International market switzerland
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INTERNATIONAL MARKET DEVELOPMENT CLASS PROJECT - WINE TRADE Students have been assigned to a team of 2 or 3 to develop an international market development project. Students are assigned to work for the same fictitious wine domaine: Domaine de X, with the same product line. They will be given fixed parameters/constraints regarding the wines and the domaine. Each team will be assigned a different market for these wines, specifically: -a specific country: Switzerland -a type of retailer : Niche Supermarkets
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International market switzerland
- 2. International Market Negociation Swiss Niche Supermarkets
- 3. Swiss Niche Supermarkets Eva JACQUET Nina PELLICER Avi TURQUAY
- 4. Summary Swiss Market Overview Target Market Overview & Benchmark Consumer Profile & Trends Marketing Strategy 1. Product Strategy & Label 2. Distribution Targets 3. Pricing Conclusion 4. Promotions & communication
- 5. Swiss Market Overview Consumption / Colour Imports French Wine Imports 63.4% 31,2% 5,4% 1 881 mhl 68% ntl wine consumption 396.7 mhl 21,1% ntl imports 75% L-R Wines 2014 White Red-Rosé Value K€ 1 807 (7.3%) 22 966 (92.7%) Volume Kl 413 (5.6%) 6 999 (94.4%) *Sud de France
- 6. Target Market Overview Image of French Wine 2/3 CG production red wine L-R wines / Aspiran : « new » Strengths Weaknesses Image : « Old World » LR wines : low visibility White wine : Swiss only Opportunities Entry level : Own Brand LR red good wine and Rosé Connoisseurs & Young Swiss : adventurous Threats New World wines Italian & Spanish wines quality Spain (aggressive pricing) Young Swiss : beer = trendy SWOT
- 7. L-R wine : benchmark PRICE 30SFr 20SFr 10SFr 5SFr 4.95SFr 5.5SFr 6.95SFr 11.95SFr 16.95SFr 22.50SFr 27.95SFr 29.50SFr « Go to »Entry Level Mid / Good wine Upscale *Source : Coop
- 8. Consumer Profile & Trends Swiss residents drink wine Increase in value Decrease in volume 2 main groups : 85% Younger generation and women 45 years + New Loyal Innovative Italy and Spain : cheap wines
- 9. Marketing Strategy Product positioning : – French class, “new” terroir – Partnership
- 10. 1. Product strategy Colour breakdown : Rosé White Red Target wines : • Entry Level • AOC good wine • AOC Upscale 1.90€ 2.30€ 3.45€ 7.90€ 4.60€ P R I C E Entrylevel AOC«goto» AOCmid-range AOCgoodwine AOCupscale 75K, 75K, 50K bottles 60K bottles 60K bottles 60K bottles 20K bottles
- 11. 1. Product Strategy : Label
- 12. 1. Product Strategy : Label
- 13. 2. Distribution targets • AOC standard High end wine Bottled shipments 60% Swiss market share • Entry level wine : Own Brand Bulk shipment : in-country bottling 25% Swiss Market Share French quality, Swiss label, competitive prices
- 14. 3 : Pricing (Quote) Inquiry Reply
- 15. 3. Pricing Wine Category Cost Price Margin Distributor Price Distributor Margin 30% Recommend Sell Price High end 7.90 € 50% 12.89 SFr 16.76 SFr 18.99 SFr In- Between 4.60 € 45% 7.31 SFr 9.50 SFr 10.45 SFr AOC Red 3.45 € 50% 5.70 SFr 7.41 SFr 8.99 SFr AOC standard 2.30 € 45% 3.71 SFr 4.82 SFr 5.45 SFr All Distributor purchase prices are DDP, insurance and taxes included Recommended Sell Price includes 8% VAT
- 16. 3. Pricing Entry Level Wine Hit a different target Offer exclusivity to Denner No packaging, limits costs Sell in quantity Bulk sales for red and rosé wine o 75 K Bottles = 56 250 L o 50 K Bottles = 37 500 L Own Brand Strategy Cost price: 1.60€ / L Sell price (40% margin) : 2.24€/L EX WORK Decreasing price
- 17. 3. Pricing : Sales objective To recover costs and make profits, our goal is to sell at least : • 90 % red high end = 9 K Company cost = 640 K € • 80 % red in-between = 54 K Represents 675 K € (selling price) • 60 % red entry level = 45 K rosé entry level = 45 K 35 K € PROFIT
- 18. 4. Promotions & Comm. • Wine Salons • Domain presence for peak sales periods – Main urban cities – Wine fairs – Pre-festivities (Christmas etc.) • In store communication 6 days; 23 000 visitors Swiss Salon 3 days; 52 000 visitors International Salon
- 19. 4. Promotions & Comm. • Webmarketing
- 20. Conclusion Old vs New Effective Pricing Promotions and Communication Dual distribution strategy Partnerships
- 21. QUESTIONS?
Editor's Notes
- Note : Rosé wine almost inexistant on this market
- 85% of Swiss residents drink wine Swiss consumers drink less but better They appreciate high quality products, and are willing to pay high prices if convinced of that. Younger and female consumers are more daring in their choice of wines: they like to discover new products 45 year old and older consumers are more loyal to Swiss wines Swiss consumers appreciate new and innovative products, but remain loyal to brands they know
- French class, New World style Use reputation of French wine Break with « Old World » Image Target Young and Connoisseur adventurous end clients Communicate origins « Aspiran » : New yet terroir Bottle label strategy to reflect this position Sud de France : Brand values : authentic, convivial, modern, diverse, creative. Active marketing strategy : international presence, wine events, referenced in Swiss supermarkets Economy of scale; mutualised means; skilled team
- Rosé : very low demand in Switzerland : opportunity White : few sales as Switzerland produces and consumes mainly Swiss white. BUT UNIQUE SELLING POINT : different varietals to Swiss white Red : 63% of CGs production, highest % imports of French wine, highest potential gross product sales Entry Level : to be sold as MDD Denner : bulk shipments AOC good wine and upscale wine : responds to Swiss expectations that French wine is the best and most expensive AOC Upscale : essential for country image, but lower volumes. AOC good wine : larger volumes, most gross margin
- In store communication Clos de la Garelle offers POS communication for its international partners : Flyers, posters, labels