Wine is a drink associated with luxury, health, religious significance and as a status symbol or fashion item. All these reasons provide a wide consumption rate with an estimated figure of at least 70% consumption in households globally making this venture a lucrative one for business.
Charters (51) suggests that wine can be categorized as bulk and premium wine. The two different targeted markets include standard and premium wine consumers for men and women. Both genders actively participate in the consumption of wine, making it an ideal market. Most of the standard wine consumption occurs in households whereby the key focus is on volume and cost of the wine, whereas premium wine is more costly and hardly available elsewhere other than wine bars and high end restaurants.
In order to capture both audiences, the Dream wine brand was created. Introducing two different products for each target creates the ability to maximize on the entire consumer market. These products are Vivre Le Reve (Living the Dream) for the premium wine consumers and Le Reve (The Dream) for bulk wine consumers. The estimated unit of sale is 5 dollars per unit for standard wine and 500 dollars for premium wine. Existing services only specializes in specific brands, thus locking out either of the markets. In addition to this the Dream wine brand will offer custom made branded bottles for clients.
Each of the wines is designed to fit the specific target market. This includes offering a variety of brands for example sweet, dry and semi-sweet red and white wines for both bulk and premium production. The Dream brand focuses on providing both quality, quantity and a sense of identity among the intended users. Using a French name Vivre Le Reve adds an exotic feel to the brand. In offering quality product, the Dream brand is likely to stay in the market longer than other competitors are.
The most suitable advertising mode for the Dream wine brand is through mass media because it is the most effective way to create exposure. This includes the use of billboards, television and internet adverts. Le Reve will be advertised as being classy yet affordable as well while Vivre Le Reve will be advertised as being of the highest quality in the high-end market. The standard wine will be available for sale in malls, supermarkets and restaurants to capture a larger market while the premium wine will be strictly sold in high end restaurants only or supplied upon customer request.
The main objective of venturing into this business is to obtain market share. By obtaining the market our product will be able to compete with quality and cost wise with existing products in both the premium and standard markets. The standard wine will apply the principle of competition based pricing while the premium wine will apply the principle of cost based pricing. Market study indicates most standard wine purchasing is based on the volume according to Charters 51. Several companies are producing wine in bulk to fit this expectation therefore competition based pricing is the most suitable strategy to successfully compete with other stakeholders.
Premium wine is vintage and distinguished with features like its region of origin. Most of the premium wine is rare to find thus making it highly costly. Consumption among premium wine users is based entirely on the quality of the product as opposed to its price. Therefore more focus will be placed on producing quality wine which will be priced according to production cost as opposed to competition pricing.
The promotion of the two types of wine will differ due to the specific target markets. Promotional activities related to the standard wine includes offers at malls and supermarkets for example buy one and get a box of chocolate free or handing out tasting samples at the point of sale locations. The premium brand will be promoted in specific events or at the high end restaurants which doubles up as our target market. A budget of 5,000 dollars has been set aside from the initial cost in order to cover the expenses of promotional activities.
It is significant to note that wine production is on the increase just as its consumption. In order to stay ahead of the ever evolving market it is important to stay updated on the industry. The Dream brand is significant in staying on top of the game simply by providing what all clients want.
Charters, Steve, Wine and Society: the social and cultural context of a drink New York: Routledge 2011. Print.
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Essay on Living the Dream. (2019, May 14). Retrieved from https://speedypaper.com/essays/essay-on-living-the-dream
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