SlideShare a Scribd company logo
Value &
Pricing Solutions
for the Wine
Industry
How do clients
choose your brand
in a land of 10000
wines ?
Price
/ Quality?
Image /
Advertising ?
Visibility /
Accessability ?
Word of Mouth /
            Recommendations ?




FUTURELAB
Price
Promotions
Value Proposition


                   Product Quality
    Service /                        Convenience /
    Experience                         Availability

                     Perceived
                       Value


                    Brand/Image
What drives                             What are your
Consumers’ Value                     product ratings vs
Perception?                              competition?
Value /
Find the right   Balance     Price
Second phase of Marketing:
Then we started talking to
someone called ‘Consumer’
Who drinks your wine ?
                         People




What Value
Proposition?
Consumer
 Research
Value & Pricing strategy
Consumer                                Actions                Results
Attitudes / Calue Drivers          Pricing & Value levers    Sales growth
                                                             Segment share




                                     Value Proposition
  Consumption funnel
                                     Marketing Spend
                                                             Profitability / ROI
                                     Price
                          %          Product quality
            %       %
   %                      repeat     Promotion
            trial   use
awareness
You are not in the wine business serving people, but
 in the people business, serving wine
 (to paraphrase Howard Schultz, Starbucks)



Commodities             Products             Services   Experiences   Culture




                                                                        ?
   $.10                   $.25                $1.00        $4.50      $???




                                       Targeted Value Propositions
Occasion & Brand Mapping
Price




        Everyday   Good meals   Going / Out   Celebration
                    Location / Occasion
                                                    Segmentation
Microsegmentation?
Experience / Brand Advocacy

                              Pinot
                              Noir ?




                              Merlot ?
Portfolio Management
accessibility   Brand Champions
                Wines that appeal to a broad market base through
                accessibilit y, ease of enjoyment and a strong premium brand
                message about product and countr y.
innovation      Generation Next
                Wines driven by innovation (marketing; product; packaging)
                that appeal to consumers who drink wine for social occasion
                and/or peer group a ffinit y, rather than for wine attribute.
interest        Regional Heroes
                Wines from somewhere rather than wines from anywhere            -
                adding and sus taining interest for consumers by fostering a
                clear association between region and variety and/or style.
aspiration      Landmark
                High - profile, aspirational wines built on inherent quality and
                world -class reputation.
Bottom Line Impact

            Atlantic Hills sold 43
            900 cases of Riesling at
            €9.30 per bottle.

                             Pricing research showed that
9.95                         volume would not drop if they
                             were to charge €9.95 per bottle

9.30
                                        Indeed, it did not and that
                                        65€cents difference translated
                                        into
                                        €342 420 in extra profit

          43,900
SPMG – Leading Pricing Consultancy

•   Strategic Pricing Management Group (SPMG) is a Leading Pricing Strategy &
    Management Consultancy.

•   We help large organizations achieve their profit goals by analyzing their price
    challenges, and by helping them to develop and implement a price strategy that
    captures the most value from their products and services
    Currently, Strategic Pricing Management Group is present in 10 countries and is
    doing projects in five continents.




                                                                     Projects developed in the last year

                                                                     SPMG Group Offices.
SPMG –
Range of services
                                 •   Client/Consumer Value Drivers research




                      Research
                                 •   Price change impact research
                                 •   Transactional analysis/ Modélling
                                 •   Client Value & Satisfaction studies
                                 •   Product potential & ‘Willingness to pay’
                                 •   Client/Consumer segmentations



         Strategy
                                 •   …..
         Pricing




                      Advisory
                                 •   Value Based Pricing
                                 •   Pricing Strategies & Tactics
                                 •   Competitive Pricing / Price Wars
                                 •   Implementing Price Increases
                                 •   Channel Pricing
                                 •   New Product Launch
                                 •   ….


                                 •   Sales Force Training / Motivation
                                 •   Support/ Training of Pricing / Marketing teams
                       Support

                                 •   Decision Support Systems
                                 •   Deployment & management of ‘Test Platforms’
                                 •   Product/Service Full Cost Analysis
         Management




                                 •   Pricing Process deployment
                                 •   Pricing & Competitive Intelligence & Benchmarking
           Pricing




                                 •   …..

                                 •   Development / Reinforcement of Pricing Capabilities
                                 •   Redéployment of Pricing Processes
                      Process




                                 •   Management & optimization of ‘client conditions ’
                                 •   Multi-Channel Pricing / Pricing Corridors
                                 •   Change Management
                                 •   Value Propositions / Design to Price
                                 •   Pricing Software implementation
                                 •   …..                                                   Page 22
International Offices

    North America
    Canada – H.Q                       United States
    Michael Hurwich, CEO & President   Alain Meloche , Vice-President
    Zoltan Lorantffy, Director         ameloche@youneedpricing.com
    Info@youneedpricing.com


    Europe
    Europe                             Western Europe - France
    Loic Le Corre, Managing Partner    Eric Jacolin, Partner
    llecorre@youneedpricing.com        ejacolin@youneedpricing.com


    Western Europe - Germany           Central and Eastern Europe - Hungary
    Heinz Otto Luehr , Partner         Eniko Pongracz, Partner
    holuehr@youneedpricing.com         epongracz@youneedpricing.com
    Asia
    China -Hong Kong                   Indonesia - Tangerang
    Edward Chan P, Eng, Partner        Erwin Husin, Partner
    echan@youneedpricing.com           ehusin@youneedpricing.com
    Latin-America
    Brazil - Rio de Janeiro            Mexico – Mexico City
    Alex Carneiro, Partner             Miguel Legorreta, MBA , Partner
    acarneiro@youneedpricing.com       mlegorreta@youneedpricing.com

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Value And Pricing In Wine Industry

  • 1. Value & Pricing Solutions for the Wine Industry
  • 2. How do clients choose your brand in a land of 10000 wines ?
  • 6. Word of Mouth / Recommendations ? FUTURELAB
  • 8. Value Proposition Product Quality Service / Convenience / Experience Availability Perceived Value Brand/Image What drives What are your Consumers’ Value product ratings vs Perception? competition?
  • 9. Value / Find the right Balance Price
  • 10. Second phase of Marketing: Then we started talking to someone called ‘Consumer’
  • 11. Who drinks your wine ? People What Value Proposition?
  • 13. Value & Pricing strategy Consumer Actions Results Attitudes / Calue Drivers Pricing & Value levers  Sales growth  Segment share  Value Proposition Consumption funnel  Marketing Spend  Profitability / ROI  Price %  Product quality % % % repeat  Promotion trial use awareness
  • 14. You are not in the wine business serving people, but in the people business, serving wine (to paraphrase Howard Schultz, Starbucks) Commodities Products Services Experiences Culture ? $.10 $.25 $1.00 $4.50 $??? Targeted Value Propositions
  • 15. Occasion & Brand Mapping Price Everyday Good meals Going / Out Celebration Location / Occasion Segmentation
  • 17. Experience / Brand Advocacy Pinot Noir ? Merlot ?
  • 18. Portfolio Management accessibility Brand Champions Wines that appeal to a broad market base through accessibilit y, ease of enjoyment and a strong premium brand message about product and countr y. innovation Generation Next Wines driven by innovation (marketing; product; packaging) that appeal to consumers who drink wine for social occasion and/or peer group a ffinit y, rather than for wine attribute. interest Regional Heroes Wines from somewhere rather than wines from anywhere - adding and sus taining interest for consumers by fostering a clear association between region and variety and/or style. aspiration Landmark High - profile, aspirational wines built on inherent quality and world -class reputation.
  • 19. Bottom Line Impact Atlantic Hills sold 43 900 cases of Riesling at €9.30 per bottle. Pricing research showed that 9.95 volume would not drop if they were to charge €9.95 per bottle 9.30 Indeed, it did not and that 65€cents difference translated into €342 420 in extra profit 43,900
  • 20.
  • 21. SPMG – Leading Pricing Consultancy • Strategic Pricing Management Group (SPMG) is a Leading Pricing Strategy & Management Consultancy. • We help large organizations achieve their profit goals by analyzing their price challenges, and by helping them to develop and implement a price strategy that captures the most value from their products and services Currently, Strategic Pricing Management Group is present in 10 countries and is doing projects in five continents. Projects developed in the last year SPMG Group Offices.
  • 22. SPMG – Range of services • Client/Consumer Value Drivers research Research • Price change impact research • Transactional analysis/ Modélling • Client Value & Satisfaction studies • Product potential & ‘Willingness to pay’ • Client/Consumer segmentations Strategy • ….. Pricing Advisory • Value Based Pricing • Pricing Strategies & Tactics • Competitive Pricing / Price Wars • Implementing Price Increases • Channel Pricing • New Product Launch • …. • Sales Force Training / Motivation • Support/ Training of Pricing / Marketing teams Support • Decision Support Systems • Deployment & management of ‘Test Platforms’ • Product/Service Full Cost Analysis Management • Pricing Process deployment • Pricing & Competitive Intelligence & Benchmarking Pricing • ….. • Development / Reinforcement of Pricing Capabilities • Redéployment of Pricing Processes Process • Management & optimization of ‘client conditions ’ • Multi-Channel Pricing / Pricing Corridors • Change Management • Value Propositions / Design to Price • Pricing Software implementation • ….. Page 22
  • 23. International Offices North America Canada – H.Q United States Michael Hurwich, CEO & President Alain Meloche , Vice-President Zoltan Lorantffy, Director ameloche@youneedpricing.com Info@youneedpricing.com Europe Europe Western Europe - France Loic Le Corre, Managing Partner Eric Jacolin, Partner llecorre@youneedpricing.com ejacolin@youneedpricing.com Western Europe - Germany Central and Eastern Europe - Hungary Heinz Otto Luehr , Partner Eniko Pongracz, Partner holuehr@youneedpricing.com epongracz@youneedpricing.com Asia China -Hong Kong Indonesia - Tangerang Edward Chan P, Eng, Partner Erwin Husin, Partner echan@youneedpricing.com ehusin@youneedpricing.com Latin-America Brazil - Rio de Janeiro Mexico – Mexico City Alex Carneiro, Partner Miguel Legorreta, MBA , Partner acarneiro@youneedpricing.com mlegorreta@youneedpricing.com