France is attached to a sector which is an important part of its own identity : the sector of the wine. When you will ask one characteristic of our country to foreigners, the majority will answer Paris, the gastronomy, the luxurious, maybe the love but definitely also the wine. Since the nineties, the sector of wine has been touched by important changes due to many factors : consumption in decrease, crisis of the overproduction, competition with other alcoholic beverages, new competitors from countries such as United States, Spain, South America, Australia, etc...
The result : the French market knew a decrease after a continuous growth between 1993 and 1999 in term of volume but also in value. There were several attempts for finding new sources of incomes on the market : targeted younger consumers, developing brands with clear and definite identities, etc ... but the major ones which have been tested for making durable the business failed. Today, the main opportunities seem to come from the emergent countries which represent a great potential and a decisive key for the French wine sector.
With the perspective of growth, Asia is the new road of success of several companies and markets. Even if the perspectives and opportunities are real, the companies have to understand the market and the consumers and adapt their offer for succeeding. China (above all since the Olympic Games) is a large and important market with different consumers who have specific needs and expectations (specially in term of food and beverages). Many companies failed to enter in this market because of their strategic marketing plan (e.g : Danone). A bad planning will mean a huge failure.
[...] The format of 10 liters is adapted to the restaurant or hostels which sell by wine glass. The bottle will be a mix between French appellation, English terms and Chinese idioms for general informations. The place Our products shall be sold at the restaurants, the hostels and in the planes. The company wants to target the ones (restaurants, hostels and planes) which are the most used by the executives. The supermarkets are already full of wines and LBVW decides to target a different place of consumption. [...]
[...] The Chinese people doesn't understand the wine : they buy and consume wine as a product of self value and image. They want a red wine, with French characteristics (but with English or Chinese indications). They consume wine in public place where people cans see them (business place such as restaurants near their job, hostels during the business trip or planes) with their colleagues. Value proposition – What to offer? The value proposition corresponds to the product that LBVW must offer to the Chinese customers. [...]
[...] LBVW is going to work with Chinese agents who know the market and its characteristics. It is also simpler for making business in the same language. Vision statement: Goal / objectives Objectives: succeeding to enter on the Chinese market until the first year, touching the targeted consumers, creating relation of trust with the first customers, making the first year profitable in term of incomes. Goal: Increase the turnover of LBVW to 10% the first year ( euros with a profit around 1 million euros) and 15% the second year. [...]
[...] The sellers are able to advice and help the consumers (need of materials of informations about the products). At the end, it is exactly the same. The persons can go with its goods when it is paid. – For the distribution, it is mainly self service (low percentage of sales with advices and helps). The consumers choose with assistance or not, pay its items and can go with it (need a clear and attractive packaging). – For the business with professionals, the customers need to sign a contract for ordering. [...]
[...] The wine represents just on the total market of alcoholic beverages (dominated by the beers, the “eau de vie”, the white alcohol and the alcohol of cereals). As I said, the quality of wine consumed in China is mainly bad. In 2005, the Chinese consumption represented of the worldwide consumption. Evolution of the Chinese consumption liters) (liters) (liters) global alcohol one worldwide one Source: AWBC The importation of wine in China The importation of wine in China is increasing each year. [...]
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