WISE | “Brand SA” Strategy Development -...
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The MOSS Group | Propriety and Confidential 1 Confidential 2013 | All rights reserved WISE | “Brand SA” Strategy Development Wine Category Strategy 21 January 2016
Transcript of WISE | “Brand SA” Strategy Development -...
The MOSS Group | Propriety and Confidential 1Confidential 2013 | All rights reserved
WISE | “Brand SA” Strategy Development
Wine Category Strategy
21 January 2016
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The “Brand SA” strategy project ran during 2015
Phase 1: As-Is analysis
Phase 2: Category strategy development
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The strategy is based upon consumer insights
and follows a step-by-step approach
Develop the local wine positioning and align to consumer segmentsDevelop the local wine positioning and align to consumer segments
Develop category enrolment strategy Develop category enrolment strategy
Develop product and packaging innovation strategy Develop product and packaging innovation strategy
Develop product tiering strategy Develop product tiering strategy
Develop channel strategyDevelop channel strategy
Each component is thoroughly detailed and is available from the SAWIS portal.
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Our CIA study looked at potential markets for growth
These segments offer
massive opportunity
in sheer numbers &
alcohol spend.
LSM 1-4
LSM 5-8
LSM 8-10
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We unlocked the key barriers to wine for key segments
That being said, many consumers are TRYING to buy into the category
… WE JUST AREN’T MAKING IT EASY!
• Wine is intimidatingly
complex.
• The image is exclusionary
rather than premium.
• Wine doesn’t speak to me!
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We unlocked the key barriers to wine for key segments
These insights ring true for even your core consumers!
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There significant potential for growth by expanding
wine’s consumer base and driving wine loyalty
- 5 10 15 20
Out of Scope
Future Focus
Current Consumers
Millions of people
Size of consumer groups
(Number of people age 18+)
1. The differences in weekly consumption between consumer segments are minimal (max 1 drink per week), therefore average values are shown
2. Through taking share from other liquor categories.
Average weekly consumption of liquor type1
The 2025 WISE targets can be achieved by attracting 1.2m new consumers and increasing weekly wine consumption by 1 glass2.
3x larger 22 drinks 8 drinks
3 drinks
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We have developed some key marketing inputs for
each of the focus consumer segments
Know your segment
• Segment overview
• Key consumer insight
• Drinking behaviour:
– When - occasions
– Why - motivations
– Where – channels
• Current relationship with wine
How to capture share
• Engaging methods:
– What?
– How?
• Product ideas / innovation
• Pack considerations
• Channel and merchandising:
– Considerations
– Approach
These are useful bridging elements between the consumer segmentation and the Brand SA strategy work.
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A key focus of the Brand SA strategy was to find ways
to improve producer returns
Extracting greater value from the trade and innovation are crucial to the industry’s future sustainability.
Taxes Trade terms
& margin
Packaging
cost
Product
cost DOH1
Marketing
& sales
Net Profit
Indirects
32% 26% 20% 10% 9% 8% 6% 3%
P&L breakdown for the average wine bottle(e.g. for a R50 bottle of wine, producer keeps R3)
Source: Wine industry focus interviews. 1. DOH – Distribution and overheads.
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The Brand SA strategy can be summarised onto 1 page
To be the alcoholic
beverage of choice in SA
Enrol new entrants Grow share of throatPremiumise the
category
Vision
Outcomes
Focus areasSegment, innovate and build brands
Enrol consumers
Implement a revised channel strategy
Industry collaboration and Brand SA
Enablers • Willingness to invest
• Marketing capability• Openness to innovation
• Willingness to change the rules
• Willingness to collaborate
• Leverage WOSA for SA
1
2
3
4
The category strategy will be implemented in phases with pilot projects demonstrating the business case.
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In summary5
• The WISE local wine targets are attainable
• All components of the Category Strategy need to be implemented to
achieve the desired results
• Whilst an industry body is required to execute the strategy at category
level, brand owners will need to take responsibility for doing so for
their own brands
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+27 (0) 82 334 6204
+27 (0) 21 702 4288
+27 (0) 86 689 4641
www.mossgroup.co.za
