MKTG Report Essay

Submitted By mukita_n
Words: 1472
Pages: 6

Distribution:

In Austria there are two main modes of distributing alcoholic beverages, which come via various manufacturers. These two ways include: either through a specialist retailer or mass retailers. Since Austria is a country that is comfortable with the concept of enjoying alcohol and it is not a new thing for them, it would be safe to supply the main Red Wine product via these channels of distribution. Customers would be fairly comfortable with this and it is two of the only main ways to get the product across. The types and qualities of this wine could vary to better match where it is being supplied. Since majority of alcohol sales comes through hypermarkets and supermarkets, holding a grand share of 64% in sales, it would be best to start there. In order to expand even further and attract the remaining market base it would be good to join forces with one of the few and major chained retailers of alcoholic drinks called Wein and Co. It is one of the leading chain specialist beverage retailers in Austria.
Even though it is predicted that Specialty Retail Chains would lose their potential business to major retailers due to this it would be safer to stick to a company that already has strong recognition and a stable spot in the Alcoholic Industry of Austria. In addition, it would be a good initial first step to ensure success in the selling of this product to export it to some of the many well known producers of wine such as: Weinkelleri Lenz Moser AG (biggest producer of grape wine) and Henket & Co. Sekterellai (second largest producer of grape wine). It would be good idea to try and distribute through these home-based suppliers since Austrians prefer domestic wine over imported.

From both of these, I would expect different promotional appeal to target towards customers on the lower-end and higher-end income side of customers. Through offering it in supermarkets people can be appeal to it in its bargain prices and bulk assortments. So I would expect that they would promote these beverages via online websites and flyers to appeal to the specified target market of alcohol consuming customers in Austria who are price sensitive. On other hand the specialist retailers would appeal to the higher end spectrum of wealthy consumers that go out and enjoy alcohol in more up-scale areas.

This kind of support in terms would be easy to find through supermarkets and hypermarkets as they hold majority of the alcoholic sale industry anyways. Their products especially in the Wine Industry already sell a similar assortment of wine like that of Red Wine therefore, it would be easy to settle this product into everything else that they are offering. Moreover, receiving the similar type of support from other smaller-end specialty retail chains would be difficult since majority of them are family owned. That’s why by taking the route of venturing in the product with Wein and Co. would be easier since they are already successful they would be more open to launching a new product line where smaller independent family owned retail specialty stores would be a lot more reluctant.

(Google Images)

The diagram above depicts a rough image of the various distribution channels and the orders in which we would be making use of them in order to get the wine across to the places and markets in which we want it to be received. The diagram below is a picture of specific manufacturers, supermarkets and specialty retail chains, which would be used in order to distribute our product. The diagram below is a more specific depiction from the one above of the various sources included specialized retailers such as Wein and Co. or supermarkets such as Hoff and lastly major producers/supplier of well-known Austrian Wine Makers on the left side.

(Google Images)

Promotion

Product Positioning Statement:

Red dry Wine is being produced for our entire potential customer market with…