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

First, one should stress that, as the company is extremely vertical integrated, it has the ability
to enlarge its capacity and also to better tailor its wines to each market. In fact, it does not
depend on the vineyards output, thus, it is able to better supply bigger markets. This enables
the company to be focus on its core business: wine knowledge and a well-structured market
analysis.
Secondly, we should note the company’s strategy to enter the emergent Chinese market. This
market has many players, with different characteristics and approaches to the market hence,
market segmentation, targets and positioning are a clear dilemma in order to create clear
advantages within the competitive wine market of China. Moreover, to better sustain the
company´s positioning strategy it is central to consider the consumers’ behavior characteristics
and which are the touching points to better reach them, from the communication itself to the
distribution channels.
2. Relevant Theory
The following marketing frameworks and tools were analyzed throughout the teaching note to
better illustrate the case. From the Industry Analysis, where the Macro and Microenvironment
are scrutinized, to the marketing and expansion strategy itself.
Marketing 5C´s (customer needs, company skills, competition, collaborators, and
context);
Market Segmentation ( Geographic, Demographic, Psychographic, Behavioral, Price);
SWOT Analysis ( strengths, weaknesses, opportunities, and threats);
PEST ( Political, Economical, Social, and Technological): Industry analysis, macro
environment;
Porter´s 5 Forces Analysis ( Competitive rivalry within the industry, Threat of new
entrants, Bargaining power of suppliers, Bargaining power of buyers, Threat of
substitutes): Industry attractiveness;
Product life cycle curve;
Consumer Behavior: questions set by Rudyard Kipling: What, Where, When, How, and
Who;
Factors Influencing the consumer behavior: cultural, social, personal, and
psychological;
Maslow Motivation Theory;
STP Marketing Model: segmentation, targeting, and positioning.
31