Analysis of marketing mix of winery Víno Nitra s.r.o. Jan Kowalski Wyższa Szkoła
Content Marketing mix theory Specifics of wine marketing Research methods Profile of Víno Nitra s.r.o. Marketing mix of Víno Nitra s.r.o. SWOT analysis Conclusions and suggestions
Marketing mix theory
Marketing mix theory 4P
Marketing mix theory 4P 5P
Marketing mix theory 4P 5P 8P
Marketing mix theory 4P 5P 8P 4C
Marketing mix theory 4P
4P marketing concept 4P Product Price Placement Promotion
Product Object, service or idea that is put on market Anything with purpose of sale and satisfaction of customer needs
Product layers Enhanced product Formal product Core product
Product mix dimensions Widht of product mix Lenght of product mix Depth of product mix Porduct mix consistency
Product development phases Implementation Growth Maturity Decline
Price Numerical expressions of product value Part of image of company/product Only part of marketing mix tht brings profit
Goals of price policy Profit increase Increase of market share Sales development Investments rentability Product quality Survival
Pricing methods Pricing based on demand Pricing based on costs Pricing based on competition Pricing based on value perception
Placement To deliver the product to customer Right amount Right time Right place
Distribution methods Direct Indirect
Direct distribution Direct distribution of product to customer No intermediate
Indirect distribution Usage of intermediates Producer – agent – establishment - customer Producer – retail – customer Producer – wholesale – retail - customer
Promotion – marketing communication Advertising Sales support Public relations Personal sales Direct marketing
Advertising Any paid non-personal form of promotion TV advertisements Posters Billboards
Sales support Set of motivation tools with short-term but immediate effect Discounts Customer contest Sampling
Public relations Development of good relations woth external enviroment Press release Common events Sponsoring, charity
Personal sales Usage of sales force for purposes of sales and profit Most effective tool of marketing communication Supports all the other tools of marketing communication
Direct marketing Direct approach to potential and existing customers Private Customized Up-to-date Interactive
Specifics of wine marketing
Context
Context Product Price Placement Promotion
Context Product Price Placement Promotion Branding Product development People Consumer behaviour Wine tourism Direct sales Packaging Wine events ...
Context Experiential marketing approach Focused on added value Emotions, experience, social networking
Product Focus on formal product Finite resorces for each vintage High-quality wine is not FMCG Individual personal value
Price
Price
Price
Price
Price-changing factors Vintage Rarity Story
Vintage Year of production Determines potential for maturing Determines overal quality of wine
Rarity
Rarity
Rarity 600 bottles, 250 USD/bottle
Rarity 600 bottles, 250 USD/bottle Market price – 2 000 USD/bottle
Story
Story
Story Forecast of high quality of Bordeaux 1982 Fame of this wine and Robert Parker Bordeaux 1982 more expensive than Bordeaux 1983 1983 is beating 1982 in blind tastings
Placement Wholesale, retail Wine shops Gift shops Cellar sale Gastronomy
Placement Special storage conditions Appealing place of sales One wine ≠ one distribution channel
Promotion Legislation restrictions for advertising Focus on other tools of marketing communication No usage of direct marketing
Research methods
Research methods Interview SWOT analysis
Interview Interview with commercial director Questions prepared beforehand Focus on marketing mix of company
SWOT analysis Tool of strategic planning Analysis of internal strenghts and weaknesses Analysis of external opportunities and threats
Profile of Víno Nitra s.r.o.
Profile of Víno Nitra s.r.o. Winery with 50 years history Production – 7 000 000 litres per year 700 hectares of own wineyards Operates on markets in Czech Republic, Poland, USA, Japan and China
Marketing mix of Víno Nitra s.r.o.
Product 5 wineries 10 product lines 110 products in total
Product lines Wine kegs Classic Tradition Evolution Selection Elegance Sekt Pálffy (sparkling wine) Sekt Charmat (sparkling wine) Chateau Modra Premium Chateau Modra Terroir
Price Cost oriented method Price range – 1,80 EUR – 15 EUR (without VAT)
Price-changing factors Cultivation costs Vineyards revitalization ŠKČ (State control number) Wine production costs Marketing costs Labels
Placement Own shops Wholesale/retail Gastronomy
Own shops 5 own shops 1 key-account manager managing this shops Prices as in company´s catalogue Chateau Modra Premium, CM Terroir, Selection, Evolution, Sekt Pálffy, Sekt Charmat, tapped wine, seasonal „young“ wine
Wholesale/retail Direct distribution 1 commercial director 4 regional managers All product lines, except for Chateau Modra Premium and Terroir
Gastronomy Doesn´t have main distribution channel 1 commercial director 6 sales representatives Chateau Modra Premium, Chateau Modra Terroir, Elegance, Sekt Pálffy
Promotion Advertising Sales support Public relations
Advertising Local press Specialized magazines Gastronomy fairs
Sales support Discounts Consumer competitions Personnel education Wine taps instalation Sampling
Public relations Participation on events Wine fairs Contribution of top management
SWOT analysis
SWOT analysis Strenghts Production divided to 5 vineyards Widht and Depth of product mix Price range Production volume Expansion to foreign markets Participation of top management on PR activities Weaknesses Low usage of media Costs of vineyards revitalization One-litre bottles of wine Only standard ways of promotion are being used Not enough own shops
SWOT analysis Opportunities External consulting on marketing communication Non-conventional forms of marketing Other EU markets National winemakers cooperation New varieties registration Threats Competition Cheap imported wine Legislation changes Unexpected climatic changes Criminal activity
Conclusions and suggestions
Conclusions and suggestions Product Production divided to 5 vineyards Cultivation of many different varieties Wide variety of products Not distinguished from competition Suggestions Development of product lines for specific market segment (women) Development of product lines according to seasons (red wine for winter, rose for summer)
Conclusions and suggestions Price Cost oriented pricing Revitalization of vineyards costs Expected fall in sales in upcoming year Suggestion Focus on marketing communication to retain current sales volume
Conclusions and suggestions Placement Sales in wholesale/retail and gastronomy Sales via own shops Some of the product lines are being sold in both channels Only Chateau Modra wines are being sold in gastronomy Suggestions Remove product line Elegance from wholesale/retail
Conclusions and suggestions Promotion – conclusion Usage of specialized media Participation on gastronomy events Press media are the only advertising channels Weak consumer competitions
Conclusions and suggestions Promotion – suggestions Billboard design and usage Promotion of awarded wines Non-conventional forms of advertising usage Adding winery excursions to consumer competitions
Thank you for attention