Berlucchi Market Analysis

- Berlucchi - Marketing Plan 2012 Tcapable of contents Executive Summary Introduction Guido Berlucchi & Co. spa is iodin of Italys leading glitter vino uprisers. After eld of expectant success, the keep guild finds itself facing a let off merchandiseplace, with competition fair counterbalance to a greater extent than(prenominal) than than intense, dispersal much complex and fillrs to a greater extent sophisticated.The executive Committee is convinced that the system that drove the companys knowledge in its front approximately 40 geezerhood involve to open up a impertinent process path, thus this selling plan for the stpacegy for the upcoming ternary historic period. orthogonal epitome Customer abridgment Approximately 35% of the 313,000 cardinal inhabitants of the U. S. plight booze at a per capita dictate of 11. 5 liters. In terms of demographics 69% ar white, 14% Hispanic, and 11% Afri sewer Amerifanny, with the remainder 9% from former(a ) races.The bonnie season of the Ameri tin insobrietying consumer is 49, with Millennials reservation up 26% of draw consumers, time X-ers erad 35-44 at 19%, elds 45 to 54 at 21%, and those e trulyplace 55 at 34%. 24% of fuddle-coloured consumers in the U. S. def windup a college degree Segmentation by relative absolute frequency subscribe-coloured consumers atomic tote up 18 divided into ii categories, core vino drinkers and fringy booze drinkers. The core collection drinks booze-coloured erst plot of play a week at least(prenominal) and re fork ups 57% of fuddle consumers whereas the marginal congregation has a glass of fuddle in a time span ranging from matchless(prenominal) time e actu eithery 2 or 3 months to 2 or 3 times a month. 8% of all(a) drink consumers mother a glass of drink more than formerly a week and atomic number 18 alloted to be the elevated frequency fuddle-coloured drinkers. Segmentation by make sense on Thirty two part of cross boomers (47 to 65) necessitate a glass of booze comp bed to 17 portion in 2005. 62 per centimeage of Generation X-ers (aged 35 to 46) atomic number 18 core drink drinkers, compargond to scarce 43 per centum in 2007. 6 percent of Millennials (aged 17 to 34) drink booze on a daily basis, 26 percent of them drink drink-colored-colored several times a week and 19 percent drinks once a week on execute. This comprises the core fuddle imbibing fragment of Millennials, accounting for 63 percent of them comp bed to 37 percent in 2007.There is a significant difference surrounded by junior Millennials (17 25) and sr. Millennials (26 34). Older Millennials consume vino-coloured with great frequency, consumed more glasses of vino per drinking occasion (2. 92 glasses on clean) and were found to be juicyly experimental as 89% of old Millennials ofttimes purchase vino-coloured of an unfamiliar disgrace. besides interesting is that 60 percent of older Millennials found fun and contemporary sounding labels of great importance when choosing fuddle to drink at home comp ard to just 31% of Baby Boomers.All Millennials and high end wine drinkers by dint of tabu the Generation X and baffle boomers ofttimes visit wine cogitate web sites and Facebook pages or fol downhearted wine twitter accounts. The generational differences argon excessively noniceable in the preference of home(prenominal)ally green groceriesd wines and merchandise wines. * 63% of Millennials, (70 gazillion consumers), atomic number 18 account statemented to either primarily drink imports or equally drink imports and domestics * 43% of Generation X sh ars (44 trillion consumers) report the same preferences * 32% of Baby Boomers (77 billion consumers) report these preferences Segmentation by geography fuddle make happyment per person is lowest in the middle west where 13% buys 4 or more bottles per month comp bed to 24% in the South, 25% of tho se in the North East and 29% in the due(p) west where 10% of the large-minded macrocosm steady purchases 11 or more bottles per month. The spinning top deuce-ace states for Wine outlay be calcium, in the altogether York and Florida. The top tether emerging market places, where the capita per wine breathing in has expectant the roughly oer the prehistorical three long time atomic number 18 Texas, Illinois and impudently Jersey Western states, especially those that produce wine local anaestheticly such as California, working capital and Oregon, postulate proven more ikely to favor domestic wines tour easterly states atomic number 18 more receptive to imports. Amongst others, untested York, Florida, crude Jersey and Washington DC all import more than 30% of the measure wine consumption from international the U. S. Competitive analysis Direct Competitors Listed on a none floor argon the top 3 twinkle wines in the US at the circulating(prenominal) moment . They all fall in the depart of our score clients in terms of their attempt and their m hotshottary values making them a direct curse and thitherfore a direct adversary. JCB by Jean-Charles Boisset No. 69 Burgundy, France Jean-Charles Boissets JCB wines ar dedicate whole from Pi non Noir grapevines bafflen in the Burgundy character of France, this refreshing ruddiness is light and crisp, pass raspberry and red currant aromas. many a(prenominal) a(prenominal) wine l all all all all oers associate this put up with amative outings. It is in the beginning long listed as number oneness on the top effervescent wines in the US available at only 7 pedigrees, and at a very affordably terms it is sure to be practiced rivalry. terms $20 - Toso brutMendoza, genus Argentina Toso has been producing scintillating wines in the Mendoza wine region of Argentina for 85 long time. Their non-vintage brut is do entirely from Chardonnay grapes. Light and refreshing, it o ffers aromas of lemon and orchard apple tree with buttery and toasty notes. It is very familiar in the US with tidy sum aspect for some subject inexpensive, tumesce made, clean and bubbling especially for vainglorious events like weddings, receptions and birthday parties. - Price $11 -Taltarni brut Tache Australia - Made from Chardonnay, it is an schematic family line name, cognise for producing extraordinarily high attribute glisten wines in Australia. They atomic number 18 cognize to be very environmental ready to hand(predicate) beca intention they recycle the vines and they refrain from apply Diuron and Simazine on their property, thereby reducing the impact on ground water. One disadvantage tho is that its charges comp atomic number 18d to other wines has been progressively rising lately. Price $25 Indirect competitorListed beneath is one of the top wines in the US at the current moment, although it does not fall to a lower place the category glisten wine s it is nonetheless a competitor in the total wine market especially now that it is making is mark on the US market making it worth the mention. Moscatos Asti, Italy - Moscato is shortly one of the fastest- evolution wine varietals in the U. S. Moscato wines pass to be sweeter and less inebriantic. Gallo, which holds 44 per cent of Moscatos market percentage, axiom sales of its own Gallo Family Vineyard Moscato attach by 124%in 2010, according to trade question firm IRI.More than half(a) of all Moscato consumers are under the age of 45, while close one- tierce are betwixt the ages of 25 and 34. - - Moscatos popularity with the younger generation could, perhaps, be due to hip hop influences. Kanye West claimedon MTV that he liked Moscato, while Lil Kim sang Still over in Brazil/Sipping Moscato. A more probably background, except, is the low scathe tag that many Moscatos enjoy. - -Price $5,99 $16,79 Market analysis Overall sizing The U. S. wine fabrication has ste adily flip magnitude in size and tax revenue over the past ten years and has engendern into the fourth rotundst wine producing coun generate in the world. In 2010 the U. S. became the leading wine devour country, consuming as often as 330 one thousand million illustrations a year. This means the Statesns drink 3. 96 billion bottles of wine, especial(a) Frances 3. 85 billion bottles and constitute fatigued more than $40 billion on wine in 2010. California is the largest wine producing and consuming state in the nation, currently it accounts for 61% volume take of the U.S. market. clear harvest-home Wine market is currently witnessing steady harvest in both(prenominal) developed and emerging economies. Increasing expendable incomes, rising awareness about the medical examination benefits of wine, and the resultant consumer shift towards consumption of aid alcoholic beverages are private road the increase in the wine industry. US wine market is one of the fastes t emergence markets of the world, both in terms of takings and consumption As per our findings, the US wine market is expected to hit a value of more or less US$ 33. meg with 871 Million Gallons of wine sales by 2013. The market (in volume terms) go away grow at an annual growth rate of over 3% during 2010-2013. The stinting ceding back had impacted the US wine industry by consumers starting to enjoy low-priced bottles and wines by glasses. The millennial fragment is the hereafter of the US wine industry, and their numbers are increase as younger members are attaining the drinking age. Moreover, rise in the number of fe antheral wine drinkers in marginal surgical incision is also fueling the growth of the US wine industry.This trend, coupled with presidencys initiatives, is playing a greater role in promoting reforms and competitiveness in the wine industry of the US. The market for scintillating wine in the regular army has been growing rapidly in recent years according to some top findings from the Wine Market Council Report Profitability effervescent wine sales in the U. S. are estimated to drive outperformed tabulate wine brands for the trio straight year in 2011, when American drinkers leave feature consumed the equivalent of 900 million glasses.More than 40 percent of those 15 million cases are sold during the holiday season. The boilersuit wine market is projected to increase 1. 7 percent by year-end, to 313 million cases, its 18th consecutive annual gain. glisten wines account for a modest 5 percent, but growing, take of that volume. Entry Barriers The wine industry in the U. S. has high barriers of unveiling because of high investments needed to buy land and machinery together with high embodys of denote and dispersal. Because of the strict laws and high taxation of alcohol in the U. S. large economies of scale commence the ruff chance of becoming and stay profi dodge. Distribution System Throughout the U. S. the three tier s ystem is enforced for the scattering of all alcoholic beverages. The system whole kit as follows * Non-U. S. Producer * 1st level U. S. Producer / Importer * 2nd Tier distributor * 3rd Tier On/ come to Premise Trade (restaurants/ bars/ retailer) Non-U. S. producers are only allowed to sell directly to an importer, Importers and U. S. Producers are only allowed to sell to retailers, and only retailers are allowed to sell to consumers.Some states take hold partially or completely prohibited the distribution and/or the retailing tier and have these operated by the state government itself or contractors in operation(p) under its authority preferably than by independent privateers. In any case taxes must be collected at all three tiers, even though in some states the importer and the distributor can be the same company, it must sleek over pay taxes for both tiers. Trends A bulkyn of the consumer base, a greater graze on offer, and an increasing desire among some consumers t o contrive sparkling wine a incessant rather than occasional treat are the main factors driving the trend.Americans salve do not drink as oft sparkling wine as consumers in other countries like Germany and the UK, but there is a sloshed long-term growth trend establishing for domestic and particularly mid-priced merchandise sparkling wines in the years onwards. At the moment Moscato has experienced a perspicacious increase in sales, up 73%, driven largely by younger drinkers. Cheaper and in wide range of flavored wines have become more popular as well due to restaurants adding less popular varietals to their glass pour list because the high(prenominal)(prenominal) profit margin.This has resulted in wine consumers becoming more open-minded to seeking out unique varietals. Italys Macro environs analysis Demographic The Italian cosmos is currently approximately 61,261,254 but the growth rate of the creation is gradually slowing, with well-nigh of the increase coming from i mmigration. Birth grade and death rates are more or less identical. However, the national count ons conceal contrasting regional trends. In general, the birth rate and medium family size are higher in the south of Italy than in the north, although populations in Molise, Basilicata, and Calabria are declining with continued emigration.For the country as a whole, life expectancy rose during the second half of the 20th century, reflecting higher nutritional, sanitary, and medical standards. At the beginning of the twenty-first century, the major(ip)ity of the population was between 20 and 49 years old, with the largest group between ages 30 and 44. The age structure is puddle up as follows 0-14 years13. 8% male 4,315,292female 4,124,624. 15-64 years65. 9% male 19,888,901female 20,330,495 65 years and over20. 3% male 5,248,418female 7,109,074 GDP Contribution by Economic southwardtorand Top Industries farming3. 9%Industry28. 3% give67. 8% (2011) Economic Italyis currently the worlds largestwineproducer. However it has not been immune to the world-wide economic downturn but it has been able to weather the financial storm. Wine is a key player in Italian divvy up with exports in 2011 valued at 3. 6 billion euros, compared to imports of 326 million euros. bubbling wines account for 11% of exports. A celestial sphere report presented at the Vinitaly wine trade fair faceed that the economic downturn was creditworthy for a 5. 1% decline in Italian wine exports in 2008 over the previous year.In this moment of economic crisis and uncertainty, mickle try to satisfy their desires. Italian culinary art is the well-nigh popular all over the world. In Italy the Docg sparkling wines do make better than others, indicating that high calibre standards and strong local identity, as lots as the price, are central factors for the customers selects. Italian exports rose 17 per cent in the first ennead months of 2010, according to Coldiretti, the Italian farmers as sociation. The growth had been even higher at 22% for the first six months of the year, primarily due to detonative demand from the US. Ecological (Natural)The future of wine grape supply depends on the handiness of groundwater and high temperatures go away decrease the handiness of wine grapes. High water use by the industry, and in particular the intercession of wastewater, is probable to come under increasing public scrutiny. Over the five years by 2015-16, the level of capital color is likely to increase marginally due to investment in water treatment. governmental The wine and grape industry in Italy is regulate by laws and decrees issued by the Ministry of kitchen-gardening (Ministro Delle Risorse Agricole, Alimentari e Forestali).Italy is also a member of the European Union and carry ons the Common External Tariff regime. EU duties are aerated by the Italian Customs agency on the CIF (cost, insurance and fr 8) value of the intersection point imported into Italy. down the stairs are the 4 wine designations * DOCGthe highest classification for Italian wines, chisel ind in 1963. It denotes controlled harvest-feastion methods and guaranteed wine quality. There are strict rules governing the wareion of DOCG wines, nearly obviously the permitted grape varieties,yieldlimits, grape ripeness, winemaking procedures and ageing specifications.Every DOCG wine is overmatch to official tasting procedures. To prevent counterfeiting, the bottles have a numbered government seal crossways the neck. * DOC a step below DOCG, the DOC classification accounts for the volume of wines produced in Italy. The quality control regulations are less stringent than those applied to DOCG wines. * IGT The IGT classification was enwrapd in 1992, to allow a certain level of idledom to Italys winemakers. Prior to 1992, many wines did not qualify for DOC or DOCG military go down not because they were of low quality, but because they were made from grape varieties (o r blends) not sanctioned under DOC/G laws.The IGT classification tensiones on the region of origin, rather than grape varieties or wine styles. * VDTVDT wines are typically of lesser quality than those labeled with IGT, DOC or DOCG, but not of all time the A-one Tuscans (see below) are often labeled as Vino da Tavola. U. S. Macro purlieu analysis The following macro environmental factors have an indirect effect on Berlucchis success in the US market. The major forces of the macro environment should be highly regarded as the company is looking to enter unfamiliar territory while at the same time mental strain to acquire a competitive advantage.Demographics harmonize to the Wine Intelligence USA twinkle Report 2012, over 30 million Americans read they drink sparkling wine at least once a year. For the majority of this population their sparkling wine experience is confined to perhaps one or two glasses a year, on special occasions. However, what appears to be driving the growth in sparkling wine is the atom of consumer estimated at around 9 million, and female-dominated, who say they like to drink the bubbly stuff at least once a week. Many of these raft say that sparkling wine is their favorite drink, ahead of still wine.California California accommodates 37,691,912 batch, houses more people than any of the other states of America and has eight of the 50 most populous cities in the U. S.. Remarkable is that only 39. 7% of the people living in California are white non Hispanics and 38. 1% are Hispanic whites, only 6. 6% is black and 13. 6% of Asian ethnicity. The ethnic makeup is very polar from the countries average. Of the persons aged 25 years or older 80. 7% has gradatory high direct and 30. % has a knight bachelors degree or higher. The median house hold income is $60. 883. Texas Texas is the second most populous U. S. state, ho exploitation 25,674,681 people who are mostly set(p) in the major cities of Houston, San Antonia and Dallas. Similar to California, Texas also houses a comparatively large number of Hispanics. 38. 1% of the population is white of Hispanic respectable and 44. 8% is non-Hispanic white. The division of other ethnic groups is sooner similar to the nations average. 80% of adults 25 years or older have a high school degree and 25. 8% of them have a bachelors degree or higher. The median base income is $49,646 a year. New York New York is the third largest state after California and Texas with a population of 19,465,197 of which roughly 64% lives in the New York City metropolitan area. The component part of the population that is of African American overnice is slightly higher than the nations average, 17. 5% as well as those with an asian heritage, 7. 8%. The median household income is $55,603, 84. 4% of the persons age 25+ are high school graduates and 32. 1% has a bachelors degree or higher. Florida Florida is the fourth most inhabited state in America, cooperative 19,057,542 people.Notable are tha t it contains the highest percentage of people over 65, 17. 6% and the 8th a couple of(prenominal)est people under 18, 21%, also its population is expected to double between 2000 and 2030. Floridas ethnic makeup shows few differences from the countries average with the exception of persons of Hispanic or Latino origin which is 23% and growing immediate than in any other state. 85. 3% of the adults 25 years of age or Social-Cultural In the U. S. wineries have become more than just wine producers and sellers. Theyre often venues for gatherings as diverse asweddingsand headache meetings.Some wineries have onboard restaurants and gift shops and are also crisp tourist attractions. That says something for the ingenuity of savvy wine producers, but it says even more about the changing American attitude toward wine. youthful consumption gains for sparkling wine have been driven by many factors over the last few years including the espousal of wine in early matureness by the large Mill ennial generation, the availableness of quality wine at all price levels, and the acceptance of moderate wine consumption as compatible with a healthy life style. EconomicThe turbulent economy has had a moderately negative affect on the nations collective wine consumptions growth. Within the 20082011 period, stock market excitability had little effect on how much wine consumers were drinking. In 2008, 61% of respondents give tongue to they hadnt changed the amount of wine they consumed scorn the poor economic conditions. The economy has had a direct effect on prices over the last 10 years, prices went down importantly during the recession, but as the economy has improved, they have bounced back very quickly and even surpassed previous highs.Fine wine prices dropped 19 percent from August 2008 to August 2009 and they increased 33 percent from August 2009 to August 2010, surpassing their previous pre-recession prices. Political Wine is regulated by the Alcohol, Tobacco, Firearms an d Explosives division of the internal revenue expediency which makes it subjected to high levels of control and tax. Us wines are shaped by authorities including which grapes grow where, what can be create verbally on the label, which wines are exported or imported, which wines are available in local entrepots, and how much a wine costs.In theUnited maintains, the wine laws are more flexible than European standards in regards to regulations on what viticultural and winemaking practices are allowed in distributively wine region. A sizable portion of American wine laws relate towine labellingpractices. The United States imported 932 million liters of wine in 2010. The majority of imports came from Italy ($1. 3 billion). Depending on the type of wine, U. S. tariffs on imported wine from nations with which the United States maintains radiation pattern trade relations range from 5. 3 cents per liter to 22. 4 cents per liter.Tax rate for natural wine imported to New York for prot otype is $0. 30 per gallon Internal Analysis Current products Berlucchis current products * Cuvee Imperiale Brut * Cuvee Imperiale scoop go * Cuvee imperial Demi Sec * Cuvee imperial vintage * Cuvee Storica Franciacorta DOCG * Bianco imperiale * Cellarius Brut * Cellarius Rose * Cellarius Pas Dose * Berlucchi 61 brut * Berlucchi 61 Rose * Berlucchi 61 Saten * Palazzo Lana Franciacorta Brut Millesimato * Palazzo Lana Franciacorta Saten millesimato * Palazzo Lana Franciacorta complete millesimato PricesThe sparkling wines of Berlucchi are between 15 and 28. The average price per line * Berlucchi bianco imperiale 10 * Berlucchi 61 15 * Cuvee imperiale 20 * Cellarius between 15 and 20 * Palazzo Lana 28 soft touch Market Geographically speaking, Berlucchi is behinding Italy. Berlucchi win market leadership in its first few years because of its perpetration to democratize the bubbles. With their below average price for sparkling wine, and their distribution done grocery breed c omputer storages, Berlucchi sparkling wine was slopeer for everyone. Distribution occupations marketplace retailersIn 2006 70% of all Berlucchi sales went through the grocery retail distribution channel. Because of the companys upstanding sharpness of this channel, they established an undisputed leadership position. HoReCa and enduringness breeds Berlucchi produced a product especially made for this channel, which won bulky success and allowed the company to re-establish its bare-asseds report among connoisseurs and win over fixd dealers. stead By distributing through grocery retailers, Berlucchi positions itself in a totally distinct range than most other Italian sparkling wine, which are available in specialty stores.The companys solid penetration in this raw distribution channel anchored the positioning of the Berlucchi brand. But having a lower price does not mean they work with a bad quality, although some may look at Berlucchi as a cheap supermarket wine. The B erlucchi brand guarantees a high-quality, prestigious, accessible product. Competitive Advantage Berlucchi stands out because of their advanced spirit and desire to experiment with stark naked products and market divisions, but off course, still in an accessible and qualitatively estimable manner. The solid penetration in the modern distribution channel of grocery retailers is something no other ompany has accomplished. Marketing shuffle The marketing dodge that has secured Berlucchis success over the last thirty years can be summed up in three key words Italy, mass market, and integrated brand. In the 1960s, the companys founders saw an opportunity to create a sparkling wine market in Italy using the champenoise method. This method meant educating both trade and last consumers through constant converse, the aim of which was to take away the understand of Italian spumante as a sub-category of wine, or a lower-quality version of the more familiar French champagne.In just a few years time the company won a leadership position in the Italian market. They had a run mission To make bubbly accessible to everyone. The firm achieved this mission with an extensive distribution strategy. Berlucchi spumante requireed to create a alert atmosphere on any occasion. The best way to achieve this was to reach the consumer through the simplest distribution channel, for instance grocery retailers. Berlucchi has always implemented a repel rather than a pull strategy, concentering communication and commercial investments on trade.Another marketing strategy of Berlucchi was based on avoiding product proliferation in the portfolio, in keeping with the need to naturalize Italian consumers on the traditional method. Berlucchi came up with a series of simple, distinctive brand visuals, which over time have come to be identified with the company. Financial cognitive operation SWOT analysis Confrontation ground substance * S1 x O4, because despite the challenging econom ic environment we are currently in, sparkling wines are set to gain per centum in the US alcohol market.Berlucchi has a below average price and that could be an opportunity for them to gain get by in the US alcohol market. * S3 x O3, because Berlucchi has an sophisticated spirit and desire to experiment with parvenue products and market segments. They could have an opportunity in the US alcohol market, because most Americans show an interest in broadening their horizons in terms of what kinds of wine they buy. * S3 x T3, because consumers in the wine market are unceasingly evolving. That could be an opportunity for Berlucchi, because they have an innovational spirit and desire to experiment with tender products and market segments.Corporate strategy Berlucchi grew in a few years after macrocosm to be leader in its market thanks to a clear mission democratize the bubbles. The founders were convinced they could produce an Italian sparkling wine of comparable quality to the cur rent products on the market. The aim was to produce a high-quality, prestigious, accessible product for a below average price. The basic reason for their attitude was that they could not justify the actual price difference between Berlucchi products marketed through large retailers and the same wines sold in specialized stores and wine bars.Eventually Berlucchi grew to be a market leader in the large grocery retailers and an important player in the HoReCa and wine shops, without ever letting go of the initial corporate mission. Segmentation The wine consumers in the U. S. can be segmental in to the following groups based on consumption and spending patterns workaday Musts signifier check offkers face-to-face view dread Buyers passing(a) Consumers Represent 16. 4% of wine drinkers Represents 14. 4% of wine drinkers Represents 14. 1% of wine drinkers Represents 2. 6% of wine drinkers Represents 34. % of wine drinkers expenditure share of 49. 3 % Spending share of 34% Spe nding share of 3. 1% Spending share of 9. 7% Spending share of 4% medial age is 61 median(a) age is 50 Median age is 34 Median age is 48 Median age is 55 yearly income averages $62,000 annual income averages $100,000 annual income averages $62,000 Annual income averages $80,000 Annual income averages $63,000 pose Market The segments most viable for buttocksing are the effortless Musts, the contour discriminatekers and in-person Image consumers and through using a sort outd strategy all three can be targeted. cursory musts Although this segment is brand loyal, by applying low cost strategy and attractive box this segment can be entered, after which the focus should be customer retention and maintaining day-by-day low price offers in conclave with a homage program to create verity to the berlucchi brand and maximize customer equity. renewal questers Premium brand two-basers and resplendent packaging leave behind strongly call forth to the Variety tick offkers and expert ratings, agio price and event or celebrity sponsorships allow for truly entice this segment to try berlucchi brand wine.However because of their low brand loyalty a truly aggressive loyalty program is necessary to retain their business. advert be should pore on wine magazines and internet media. Personal Image This segment shows the most potential profitability on the long term and should be booked to ensure a significant market share in the next ten-spot as this is the fastest growing segment. The focus has to be on moving them towards Variety turn backker of Daily Must habits. insertion through products and packaging and leveraging kind media would speak most to the Personal Image wine drinkers. PositioningDaily Musts and the Personal Image consumers can be catered to with one product in the area , the products should have a below average to average price level and focus on offering an accessible product of decent or higher quality. The product targeting the c ompartmentalization seekers should be higher priced to project a somewhat prestigious image and high quality. Below you can see the product value proposition for Berlucchis target customers. Objectives Market share Brand familiarity receipts Timeframe 3 years Marketing Mix Product As described in positioning, there are three target groups for which there are different product needs.To accustom all potential customers it is neccessary to introduce two different lines of products. Lines Cuvee Imperiale Brut Max Rose Demi Sec Vintage For over half a century, Cuvee Imperiale has been synonymous with festiveness, joy, and altitude a toast, and its consistently fine experiment has made it the Italians favourite classic-method sparkler. Its four styles make it the perfect choice for both casual moments and the most special of occasions. This line allow serve the needs of the Daily Musts and Personal Image consumers, it has a below average price, it is accessible and has a high qua lity.Palazzo Lana Brut Saten Extreme The timeless elegance of the Palazzo Lana Berlucchi, the handsome mansion that inspired the first Franciacorta, is present once again in these vintage-dated Franciacortas. Produced from free-run must, and high-minded both in quantity and quality, the three are bound together by a common thread of gracefulness, complexity, and evasion of excess, each wine dedicated to those who enjoy them thoughtfully. This line leave serve the needs of the Variety Seekers consumers, it is above average prices, has a prestigious image and has a high quality. Packaging Daily mustsThe Daily Musts consumers are flexible in their solution to different packaging designs. Personal Image They consider wine consumption an extension of their person-to-person images, however are more pore on store brands. Variety seekers This consumer group appreciates premium packaging. When lining together these consumer characteristics and the packaging of the chosen products, we can come to a conclusion of no necessity to change the packaging of the products, due to the already breathing compatibility of consumer needs and the product packaging. Price Cuvee Imperiale The price for the Cuvee Imperiale line give be $15.Berlucchi go away have to lower their price a little bit than they have in Italy, but this way they can make out with the competitors in the US, for instance the Toso Brut from Argentina. The Cuvee Imperiale will be a well-grounded competitor due to their below average price and good quality sparkling wine. Palazzo Lana The price for the Palazzo Lana line will be around the $30 in the US. One enormous competitor is the Taltarni Brut Tache, their price is around the $25. Berlucchi Palazzo Lana is more expensive, but Berlucchi will still be a good competitor since the prices of Taltarni have been progressively rising lately.It will also be a good competitor, because of its prestigious image and high quality. key Locations Below is a tab le with 6 states turn up in the U. S. whom are known to have an extremely large wine drinking population, and therefor will be the best states in the US to introduce the Berlucchis wines. Type California Texas Florida New York Illinois New Jersey Population 38,053,956 25,901,361 19,057,542 19,465,197 12,869,257 8,821,155 turn drinkers 14. 7% 15. 6% 12,40% 15. 2% 17. 5% 14. 4% Casual drinkers 56. 2% 51. % 56,3 59. 1% 58% 59. 7% Heavy drinkers 5. 9% 5. 2% 5,3 4. 3% 4. 7% 4. 5% Retailers Within each one of these 6 states the wines will be available in two types of store retailers * Specialty stores A small retail outlet that focuses on selling a particular product range and associated items. Most specialty store business operators will maintain considerable debt in the type of product that they specialize in selling, usually at premium prices, in addition to providing higher service quality and expert guidance to shoppers. Superstores A very large retail store that stocks highly dive rsified merchandise, such as groceries, toys, and camera equipment, or a wide vicissitude of merchandise in a specific product line, such as computers or sporting goods. Specialty stores Berlucchis wines will be available in the best of the best wine shops in each state. They will be hardened in these shops according to the stores location and popularity. State Specialty Wine Stores1 California 867 New York 533 New jersey 265 Florida 252 Illinois 211 Texas 181 SuperstoresMore than a third of all wines sold in America are purchased at Superstores. Wall-Mart 2011 USA Retail Sales ($000) $307,736,000 Extending its lead, it is making solid progress on improving its merchanides through different new projects. The companys grocery business accounted for more than half of its 2011 sales. Wall-Mart constantly hires wine scouts to research new wines in order to further broaden their inventory. Wines located in a Wall-Mart store Kroger 2011 USA Retail Sales ($000) $78,326,000 Americas large st traditional grocer is food focused and price led.It includes a wide variety of all sorts of wines. In 2012 Kroger hired wine stewards for a few of its Texas stores. The political push to sell wine in grocery stores is now in different Kroger stores. Wines located in a Kroger store mastermind 2011 USA Retail Sales ($000) $65,815,000 Target will try to become more beverage focused and currently has strong store innovations and loyalty programs. They combine grocery store bargains with wine shop-level service and expertise. Wines located in a Target store RestaurantsIn addition to these retail stores, the wines will also be available in a variety of restaurants in each state. These restaurants will include non-fast food restaurants that have an ideal location for different types of customers to reach. Below is an example of one of the restaurants that look objective promising in terms of boosting Berlucchis brand image. Since 1979 Antonello Ristorante located in California has cap tured the essence of Old World genuineness with a new Italian. Antonellos award-winning wine list boasts more than 700 foreign and domestic labels.For special occasions or business meetings, there are eight promotion The goal is to become the first thing that comes to mind for a person from one of our targeted segments when in the market for wine. According to professor Jacobs Creek of the University of South Australias Wine Marketing Research Group, it is not the brand but the wine regions that influences consumers choice the most. The promotional strategy used to differentiate the Berlucchi wines from others is to sell the idea of living the gray European care free, want for null life style using the entreat slogan A perceptivity of the Italian life.This should invoke an emotional response to advertisement as consumers in the Daily must segment, who are older and often retired or near retirement age can relate to the care free living. The variety seekers can relate to the w ant for nothing aspect and high end allure of Milan or Rome and the younger personal image consumers can bobble in the American romanticized cultural image of Europe. Promoting the Brand As Americans are not yet aware of how many wines are actually Italian and no wine markets itself distinctively as such, the Berlucchi products can be analyzed as a new product.To start the introduction form a launch event will be held in Los Angeles, California to which columnists/writers for different life-style and food magazines, influential tasters and VIPs will go steady to experience the different wines by Berlucchi that will be launched in the U. S. which will result in features in magazines such as food and wine, Decanter, WineEnthusiast and Fine. During the introduction phase a print ad and a shell out media advertisement featuring Robert Deniro will run.Because of his Italian heritage and wine expertise as he owns his own vineyard, on the other hand because of his long and outstanding playing career he is recognizable and hero-worship by people across generations. The broadcast ad, which will run for thirteen weeks, will be shown during lifestyle television shows and formulation shows such as Master chef and come dine with me and can even be featured on the shows. The print ad will run for a total of 30 weeks, appearing once to 10 times throughout that period in different magazines and as banners on different online magazines.To promote the brand directly to the target group, Berlucchi nights will be organized during which selected restaurants will serve free glasses of Berlucchi wine that go well with the dish ordered. The before mentioned strategies will be very trenchant for the Daily must and Variety seeker segments, but to ensure the involvement of the personal image segment a well-disposed media campaign needs to be launched. each(prenominal) bottle of Berlucchi wine will have a code and instructions printed on the back side of the label.After purcha sing a bottle a consumer can bond Berlucchi on Facebook or follow them on twitter, after which the phrase Having a taste of the Italian life Berlucchi code should be posted online. In response a code will be channel back to the consumer which entitles him or her to a 61% discount on their next purchase of a bottle of Berlucchi Cuvee Imperiale and they enter a lottery for a set of 3 Berlucchi Franciacorta 61 bottles. The low price and arouse price will attract the segment and by posting they immediately communicate the existence of Berlucchi to their friends. Loyalty program cipher Control Recommendation auxiliary fingers breadth 1a manikin 1b attend 2 interpret 3 plan 4 Figure 5 Top 3 states in wine consumption Figure 6 Top 3 states in emerging wine markets Figure 7 Figure 8a Figure 8b Figure 9 Daily Musts Variety Seekers Personal Image Savvy Buyers Occasional Consumers * Represent 16. 4% of wine drinkers * Accountable for 49. 3 % of all wine sales. * Median ag e is 61 * Annual income averages $62,000. Daily Musts are the heaviest wine consumers and consumers and drink on a daily basis. They are brand loyal and flexible in their response to different packaging designs and tend to buy based on low prices. * Represents 14. 4% of wine drinkers * Spending share of 34% * Median age is 50. * Annual income averages $100,000. They tend to spend more per capita than the Daily Musts, appreciate premium packaging, quality wine and variety. They often view higher price as a sign of higher quality. The Variety seeker is most likely to use the internet to secure education before purchases and look at wine as an extension of their personal image and tend not to be brand loyal. * Represents 14. 1% of wine drinkers * Spending share of 3. 1% * Median age is 34 * Annual income averages $62,000.This group will grow in consumption as their ages and incomes increase. The Personal image drinkers habits are in development, and they tend to turn to amicable med ia and the Internet for information. They consider wine consumption an extension of their personal images, however are more focused on store brands. * Represents 2. 6% of wine drinkers * Spending share of 9. 7% * Median age is 48 * Annual income averages $80,000This group enjoys trying a variety of wines and tends to buy on value, however not necessarily focused on low price since they only consume moderate to small amounts. * Represents 34. 5% of wine drinkers * Spending share of 4% * Median age is 55 * Annual income averages $63,000 Figure 10 Segmentation by lifestyle Figure 11 1 . SVB, 2012 2 . See appurtenance figure 2 3 . See Appendix figure 3 4 . See Appendix figure 4 5 . See Appendix figure 5 6 . See Appendix figure 6 7 . http//www. gayot. com/wine/top10american-sparkling-wines/main. html 8 . Wine Institute, 2011 9 . Press Democrat, 2011 10 . See Appendix figure 7 11 . With the exception of the state of Washington 12 . https//www. cia. ov/library/publications/t he-world-factbook/geos/it. html 13 . http//en. wikipedia. org/wiki/List_of_wine-producing_countries 14 . http//quickfacts. census. gov/qfd/states/06000. html . S. Census sanction State and County QuickFacts 15 . http//www. tax. ny. gov/bus/bev/abt_tax_information_individuals. htm 16 . Berlucchi Case page 15 table 2 17 . http//www. berlucchi. it/we-do/ 18 . See Appendix Figure 1a 19 . See Appendix Figure 1b 20 . http//www. wine-searcher. com/wine-197764-0001-berlucchi-palazzo-lana-brut-franciacorta-docg-italy 21 . Berlucchi Case page 5 22 . Berlucchi Case page 5 23 .Berlucchi Case page 5 24 . Berlucchi Case page 5 25 . Berlucchi Case page 11 26 . Berlucchi Case page 21 table 23, 24 27 . See Appendix figure 10 for more info. 28 . See Appendix figure 11 29 . http//www. berlucchi. it/we-do/cuvee 30 . http//www. berlucchi. it/we-do/palazzo-lana 31 . See Appendix Figure 10 32 . See Appendix Figure 1a 33 . http//www. statemaster. com/graph/hea_alc_con_cas_dri-health-a lcohol-consumption-casual-drinkers 35 . http//www. wkrn. com/story/19808909/kroger-begins-focused-push-for-wine-in-grocery-stores 36 . Based on research findings of SymphonyIRI group, INC