|Course set (UE) / Credits (ECTS) / Track / Specialization||Module :Wine Marketing and sales : 17 ECTS.|
|Discipline||Supply Chain Management|
|Open for visitors||yes (5 ECTS)|
|Working language :||English|
|Volume of contact hours :||27 h|
|Workload to be expected by the student :||108 h|
Track : Attendance
|LEARNING GOAL 1 : Students will master state-of-the-art knowledge and tools in management fields in general, as well as in areas specific to the specialized field of management.|
|Students will identify a business organization’s operational and managerial challenges in a complex and evolving environment.|
|Students will understand state-of-the-art management concepts and tools and use them appropriately.|
|Students will implement appropriate methodologies to develop appropriate solutions for business issues.|
|LEARNING GOAL 2 : Students will develop advanced-level managerial skills.|
|Students will work collaboratively in a team.|
|Students will participate in a decision-making process in a critical way.|
|Students will communicate ideas effectively, both orally and in writing, in a business context.|
|LEARNING GOAL 3 : Students will demonstrate their understanding of practices reflecting ethical, diversity and sustainable development values in business organizations.|
|Students will identify and analyze issues relating to diversity, ethics and sustainable development in their business context.|
|LEARNING GOAL 4: Students will study and work effectively in a multicultural and international environment.|
|Students will analyze business organizations and problems in a multicultural and international environment|
This 28 hours course has three major objectives.
(1) Firstly, it provides an introduction to the basic concepts linked to distribution and Supply-Chain Management
(2) Secondly, to be able to identify all the existing distribution channels to sell wines and understand the concept of conflict between the distribution channels
(3) Thirdly, to understand how to build a multi-channel marketing strategy (marketing plan)
(3) Fourthly, to demonstrate an in-depth understanding of the French wine distribution in different regions
(4) Finally, to understand how to develop an international distribution
NB Given you had the class on Direct Marketing, we will spend limited time on the winery cellar door, eCommerce and Direct-to-Consumer (DTC) wine sales.
- Identify the key problems in the supply chain management of a wine product
- Explain key elements in the supply chain of wine
- Characterize the role of the stakeholders in the wine distribution
- Construct a marketing plan
- Develop a multi-channel strategy
- Evaluate the complexity of international distribution (State Monopoly, Three-Tiers system in the USA, etc.)
Day 1. Tuesday December 17, 2019 (6 hours)
10.00 a.m. - 1.00 p.m. Introduction to basic marketing concepts linked to distribution and supply-chain management; understand the purpose of marketing in saturated marketing; importance of the external environment (discussion on Trade war; China/Hong Kong/ Brexit)
2.00 p.m. - 5.00 p.m. Small case study (the Case of Nicolas brand over time; try to identify all the possible distribution channels); exercise in group
Discussion on some concepts:
a) Concept of conflict between the distribution channels (how France is different from the USA)
b) The role of Internet in terms of transparency (wine-searher, idealwine)
C) The future of the wine shop (the case of Nicolas)
Group Assignment (10%): Group of 4: identify all the distribution channels (oral presentation with powerpoint (max 5 slides); 10% of final grade; submitted after the presentation to email@example.com)
Reading (will be sent after the class): Chapter on Distribution
Full reference: LECAT B., (2014), Wine Distribution in CHARTERS S. & GALLO J. ed., Wine Business Management, Pearson, pp.193-206.
Day 2. Wednesday December 18, 2019 (7 hours)
Case Study (will be distributed during the class)
Ofek, Elie, and Eric E. Vogt. "Château Margaux: Launching the Third Wine." Harvard Business School Case 513-107, June 2013. (Revised January 2016.)
9.00 a.m. -1.00 p.m. Explanation of the case study and Bordeaux Distribution
2.00 p.m.- 3.00 p.m. How does the wine distribution work in other French regions: Burgundy (négociants vs small estates); Champagne, Alsace
Discussion around 2 small Case studies
a) Domaine Amiot Servelle in Burgundy (reading: 15 minutes; discussion 30 minutes)
b) Cruse affair and the change of the French négociant structure (except in Bordeaux)
Reading (will be sent after the class)
a) LECAT B., CHAPUIS C., BROUARD J., COGAN L., (2016), "Lack of trust in the wine chain: The case of Cruse affair for the Bordeaux wines (Winegate) and its consequences on the Burgundy Wine Industry", Recent Patents on Food, Nutrition & Agriculture, Special issue on Understanding consumer expectations and reducing asymmetry between consumers and producers: a challenge for food producers in a monopolistic competition market, Vol 8, N°1, pp. 25-29.
b) LECAT B., Case Study on Domaine Amiot-Servelle in Burgundy, unpublished (FR)
c) LECAT B., BROUARD J., CHAPUIS C., (2018), "Futures in Bordeaux: how does the En-Primeur System work? ", Wine Business Monthly, May 2018, pp. 88-97.
3.00 p.m.- 5.00 p.m. Presentation of the group project & tasting of some 3 wines: Hauller, Hauller Fères, Pierre Sperry (discussion with Ludovic Hauller)
Topic of group project (the group and the channel assigned for each group will be determined in the classroom)
The students will work in group of 4-5 students and develop a strategy for one of the three Brands: Hauller, Hauller Frères and Pierre Sperry. Each group will work on one or two assigned distribution channel and assess how each brand can be sold successfully through the different channels.
The report should be a powerpoint presentation and should be structured as such: Purpose of the study: how to increase sales in the channel(s) the group will be assigned to; literature review; hypotheses; methodology of data collection; proposed strategy for the assigned channel to increase wine sales (think about the structure of the marketing plan to recommend your strategy: make a swot analysis, assess how you can increase the sales in volume or value (and how much?); think about current or new segments to target; think about differentiation with competition; think about the 4 P’s and pay attention to the potential channel conflicts, pricing issues and cannibalization; finally think about how you can assess the success of your recommended strategy). The powerpoint should be maximum 15 slides with unlimited appendices (Group assignment will be presented and submitted during the site visit, see further)
Brand 1: HAULLER Frères
Group 1 : Direct-to-consumer (cellar door, tasting room, clubs and events)
Group 2 : High-end CHR (Cafés/pubs-Hotel-Restaurants)
Brand 2: Louis Hauller
Groupe 3: supermarket-Grocery stores- hypermarket
Groupe 4 : international distribution strategy
Brand 3 : Sperry
Group 5: CHR (Cafés/pubs-Hotel-Restaurants)
Group 6: Wine retailers
Individual Assignment (40%): build a marketing plan with a focus on multi-channel strategy for the 3rd wine of Château Margaux (think about updating the data; compare with the two other products in the portfolio); Submission (format: powerpoint, max 15 slides; unlimited appendices) Monday January 6, 2020: noon at firstname.lastname@example.org
Day 3. Tuesday January 7, 2020 (7 hours)
9.00 a.m. - 11.00 a.m. Discussion about Château Margaux Case Study
11.00 a.m. -1.00 p.m. Discussion on International distribution
a) The case of State Monopoly (Québec and Scandinavia a.o.)
b) The three tiers-system in the US
c) West-Vleteren Trappist Beer.
2.00 p.m. -4.00 p.m. Case Study on 10th Street Distillery (San José)
Group Assignment (10%): Group of 4: How to select a distributor; What should be the key variables; How do you approach the distributors (think about the steps of the marketing plan (oral presentation with powerpoint (max 5 slides); 10% of final grade); submitted to email@example.com after group’s presentation on January 7, 2020.
4.00 p.m – 5.00 p.m. Instructions about the onsite project
Day 4. Wednesday January 8, 2020 (on-site)
9.00-10.00 a.m. Departure for Hauller Estate (Dambach-la-Ville)
10.00 a.m. - 11.00 a.m. Tour of the winery; discussion of the innovations and the different ranges
11.00 a.m. - 12.00 a.m. Challenges in wine distribution by Ludovic Hauller (list of questions to think about)
12.00 a.m. - 1.00 p.m. Lunch
1.00 p.m. - 3.00 p.m. Work in group
3.00 p.m. - 5.00 p.m. Presentation and Tasting
5.00 p.m. - 6 p.m. Drive back to Strasbourg
Group Assignment (40%): Group of 4; assignment will be presented and submitted on January 8, 2020 at firstname.lastname@example.org
LECAT B., (2014), Wine Distribution in CHARTERS S. & GALLO J. ed., Wine Business Management, Pearson, pp.193-206.
(2) “Marketing Chateau Margaux”, Harvard Business School, ref. 9-507-033,case study by John Deighton, Vincent Dessain, Leyland Pitt, and Daniela Beyersdorfer (revised: August 16, 2007); price $ 8.95
(3) LECAT B., CHAPUIS C., BROUARD J., COGAN L., (2016), "Lack of trust in the wine chain: The case of Cruse affair for the Bordeaux wines (Winegate) and its consequences on the Burgundy Wine Industry", Recent Patents on Food, Nutrition & Agriculture, Special issue on Understanding consumer expectations and reducing asymmetry between consumers and producers: a challenge for food producers in a monopolistic competition market, Vol 8, N°1, pp. 25-29.
(4) LECAT B., Case Study on Domaine Amiot-Servelle in Burgundy, unpublished (FR)
(5) LECAT B., BROUARD J., CHAPUIS C., (2018), "Futures in Bordeaux: how does the En-Primeur System work ? ", Wine Business Monthly, May 2018, pp. 88-97.
(1) Kotler, P. & Keller, K. (last edition). Marketing Management, Pearson London.
(2) McGoldrick, (last edition). Retailing marketing, New York: McGrawHill, pp. 157-187.
(3) Stern L., El Ansary A. I., Coughlan A. T., (last edition) Marketing Channels, New-Jersey: Prentice-Hall.
Behaviors such as
may lead to expulsion from the class/course.