
2) Up to date: Massaya is the most firm that keeps its self up to date on all
new equipments or methods that can help her to develop to have better
quality and maybe to reduce its cost without loosing the high quality that
differentiate Massaya from others.
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7. 3) Quality: Massaya focuses on the main issue of quality even if it has a high
cost. They think that even if I pay more it’s not a problem I should keep a
stable high quality all over. And the quality is because of the high
equipments that are imported from France because of the alliance of
Massaya with the French firm. Later on we are going to see pictures for
these equipments.
4) Technology: The technology in Massaya is all over its offices,
equipments, and work:
• The offices of Massaya are well developed containing the best
computers ever with internet access and using developed systems
that help the employees to be well organized and facilitate their
jobs to they can give more.
• Equipments: As I already said Massaya imports its equipments
from France and these equipments makes production easier and
gives very high quality that Massaya always focuses on.
• Work: Because of the new technology that Is used in the offices
and in the equipments used in the production this makes the work
becomes more easy and gives a high quality that in a way or
another reduces the cost because with new technology we need
less employees.
5) Land: Massaya’s land has a very good soil which help the agriculture of
great quality of grape as the essential row material used in the production
of wine which is a very strong point that doesn’t exist for all companies in
the sector
II. Weaknesses: The big weakness of Massaya and from it comes all the other
weakness points is that Massaya is a small firm that has a limited production so it
gives high quality but with small quantity.
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8. 1) Cost: because of the small quantity that Massaya can produce this is
making a problem with the cost because in general when we increase our
production the cost automatically decreases because the fix cost is the
same whenever we produce a lot or less, that’s why the small quantity of
producing high quality wine is a negative point for Massaya concerning its
cost.
2) Markets: Because of the small quantity produced this makes it hard on
Massaya to enter all markets because it doesn’t has the quantity needed to
cover all the markets available that it can enters if it cans. So this problem
is working like a barrier for Massaya to enter and compete in lot of
available countries and markets.
3) Promotion: Whenever you have a high cost that means that the money you
have you should use it in the right place which is the production and
equipments sectors, so the problem in here is that Massaya doesn’t have a
big budget to spend it on promotions that’s why we rarely see promotions
for Massaya on television, but instead of that Massaya uses internet as a
main way to make advertising.
III. Opportunities: Massaya has lot of opportunities that can use and especially in the
world of technology and internet.
1) Internet: Massaya was the first cave to use internet and FB in its relations with
others which is an opportunity for the firm to be the first cave having relations
with customers through internet and Face Book which is a very popular site. Not
just that but also we can find Massaya’s website on the most popular and stronger
search engine that people from all over the world use it daily to search for goods
and information that they need such as “Google and yahoo” that helps Massaya to
be well known and discovered all over the world.
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9. 2) Email: Massaya was the first firm that uses hotmail such as messenger and
hotmail to communicate in an easy and secure way with its customers all over the
world which is an opportunity that Massaya made to facilitate the communication
with its customers.
3) E-commerce: it’s the most important opportunity that Massaya has done is to be
the first wine company to use the internet or the e-commerce to sell its products
over the internet, because we all know that e-commerce is becoming the most
popular way to buy the products and Massaya has an advantage because it was the
leader to make this system in the wine field, so the customer can enter to
Massaya’s site which is www.massaya.com and buy whatever they want from
Massaya’s wine and the firm will delivered it to his home.
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10. IV. Threats: Every person in life has his own threats that might be a barrier for him
to succeed in life, the same concept for the companies, each company has its own
threats that should work on to overcome then and Massaya also has its own
threats that is trying hard to overcome it on order to succeed such as:
1) Dealers: Because of the high cost of Massaya product's they are sold at
premium prices, in comparison with its main competitors. In addition,
people perceive Massaya as an expensive wine of very high quality.
Because of this, some dealers are not always interested to promote
Massaya products due to the low they can get because of the limited
number of customers who can afford such prices. issues which mean
that it has a high price versus its competitors so the dealers are afraid to
trade with Massaya’s wine because they think that there are no customers
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11. for this kind of wine which is as Massaya said a very wrong perception
because customers demand defer from cheap wine to very high expensive
wine, and also Massaya has a differentiation of quality which is from
middle to high quality product that I’m going to talk about later on in the 4
Ps. And a second threat that makes dealer afraid off buying Massaya is
that the budget of promotion is low as I said so sometimes in some place
it’s hard to sell a product which is not well known versus its competitor.
2) Matching the competitor price: The high cost of Massaya is obliging the
company to display high prices, but the problem is that competitors such
as: has a lower price to same quality. because he has a bog quantity
which oblige Massaya to match competitor price in order to compete in
the same market that’s why this high cost is a very big threat because it’s
making the company’s profit reduce because of low price with high cost
and the competitor is putting the same price with lower cost.
SWOT of the competitor
Well after making few researches I found that Ksara is the biggest competitor of Massaya
especially in the exportation to the USA market that’s I’m going to make the SWOT
analysis of Ksara in order to see what differentiate Ksara from Massaya concerning its
strengths, weaknesses, opportunities and threats.
Strengths:
1) Ksara is one from the oldest cave in Lebanon so it has a great reputation among
exportation and that reflects especially in the USA market so suppliers in the
American market prefer to deal with Ksara because they trust the brand.
2) Ksara is the biggest wine cave in Lebanon and consist a very big percent of the
wine industry of Lebanon so it has a very big experience in the world of
producing, marketing and management that’s why they entered the American
market in a very strong way which is well managed with high level of advertising
so the suppliers tries the best to retain ksara’s exportations to USA
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12. 3) Ksara has a very big production so they have the ability to compete the biggest
producers of wine in America it’s a very big company so it’s not scared from
competing with others even if they are big and this was the strongest turning point
and it has a very big advantage especially over Massaya because it’s a small cave
so that’s why Ksara is more successive in its exportation to USA.
Weaknesses:
1) Because of its big productivity Ksara have a very big stock or wine that
sometimes even of its big market share the stock stays a big time and not all kind
of wine should stay long times in stock
2) Because it has a very big exportation so they lack some control over their
products in the foreign countries. Especially in USA because it’s a huge market so
it’s hard on Ksara to have full control all over that country.
3) Ksara has a problem concerning its decisions because it’s not for just one person
and the decision is not in the hand of a person and it’s managers it’s between
several people that might affect wrong decision for its exporations.
Opportunities
1) Wholesalers all over the world try to deal with huge and trustful companies in
order to feel safe that’s why wholesalers were looking for Ksara and they prefer
dealing with Ksara because it’s big and trustfull as I said before so this is a very
important opportunity versus Massaya.
2) The American customer is a customer that looks for the brand name and who is
better than Ksara to be the best choice for the American customer so they’re taste
is an opportunity for Ksara over Massaya.
3) The American market is a huge market and it needs a huge amount of wine
bottles, and we said that Ksara has a big stock so it can use this stock to fill the
unexpected demand on its wine.
Threats
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13. 1) Because of the political problems the demand from the American market on the
Arabic and Lebanese products is decreasing and Kasara’s wine is a Lebanese
product so that’s why if the political problems increase it’s a huge threat on
Ksara.
2) The wine is exported in the ship from Lebanon to USA which affects its taste and
also has a huge risk with all the natural disasters that might happen during the
long trip in the sea which is a threat affecting the quality from a side and a risk of
losing the container in case of any natural disaster from the sea.
SO we can conclude that after comparing the SWOT analysis between Ksara and
Massaya we can see that Ksara’s wine is more powerful in its exportations especially
to the American market and the main reason of this advantage is that Ksara is a huge
cave with a huge productivity, advertising, and experience and this factors doesn’t
exist in Massaya which is a small cave with limited productivity and advertising but s
has the experience and this what is making Massaya still able to compete.
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14. Chapter 2: 4PS
Before starting by the 4PS of marketing about Massaya Company I’m going to make
some general definitions about how the 4PS entered the business world and what means
each of the four elements:
Product
Price
Place
Promotion
In the early 1970’s Phillip Kotler created the concept of the 4 P’s of Marketing, Product,
Price, Place, and Promotion. I have marketed and sold many products, and I have found
the 4 P’s relevant with all of them. So what does this mean to the wine industry? Let’s
look at them each individually:
a) Product: You need to have a realistic, objective view of the quality of your
wine. How does it compare to your perceived competition? Does it
reflect your wine making philosophy? Are you getting the most from the
raw materials you have to work with?
b) Price: How does the price you are asking for your wine reflect the position
you are looking for, and the quality of your wine? Under pricing wine is as
bad as over pricing. As a baseline, there is a certain return you need from
the wine relative to your investment. Does the end product justify that
return? If priced to high, the wine will not sell, and you will have dead
inventory to deal with. Is it priced too low? If you are selling out your
offering quickly, think about raising your price.
c) Place: This refers to distribution. What are you doing to get the product in
front of the consumer? Do you have distributors? Are you making market
visits to promote your wine? Do you have a good website, with a
shopping cart? Are you managing your mailing list? Do you have a
club? Have you tried to sell direct in the self distribution states? These
are all elements of distribution.
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15. d) Promotion: What can a small to medium sized winery do to promote their
product? There are the obvious tactics, enter wine competitions, wine
makers dinners, shelf talkers, etc. What about the not so obvious…Direct
promotions, such as special offerings, to your club members. Creating
unique bundled offers in your tasting room, or using your newsletter to
educate the consumer
Bottom line is that making great wine is rarely enough. You must be a marketer, and
sticking to the basics, the 4 P’s, is a firm foundation to build on.
There are four major elements that each company should take into consideration from the
first day it opens in every step that wants to take.
These four elements are known as 4PS they have this name because all of them start with
the same letter which is the letter “P”.
These 4PS reflect the situation of each of the four elements which are:
1) Product
2) Place
3) Price
4) Promotion
So we are going to make the analysis of each of these four elements as their situation is in
the Massaya’s company concerning wine.
I. Product: The product is the good that the company is offering to the customer to
satisfy its need, and with Massaya this product is wine.
Massaya’s wine is divided into 5 bottles:
1) One white
2) One rose
3) Three reds
The white wine is composed of just one bottle so we conclude that is has the same quality
all over the markets, wherever you ask for a white bottle wine from Massaya you will
have the same quality and the same taste.
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16. The rose wine has the same situation as the white bottle has the same quality all over the
market the domestic and the foreign so wherever you ask for a rose bottle wine from
Masaya you will get the same quality and taste.
But the big differentiation is the red wine which is decomposed into three categories so
serve the different parts of the society from low to high social classes and these three
categories are:
1) Gold Reserve
2) Silver Selection
3) Classic
So we are going to start by talking about the Gold Reserve red wine from Massaya which
is in general designed to the upper-class people.
1) Gold Reserve: he Gold Reserve red is Massaya’s luxury brand- its exclusive new
French oak barrels ageing blends in a different dimension. A wine to be put down
for special occasions; the black tie wine of Massaya, this wine is put in a barrel of
wood that is imported specially from France in order to make this luxury wine
that is offered into specific people and specific markets because of its high price.
And also the Gold Reserve wine from Massaya is not produced every year and
in small quantity because it’s hard on the company to sell this kind of wine, and
specially that the Gold Reserve need lot of time in the store to take the real taste,
that’s why it’s not easy to find Massaya’s Gold Reserve wine which is very
luxury produced in very developed equipments to have a very special taste.
2) Silver selection: The Silver Selection comes in red. Massaya’s festive brand
blends in sophistication and complexity with gentle oak influence, warmth and
ageing capacity. Massaya food wine with a jacket and jeans on. This is the middle
quality in Massaya’s wine but also close to high it’s produced in barrels that it has
been used before to produce Gold Reserve wine after using these barrels several
times, they use it to produce the silver selection wine which is less luxury and
produced in more quantity, but also needs time to be stored and like the Gold
whenever it’s old so it’s better and more tasty, so depending on the year of
production the quality and price vary.
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17. 3) Classic wine: This red wine from Massaya is targeted to the popular segment of
customers which is produced in a very big quantity, and it’s production defer from
the production of the Gold and the Solver it’s not produced in barrels of wood in
produced in barrels of cement, and this kind of wine is seasonal so it’s the
opposite of the Gold and Silver you should drink it during three or maximum four
years or it will loose its quality and taste, and it has a very normal price and low
comparing to the Gold and Silver, that’s why the biggest quantity of exportations
is from this kind of wine which is the classic.
And we should mention that Massaya has an added value to its product which is the use
of the Stelvin (screw cap) closures on the Classic range, and the use of such screw cap
instead of the cork as all other companie is for several reasons such as:
a) It prevents the bitterness, mould or pungent aroma associated with cork taint.
b) It offers superior retention quality analytical and sensory characteristics of fruity
wine.
c) Screw caps are convenient for removal and re-sealing and allow wines to be
stored in any position.
d) The consumer is guaranteed to open a fresh bottle of wine every time with no risk
of flavor deterioration from cork taint.
The last 30 years has seen wine production increase and the supply of cork struggle to
keep pace. A Spanish or Portuguese cork tree needs 30 years to reach correct maturity
and many suppliers ended up using inferior quality corks, leading to increase in the
incidence of wine taint, especially in the entry-level wines, where as many as 30 to
40% of the wines are tainted to different degrees because of bad corks.
There is nothing more upsetting to us to know that somewhere out there, somebody
may be drinking a fruity Massaya Classic that doesn't taste as we intended it to simply
because of the cork. We are passionate about getting rid of cork taint, which can dull
the fruitiness, leaving the wine bitter, mould and, heavily pungent. With Stelvin caps
we can deliver the fruity wines as the winemaker meant to be.
Synthetic corks have found less of an acceptance as there are still questions about
their being 100% food-grade in the long term as well as their synthetic material's
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18. ability to spring back to their full size after being forced into the neck of the bottle
(something at which the cork excels).
• Why then use cork on the Silver Selection and Gold Reserve?
Elvin ensures that every bottle of Massaya Classic will retain its freshness for current
enjoyment. However, our Silver Selection and the Gold Reserve wines are meant for
ageing and only a high-quality cork can bring the appropriate porosity that gradual
ageing demand.
• How to open a Stelvin screw cap?
Don’t need to have a post-graduate degree in mechanical engineering nor superhuman
strength and dexterity, (or even a corkscrew, for that matter) to open the Stelvin
closure.
The screw cap is one cylinder when it goes on the bottle at bottling time. When you
first get a bottle, hold the whole screw cap and neck seal and move it slightly and it
will move as one and loosen. If you move it too hard it will crack the seal and the
bottle will be open, so do it carefully.
II. Place: With wine making tradition dating back 5000 years the
Phoenicians, the ancient dwellers of Lebanon, were tending vineyards,
making wine and trading with A very special place, the vineyards of the
Tanaïl Estate are located at an altitude of 1000 meters above sea level in
the Bekaa Valley, where the slopes are protected by Mount Lebanon and
the Anti -Lebanon mountain ranges. Free of frost and disease, the Bekaa
Valley enjoys a unique climate with long gentle summers, wet winters and
an average temperature of 25 degrees, perfect for viticulture.
This is the place where the treasure of Massaya Is located in Lebanon, but
concerning the market or the places where Massaya’s wine has enter,
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19. Massaya has a part of its production that goes for the domestic market
which is Lebanon, and also france but there is a big some of its production
that are exported to different countries such as:
1) Europe
2) USA
3) Australia
4) U.K
5) UAE
6) Jordan
7) Syria
8) Canada
• Massaya covers 80% of the Europe countries but it doesn’t
concider these countries as exportation because Massaya is
also located in France and we have the European Union so
it’s like one country that’s why Europe os a domestic
market for Massaya that is located in France.
• USA is the biggest market for Massaya’s wine exportation
because USA is a big market and Massaya had entered this
market from a very bog door and made a very big impact in
it.
• After USA the second biggest market for Massaya’s wine
is U.K also through exportation this company entered the
United Kingdom market that takes a big space from
Massaya’s wine exportations.
• What is rested from Massaya’s exportation is delivered to
all the other countries which are: Austalia, UAE, Jordan,
Syria, and canada
And we should mention that all these countries receive the same
quality of Massaya’s products which means that the gold is the
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20. same every where, the silver is the same and the Classic also is the
same in all countries.
III. Price: The price of Massaya faces lot of problems especially versus the cost and the
competitor.
Massaya is a small firm so it produces a small number of wine bottle comparing to the
competitor, and we all know that cost is composed of variable cost and fix cost, Massaya
has a problem with both of these costs:
1) Variable costs: Massaya import all its equipments and materials from France
which is expensive to it and because Massaya is always up to date so it’s leader in
buying new equipments and new materials that no has and it’s very expensive.
2) Fix cost: the electricity, salaries, and other fix cost Massaya should pay the same
amount if it produces a small or a big quantity of wine bottles, and because
massaya is a small firm so it produces a small quantity of wine bottles which is
negative to it because it’s paying high fix cost to produce a small number of
bottles which lead us to a problem of high cost of production.
So it’s the situation of high cost so automatically the price will increase to make a big
profit.
But from the other hand we see that the competitor that has a big firm is producing a
similar quantity with lower cost because he is producing a high quantity of wine bottles
which gives him the opportunity to sell with lower prices, so I’m obliged as Massaya to
decrease my prices so I can compete in the market and the percentage of decrease is taken
from my profit so to compete I should decrease my prices which is negative to my profits
and has big consequences over other elements such as promotion and marketing costs.
I. Promotion: According to the problem if cost Massaya doesn’t have a big budget
for its promotion campaign that’s why we never see Massaya on television
because it’s very costly and it doesn’t have the money needed for such
promotions.
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21. That’s why Massaya was the first cave that used the internet as a way to make
promotions which are less costly and very popular but sure doesn’t have the impact like a
television commercial.
1) FaceBook: Massaya was the first cave that mad a group on face book and
we all know how much the face book is large and contains a huge number
of users, and most important thing that it’s for free and it covers all the
world that’s why it was a very great idea from the marketing team in
Massaya to be the leader in such idea.
2) Search engines: Also Massaya was the first cave to enter to a search
engine system it’s not cheap but also it’s not expensive like television, it’s
world wide use and very popular to each person on earth to search these
engines for information and products. E.G: “Yahoo, Google…”
3) Internet site: Massaya has an internet site which is www.massaya.com and
the huge importance of it is that contains the e-commerce system, so the
buyer that search the internet looking for such product which is the wine
and would like to buy Massaya’s wine, it’s a very easy operation for him
just to order the product and it will be delivered to him wherever he is
located, so it’s a very important indirect promotion specially that Massaya
was the leader in applying this system.
4) Magazines: well articles are not that much expensive so Massaya has the
ability to make promotions by articles in several magazines which is a
promotion especially for the local market.
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22. Chapter 3
Consumer behavior:
Before getting in what is the American behavior versus Massaya’s wine I’m going to
make a definition for the meaning of consumer behavior and what are the useful points
from making the consumer behavior of my target market so every one reading this project
can understand why it’s very important for a company to make the consumer behavior
analysis.
The study of consumers helps firms and organizations improve their marketing strategies
by understanding issues such as how:
1) The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
2) The psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
3) The behavior of consumers while shopping or making other marketing
decisions;
4) Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;
5) How consumer motivation and decision strategies differ between products
that differ in their level of importance or interest that they entail for the
consumer; and
6) How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
Definition: The study of individuals, groups, or organizations and the processes they use
to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy
needs and the impacts that these processes have on the consumer and society." Although
it is not necessary to memorize this definition, it brings up some useful points:
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23. 1) Behavior occurs either for the individual, or in the context of a group (e.g.,
friend's influence what kinds of clothes a person wears) or an organization
(people on the job make decisions as to which products the firm should use).
2) Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to the
marketer, because this may influence how a product is best positioned or how
we can encourage increased consumption. Since many environmental
problems result from product disposal (e.g., motor oil being sent into sewage
systems to save the recycling fee, or garbage piling up at landfills) this is also
an area of interest.
3) Consumer behavior involves services and ideas as well as tangible products.
4) The impact of consumer behavior on society is also of relevance. For
example, aggressive marketing of high fat foods, or aggressive marketing of
easy credit, may have serious repercussions for the national health and
economy.
Reference: http://www.consumerpsychologist.com/
Massaya:
Massaya as I said before is a small company that’s why it doesn’t have the ability to
make strong and powerful consumer behavior study but Massaya in order to
develop its wine production to suite the American wine market made some few
studies to see the impact of Massaya on the US market and what kind of wine
really the consumer wants to buy
1) Massaya had profit from the studies of other competitor in the US market that
they had already made consumer behavior study in the same segment that
Massaya is selling in, these information where published in magazines and also
Massaya buy some information that they were privet.
2) And also from the kind of wine that is mostly demanded to the US market it could
be aware of the American consumer behavior versus the wine in general because
Massaya offers three kind categories of wine which I’ve already mention.
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24. 3) Massaya also used the internet as the based method to make its research on the
American wine market consumer:
a) Using email Massaya was asking the consumers what kind of wine do they
like, and what level of wine (luxury, silver, classic), and how much they
are willing to pay for a bottle of wine.
b) And not just email, Massaya also has its internet site that is published on
Google and yahoo and a Face Book group so Massaya puted kind of
questionnaire about the same elements that I’ve already mentioned but
with more details such as: age, location, religion, and sure if they tasted
Massaya or not, they like or not, if they could make any modification what
would it be
After all these studies and analysis in order to understand the American consumer
behavior of wine and Massaya’s wine it concluded some points which are:
a) American market consume the three kind of Massaya’s wine but with different
degrees, starting with the high degree for the Classic wine which is the popular
wine, then the Silver bottle which is the medium wine, and the last degree is for
the Gold wine from Massaya.
b) The American market in general is not concerned by the prestige and he doesn’t
care if he is buying the most expensive bottle wine in the world but he is
concerned about what he likes even if it’s cheap but for him it’s tasty so he
follows his taste not his prestige.
c) Masaya should make wine that fits the American taste and not the American
prestige that’s why the classic wine from Massaya has the biggest degree of
exportation to America, and America is the biggest target for Massaya’s
exportation that’s why it should focus the biggest production on Massaya’s
Classic wine.
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25. Impact of publicity:
In order to understand what the impact of publicity is first we should understand what is
publicity?
At its core, publicity is the simple act of making a suggestion to a journalist that leads to
the inclusion of a company or product in a story. Newspapers, magazines, TV programs
and radio shows have large amounts of space to fill and depend upon publicists to help
provide story ideas, interview subjects, background information and other material.
For the most part, the act of making a suggestion to a journalist, when successful, will
lead to one of two types of coverage:
A story created from scratch built around the story "angle" you suggest (e.g. a feature
story on your company; a story about a trend that you present to a journalist; an interview
segment, etc.)
The inclusion of your product, company or service in an already existing story (e.g. the
reporter is already working on a story about your field and your contact with her results
in your product being included in the piece).
• The impact of publicity is a term that every one thinks that is very easy to
understand and very easy to analyze but what I’m going to say now is going to
explain for you how to evaluate if the advertising is effective or not:
1) While advertising may have several objectives, ultimately marketing and business
executives want to know, "How has advertising contributed to sales and
ultimately to the company's bottom line?" Since we can't ask consumers tell us
what made them purchase a product, we have no choice but to make this
assessment by other means.
2) The first thing to recognize is that advertising is only one of many marketing
elements that affect sales. Other elements include pricing, promotional offers,
product attributes, and reactions by competitors. In addition, external factors, such
as macroeconomic trends and seasonality, are likely to affect response in the
market. Consequently, the response to advertising can best be evaluated by
techniques that allow researchers to account for the mix of marketing activities
and other external factors.
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26. 3) Econometric modeling techniques, especially time series regression, provide a
well-structured means of evaluating the impact of advertising on sales by isolating
key explanatory variables and holding constant certain variables that may mask
the effects of advertising. This is the technique used in marketing mix modeling,
which has long been applied in the consumer package goods industry where the
direct relationship of advertising to sales is weakest.
4) Under the right circumstances, we think marketing mix modeling is a useful way
to assess the effectiveness of advertising, particularly when a company uses an
integrated multimedia strategy. But we also recommend that marketing decision
makers use additional information in deciding how much advertising to do and
what the mix should be. In fact, the ideal way to manage marketing performance
probably involves a combination of statistically robust modeling, traditional
advertising tracking studies and other marketing analyses. Essentially, we believe
that marketers are better served by using as many tools as they can in tackling this
complex issue.
Reference: http://archpsyc.ama-assn.org/cgi/content/abstract/64/4/466
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27. Massaya
Advertising campaign and its impact on the American market
In my entire project I was focusing on the point that Massaya is a small company
comparing with competitors and because of several reasons that I’ve already mentioned
Massaya has a limited budget for its campaign that’s why I’m going to repeat little bit the
advertising campaign of Massaya and what is its impact on the American market.
The internet was the main door that Massaya used to offer it self to the world, because of
its limited budget the creativity of Massaya’s team pushed it up to be the leader in
Lebanon to use the internet in all it’s availability in order to make its advertisement.
The internet might be for us the Lebanese a silly way to make advertisement because
even if we use the internet we used more for entertainment and we think that if the
publicity wasn’t on the television it doesn’t have an impact and won’t be well known for
the consumers.
But here is the big deference that the American consumer is not like the Lebanese
consumer he is more developed and has more technology and use it more to search about
products that he needs because he is more integrated in the e-commerce world and here
was the turning point and the advantage for Massaya that was the first Lebanese cave to
use the e-commerce system in it’s advertising and sales.
Because the site of Massaya is presented on Google and yahoo which are the most
famous search engines in the world and specially in USA, and because the American
consumer search a lot for products on these engines the impact of the publicity of Masaya
on the internet through all of that was very strong especially comparing to other Lebanese
cave that export to America.
So the impact of Massaya’s wasn’t bad specially that is has a very big demand on its
wine via the e-commerce but the problem Is that this impact is small comparing to the
American huge companies and companies like I mentioned in the SWOT analysis which
are huge having a very big financial abilities because of huge production and
diversification so we can not compare the impact of Massaya’s publicity that is focused
on the internet to television and deferent huge publicities methods. That’s why comparing
to Massaya’s abilities and budget and what can offer the impact on the American
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28. consumer if very good and it’s really affecting the Image of Massaya specially that it’s
offering a very acceptable product.
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29. 29

30. These charts can make us see that the Lebanese industry is not bad it’s really entering the
world but needs our help to be more powerful and to continue that’s why our government
should realize that it should support the industrial sector to have better results and better
economy.
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31. Conclusion
the Lebanese wine and the name of the Lebanese industry will be strong if we help and
support this sector and gives him what he needs from:
• World commitment between Lebanon and other countries
We all know that relationships between countries is build on commitment so what I’m
saying is that the Lebanese government can make an exchange commitments with other
countries so the Lebanese industry can be exported with lower prices to foreign market
which can help it to be competitive at lower prices and succeed internationally through
these commitments.
• Financial support if needed
Lebanese government gives lot of financial support to the agricultural sector in Lebanon
and even that this sector is always under pressure of failure so why don’t our government
also make a financial support to the industry sector especially the wine and all the
industries that Lebanon is strong in it, and can be competitive in the foreign market and
we saw that the Wine is a very competitive product all over the globe so just make it
more powerful
• Decreasing taxes on imported machines for wine industry
The machines used in the industry is imported from outside which has a high price
especially with taxes which reflects on the cost of productivity and the price of the
product which is going to be high versus competitors in other countries what I’m saying
is that government can reduce taxes on imported machines to the industrial sector in
Lebanon so it will decrease the cost and help them decrease the price and having more
profits which will be a great push to this sector that needs a lot of new equipments and
machines with high technology to succeed.
So in the end I am putting this project in the hands of people who are responsible and
guiding our economy to be aware that we can develop our self by focusing on the wine
industry in Lebanon.
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