9 And marketing experts concur, saying: "Simply giving customers what they want isn't enough any more. To gain an edge, companies must help customers learn what they want"(Kotler, 2008). According to Philip Kotler, great companies distinguish themselves by offering new products or services that people will want and are "market driving", raising their clients’ lifestyle with the objective of creating customer satisfaction. The concept of marketing changes the focus from the seller to the buyer (Kotler, 2008). Consumers are stakeholders in the wine business. Stakeholders are those individuals or groups who depend on an organisation to fulfil their own goals and on whom, in turn, the organisation depends (Johnson et al., 2008).
1.2.5 Lose the mystery (or fear), enhance the magic The mystery of wine keeps people at arm's length (Hegarty, 2010). “Fear is something we spend too much time ignoring” (Harper, 2010b). The wine industry should identify the need to further dispel the notion that wine is a difficult and confusing beverage. This will encourage development of consumer self-‐efficacy about their knowledge acquisition.
1.2.6 Becoming quality loyal prevents the commodification of wine The industry understands that in a pull marketing scenario, you want your stakeholders to become quality loyal instead of price loyal. If your customers become quality loyal they might drink better, not more, and see value in purchasing fewer wines at a higher price point. For example, in Appendix A, a graph illustrates that if you are willing to pay three times more for a bottle, you will get four times more value for the wine the bottle actually contains (Skinner, 2008). What the industry fears most is the commodification of the market since a commodity market has few margin opportunities. For example, in the UK, the average price for a 0.750l. bottle of wine in 2011 is 4.47£, in the Netherlands 2.83 €, in Germany, less than 2€ (Huinck &Co, 2010).
1.2.7 EDLP's are promoting aggressively through price-‐cutting. Price wars and selling below cost are detrimental to the trade. In some markets, such as the UK, producers and wholesalers sometimes sell below cost (Barnes, 2010a) to get the attention of the large FMCG 6, EDLP7 retailers that are the ever more demanding channel captains. Seducing EDLP's requires important below the line marketing budgets and promotional 6
FMCG: Fast Moving Consumer Good
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EDLP: Every Day Low Prices
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