DFJ Vinhos: Wines in China, A promising but difficult market

Different wines for different consumers
Positioning wines for the right consumers is always a major challenge. Presently, DFJ Vinhos’
portfolio consists of 96 wines and 30 brands, which are divided into 7 market segments with
distinct consumer objectives.
The company´s most usual consumer is in the medium-end segment, investing in wines with a
good price/quality ratio. The first four ranges of wine [see table below], although having
distinct objectives, ended up being for the same consumer in terms of purchasing power, not
varying significantly in the price range. However, José Neiva Correia was concerned in
submitting wines for various consumer targets, for instance with “Pink Elephant” and
“Patamar”, both in the same segment. The first wine is for spicy food, mainly for the English
market, and the second wine is for a more varied range of occasions and goes well with
Portuguese food.
Naturally to a lesser extent, both in number of wines as in quantity produced, José Neiva
Correia presented ranges for the finest segments or the most special occasions. In terms of
exclusivity, the “Icon” was highly emphasized, which was produced to celebrate his 30 years as
a winemaker.
The “ex works” price table 8 of DFJ Vinhos varied depending on the business itself and the
strategy that José Neiva Correia had for each Market. For instance, when working with big
retailers the price was established by packages, sacrificing margins and betting on turnover of
orders.
Currently, the “Basic” and “Standard” segment represent approximately 85% of the company´s
market.
Euro ex-works prices by segment
Market
Segment
Brands Nº of wines Objective
Average
price
Basic
Bigode, Pomar, Coreto ”Joker”,
Portada
12
The perfect day by
day
2,05€
Standard
Segada, Vega, Monte Alentejano,
Paxis, Fonte do Beco, Bela Fonte,
Pedras do Monte, Alta Corte,
Cartada, Vale de Rosas
26
High quality day by
day
2,6€
8 Table “ex works”: Wine prices “at the company´s door”
10