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