Marketing - the Champagne Market

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  • Topic: LVMH, Champagne, Moët et Chandon
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  • Published : March 25, 2011
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REPORT ABOUT CHAMPAGNE

Summary
The purpose of this report is to show how's the level for the Champagne Market in the UK in 2010. In the report are covered the Micro Environmental Factor, the Macro Environmental Factors and the Marketing Mix. The main source is the MINTEL Report about Champagne and Sparkling wines from February 2010.

Table of Contents:

1. Introduction

2. Micro Environmental Factors

3. Macro Environmental Factors

4. Marketing Mix

5. Conclusion

6. References

1. Introduction
In the MINTEL report from February 2010 about Champagne and sparkling wine we find out that the UK Champagne market has seen a sharp decline in 2009, the economic downturn being a prime factor that caused it. However, Champagne Houses also have a number of tricky issues to negotiate in the UK market, for most among them the increasing power of supermarkets, meaning that Champagne’s luxury status is being diluted by discounting. The report assesses the UK market for Champagne, including rosé and vintage Champagne, that are produced under strict regulation within the tightly defined Champagne appellation of France, including sales through both the off- and on-trade. Within the EU, the term méthode champenoise is similarly restricted only to the Champagne area. Coverage in the report is restricted to wine of fresh grape, produced from the naturally fermented juice of the grape, with a minimum strength of 5.5% alcohol by volume.

Contents
2. Micro Environmental Factors

2.1 The company
Moët & Chandon or Moët, is a French winery and co-owner of the luxury goods company Moët-Hennessy - Louis Vuitton. Moët et Chandon is the world's largest Champagne producer. Despite the fact that it has a large production is still considered a top shelf Champagne which retains high quality. The company has a Royal Warrant so that they have to supply Champagne to Queen Elizabeth II. Moët et Chandon was established in 1743 by Claude Moët, and today owns more than 1,000 hectares (2,500 acres) of vineyards, and annually produces approximately 26,000,000 bottles of Champagne. "Moët & Chandon has elaborated the world's favorite Champagnes. The quality of the wines gives full expression to the richness and diversity of the fabulous vineyards, the largest and most prestigious estate in the whole of Champagne, made up almost exclusively of Premiers Crus and Grands Crus. Joyous wines, with a generous and seductive personality, distinguished by their sparkling fruitiness, their flavoursome body and their elegant maturity." The company has a wide range of Champagne brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Mercier and Ruinart.

2.2 Suppliers
Moët & Chandon don't have any suppliers since they own more than 1,000 hectares (2,500 acres) of vineyards which annually produces approximately 26,000,000 bottles of Champagne. They are their own suppliers and everything that they use is only high quality.

2.3 Marketing intermediaries
The marketing intermediaries for the Moët & Chandon Champagne are supermarket or other shops that sell food and drink. Among all that UK is the number one Champagne exporter in the world.

2.4 Competitors
The most important competitors of Moët & Chandon are Cristal and Laurent-Perrier.

Cristal
Cristal is the well known brand of a Champagne made by  Louis Roederer. The Champagne, created by special request of Tsar Alexander II, is one of the world's most famous and highly respected wines. "Brut Premier, the company's flagship multi-vintage Champagne, is a distinctive, elegant wine that epitomizes the House style of complexity, depth of flavor and long finish." The company produces between 300,000 to 400,000 bottles of Cristal each year.

Laurent-Perrier
Laurent-Perrier is a Champagne house founded in 1812 by Alphonse Pierlot. With over 1,200 grape growers with supply contracts, Laurent-Perrier exports to more...
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