PEST ANALYSISPOLITICAL ECONOMICAL•Wine regulations. •Devaluation of currency in key•Ban on advertisements. markets. •Low interest rates TECHNOLOGICALSOCIO-CULTURAL •Technological advances in the•Long tradition of wine sector.consumption. •Hand selected grapes versus•Higher perception of quality. use of machines.
SWOT ANALYSISSTRENGTHS•Penetration Pricing WEAKNESSES•State of the Art Winery •Low on Production Capacity•Excellence Award for Finery •Less Overseas Supply THREATS •Strong competition from otherOPPORTUNITIES countries•Cutting edge over foreign wine •Decrease in consumption ofmakers wine in France•Expansion opportunities •Emergence of substitute products
PROFILE OF PROSPECTIVE CONSUMERSAGE 24 - 44 YearsSEX MaleOCCUPATION Business person, accountant, executive, advertising/marketing consultant, manager, fashion industryINCOME High ($45000+)ATTITUDE Influenced by image and prestige of modern products, early adopters, switch products easily.LIFESTYLE Young, generation X and Y, modern, retro, adventurousBENEFITS DESIRED Buys for the benefits of prestige, quality and dependability.
TRENDS IN WINE DRINKING1) There is a decline in the consumption of wine over the recent years.2) Around 50% of the youth never drink wine, they prefer other alcohol drinks.3) People now prefer drinking water with their meals instead of wine.
TRENDS IN WINE DRINKING4) Wine drinkers between the age of 24 and 35 drink around 60 litres of wine a year whereas those between 16 and 23 drink around 32 litres.5) People tend to not drink wine during the week and then binge on it in the weekend which is an unhealthy practice.