WINE MARKETING REPORT

TIO PEPE(2.9)

SHARAN Atul, SHARMA Nishant, SHIN Sunwoo, SHUFIANI Maulida, SONG Chae eun

KEDGE BUSINESS SCHOOL Bordeaux

Contents
Introduction .....................................................................................................................................................................................2

History ............................................................................................................................................................................................2

Clients Targeted .............................................................................................................................................................................3

Wine offer ....................................................................................................................................................................................3

Price ................................................................................................................................................................................................3

Communication and Public Relation Activities ...............................................................................................................3

E-business activity ........................................................................................................................................................................4

Reasons of success .......................................................................................................................................................................4

Main competitors ..........................................................................................................................................................................5

 Hidalgo.................................................................................................................................................................................5

 Domecq ................................................................................................................................................................................5

 Alvear ...................................................................................................................................................................................5

 Valdespino ...........................................................................................................................................................................5

Advice and Tips for marketing manager. ..........................................................................................................................7

Conclusion ........................................................................................................................................................................................8

References ..................................................................................................................................................................................... 10

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Introduction

Brand of our team is tio pepe, which is brand of sherry, it is best known for
its dry sherry made from the palomino grape. The Tio Pepe brand is owned by
the González Byass Sherry house.

Tio Pepe Sherry: It is fortified white wine (fortified by brandy) and has 16~18%
alcohol.

History

In 1835, in Jerez, Spain, Manuel Maria Gonzalez set up the first manifestation of
the company that was ultimately to become Gonzalez Byass. He is mentored in
this by his uncle, Jose Angel de la Pena who is already a renowned authority on
sherry and its production. It was natural that in 1837, Manuel should give the
first try, so his uncle helped him to elevate his passion to create a delicate sherry
to his own, personal taste. Later, Manuel sent a couple of barrels of his uncle’s
new wine over to his London agent, Robert Byass. The beautifully dry taste of
Jose Angel’s wine proved a great success and in 1849, Manuel named what is
now the world’s bestselling Fino after its creator, (tio being Spanish for uncle) –
TIO PEPE.

Tio pepe’s varietals to make wine is palomino grape, which is white grape
widely grown in Spain and South Africa, and best known for its use in the
manufacture of sherry. In Spain, the grape is spilt in sub-varieties Palomino Fino,
Basto and de Jarez. Palomino Fino is the most important grape in manufacturing
sherry, the wine formed by fermentation of the grape is low in acidity and sugar,
which is suitable for sherry.

Since the Tio Pepe soleras were established in 1844, it has been produced in the
Andalucian town of Jerez which situated in the south west of Spain. The
vineyards around Jerez are blessed with a specific type of soil, ‘Albariza Clay’.
It has a great ability to retain moisture. The summer sun bakes the top layer of
the soil into a hard dry, white crust, locking moisture beneath, and reflecting a
lot of the suns energy. This allows the hardy vines in Jerez to survive the long,
dry summers, and produce perfect Palomino grapes that we can turn into Tio
Pepe

As we can see in its official website, Tio Pepe has various range of Sherry.

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Clients Targeted

Tio Pepe has differentiated itself as a very dry white wine to be served with food
in doing so aiming to differentiate itself from poor quality sherries and their
downmarket reputation.

Owned by gonzalez byass sherry house in Madrid Spain. It's a Spanish wine.
Tio Pepe is perfect with canapas, tapas , Asian food , sea food and all fish based
dishes.

So, Considering the price (10 euros per bottle, availability of half bottle) at
which it is available , the type of food it goes with the clients is a sea food lover
who can have wine daily with food with family.

Wine offer

The wine has a simple offer of enjoying dinner with family. Being dry it's
exquisite to the palat. If we look at tiopepe.co.uk, the website mentions the
different recipes that goes with the tio Pepe and talks about 'Good food tastes
better with Tio Pepe'. Further, the website also mentions the type of cocktails
viz. Bloodhound, martini, tiojito that can be made with Tio Pepe. The wine
offers to position itself as a fun, open to experimentation and easy to drink with
family over food or at parties.

Price

 10 euros for full bottle

 Half bottle also available at half price

Communication and Public Relation Activities

For the communications activities, Tio Pepe uses their official website and social
medias to support their communication activities. Here are the social media they
are using:

 @TioPepeFino
 Tio Pepe Wine
 tiopepefino
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  Tio Pepe

E-business activity: Tio Pepe has no their own website for selling its
products. But they have some connections with online shops or stores. For
example:

 www.whisky.fr
 www.obrienswine.ie
 www.mysupermarket.co.uk

Reasons of success

Tio Pepe was recently positioned in the 'top 10 admired wine brands in the
world’ by magazine Drinks International. Tio pepe has been a renowned name in
the Fino wine category for a long time.

- Industry's success: The main reason behind success of the brand is its
clear positioning as a dry white wine to be served with dinner. Initially ,
sherry wines were not considered to be good quality wines. They were
considered to be drinks of old ladies and the younger population hardly
ever looked for them. With Tio pepe associating itself to be served with
food only, the thinking of younger audience has changed over time.
According to the chief wine maker of Tio pepe Antonio Flores, nowadays
people are realizing the variety sherry wines offer and this has made them
willing to experiment outside the usual domain of just red or white wines.

- Company’s success: The good quality of Tio pepe's wines is a major

reason in making it a leader in sherry wine industry. Their thorough
process of picking up good quality grapes, careful aging process and
regular tasting of each barrel among other factors has helped them in
maintaining a strong brand name for their wines.

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 Main competitors

Worldwide:

Tio Pepe is one of the biggest sherry brands worldwide, One of the most popul
ar fino Sherries around the world. It’s a very dry Sherry with crystal clear
coloring, great for sipping alone or drinking with a meal. Main competitors
of Tio Pepe for the world wide Sherry products are:

 Hidalgo

An old Spanish Sherry brand, Emilio Hidalgo is a brand which makes very
refined drinks for those with discerning palates around the world. Their fam
ous flagship Sherry is called La Gitana Manzanilla. This has become the sta
ndard to which many other manzanilla type Sherries are measured, so if you
want to know what they should taste like this is a good brand to test first.

 Domecq

Producing a wide range of Sherries, Domecq is another older winemaking c

ompany from Spain. The original family to start this company came from Fr
ance, bringing the art of French winemaking to their new business in the Jer
ez region of Spain. Make sure to get a bottle of their well-known La Ina fin
o for a very elegant taste of Sherry or if you’re feeling sentimental pick up
a bottle of Sibarita, one of the oldest Sherries still made in the Jerez region.

 Alvear

Another of the old brands, Alvear produces a line of Sherries that is known
around Europe and the US. They actually make both Montillas and Sherries
, which although they are similar are made with small differences. Try out a
bottle of the Alvear Pedro Ximenez Solera 1927. It’s a very sweet red Sher
ry that makes a wonderful dessert wine or aperitif when you’re having guest
s or if you just want to treat yourself.

 Valdespino

Valdespino is one of the oldest companies that produce Sherry, as it has

been around for nearly 700 years in the same part of Spain. With this sort
of experience comes a level of excellence that it’s hard to find elsewhere.
Most of the Sherries made by Valdespino are high end and rightfully so, as

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many of them are produced from a single vineyard (rare in the current wine
market) and aged in wooden barrels (a technique which has gone out of styl
e for most Sherries). They make all types of Sherries from creamy to extra
dry. The best known bottles are the sweet El Candado PX cream Sherry a
nd the dry Fino Inocente.

Local : Here are some wine brands that we found in supermarket in Bordeaux
that sold in pretty good quantites. The wine types are different (not Sherries) but
they have almost the same price with Tio Pepe:

Rioja Crianza (2012) Marques de Caceres, from Spain:

Located in Cenicero, in the heart of Rioja Alta, Cáceres was founded

Enrique Forner in the late 1960s. Aided by a fresh microclimate, the
Tempranillo grapes attain their expressive best, before the wine is
aged for 12 months in oak and up to 14 months in bottle. Taste:
Cherry and blackberry aromas accompanied by Mediterranean herb
aromatics on the nose, with luscious red cherry and strawberry fruits,
cinnamon and silky tannins with a long, silky and spicy finish.

Chateau Thieuley, cuvee Francis Courselle (2012), from Bordeaux:

Started in 1950, when André Courselle bought Château Thieuley

located in the famous France Bordeaux Region and lay the found
ation of a great vineyard. Today, the acreage increased from 4 to
80 hectares spread over three properties : Château Thieuley, Clos
Sainte Anne and Château Saint Genes and took over by the third
generation of the family. Taste: the oak-ageing adds an elegant
toasty vanilla undertone to the fruity Sauvignon and the opulent
Sémillon. A perfect wine for food.

Another Competitor found shop : Domaine du tariquet

Domaine du Tari Ke (Domaine du Tariquet) produced the best white wines in
Gascon (Gascony) that the province between the Atlantic and the Pyrenees.
Originally, family of Tariquet was renowned for Armagnac. However, due to
downturn in sales of the Armagnac, they decided to cut back on production of
Armagnac. Then, they started to produced white wines using Ugni Blanc and

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Colombard. White wines that they produced achieved a great success. Due to
low labor cost and land price, they also had price competitiveness than
Bordeaux which located near the Gascon. In addition, using Ugni Blanc and
Colombard which used for producing brandy, it appeal to customer for their
fragrant flower and fruit flavors with balanced acidity. And now, 30 years later,
Domaine du tarquet offer a very highly respected range of dry and sweet white
wine. They became Europe's biggest family wine estate in just thirty years.
Known as the king of festive white wines, the property now covers 1,000
hectares (2,471 acres) in Gascon, developed from just 40 hectares (99 acres) in
1972. Each year this vast estate produces 9 million bottles of wine whose simple
goal is to bring pleasure and respect the estate's motto of “making something
good at the best price.

Advice and Tips for marketing manager.

First, we should think about positioning, positioning is an objective of a

marketing strategy. All elements of the marketing mix must be consistent with
the positioning target. Company should decide about their features, packaging,
price, promotion and physical distribution. Inconsistency would damage a
marketing program by sending wrong signals. Development of positioning

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depends on knowledge about brand’s current status in market. And thinking
consumer always is first thing for successful positioning. Brand positioning
needs to satisfy both consumers and members of distribution chain. This means
sellers should know what factors need and should communicate every members
of distribution chain constantly. There is a continuing need to follow up with
target consumers and partners through constant communication.

Reference – Successful Wine Marketing : Profits through positioning, Richard A. Gooner.

Further, Tio pepe do not have their own website for selling their products.
However, nowadays E-commerce is a growing area in direct wine sales.
According to statics, Since 2002, internet wine sales have increased by 64% and
wineries have reported that they expect to see increased revenues from this
channel in the future (Thach & Eaton, 2001) . Ignoring direct sales via internet
would be a mistake for the wine industry. Actually, there are website of other
online wine retailers , but I think that they need to have brand’s own website.
Because it is no additional commission and It brings opportunity to getting loyal
customer. In this website, they can establish the imformation page which had
more diverse and specialized contents. It wil be arouse customer’s interests in
purchasing Tio pepe’s products.

Reference - Wine marketing & Sales : Success strategies for a saturated market , Paul Wagner,
Janeen Olsen, LizThach .

Conclusion

In conclusion, as wine marketing managers we have 4 insights/recommendations:

1. Globalization

One of the reasons of Tio PePe’s success is that it aims to differentiate itself
from other poor quality sherries and their down market reputation

But, as written above, Tio Pepe still doesn’t have its own E-commercial store, in
my opinion, for broad field of its commercial area, Tio Pepe should make its
own website to sell or make itself easily available on ecommerce website.
Further, the wine can be targeted to Asian countries where spicy food is eaten.

Further, since the alcohol content is pretty high ~ 16%-17%, Tio Pepe could
create another sherry with a lower alcohol content to suit to a wide variety of
customers.
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We choose 3 take away’s suggestion to differentiate our brand. Globalization,
Identity of wine, Oenotourism and storytelling are those.

2. Identity of wine

It has been regularly said that the best way to market a wine is create an identity
for itself. To make it more appealing, its dryness can be reduced by reducing the
alcohol content. To create their own identity, they have to be particular about
their history and advertise it on their website, through their Facebook and twitter
account or by hosting wine tasting.

3. Wine tourism and Storytelling,

This strategy could have experiential effect on consumers as good storytelling

about brand can attract attention of many consumers. Also company can prepare
the contents of History, geography, geology, tasting schools, art, architecture,
music festivals, wine routes, trendy sports etc…

4. Increasing point of sales

Tio Pepe needs to make itself more visible to prospective customers and hence
should be easily available on supermarkets like E-lecrec, Carrefour, etc. For this,
Tio Pepe marketing team will have to interact with more merchandisers and
other in the value chain.

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References

[1] https://en.wikipedia.org/wiki/T%C3%ADo_Pepe
[2] https://en.wikipedia.org/wiki/Palomino_(grape)
[3] http://www.tiopepe.co.uk/location/
[4] http://www.tiopepe.co.uk/category/cocktails/
[5] http://www.tiopepe.co.uk/category/sherries/
[6] http://www.sherrynotes.com/2013/reviews/fino/tio-pepe-gonzalez-byass/
[7] Source: http://www.liquorista.com/best-sherry/

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