european wine case
DESCRIPTION
European Wine Case. Wine manufactures Buyers – off-trade, on-trade Suppliers – grape growers, bottles How to use and analyze market data Datamonitor , Euromonitor. Industry Analysis. Rivalry Among Competitors. Rivalry is greatest when: - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/1.jpg)
European Wine Case
• Wine manufactures• Buyers – off-trade, on-trade• Suppliers – grape growers, bottles
• How to use and analyze market data• Datamonitor, Euromonitor
![Page 2: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/2.jpg)
Industry Analysis
![Page 3: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/3.jpg)
Rivalry Among Competitors
Rivalry is greatest when:• Competitors are numersous or are roughly
the same size• Industry growth is slow• Exit barriers are high• Rivals are highly committed to business and
have leadership aspirations• Firms cannot read each others signals
![Page 4: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/4.jpg)
Power of Buyers
Power increases if:• Few buyers and larger purchase volumes• Industry products are standardized• Buyers face few switching costs• Buyers can threaten to integrate backward
![Page 5: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/5.jpg)
Power of Suppliers
Power increases if:• Is more concentrated than the industry it sells
to (Microsoft)• Supplier group does not depend heavily on
the industry for its profits• Switching costs are high (Bloomberg
terminals)• Suppliers offer differentiated products (Drugs)• Suppliers can threaten to forward integrate
![Page 6: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/6.jpg)
Threat of New Entrants
Barriers to entry1. Supply-side economies of scale (Intel)2. Demand-side economies of scale (ebay)3. Customer Switching costs (SAP software)4. Capital requirements5. Incumbency advantages regardless of size6. Unequal access to distribution channels7. Restrictive government policies
![Page 7: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/7.jpg)
Threat of Substitutes
• It offers an attractive price-performance trade-off
• Cost of switching is low
![Page 8: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/8.jpg)
Broader Industry Map
![Page 9: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/9.jpg)
Rivalry
• Highly fragmented (top three hold less than 10% share)
• Forward integration (winemakers>retail): rare• Backward integration (winemakers>grower):
common• New players restricted by regulation• Vulnerable to substitutes
![Page 10: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/10.jpg)
Buyer Power
• Supermarkets/Hypermarkets (41.8%)• Retail concentration varies by country (FR/UK
concentrated Carrefour/Tesco, others competitive)
• Switching costs moderate• Produces can differentiate products• Consumers demand variety• Backward integration unlikely
![Page 11: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/11.jpg)
Supplier Power
• Vertically integrated business, but:• Large growers also source grapes, usually for
lower priced products• Independent growers can find alterative
markets (sugar) and forward integrate• Quality is important
![Page 12: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/12.jpg)
Market Entry
• New company, diversifying, exporting• Government regulation of alcoholic beverages• Import taxes (moderate, except NO, SE)• Advertising and drinking age regulations• Margins low on non-premium products
![Page 13: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/13.jpg)
Substitutes
• Alcoholic beverages: spirits/beer• Low switching costs• Per unit costs higher/lower (spirits/beer)• Need for refrigeration• Channels: some must have (restaurant) others
don’t• Use: occasions (i.e. champagne)
![Page 14: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/14.jpg)
How can the European Market be Segmented?
• Geographic• Demographic• Psychographic• Behavioral
14
![Page 15: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/15.jpg)
PsychographicInterestsActivitiesOpinionsHabitsLifestyleHobbies
Behavioral How people use the
product What roles people have in
the buying process How people respond to the
product
CountryRegionGeographical BordersLanguageHistorical geo-political
Age and life cycleLife StageIncomeGenerationSocial classGender
DemographicGeographic
![Page 16: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/16.jpg)
![Page 17: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/17.jpg)
![Page 18: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/18.jpg)
![Page 19: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/19.jpg)
![Page 20: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/20.jpg)
![Page 21: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/21.jpg)
![Page 22: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/22.jpg)
![Page 23: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/23.jpg)
![Page 24: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/24.jpg)
![Page 25: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/25.jpg)
![Page 26: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/26.jpg)
France off-trade vs. on-trade
![Page 27: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/27.jpg)
![Page 28: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/28.jpg)
![Page 29: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/29.jpg)
![Page 30: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/30.jpg)
![Page 31: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/31.jpg)
Pricing
![Page 32: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/32.jpg)
![Page 33: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/33.jpg)
Projections
![Page 34: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/34.jpg)
![Page 35: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/35.jpg)
![Page 36: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/36.jpg)
Emerging Market Trends
![Page 37: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/37.jpg)
![Page 38: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/38.jpg)
China Case Study
![Page 39: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/39.jpg)
China Case Study
![Page 40: European Wine Case](https://reader035.vdocument.in/reader035/viewer/2022062410/56816022550346895dcf24ca/html5/thumbnails/40.jpg)