Rfid in Wine Industry in France

Topics: Wine, Marketing, France Pages: 11 (3520 words) Published: February 19, 2012
France is the biggest wine producer in the world (7-8 billion bottles sold in 2010). 17% of French drink wine regularly,which is a total of 9.35 million people. We identified that buying wine requires knowledge of the different kinds of wine and that many consumers find it difficult to get the information when they want it. Our team has identified this pain point as an opportunity to launch our product using smart phones and RFID technology on the wine bottles. The solution is an application on a smart phone which allows the end user to scan the RFID tag on the wine bottle in order to get real-time information on the wine bottle, instant access to any promotion available and consumer ratings of the wine. The RFID technology has so far been used only in the upstream of the value chain to track bottles of wine and using it in downstream to target the end user is new in the market. Moreover, the smart phone market is expected to grow at a 50% rate in the next few years. We aim to ride on this technology wave to solve this pain point. We target the wine producers, cooperatives/distributors and retailers in France, who will be able to generate extra revenue by making their products more accessible to an untapped market. Our product will also allow them to have targeted marketing and access to customers’ behavioural information through the market information gathered through our database. The revenue is generated mainly by the end-user using our u-scan as we will be charging our customers, the wine producers and retailers as a “pay per click” system.

French wine is produced in several regions throughout France, in quantities between 50 and 60 million hectolitres per year, or 7–8 billion bottles. France has the world's second-largest total vineyard area, behind Spain, and is in the position of being the world's largest wine producer losing it once (in 2008) to Italy.[1] French wine traces its history to the 6th century BC, with many of France's regions dating their wine-making history to Roman times. The wines produced today range from expensive high-end wines sold internationally, to more modest wines usually only seen within France. According to the market survey we have observed that 17% French nationals drink2 wine regularly (9.35 mil). Not only this, the occasional French wine drinkers are even more roughly 45% of population of France. Besides this we target 12% of the foreigners who prefer drinking wine. This amounts to a population of 600,000 people. But the catch is they also choose wine before they drink wine and our application helps in trying new wines which are popular in the market. Our business model requires the end users to scan the tag in the wine and get the complete information about the wine including peer ratings. The type of wines he tags and the most scanned wines are analyzed to read consumer behaviors. These behaviors are compiled for market studies and published on internet to generate revenue. Market Study

1) Macro Analysis:
Mass Market
Our targeted customers are wine producers, distributors, retailers and exports, and we offer an innovated and technique based service to link them to end-users of our application. The attractiveness for them will be the revenues increase in wine sales and massive data of customer behaviours. We will approach all channels available to our end users, and this includes all wine manufactures and retailers in France, so this is a mass market. However, we are in a niche industry – wine industry with a new service mode. Since RFID technology has not yet been commonly used in business to customers’ sales model. It is so far only generally applied to the upstream production sections of business. We are offering a service based on this technology directly to the end-users, this is a new service which does not exist in the market. Market Size

We start with the French wine market, not only because we are here now, but also because France has...
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