International market scandinavia
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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
International market scandinavia
- 3. Scandinavia Mathieu Bechet Fr辿d辿ric Garcia Florence Limousi How can Domaine Clos Florentinenter 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 ros辿 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 ros辿 BiB : stable Increase in quantity Red : stable, white and ros辿 : increase BiB : increase Decrease in quantity Red : stable, white : increase, ros辿 : 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 ros辿_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 ros辿 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