Wine Industry
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Wine & Spirits
Industry Analysis
Team 6
SMBA 04 • Strategic Marketing MKT 606 • November 22, 2008
Hayden Olson, Natanyi Carter, Maurice Campbell, Natasha Mohl, Tameika Dozier, Majed Soboh, Allan Topher
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Table of Contents
Executive Summary 3
External & Internal Environment 4
External Environment 4
Technological Trends 4
Consumer Trends 5
Governmental Trends 5
Economic Trends 6
Opportunities 6
Threats 7
Internal Environment 7
Strengths 7
Weaknesses 7
Market/Submarket Analysis 8
Submarkets 8
Market Trends 8
Distribution Channels 9
Customer Analysis 10
Wine 10
Spirits 10
Competitor Analysis 11
Direct & Indirect Competition 11
Top Three Competitors 11
Diageo 11
Brown-Forman 12
Constellation Brands 13
Comprehensive Strategic Assessment 14
Using Strengths to Maximize Opportunities and Mitigate Weaknesses 14
Strategic Recommendation 14
Implementation 15
Bibliography 16
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Executive Summary
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The following is a strategic industry analysis of the wine and spirits industry. The predominant themes discovered through research are the following: • Wine and spirit consumption continues to grow despite the global economic recession • The growth is primarily in two demographic segments, Millennials and Baby Boomers • There is an emerging trend for a healthier lifestyle which could lead to tremendous growth is currently in small segments such as organic/biodynamic wines
Three industry leaders were investigated to determine internal strengths, weaknesses, and overall success factors that are required to operate successfully in the industry.
• Diageo - is the world leader is alcoholic beverage production with top brands such as Crown Royal, Jose Cuervo, Smirnoff, Guinness, and others.
• Brown-Forman - is the current consumption leader for the United States, it’s portfolio of brands boasts classics such as Jack Daniels.
Wine & Spirits
Industry Analysis
Team 6
SMBA 04 • Strategic Marketing MKT 606 • November 22, 2008
Hayden Olson, Natanyi Carter, Maurice Campbell, Natasha Mohl, Tameika Dozier, Majed Soboh, Allan Topher
[pic]
Table of Contents
Executive Summary 3
External & Internal Environment 4
External Environment 4
Technological Trends 4
Consumer Trends 5
Governmental Trends 5
Economic Trends 6
Opportunities 6
Threats 7
Internal Environment 7
Strengths 7
Weaknesses 7
Market/Submarket Analysis 8
Submarkets 8
Market Trends 8
Distribution Channels 9
Customer Analysis 10
Wine 10
Spirits 10
Competitor Analysis 11
Direct & Indirect Competition 11
Top Three Competitors 11
Diageo 11
Brown-Forman 12
Constellation Brands 13
Comprehensive Strategic Assessment 14
Using Strengths to Maximize Opportunities and Mitigate Weaknesses 14
Strategic Recommendation 14
Implementation 15
Bibliography 16
[pic]
Executive Summary
[pic]
The following is a strategic industry analysis of the wine and spirits industry. The predominant themes discovered through research are the following: • Wine and spirit consumption continues to grow despite the global economic recession • The growth is primarily in two demographic segments, Millennials and Baby Boomers • There is an emerging trend for a healthier lifestyle which could lead to tremendous growth is currently in small segments such as organic/biodynamic wines
Three industry leaders were investigated to determine internal strengths, weaknesses, and overall success factors that are required to operate successfully in the industry.
• Diageo - is the world leader is alcoholic beverage production with top brands such as Crown Royal, Jose Cuervo, Smirnoff, Guinness, and others.
• Brown-Forman - is the current consumption leader for the United States, it’s portfolio of brands boasts classics such as Jack Daniels.
Bibliography: [pic] http://resources.ketchum.com/web/boomers.pdf