International market netherlands
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INTERNATIONAL MARKET DEVELOPMENT CLASS PROJECT - WINE TRADE Students have been assigned to a team of 2 or 3 to develop an international market development project. Students are assigned to work for the same fictitious wine domaine: Domaine de X, with the same product line. They will be given fixed parameters/constraints regarding the wines and the domaine. Each team will be assigned a different market for these wines, specifically: -a specific country: Netherlands -a type of retailer : Hotels and restaurants
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International market netherlands
- 3. STRATEGY FOR POSITIONING DUTCH WINE MARKET Domaine Des Petits Sentiers Sarah FRISSANT Gulnar MURAT Huong Thao VO
- 4. 65 hectares: Entry level - 200 K Standard - 60 K Mid-range - 60 K In-between - 60 K High-range - 20 K 1,036 Dutch regular wine drinkers 509 Dutch regular wine drinkers (by Vinitrac® Wine intelligence) INTRODUCTION
- 5. I. The global overview : 1. Current economic situation 2. Netherlands’ wine market II. Potential targets 1. Netherlands’ partners 2. Consumers’ profile 3. Local trends III. Entering the Dutch market 1. Labels 2. Sales strategy Conclusion Bibliography PLAN
- 6. I. The global overview 1.Current economic situation The hub of Europe Port of Rotterdam 5th Europe economic power 6th largest importer Consumption : 22.3 liters/person/year Wine revenue: $4.5m in 2014 2nd beverage after beer. Netherlands wine market category segmentation: $ million, 2014 =>Mainly still wine, 83% of wine consumed are still wines
- 7. 2. Netherlands market Buyer power restaurants, bars, hotels Supermarket, specialist retailers (liquor stores) I. The global overview On-trade: Off-trade:
- 8. I. The global overview 2. Netherlands market Import and Taxes EU => importer pays: - Excise duty for still wines : 68,54 EUR/hl - VAT 21% The taxes above increasing yearly Value and volume - Value is increasing twice as fast as volume - Market value: Value growth by 1.2% in 2014
- 9. 2. Netherlands market Competitive context 34% 12% 11% 8% 8% 27% THE MAIN SUPPLIERS IN VALUE(%) France Italie Allemagne Chili Espagne Autres Source : Comtrade, 2014 => France has the major part of the market (34%) • UK is a quite competitor • France is in the first place but its losing its position as the New Word’s wine are getting competitive. Competitors evolution I. The global overview
- 10. Why Netherlands ?? Significant opportunity New World producers Low taxes Positive attitude towards wine Wealthy, largely urbanized and very well population Easy logistics Old World producers No restriction on the times, on places where alcohol is sold II. Potential targets
- 11. II. Potential targets Hotel Chain Best Western Best Western International is a global network: 4,100 hotels in the World 400,000 guests every night 100+ countries and territories 1. Netherlands’ partners
- 12. Importer for On-Trade “Twentsch Wijnhuis” II. Potential targets Restaurants Independent Importer for On-trade + 50 years on the market Own wineriesStrong marketing strategy Large portfolios of wine French and Italian wineries 31 Dutch restaurants On-line shop
- 13. 2. Consumer’s profile 35 and 64 consume the most Woman consume more than Man Dutch people consume at home Drink wine after diner from 21h Over 35 years prefer high-priced quality wine Consume on Friday and Saturday II. Potential targets
- 14. II. Potential targets 3. Local trends Consume more and more wine Purchase more wine via the on-trade Consume more white wine rather than the red Purchase the bottle with the brand image of product Choice the wine by taste profile
- 15. 1. Label What aspects of wine labels are important for the Dutch wine consumer when they buy wine ?? Research “The Influence of wine labels on the Dutch consumers”(2015): International Communication and Media: Institute of Communication, Utrecht, Netherlands Light colored background Brand name Place of origin Elegant serif Styled Font 80% of the labels: illustration of landscapes Relevant illustration Grape varieties III. Entering the Dutch market
- 16. III. Entering the Dutch market
- 17. 2. Sales Strategy Supply Chain Standard - 20 K Mid-range - 20 K High-range - 5 K Importer for On-Trade “Z&M Delicatessen” (Rotterdam) , “’t Crabbetje” (Leiden) , “De Oude Gast” (Den Helder) and many others III. Entering the Dutch market The Dutch restaurants
- 18. Domaine des petits sentiers Twentsh Wijnhuis 18% margin 25% margin OR 2. Sales Strategy III. Entering the Dutch market
- 19. Strategy and the way to deal with Best Western Group’s Sales Department Direct sale: Standard - 10 K In-between - 20 K High-range - 5 K 2. Sales Strategy III. Entering the Dutch market Red AOC White SNW Transport Contract
- 20. Conclusion November, December 2015 – Contact the potential partners Send our catalogues and wine samples January 2016 - To get the news and appointments from the potential partners Starting to export
- 21. Bibliography CBI Market channels and segments for Wine in the Netherlands, CBI Ministry of Foreign Affairs Wine market in Netherlands, 2011, Carlos MARQUES, Paolo DINIS, Richard SAGAL Wine in the Netherlands, May 2015, MarketlLine Industry Profile The wine and spirits market in the Netherlands, June 2015, IWSR survey Vinexpo Whitch trend offer opportunities on the wine market in the Netherlands? 2014
- 22. ANNEXE