Value & Pricing strategies in the Wine industry : How do you stand out in a world od 10 000 brands?

1. Value &
Pricing Solutions
for the Wine
Industry

2. How do clients
choose your brand
in a land of 10000
wines ?

3. Price
/ Quality?

4. Image /
Advertising ?

5. Visibility /
Accessability ?

6. Word of Mouth /
Recommendations ?
FUTURELAB

7. Price
Promotions

8. Value Proposition
Product Quality
Service / Convenience /
Experience Availability
Perceived
Value
Brand/Image
What drives What are your
Consumers’ Value product ratings vs
Perception? competition?

9. Value /
Find the right Balance Price

10. Second phase of Marketing:
Then we started talking to
someone called ‘Consumer’

11. Who drinks your wine ?
People
What Value
Proposition?

12. Consumer
Research

13. Value & Pricing strategy
Consumer Actions Results
Attitudes / Calue Drivers Pricing & Value levers  Sales growth
 Segment share
 Value Proposition
Consumption funnel
 Marketing Spend
 Profitability / ROI
 Price
%  Product quality
% %
% repeat  Promotion
trial use
awareness

14. 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

15. Occasion & Brand Mapping
Price
Everyday Good meals Going / Out Celebration
Location / Occasion
Segmentation

16. Microsegmentation?

17. Experience / Brand Advocacy
Pinot
Noir ?
Merlot ?

18. Portfolio Management
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 innovation (marketing; product; packaging)
that appeal to consumers who drink wine for social occasion
and/or peer group a ffinit 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.

19. Bottom Line Impact
Atlantic Hills sold 43
900 cases of Riesling at
€9.30 per bottle.
Pricing research showed that
9.95 volume would not drop if they
were to charge €9.95 per bottle
9.30
Indeed, it did not and that
65€cents difference translated
into
€342 420 in extra profit
43,900

21. SPMG – Leading Pricing Consultancy
• 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
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.

22. SPMG –
Range of services
• Client/Consumer Value Drivers research
Research
• Price change impact research
• Transactional analysis/ Modélling
• Client Value & Satisfaction studies
• Product potential & ‘Willingness to pay’
• Client/Consumer segmentations
Strategy
• …..
Pricing
Advisory
• Value Based Pricing
• Pricing Strategies & Tactics
• Competitive Pricing / Price Wars
• Implementing Price Increases
• Channel Pricing
• New Product Launch
• ….
• Sales Force Training / Motivation
• Support/ Training of Pricing / Marketing teams
Support
• Decision Support Systems
• Deployment & management of ‘Test Platforms’
• Product/Service Full Cost Analysis
Management
• Pricing Process deployment
• Pricing & Competitive Intelligence & Benchmarking
Pricing
• …..
• Development / Reinforcement of Pricing Capabilities
• Redéployment of Pricing Processes
Process
• Management & optimization of ‘client conditions ’
• Multi-Channel Pricing / Pricing Corridors
• Change Management
• Value Propositions / Design to Price
• Pricing Software implementation
• ….. Page 22

23. International Offices
North America
Canada – H.Q United States
Michael Hurwich, CEO & President Alain Meloche , Vice-President
Zoltan Lorantffy, Director ameloche@youneedpricing.com
Info@youneedpricing.com
Europe
Europe Western Europe - France
Loic Le Corre, Managing Partner Eric Jacolin, Partner
llecorre@youneedpricing.com ejacolin@youneedpricing.com
Western Europe - Germany Central and Eastern Europe - Hungary
Heinz Otto Luehr , Partner Eniko Pongracz, Partner
holuehr@youneedpricing.com epongracz@youneedpricing.com
Asia
China -Hong Kong Indonesia - Tangerang
Edward Chan P, Eng, Partner Erwin Husin, Partner
echan@youneedpricing.com ehusin@youneedpricing.com
Latin-America
Brazil - Rio de Janeiro Mexico – Mexico City
Alex Carneiro, Partner Miguel Legorreta, MBA , Partner
acarneiro@youneedpricing.com mlegorreta@youneedpricing.com