The Penfolds CaseGroup - 3

Established in 1844 highlighting the

medicinal properties of wine.

Production dominated mainly by economic segment.

Acquired by Southcorp in 1990. Moved from being the 5th largest wine

producer in the world to being part of the umbrella(Fosters) that would go on to become the 2nd largest producer of wine in the world

“Australia’s Most Famous Wine”

Global Wine Market The world was awash in wine Wine connoisseurs added to only 10% of the

total wine consumers in the world. The major chunk picked up wine based on the

following attributes:

Price

Name

Brand

Packaging

Segment Price Per Bottle

% of Volume

% of Dollar Sales

Economy <$7.00 66 37

Mainstream $7.00 - $10.99 17 23

Premium $11 - $20 15 32

Ultra-Premium

>$20 2 8

Global Wine Market

Challenges for Penfolds

Pricing Poor Financial Returns In the economy segment the Perception

among retailers Varied from Good Solid Wines to Atrocious wine

New Sources Of Business Increase sale among existing Consumers

Target the non users – mainly US

is known to have

started off selling port and

sherry to patients.

1 in 4 die due to diseases in the US

every year

715000 Americans have a attack

every year

Coronary diseases alone cost the

United Stated $108.9 billion every year.

Drink Wine to live 99

Repositioning the economy segment by the way of instrumental conditioning

Current Users(Used Penfolds economy wine in Past 3 Mths)

Lapsed Users(Used earlier but not in Past 3 mths)

Potential New Users(Never used Penfolds economy wine the past)

Current Consumption

Occasional consumption.

Occasional consumption but found cheaper/better alternatives.

Occasional consumption.

New Consumption

Health conscious consumers. Every day consumption.

Health conscious consumers. Every day consumption.

Health conscious consumers. Every day consumption.

Consumer and Consumption Matrix for Penfolds Health wine

Strengthening the 4 P’s

Alter the Packaging Increase the price up to $9 Vicarious conditioning to help growth Change the name trends

Thank YouAnshika | Karthik | Lohit | Shruti