Veuve Clicquot Ponsardin in "Wines and Champagne" market

Résumé du document

Champagne belongs to the "Wines and Champagne" market. This market is constituted of numerous actors which are the wine growers, the Houses of Champagne and the cooperatives. These actors are at the same time suppliers and competitors on the Champagne industry but also on the grape industry, the main raw material used in the production of this luxury product. In 2004, more than 300 million bottles of champagne were marketed in the world for an amount about 3.6 billion Euros. Contrary to the French wine market, the industry of the champagne was concentrated very early. In 2004, 82 % of the turnover of the sector was realized by the ten biggest groups. This proportion was already around 84% in 1990. Among ten major actors, four groups which are quoted on the stock exchange, distinguish themselves and realize half of the sales in value: LVMH Champagne which dominate, in France, the Champagne industry, Vranken-Pommery, Lanson and Laurent-Perrier.

Extraits

[...] Relationships Plan In order to reinforce the media campaign, we decided to do a little bit of direct marketing in partnership with three airlines: Air France, Lufthansa and British Air Ways. But we also want have a partnership with the national tournament of golf in those three countries (France, England and Germany). This relational plan aims to convince the opinion leaders and also the clients. First the partnership with the three airlines companies: We chose them because they are leaders in their national market and have an image of quality. The partnership will be about the first class only. [...]

[...] The house Veuve Clicquot Ponsardin was created in 1772 and we will see in this file its history and actual situation. However, the four groups possess only 10% of the vineyards and buy the major part of their grape from cultivators, directly or through cooperatives. The raw material is, by definition, geographically limited by the criteria of the AOC, and the farmers have an important power of negotiation. Furthermore, we have to point out that the offer in champagne is limited and the production can hardly increase in volume: the various actors of this market thus have to cooperate to share and increase the value of this offer. [...]

[...] And the second part of this action is to serve Veuve Clicquot Champagne during the flight. The partnership should include a reduction on the cost prices for the airline. But it is very important that people understand that it is not an ordinary Champagne, but Veuve Clicquot Champagne. We propose to serve the glass of Champagne in a specific glass, designed for the occasion, with the name of Veuve Clicquot on it. The glass must have a modern design because it will be marked in the mind of consumers as an innovative brand. [...]

[...] Which means that there are no international competitors in terms of direct competition because to be called as a Champagne wine, it has to be cultivated in France (If we look at the firm, like for example Taittinger bought by Starwood Capital, we can consider that direct competition is in a way international, because foreign companies keep buying more lands to produce Champagne and wine). Our direct competitors are here the other luxury brands that make special vintage like: Dom Perignon, Cristal, Dom Ruinart etc. The standard brands are direct competitors in terms of products, because whatever the brand, it is Champagne but we have to consider the prices. Indeed, the price differences between a standard Champagne and a luxury one is o huge. The positioning of the direct competitors is simple. [...]

[...] It is the same way of communication for Golf events and fashion events. We decided to put in place an intensive campaign of communication: we have to reach a restricted target. An intensive campaign is necessary because we need to modify the present image of the Veuve Cliquot Champagne. If we count in months, we can dedicate 2 months for advertising in magazines before the event of tasting (during flights, Golf events and fashion events). The aim of the advertising campaign is to appear a lot in magazines about the Veuve Cliquot brand. [...]