• Production of red and white wines that fit with the tastes of German people.
• Brand awareness in Switzerland.
• Medal/Prize winning wines (about 20 in the Swiss assortment and 8 in the German one).
• Technical know-how and new infrastructure (production & stock).
• Skilled and experienced employee on the German market.
• Close relationship with promotion organisms (for ex. SWEA).
• Deep knowledge of the OFAG15 export’s operations (how to acquire sponsorship).
• Take good care of its employees/importers on foreign markets (regular visits, attentive listening).
• Pro-active relationships with distributors on the German market (building long-lasting relationship and increasing the level of collaboration).
• Production and commercialization of traditional and exclusive varieties (some being unique in the world).
Weaknesses:
• Lack of product/brand awareness on the German market.
• Limited available resources in Germany with only one employee.
• Lack of structure in the export strategy.
• High production costs comparatively to the rest of the world.
• Too large range of products (cannot please everybody).
A strategy to export Swiss wine to Germany: the case of Uvavins-Cave de La Côte 35 RATTAZ Matthieu
• Lack of a clear positioning.
Opportunities:
• Premiumisation trend is interesting for Swiss wines that are positioned in the highest price segment.
• Health and convenience megatrend also drive the German population towards moderate consumption. Drink less, but with a better quality. The healthy effect of red wine only exists with moderate consumption (Germany trade and invest 2014).
• Unit price of wine is expected to slightly increase. This reduces the gap between Swiss and domestic (German) prices.
• Organic wine popularity is expected to grow due to the wellness trend and also after the introduction of the new EU-organic logo (Euromonitor 2014).
• On-trade sales are expected to increase again after many years of decline due to economic downturn (CBI 2014).
• Internet is rapidly growing as a distribution channel. Even if its share is still low, this channel is interesting both for established players and newcomers (Chameeva, Zhang 2012: 5-15).
• The participation in fine food fairs offers the access to new partners that are more food than wine oriented.
• Online sales of premium wines are increasing as consumers are ready to pay more for a less common wine (not available in supermarkets) (CBI 2014).
Threats:
• Discounters and supermarket chains tend to offer more premium wines.
This affects the market of specialized shops, especially during the period of economic downturn (CBI 2014).
• Concentration of the distribution channels. Discounters are continuously gaining market shares over the other channels; Swiss wine could therefore lose market potential.
• If the offer becomes too important compared to the demand (for example on premium wine market), the competition is more intense therefore puts more pressure on price. Swiss wines cannot count on the price factor.
The SWOT analysis shows that there are spaces with opportunities for Uvavins on the German market. From its size and available resources, the company is not able to pursue each of the opportunities the market is offering. However, by changing some of the actual practices and focusing on others, it is possible for Uvavins to increase its sales. Uvavins has been present on the German market for about 5 years and has an employee on the ground since 3 years, so the company should have enough experience in order to elaborate a clearer export strategy.
First, Uvavins is not willing to invest a lot in developing its network abroad. It comprehends what exports represent out of their total revenues. So, the company will make trade-offs choices: give up some activities to pursue others more in depth. For example, the range of product the company offers is wide, so the company should focus on a smaller choice of products and remove the duplicates.
Secondly, the German market seems to go in the right direction for Uvavins and its collection of “Premium” and “Super-Premium” wines. People tend to spend more in wine and look for quality; it goes in the direction of Swiss wines attributes. Uvavins, when reducing its product range, could focus more on that segment of the market.
Finally, a special focus on a segment will require a corresponding positioning. Under point 1.5.3, the concept of positioning will be discussed and analyzed in order for Uvavins to be coherent in its strategy.
From the SWOT, the strategic options for Uvavins are the following:
• Take advantage of the premiumisation trend to sell Swiss wines that are more expensive than competitors.
• Use medal-winning wines to increase awareness and boost sales.
A strategy to export Swiss wine to Germany: the case of Uvavins-Cave de La Côte 37 RATTAZ Matthieu
• Take even greater care of employees/importers abroad, in order to increase their motivation and to develop the market with new partnerships.
• Take advantage of the increase of online sales to develop an E-shop and develop it as a new channel.
• Use tradition and limited production as an argument to match the health &
wellness trend and increase the presence in fine food fairs.
• Focus on a limited amount of distribution channels in order to counter the fact of “concentration of the distribution channels”.
• Take advantage of the increase of on-trade sales in order to find new partners that will fit the company’s positioning.