Download Analysis of marketing mix of winery Víno Nitra s.r.o.

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
8P
5P
Marketing mix theory
4P
5P
8P
4C
Marketing mix theory
4P
4P marketing concept
Product
Promotion
4P
Placement
Price
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
Development
Implementation
Maturity
Growth
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

Threats

External consulting on
marketing
communication
Non-conventional
forms of marketing
Other EU markets
National winemakers
cooperation
New varieties
registration




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