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Value & Pricing strategies in the Wine industry : How do you stand out in a world od 10 000 brands?
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Value & Pricing Solutions for the Wine Industry
How do clients choose your brand in a land of 10000 wines ?
Price / Quality?
Image / Advertising ?
Visibility / Accessability ?
FUTURELAB
Word of Mouth / Recommendations ?
Price Promotions
Value Proposition
What drives Consumers’ Value Perception?
What are your product ratings vs
competition?
Perceived Value
Product Quality
Brand/Image
Service / Experience
Convenience / Availability
Value / Price Find the right Balance
Second phase of Marketing:
Then we started talking to someone called ‘Consumer’
Who drinks your wine ?
What Value Proposition?
People
Consumer Research
Value & Pricing strategy
Results
Sales growth
Segment share
Profitability / ROI
Actions
Pricing & Value levers
Value Proposition
Marketing Spend
Price
Product quality
Promotion
Consumer
Attitudes / Calue Drivers
Consumption funnel
%
% % %
use repeat
awareness trial
You are not in the wine business serving people, but
in the people business, serving wine
(to paraphrase Howard Schultz, Starbucks)
Commodities Products Services Experiences Culture
$.10
$.25 $1.00
$4.50 ?
$???
Targeted Value Propositions
Occasion & Brand Mapping
Everyday
Location / Occasion
Pri
ce
CelebrationGoing / OutGood mealsEveryday
Location / Occasion
Pri
ce
CelebrationGoing / OutGood meals
Segmentation
Microsegmentation?
Pinot Noir ?
Merlot ?
Experience / Brand Advocacy
accessibility Brand Champions
Wines that appeal to a broad market base through
accessibilit y , ease of enjoyment and a strong premium brand
message about product and countr y .
innovation Generation Next
Wines driven by i nnovation (marketing; product; packaging)
that appeal to consumers who drink wine for social occasion
and/or peer group a f finit y , rather than for wine attribute.
interest Regional Heroes
Wines from somewhere rather than wines from anywhere -
adding and sus taining interest for consumers by fostering a
clear association between region and variety and/or style.
aspiration Landmark
High - profile, aspirational wines built on inherent quality and
world - class reputation.
Portfolio Management
Atlantic Hills sold 43 900 cases of Riesling at €9.30 per bottle.
Pricing research showed that volume would not drop if they were to charge €9.95 per bottle
Indeed, it did not and that 65€cents difference translated into €342 420 in extra profit
43,900
9.30
9.95
Bottom Line Impact
• Strategic Pricing Management Group (SPMG) is a Leading Pricing Strategy & Management Consultancy.
• We help large organizations achieve their profit goals by analyzing their price challenges, and by helping them to develop and implement a price strategy that captures the most value from their products and services
SPMG – Leading Pricing Consultancy
Currently, Strategic Pricing Management Group is present in 10 countries and is doing projects in five continents.
Projects developed in the last year
SPMG Group Offices.
Page 22
SPMG – Range of services
Re
se
arc
h
• Client/Consumer Value Drivers research • Price change impact research • Transactional analysis/ Modélling • Client Value & Satisfaction studies • Product potential & ‘Willingness to pay’ • Client/Consumer segmentations • …..
Ad
vis
ory
• Value Based Pricing • Pricing Strategies & Tactics • Competitive Pricing / Price Wars • Implementing Price Increases • Channel Pricing • New Product Launch • ….
Pro
ce
ss • Development / Reinforcement of Pricing Capabilities
• Redéployment of Pricing Processes • Management & optimization of ‘client conditions ’ • Multi-Channel Pricing / Pricing Corridors • Change Management • Value Propositions / Design to Price • Pricing Software implementation • …..
Su
pp
ort
• Sales Force Training / Motivation • Support/ Training of Pricing / Marketing teams • Decision Support Systems • Deployment & management of ‘Test Platforms’ • Product/Service Full Cost Analysis • Pricing Process deployment • Pricing & Competitive Intelligence & Benchmarking • …..
Pri
cin
g
Str
ate
gy
Pri
cin
g
Man
ag
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International Offices
North America
Canada – H.Q
Michael Hurwich, CEO & President
Zoltan Lorantffy, Director
United States
Alain Meloche , Vice-President
Europe
Europe
Loic Le Corre, Managing Partner
Western Europe - France
Eric Jacolin, Partner
Western Europe - Germany
Heinz Otto Luehr , Partner
Central and Eastern Europe - Hungary
Eniko Pongracz, Partner
Asia
China -Hong Kong
Edward Chan P, Eng, Partner
Indonesia - Tangerang
Erwin Husin, Partner
Latin-America
Brazil - Rio de Janeiro
Alex Carneiro, Partner
Mexico – Mexico City
Miguel Legorreta, MBA , Partner
