Chateau des Vaults Emerging into the Japanese Market Presented by: Natalie DeNike Ally Hemenway Katie Adkins Caitlin Carroll
Chateau des Vaults Emerging into the Japanese
Market
Presented by:
Natalie DeNike
Ally Hemenway
Katie AdkinsCaitlin Carroll
Objective
The following market analysis and recommendations aim to inform the client how to successfully enter the Japanese
wine market.
Objective
Chateau des Vaults• Client: Madame du
Pontbriand, Chateau des Vaults
• Location: Loire Valley, Savennières region
• Product: (list 3 white wine titles)
Chateau des Vaults
Overview
• Demographics
• Japanese Culture
• Market Analysis
• Strategy
• Future Expansion
Overview
Demographics
• Population: 126, 804, 433
• Major Cities: Tokyo, Hokkaido, Kobe, Akita, Sapporo, Sendai
• Urban Population: 66% of total population
Demographics
DemographicsDemographics
• Drinking Age: 20 years
• 15% tax rate
• Liquor Law Tax
Tax & Regulation
Trade
• Japan is the EU’s 2nd most important trade partner in Asia
• Japan has the 3rd largest market in the world
• 12th out of 181 countries in doing business
Trade
Importation
• $499.7 billion imports per year
• France carries the strongest image for wine in Japan
• Market share continues to decline due primarily to competition from new world wines
Imports
ImportationImports
History of Wine in Japan
• In the 1950’s and 1960’s wine was seen as an exotic drink
• Increase in consumption in 1998, 2004 and 2007
• The 1998 boom followed reports of red wine increasing heart health
History of Wine in Japan
Japanese Culture
• Traditions and culture very important
• Saving face is crucial
• Non-verbal communication
• Hierarchy
Japanese Culture
Business Practices• Business Relationships• Gender Roles• Key words for wine industry• Time• Hofstede’s Dimensions
Business Practices
Japanese Consumer• Interest in health and organic products• Tend to agree with opinions of others• Interest in new products and private label foods• Respond to impulse offers
– Limited editions– One-off deals
Japanese Consumer
Target Market
• Typically between the ages of 30 - 39
• Women (40% of women drink wine at least once a month)
• Urban population
• Medium income
Target Market
Recessionary Spending Behavior
• The “New” Japanese consumer• Flock to discount and online retailers• Majority of people eat at home
Recessionary Spending Behavior
Japanese ConsumerJapanese Consumer
Consumption
• Wine Consumption
• Wine Preferences– Red Wine– Sparkling Wine– White Wine
Consumption
Competition
• Alcoholic Beverages in Japan
• 60% of imported bottles come from France
• Competition from “New World” wines
Competition
Market Entry
• Japan Wine Challenge• BioFach Exhibit• Restaurant based
promotions
Market Entry Strategy
Distribution Channels
• Multiply sales channels– Private brand store, Internet sales,
restaurants
• 60% of wine purchased through retailers• 89% of Japanese consumers shop online
– Compared to 63% in the U.S. and 56% in France
Distribution Channels
Pricing
• Gradual shift from inexpensive wines to mid-range wines – ¥1,000 - ¥1,500; $11.23- $16.85; € 9.21 -
€13.81 – CDV price point: €18 - €22, ¥1,953 - ¥2,170
Pricing
Product Packaging
• Japanese consumers prefer a humble design in products
• Standard bottle is 750ml
• Organic labeling
• Japanese translation
Product Packaging
Organic Wine
• Japanese Organic Standards
• BioFach Exhibit
• Currently consumer demand exceeds domestic supply for organic products in Japan.
Organic Wine
Branding
• Increase awareness of Loire Valley wines
• Market as a region– Loire Valley– Savennières wines
• Wine tourism
Branding
Wine Tourism
• In 2010 approximately 12,500,000 Japanese tourists traveled abroad– 8.5% increase from 2009
• An average 1,603,000 Japanese tourists visit France each year
Wine Tourism
Wine TourismWine Tourism
Wine TourismWine Tourism
Website
• Online Ordering– Increased interest in online retail– 89% of Japanese consumers shop online
(Compared to 63% in the U.S. and 56% in France)
• Japanese/English/French• Sales Intern
Website
Navigating the Market
• Distributor
• International lawyer
• Regional translator
Navigating the Market
Future & Expansion
• Once the product is integrated into the Japanese market, there is a higher opportunity to reach more Southeast Asian markets
Future & Expansion
SWOT Analysis
Strengths
Mature wine market
Lack of domestic wines
Weaknesses
Language and culture barrier
Distance
Opportunities
Stronger image
Expanding market
Threats
Competition
Taxes
Economic Downturn
Other alcohols
Market SWOT Analysis
The Marketing Mix
• Product: Chateau des Vaults
• Price: €18 - €22• Place: Urban areas
– Tokyo, Yokohama, Nawasaki, Osaka, Kobe, Kyoto
• Promotion: online, restaurants
The Marketing Mix
Additional Recommendations
• Cultivation of Tokyo market
• Strengthen Loire Valley brand
Additional Recommendations