Wine Indusry 2001

The wine industry in 2001 is highly competitive and overcrowded, with companies fighting for shelf space and dealing with supply chain issues. However, over the last few centuries’ wine manufacturers still have followed the same set of factors as before. Trying to outcompete competitors by offering a little more for little less to consumers will not exactly be the right strategy, as sales might increase but might not give the company more market share. Repositioning your brand in a saturated market is extremely risky and is less likely to be perceived as different from the competition. To set the company apart and to have strong profitable growth under these conditions, searching for alternatives and reaching out to other consumers by creating buyer value in your brand will set you apart from everyone. Taking the focus away from beating out the competition will help to pursue lowering costs, creating value in the brand, and gain insight on how to redefine the problem the mature wine market is facing.

A huge problem that’s faced with the industry is that consumers are offered hundreds of different wine varieties and words on labels only wine connoisseurs can understand making it intimidating. Companies offering so many options and different types of wines on shelves made the selection process so difficult and time-consuming that it unmotivated consumers to buy, as well as the fact that lower priced wine is perceived to not to be as great of quality and taste. Also, only 10% of people drank wine in 2001 while 44% of people surveyed drank beer or spirits. This is a huge amount of consumers that have not been reached out to and might have been deterred to not drink wine due to its reputation of being expensive and only for people of higher status. Consumers are also discouraged due to the complicated tastes that are hard for one to appreciate, but with beer it is easier to select and drink. A way to shift the consumers’ perception is to create a wine that easy and...