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The niche in the market: The case of Belgian Wines

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Jonas De Maere
Jonas De Maere

Belgian wines have a very small share of less than 0.1% of the Belgian wine market, which is dominated by imports, primarily from France. Total Belgian wine production meets only about 0.1% of domestic consumption. To distinguish Belgian wines in this saturated market and justify their higher average price of €11 per bottle, producers need to focus on quality and terroir, educate consumers, and promote through competitions and tastings to build legitimacy and awareness. The marketing strategy of Belgian Wines Ltd. emphasizes developing the brand through understanding local markets and consumers and choosing appropriate marketing mix elements like price, placement in shops and restaurants, and promotional activities.

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THE NICHE IN THE MARKET: THE CASE OF BELGIAN WINES Dr. Jonas De Maere Belgian Wines Ltd. www.belgianwines.com @jonasdemaere @BelgianWines
@jonasdemaere HOW TO DISTINCT IN A SATURATED MARKET?
@jonasdemaere WINE CONSUMPTION IN BELGIUM 27 liter per capita (9th place) • IMPORT MARKET (!!) • French wine ( 2011: 58%  2004: 71%) Source: GfK Belgium (2012)
@jonasdemaere WORLDWIDE WINE PRODUCTION Position Country Hectares 1 Spain 1,018,000 2 France 800,000 3 Italy 769,000 4 China 570,000 … … 91 Belgium Source: OIV (2012) … 130
@jonasdemaere WINE PRODUCTION IN BELGIUM Denomination 2005 2012 PDO (Appellations) SUMMARY Haspengouw AOC 20ha 26a 25ha 08a Hageland AOC 13ha 41a 12ha 92a Heuvelland AOC 3ha 06a 9ha 52a Côtes Sambre et Meuse AOC 6ha 43a 25ha 98a Vlaamse Landwijn 6ha 48a 13ha 13a Vin de Pays de Jardins de Wallonie 4ha 37a 4ha 15a  Consumption (27L) 400 000 000 bottles  Production 500 000 bottles PGI (Land wines) ≈ 0,1% BELGIAN WINES • Expensive: average retail price = €11 “Table Wines” Belgische Wijn Total 38ha 80a 64ha 39a Source: FOD Economie – Update 29/11/2012 130ha 05a • Concentrated: 5 largest estates represent about 60% of the market
@jonasdemaere THE BELGIAN WINE MARKET Source: GfK Belgium (2012)
@jonasdemaere THE BELGIAN WINE MARKET MARKETING MIX THE WINE MARKET BELGIAN WINES Place 95% of sales in supermarkets  5% in specialized wineshops 0,1% of the market volume Price 94% of wines sold are below €7 Average price €11 (cheapest wine €7) Product French wine dominates Belgian wines are unknown Promotion Hughe promotional budgets No promotional budgets at all • How do we reach the consumer? • How do we justify the price? • What about the quality (style)? • How do we promote Belgian Wines?
@jonasdemaere THE CASE OF BELGIAN WINES LTD.
The niche in the market: The case of Belgian Wines
@jonasdemaere THE MARKETING MIX Nice product • small volumes Shifting consumer trends • terroir and sustainability Market competition • wines from other countries Expensive • €11 euro Quality • important Differentiation • Price/Quality ratio Product Price Educate the consumer Place Belgian Wines • shop and webshop Wineries • competitors and suppliers Restaurants • sommeliers Promotion •Best Belgian wine competition •Workshops, tastings •Build legitimacy •Restaurants (sommeliers)
@jonasdemaere HOW TO DEVELOP YOUR BRAND The importance of THE PLACE VS THE BRAND 1. Have a brilliant idea  if you didn’t have a brilliant idea you wouldn’t be at #WBIS 2. Understand your market  price, volume, consumer, … 3. Decide how you are going to build your brand  what are you exactly going to sell? 4. Find which marketing mix fits your brand  price, distribution, promotion, … 5. Believe in what you are doing  identify yourself with your brand
@jonasdemaere THANK YOU! Dr. Jonas De Maere +32 498 32 83 37 jonas@belgianwines.com Belgian Wines Ltd. Kapelstraat 3 – 9120 Melsele, Belgium www.belgianwines.com @jonasdemaere @BelgianWines BelgianWines.com @belgianwino

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The niche in the market: The case of Belgian Wines

  • 1. THE NICHE IN THE MARKET: THE CASE OF BELGIAN WINES Dr. Jonas De Maere Belgian Wines Ltd. www.belgianwines.com @jonasdemaere @BelgianWines
  • 2. @jonasdemaere HOW TO DISTINCT IN A SATURATED MARKET?
  • 3. @jonasdemaere WINE CONSUMPTION IN BELGIUM 27 liter per capita (9th place) • IMPORT MARKET (!!) • French wine ( 2011: 58%  2004: 71%) Source: GfK Belgium (2012)
  • 5. @jonasdemaere WINE PRODUCTION IN BELGIUM Denomination 2005 2012 PDO (Appellations) SUMMARY Haspengouw AOC 20ha 26a 25ha 08a Hageland AOC 13ha 41a 12ha 92a Heuvelland AOC 3ha 06a 9ha 52a Côtes Sambre et Meuse AOC 6ha 43a 25ha 98a Vlaamse Landwijn 6ha 48a 13ha 13a Vin de Pays de Jardins de Wallonie 4ha 37a 4ha 15a  Consumption (27L) 400 000 000 bottles  Production 500 000 bottles PGI (Land wines) ≈ 0,1% BELGIAN WINES • Expensive: average retail price = €11 “Table Wines” Belgische Wijn Total 38ha 80a 64ha 39a Source: FOD Economie – Update 29/11/2012 130ha 05a • Concentrated: 5 largest estates represent about 60% of the market
  • 6. @jonasdemaere THE BELGIAN WINE MARKET Source: GfK Belgium (2012)
  • 7. @jonasdemaere THE BELGIAN WINE MARKET MARKETING MIX THE WINE MARKET BELGIAN WINES Place 95% of sales in supermarkets  5% in specialized wineshops 0,1% of the market volume Price 94% of wines sold are below €7 Average price €11 (cheapest wine €7) Product French wine dominates Belgian wines are unknown Promotion Hughe promotional budgets No promotional budgets at all • How do we reach the consumer? • How do we justify the price? • What about the quality (style)? • How do we promote Belgian Wines?
  • 10. @jonasdemaere THE MARKETING MIX Nice product • small volumes Shifting consumer trends • terroir and sustainability Market competition • wines from other countries Expensive • €11 euro Quality • important Differentiation • Price/Quality ratio Product Price Educate the consumer Place Belgian Wines • shop and webshop Wineries • competitors and suppliers Restaurants • sommeliers Promotion •Best Belgian wine competition •Workshops, tastings •Build legitimacy •Restaurants (sommeliers)
  • 11. @jonasdemaere HOW TO DEVELOP YOUR BRAND The importance of THE PLACE VS THE BRAND 1. Have a brilliant idea  if you didn’t have a brilliant idea you wouldn’t be at #WBIS 2. Understand your market  price, volume, consumer, … 3. Decide how you are going to build your brand  what are you exactly going to sell? 4. Find which marketing mix fits your brand  price, distribution, promotion, … 5. Believe in what you are doing  identify yourself with your brand
  • 12. @jonasdemaere THANK YOU! Dr. Jonas De Maere +32 498 32 83 37 jonas@belgianwines.com Belgian Wines Ltd. Kapelstraat 3 – 9120 Melsele, Belgium www.belgianwines.com @jonasdemaere @BelgianWines BelgianWines.com @belgianwino

Editor's Notes

  1. Denmark first
  2. Promotion budgets.Not the government (marginalindustry), not the wine makers (constant investments = growing), notBelgianWines
  3. What is BelgianWines2006 Webshop : selection of BelgianWinesSales, distribution, promotionWe account for 10% of the market of BelgianWines
  4. How does BelgianWines Ltd. Operates
  5. Some take away points.Tussen 1 en 3 raken heel veel mensen verloren.Maar om 3 te doen moet je nadenken over 4
  6. The market environment