Advanced Wine Marketing A- WineMktg 7066Ex
Assignment 1 –Case Study
Word Count : 3157
Roger Provost, a highly successful chief marketing officer for Vincor international, has not only created a globally recognized brand, but a new ‘Ice’ category. Vincor hired Mr. Provost in 1996 with the ambition of taking the company to the global market place. Mr. Provost chose icewine to market to the world, utilizing Iniskillin as Vincor’s flagship product. Through selective marketing, strong sales alliances, and market placements in key nations, Iniskillin achieved rapid growth. In the span of a decade Iniskillin has gone from a brand made in the low profile, new world wine making nation of Canada, to the benchmark in icewine production. The unprecedented growth in sales, matched with the high unit price, has established Iniskillin as the premier icewine provider, and Canada as the largest exporter of the product.
The success of Iniskillin and the ‘Ice’ category in the last decade has increased Vincor’s competitive pressures. The high margins and low barriers of entry into the market have increased domestic competition from authentically produced icewine in Canada, as well as global competitors in Germany and Austria. While it’s global popularity increased icewines made through non-traditional methods. The influx of competitive rivalry has resulted in downward pressure on prices and an increased oversupply of ice products. In 2006, Vincor was purchased by the Global wine giant Constellation for $1.3 billion USD. A price based on the high levels of growth by Vincor over the last decade driven by Iniskillin. Mr. Provost needs to figure out how he can maintain Iniskillins growth with increasing competitive rivalry.
* Tradition and Accolades; The Iniskillin winery was established in 1975 and was the first Canadian winery to achieve international recognition for its ice wine production by being awarded the Grand Prix d’Honneur in the 1991 Vinexpo. * Strong internal growth; The winery has seen a production capacity increase by 1,853% between 1993 and 2002 * Climatically; Canada has a climate that ideally accommodates the production of premium ice wine through traditional winemaking practices. * Tradition; Although not the first post prohibition winery in the region to make ice wine, Iniskillin is one of the original producers of ice wine from Ontario. * Product Range; Iniskillin has an expansive range of ice wine products and brands covering a variety of sugar concentrations (°Brix) and prices. * Reputation within the global wine market; Iniskillin has been the benchmark of ice wine production in Canada over the past decade. * Pricing Strategy; Due to the difficulty to produce and its rarity on the global market the standard cost of Iniskillin is $65 per bottle, putting it into the premium category of wines. This is the standard retail price for Iniskillin, however the demand for cheaper ice wine caused Vincor to create a wider range to facilitate demand. * Key Business Partnerships; The relationship with San Francisco based company Duty Free Stores has given the brand key exposure to key markets, and has grown to become a ‘core’ product for DFS. * Strong focus on marketing; In 1997 Iniskillin ice wine was chosen as the flagship product in the Vincor International portfolio by Mr. Robert Provost, the Chief Marketing Officer. Since then it’s seen unprecedented growth in global popularity and recognition. * Popularity; Iniskillin ice wine has gained global popularity through dealings with the Duty Free Stores. The main market originated in Asian countries, however through the DFS, Iniskillin’s popularity grew in Europe and North America * Free Trade Agreements; The North American Free Trade Agreement (NAFTA) gives Canadian companies like Iniskillin a more open channel of distributing their products to the USA, the worlds leading wine market by value and volume....
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Euromonitor, The World for Market, September (2005)
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Statistic’s Canada, Export of icewine figures, August 2005. Accessed via article by Jones. G., “Iniskillin and the Globalisation of Icewine” Published by the Harvard Business School (2008)
Vincor International Annual Reports, (2002-2005). Accessed via article by Jones. G., “Iniskillin and the Globalisation of Icewine” Published by the Harvard Business School (2008)
Vincor International Annual Report, (2004)
National Bank Analysis Report, 2003. Accessed via article by Jones. G., “Iniskillin and the Globalisation of Icewine” Published by the Harvard Business School (2008)
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