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

the retailers´ portfolio)
Higher turnover
Lower chances of investing in
promotion
Poor image without awards
Less mature consumer
2 st Scenario – upper-end segment
Advantages
Better possibility of building a
differentiated brand image
Better communication
Stronger “anchors” to form
partnerships (better wines, better
awards, more time in China)
Better fit with cultural differences
More mature consumer
Growing luxury market
Disadvantages
Possibly, more intermediates
Need of a strong personal network
Lack of brand image
Lack of “brand Portugal” image
French wines´ image
Need to focus in fewer regions
Intensive and costly campaign
The objective of this question is to involve the class in a discussion about the different
positioning strategies. Students should employ the STP marketing model, going along with the
market’s Segmentation, Targeting and Positioning for both scenarios. The Student should also
be able to relate the positioning scenarios with the distribution channels reached. Finally, this
question doesn’t intend to have a right or wrong answer but to make the student underline
the most important factors according to the positioning strategy chosen.
For any possible positioning strategy it is vital to consider both the company’s competitive
advantages already explored in the question 2 and the advantages and disadvantages of each
scenario mentioned above. Additionally, by having clear market segments, the student is in a
better position to understand who the final target is and what would be the value proposed by
the company to offer to its consumers. Moreover, the value proposed should make the bridge
between what the company is able to offer, considering its competitive advantages, and what
the consumer wants. Also, taking into consideration what is already offered by its competitors,
avoiding offering the same.
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