3. Environmental Scan
Q1. Select and state five factor or trend?
DEMOGRAPHIC FACTOR –refers to population statistic, age, gender, standard of living,
birth rate, family size.
The wine industry experienced an increase in sale during recession period. This was
contributed by the ‘baby boomers-age 55 and above”.
These consumer base was the ‘repeat purchase and loyal customers’ who spend thrift
along with quality life styles.
Young population age 30-40 are also being target as new consumer base for an increase
in sale.
The buying behaviour towards wine tend to fluctuate due to its seasonal and festive
product by nature.
Locations tend to play a vital role in reaching the targeted customer base. i.e. Jim mown
an out in the city as well another in the outskirt area of Windsor.
4. Q1. Select and state five factor or trend?
TECHNOLOGICAL FACTOR/SOCIAL –CULTURAL FACTOR
In addition, the young consumer base age 30-40 were reached in social
media-Facebook.
The baby boomers are brand conscious and brand loyal.
Introducing loyalty programs i.e. rewarding loyal customers with coupons,
points redeemable gift item such as Glass Painting and DIY with your own
bottle.
New trend setting to build strong customer relationship and brand
recognition as well get closer to customer via organizing tours and
sponsoring local wineries on social media.
Some customers are of opinion that homemade wines does not have the
same image as the local wine-a negative brand perception that need to
overcome.
5. Q1. Select and state five factor or trend?
ECONOMIC FACTOR refers GDP, Demand , Supply, inflation, Recession, Boom,
Risk, exchange rate
Recession is often perceived as threat with prices escalating, sales declining
with layoff in the industry. There will be inflation.
The wine industry experienced a reverse phenomenon with increase in sales
from a segment –senior citizens(Baby Boomers) with their limited disposable
and low income were patronising the wine outlets such as “UNWINED” and
“Brew your own wine” at Windsor with repeat purchases and Mark and Jim
capitalized on this loyal customers.
New competitors are also emerging i.e. “Just Cork-It” and posing similar
products and prices that’s split the market and drain the demand of wine.
A saturated market with identical players and marketing strategic, growth
could be at stagnant.
6. Q2. Explain why each of your chosen factors or trends is of
important to “UNWINED”
Demographic
Baby boomers have the hold on the majority of the money available to them to
spend on luxury goods during the recession, in this case: wine.
This generation tends to enjoy a finer quality of life, so therefore they will tend to
buy more to satisfy that want.
Even though these baby boomers are good business now, they won’t last forever
so as a company we need to expand on the next coming generation (aged 30-40)
to fill the space they will leave.
During the more festive holidays (Christmas, New Years Eve) sales are expected
to rise. Therefore these locations will need to maximise production and end up
selling more to reach more before those seasons.
For their target market, their location is a great place where they are able to
reach the sum population on the border of Windsor and the surrounding city.
(both for the older generation who tend to collect wine and celebrate, and the
young night-life lifestyle that attracts the younger crowd).
7. Q2. Explain why each of your chosen factors or trends is of
important to “UNWINED”
Technological Factor/ Social- Cultural Factor
It’s important for companies to know just how to communicate to their target
audience in the most efficient way with their generation. For example, those aged
30-40 were more able to be reached via the popular social media, Facebook. This
is one of the easiest way to meet with this generation.
Unlike the Baby-boomer generation, this next generation is a fair amount less
brand-loyal
By introducing a loyalty program, UNWINED plans on trying to create that loyalty
with the next generation. This is a trend that adds value to its brand while
creating a brand awareness. It reaches out to both the older and younger
generation.
However, some customers have the opinion that the homemade wines are not as
good, or will not be able to hold up against the local wines. This gives the
company a negative view that they will need to overcome.
8. Q2. Explain why each of your chosen factors or trends is of
important to “UNWINED”
Economic factors
Recession, with most companies, will lead to hard times in their businesses unless
they are careful. However, this wine company actually managed to increase its
sales through those who still wish to live a life of luxury, without paying too high
of a price. Baby-boomers rose to be UNWINED’s top customers. They created this
organization to intensify marketing strategies to push away competitors.
They had forged ahead with CRM to create a stronger bond with brand loyalty
with the baby boomers. This in itself is quite the sustainable long term strategy to
create brand recognition and to change he view on homebrewed wine, and to
instead show that homebrewed wines are actually much better than the more
fashionable brands.
9. Competitive Analysis
Q3.i. Identify two competitive
The two biggest competitors for “UNWINED” would be “Just-Cork-it”
and other local wineries in the area. Just-Cork-it is a huge player
against “UNWINED” because they have the same thing going as
“UNWINED”. Which is a bottle your own wine company. As with its
rebranding and growth in the area it poses a major threat towards
“UNWINED”. With other local wineries they are a big threat as well
because of the location it provides convenience for the locals in the
area.
10. Competitive Analysis
Q3.ii. Identify two strengths?
JUST CORK-IT
Many locations (5)
throughout Windsor and
Essex County, Ontario.
Target market holds most
of the wealth in Canada.
LOCAL WINERIES
Offers variety to customers.
Consumers usually
perceive local wine to be
superior to wine they make
themselves.
STRENGTH
S
UNWINED
Strong customer loyalty.
Strategic geographical
location.
11. Q3.iii. Identify two weakness?
JUST CORK-IT
Same concept as UNWINED,
“make your own wine”.
Only focused on the older
generation.
LOCAL WINERIES
No customization option.
Limited distribution to
locations other than the
Windsor area.
WEAKNESS
UNWINED
Business slows down
during the months of
Jan, and from July-
September.
- Little social media
presence/impact
Competitor’s
Weakness’.
12. SWOT Analysis
StrengthsOpportunities
WeaknessesThreats
Loyal Customer Base
Experienced Owners
2 Locations in the Windsor and
Lakeshore areas
Partnerships with local wineries
Operates in a Niche market
No presence outside of the
Windsor and Lakeshore areas
Lack of product diversity
Main product lacks consumer
confidence
Consumers tastes are shifting towards
healthy alternatives
Nova Scotia now allowing imports of
wine from other provinces
Toronto wine industry is increasing
Growing interest in the craft wine
industry by younger demographics
Slow sales during the Summer
Economy is starting to stabilize
“Just Cork It” gaining market share
Bottle your own wine market
becoming saturated
