MARKETING &
MANAGEMENT
H U Z E FA ( B S C S / S 1 7 / 5 1 7 )
SUGHRA NAZ (BSSE/S16/0130)
[ AMARILLO]
WINE
M A R K E T I N G S T R AT E G Y
BRAND LOGO
EXECUTIVE SUMMARY
• Wine industry is strongly competitive.
• The number of wine businesses are increasing, but the US wine consumer ratio is remain still.
• Wine industries focus on overdelivering, adding complexity to wine based on taste i.e. tannins,
oak, and aging processes.
• In looking at the demand side of the substitutes of beer, spirits, and ready-to drink cocktails,
which captured three times as many US consumer alcohol sales as wine.
• Mass of American adults see wine as a turnoff. It is unapproachable, showy, overly defined and
the complexity of wine’s taste created flavour challenges for the average person, even though it
was the basis on which the industry fight and strive to surpass.
• With this insight, we explore how to redraw the strategic profile of the wine industry to
create an uncontested market space and to reconstruct buyer’s value elements.
VISION & MISSION STATEMENT
• Vision:
To create an uncontested market space characterized by new demand and strong profitable
growth by aligning the whole system of a company’s activities in pursuit of differentiation and low
cost. To go beyond incremental improvement by focusing on the big pictures rather then to be
flooded in numbers and jargon.
• Mission statement:
“A fun and simple wine to be enjoyed every day.”
BRAND INTRODUCTION
• Amarillo”, a social drink accessible to everyone, beer drinkers, cocktail drinkers, and
traditional drinkers of wine.
• By looking at the alternatives of beer and ready-to-drink cocktails and thinking in terms of
noncustomers, mass of Americans rejected wine because its complicated taste was difficult to
appreciate, beer and ready-to-drink cocktails, for example, were much sweeter and easier
to drink.
• Amarillo wine is soft in taste and approachable like ready-to-drink cocktails and beer. The
result is an easy drinking wine.
BRAND HERITAGE
• [‘Amarillo Wine’], Amarillo is a Spanish word which means yellow, buff, sensational. Amarillo is
also a city in the Texas Panhandle. It’s a gateway to the vast, trail-lined Palo Duro Canyon State Park.
• The art of viticulture and winemaking has evolved. Nevertheless, in this long historical path,
one thing remains unchanged and has never been neglected; the association of wine
with cooking, history, tradition, origin, local quality products and dignified social
settings.
• Many countries are experiencing concerning trends in alcohol mismanagement, especially
related to so-called binge drinking amongst a particular socio-economic and age group, with
major health, legal, economic and social implications.
• Despite the differences in consumption witnessed worldwide, studies show
moderate consumption remains the general norm; only a minority of people
misuse the high-quality beverage that is wine.
• Wine is regarded as a prestige symbol in today’s modern society.
TARGET AUDIENCE
• Considering the demand side of substitutes such as, beer, spirits, and ready to drink
cocktails, which captures three times as many US consumer alcohol sales as whine.
It seems that mass American adults saw wine as a turnoff. It was unapproachable and
exaggerated, and the complexity of wine’s taste created flavour challenges for the average
person.
• According to above insight [Amarillo]’s wine strategy is to target non-wine drinkers/non-
customers with the aim to bring beer and ready-to-drink cocktail consumer into
wine market.
• Amarillo extends the market boundary space by targeting the non-customers thus
creating an uncontested market space.
MARKETING MIX
To reconstruct buyer’s value element, our marketing strategy
consist of 4 action frame work.
• Which factors that the industry takes for granted should be
eliminated?
• Which factors should be reduced well below the industry’s
standard?
• Which factors should be raised well above the industry’s
standard?
• Which factors should be created that the industry has never
offered?
Eliminate:
• Oenological (relates to the study of wine) terminology
• Aging factor
• Above the line marketing
Reduce:
• Wine complexity
• Wine range
Raise:
• Price in compare to budget wine
Create:
• Easy drinking
• Ease of selection
• Fun and adventure
Product:
• The brand offers wine that is produced without tannin and acid, in order to appeal
to consumers who don’t like wine, or who don’t drink it.
• [Amarillo] develop a wine that is soft and sweet in taste and as approachable as
beer and ready-to-drink cocktails. It resulted in an easy-drinking wine.
• Finally, the product can be consumed immediately; there is no need to keep it in
expensive wine fridges or underground cellars to age the wines.
Price:
• Due to the above reduce and eliminate factors the product cost structure will
reduce. But the pricing levels are set above budget wine, but below premium
wine.
Place/Promotion:
• [Amarillo] aims to lead the market without promotional campaigns, mass media
or above-the-line advertising.
• The brand uses the help of retail shop employees who act as ambassadors and
feel comfortable with the idea of promoting such a simple wine.
• The brand organized wine-tasting events in order for consumers to discover
and sample the product.
MARKET SEGMENTATION
Geographically:
• Initially “Amarillo’s” strategy is to target United states’ alcohol consumer segment. With
price level a little above then budget wine.
Demographically:
• We aim to target consumer of legal age which obvious in the case of alcohol. Side wise our
basic intention is to create easy drinking wine without complexity, so accordingly we intent to
target undifferentiated segment of alcohol consumer.
Psychologically:
• In case of wine, it is a complex product, that it’s taste can only be understand by someone who
is a wine hobbyist and specialist. That’s why majority of people see wine as turnoff. So, we
intent to target middle class consumer who are ignorant of wine characteristics and
knowledge, that when considering our product, they don’t have to think much.
COMPETITOR ANALYSIS
In the case of the US wine industry, it had long competed on the following factors:
• Price per bottle wine.
• An elite, superior image in packaging, including labels announcing the wine medals won and the
use of complex terminology to stress the art and science of wine making.
• Above the line marketing to raise consumer awareness in a crowded market and to encourage
distribution and retailers to give prominence to a particular wine house.
• Aging quality of wine.
• The prestige of wine’s vineyard and its legacy (hence the title of estates and reference to the
historic age of the establishment).
• The complexity and sophistication of wine’s taste, including such things as tannins and oak.
• A diverse range of wines to cover all varieties of grapes and consumer preferences from
chardonnay (type of grapes) to merlot (type of grapes), and so on.
These factors are viewed as key to the promotion of wine as a unique beverage for the informed
wine drinker, worthy of special occasions.
POSITIONING
we intent to position out brand as an easy and approachable drink, to make a fun and non-
traditional wine suitable for general alcoholic consumer, to create a wine that people would
purchase because it tastes good, without thinking about the complicated rules of purchasing
wine.
SWOT ANALYSIS
Strength:
• Simplicity & approachability.
• Offers wine without tannin and acid, in order to
appeal to consumers who don’t like wine, or who
don’t drink it.
• No need to keep it in expensive wine fridges or
underground cellars to age the wines.
Weakness:
To save the cost structure and to reduce
the price margin, [Amarillo]’s product line
is too small. Its marketing image is also
weak.
Opportunities:
• Amarillo creates an uncontested
market place.
• Resulting to be first in a certain
particular segment, by creating values to
target non-customers.
• Thus safe from potential competition.
Threats:
[Amarillo] wine went against the typical
process and characteristics of wine, basically
intent to change buyer’s taste. Which can cause
serious problem because if the proposition and
positioning of brand goes in wrong direction, it
can cause serious misconception.
VALUE PROPOSITION
• A simple, easy and approachable wine without complexity. Because when it comes to drink,
specifically wine, it just simply means fun.
“We take wine seriously so you don’t have to.”
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