the niche in the market: the case of belgian wines

THE NICHE IN THE MARKET: THE CASE OF BELGIAN WINES

Dr. Jonas De Maere

Belgian Wines Ltd.

www.belgianwines.com

@jonasdemaere

@BelgianWines

HOW TO DISTINCT IN A SATURATED MARKET?

@jonasdemaere

@jonasdemaere

WINE CONSUMPTION IN BELGIUM

27 liter per capita (9th place)• IMPORT MARKET (!!) • French wine ( 2011: 58% 2004: 71%)

Source: GfK Belgium (2012)

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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 130

Source: OIV (2012)

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WINE PRODUCTION IN BELGIUMDenomination 2005 2012

PDO (Appellations)

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

PGI (Land wines)

Vlaamse Landwijn 6ha 48a 13ha 13a

Vin de Pays de Jardins de Wallonie

4ha 37a 4ha 15a

“Table Wines”

Belgische Wijn 38ha 80a

Total 64ha 39a 130ha 05a

Source: FOD Economie – Update 29/11/2012

SUMMARY

Consumption (27L)400 000 000 bottles

Production 500 000 bottles

≈ 0,1%

BELGIAN WINES• Expensive:

average retail price = €11

• Concentrated:5 largest estates represent about 60% of the market

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THE BELGIAN WINE MARKET

Source: GfK Belgium (2012)

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THE BELGIAN WINE MARKET

• How do we reach the consumer?• How do we justify the price?• What about the quality (style)?• How do we promote Belgian Wines?

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

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THE CASE OF BELGIAN WINES LTD.

@jonasdemaere

THE MARKETING MIX

•Best Belgian wine competition•Workshops, tastings•Build legitimacy•Restaurants (sommeliers)

Belgian Wines• shop and webshop

Wineries• competitors and

suppliersRestaurants

• sommeliers

Expensive• €11 euro

Quality • important

Differentiation• Price/Quality ratio

Nice product • small volumes

Shifting consumer trends• terroir and sustainability

Market competition• wines from other

countries

Product Price

PromotionPlace

Educate the consumer

HOW TO DEVELOP YOUR BRANDThe 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

@jonasdemaere

THANK YOU!Belgian Wines Ltd.Kapelstraat 3 – 9120 Melsele, Belgiumwww.belgianwines.com

@jonasdemaere @BelgianWines @belgianwino BelgianWines.com

Dr. Jonas De Maere+32 498 32 83 37jonas@belgianwines.com