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 region: Scandinavia -a type of retailer : Whole market

1. http://www.quelmastermarketing.fr/

2. International Market
Negociation
Scandinavian Wine Market

3. Scandinavia
Mathieu Bechet
Frédéric Garcia
Florence Limousi
How can Domaine “Clos Florentin”enter this market ?

4. Overview of countries
✓ 21 L wine per capita /year
✓ Consumption : + 40%
✓ Exports to Norway and Denmark
✓ 16 L wine per capita / year
✓ Consumption : + 50%
No production
Growing consumption
State monopoly
Few inhabitants
✓ 10 L wine per capita / year
✓ Consumption : doubled

5. The State Monopoly
❖ Vinmonopolet : 85%
❖ Importer for Vinmonopoly
and “on-trade”
★ Systembolaget : 90%
★ Assortiment to order
★ Swedish wineclubs
❑ ALKO OY : 65%
❑ Importer for ALKO OY or for "on-trade"
❑ Small-scale ferry trade
Calls fo tenders
Licensed importers

6. Consumer profile
★ BiB = 50%
★ Traditional wines ↓
★ But back to “old world” qualitative wines
❖ BiB = 30%
❖ Seasoned consumers
❖ Traditional European wines
❑ BiB = 40%
❑ Vodka : 24%
❑ Adapting their taste in a more
traditional way.
Open-minded
Prefer red wines, few rosé
Quality for European
wines

7. ❖ Italy : 1st
❖ France: 2nd
❖ Chile : less qualitative
❖ Languedoc : 300,000 L
Competitive context
★ Italy: 1st (value)
★ France: 2nd (value)
★ Chile & South Africa : less qualitative
★ Languedoc : 4 M. L
❑ France : 1st (value)
❑ Chile : 2nd (value)
❑ Italy : 4th
❑ Languedoc : 1.5 M. L

8. Trends
★ Increase in quantity
★ Increase in red, white and rosé
★ BiB : stable
❖ Increase in quantity
❖ Red : stable,
white and rosé : increase
❖ BiB : increase
❑ Decrease in quantity
❑ Red : stable, white : increase,
rosé : stable
❑ BiB : increase
Increase in quality
French increase in
volume

9. Import taxes
❖ Excise tax : €0.48 / L
❖ VAT : 25%
❖ Taxes on packaging : €0.13
❖ Environmental tax : €0.33 plastic
€0.55 glass & metal,
€0.14 cardboard
★ Alcohol tax : €2.3/L
★ Excise tax : €2.77/L
★ VAT : 25%
★ Importer : 15% cut
★ Systembolaget : 19% + €0.37/unit (BiB)
❑ Excise tax : €3.39/L.
❑ VAT : 24%
❑ Tax on packagings : Packing up :
€0.67/u, Recyclable : €0.17€ /u
❑ Alko Oy : 54%

10. Market positioning
AOC standard
red_€7.5/BiB
BiB, French: increase in volume, mostly red, high taxes
IGP entry level
red, white_€6/BiB

11. Market positioning
BiB, French: increase in volume, mostly red, high taxes
AOC mid-range
red_€3.45/bottle

12. Bottle, seasoned, red, low taxes, open-
minded
AOC high-range
red, white
€7.9/bottle
AOC upscale red
€4.6/bottle
Market positioning

13. AOC mid-range red_ €17/BiB
Bottle, seasoned, red, low taxes, open-
minded
IGP entry-level
rosé_€2.1/bottle
Market positioning

14. BiB, mostly red but increase in white, high taxes
IGP entry level red,
white_€6/BiB
AOC standard
red_ €9.5/BiB
Market positioning

15. BiB, mostly red but increase in white, high taxes
Market positioning
AOC upscale red
€4.6/bottle

16. Marketing Strategy
★ Calls for tenders -> importers
❖ Specialised press & contests
➢ AOC high-range
➢ AOC upscale
❖ Low alcohol and fachionable packaging
➢ IGP rosé
❖ Calls for tenders -> importers
➢ AOC mid-range BiB
❑ Directly contact the monopoly
✓ IGP entry level, BiB
✓ AOC standard BiB
❑ Specialised press & contests
✓ AOC upscale red

17. Thanks for
listening !