Annexes - Universidade NOVA de Lisboa › bitstream › 10362 › 17843 › 2 › Staab.Annex...big,...

Annexes

Annex 1 – Initial Interview with Andreas Fürbach, Marketing & Promotion Manager at Ardau

Weinimport ....................................................................................................................................... 1

Annex 1.1 – Research Method ...................................................................................................... 1

Annex 1.2 – Research Results ....................................................................................................... 2

Annex 2 – Additional Information Provided by Andreas Fürbach, Marketing & Promotion Manager

at Ardau Weinimport ...................................................................................................................... 10

Annex 3 – Focus Group 1: Consumer Behaviour towards Port Wine and Alcoholic Drinks in

General ........................................................................................................................................... 12

Annex 3.1 – Research Method .................................................................................................... 12

Annex 3.2 – Research Results ..................................................................................................... 13

Annex 4 – Interviews: Bartenders’ Needs and Expectations ........................................................... 16



Annex 5 – Port Wine Cocktail Recipes ........................................................................................... 19

Annex 6 – Focus Group 2 and 3: Consumers’ Receptiveness towards Different Port Wine Drinks 21



Annex 7 – Survey: Port wine in Germany ....................................................................................... 28


Annex 7.2 – Questionnaire ......................................................................................................... 30


Annex 7.3.1 – Knowledge About Port Wine ........................................................................... 37

Annex 7.3.2 – Image of Port Wine .......................................................................................... 40

Annex 7.3.3 – Receptiveness Towards the Concept of Mixing Port Wine ............................... 42

Annex 7.3.4 – Receptiveness Towards the Concept of White and Red Port Fresco ................. 44

Annex 7.3.5 – Perceived Value of Red and White Port Fresco ................................................ 46

Annex 7.3.6 – Opinion Leadership .......................................................................................... 47

Annex 7.3.7 – Drinking Behaviour .......................................................................................... 48

Annex 7.3.8 – Demographics .................................................................................................. 50

Annex 8 – Additional Information Provided by Alexander Kreft, Bar Manager at Carlos

CocktailBar ..................................................................................................................................... 51

Annex 9 – Hierarchical Partitioning of the Beverage Category from the Consumer’s Point of View

........................................................................................................................................................ 52

Annex 10 – Information Provided by Verena Niepoort, Executive Director at Niepoort ................ 53

Annex 11 – Channel Structure in the German Market .................................................................... 54

Annex 12 – SWOT Analysis ........................................................................................................... 55

Annex 13 – Brand Identity Prism .................................................................................................... 56

Annex 14 – Positioning Statement for the Growth Phase of Port Fresco......................................... 58

Annex 15 – Channel Structure for Port Fresco ................................................................................ 59

Annex 16 – Pricing Split per Channel ............................................................................................. 63

Annex 17 – Behavioural Sequence Model ...................................................................................... 64

Annex 18 – Creative Brief .............................................................................................................. 65

Annex 19 – Creative Idea ................................................................................................................ 66

Annex 20 – Marketing Tool Implementation Schedule ................................................................... 67

Annex 21 – Financial Planning ....................................................................................................... 69

1

Annex 1 – Initial Interview with Andreas Fürbach, Marketing & Promotion Manager

at Ardau Weinimport

Annex 1.1 – Research Method

Research Proposal / Interview Guide (Main Points)

Underlying

management

decision problem

What opportunities to grow exist for Niepoort in the German market?

Problem

definition /

objectives of the

research

Gain a general understanding of Niepoort’s business, its positioning in the

German market and the market environment

Approach to the

problem /

research

questions

How important is the German market for Niepoort?

Why is it an important market?

Through which distribution channels are Niepoort’s wines sold and how

do processes behind look like?

What marketing activities are currently conducted and who is responsible

for which tasks?

How does Niepoort’s product portfolio of wines and port wines look like

in Germany?

At what price points are wines and port wines sold?

What image and reputation does the brand Niepoort have among German

consumers and channel members?

What potential issues is Niepoort facing in the German market?

What reputation do Portuguese wines have in Germany?

Research design Data collection

Exploratory

Interview (phone interview)

Interviewer: Katharina Staab (KS)

Interviewee: Andreas Fürbach (AF)

Date: 11/09/15

Place: London, UK / Troisdorf, Germany

Duration: ca. 1 hour

Topics to be developed

Topics were developed according to the research questions

Limitations Interviewer with limited experience

2

Annex 1.2 – Research Results

Interview Transcript

KS: Hello Andreas. Thank you very much for your time. First of all I would like to know

whether it is fine for you if I record this interview.

AF: Hello. You are welcome. And of course you can record the interview.

KS: Thank you very much. As you know, I’m at the very beginning of working on my thesis.

Before I can ask more precise questions it would be important for me to understand the processes

and distribution channels that are involved in the sales of Niepoort wines in Germany. Beyond

that it would be interesting for me to hear about your responsibilities in that context and how you

evaluate the importance of the German market for Niepoort’s business.

AF: Yes, sure. Niepoort is a wine producer that sells its wines all around the world. Ardau

Weinimport is solely responsible for distribution, sales and promotion in Germany. In some

countries Niepoort has several collaborators and in some, such as in Germany, it has only one

partner. Our collaboration with Niepoort started, I think, in the 60s already. Niepoort wines used

to be sold by the Rheinische Weinhandelsgesellschaft which was acquired by Ardau Weinimport

in 96/97 as far as I know. Ardau is a common wine importer that sells to resellers only, so not to

end consumers. Goods that we buy are sold to specialized retailers, to the on-trade up to the high

end and star awarded gastronomy, online – for example Amazon, one of our very good

customers, the “Fabelhaft” was recently the most sold red wine on Amazon. However, the core

area is specialized retailers. We also have some industrial clients, such as BASF. The company

has an own wine cellar to supply their own gastronomy and their clients around the world.

KS: So to sum it up there are four distribution channels: Specialized retailers, which are the most

important ones, online, on-trade and industrial clients.

AF: Yes, that’s correct. The only thing we don’t do is supplying the end-consumer directly. We

understand ourselves as a service provider of the mentioned channels. That means first of all we

basically provide a just in time delivery. Except of some remote areas we deliver everywhere in

Germany within 24 hours. Furthermore, we are also responsible for promotion activities. For

example, my colleagues organize wine tastings with staff that work in specialized wine stores or

in the on-trade. Sometimes we also arrange wine tastings together with specialized wine stores

for the on-trade sector. We also – and this is part of my job as well – keep in touch with relevant

media, for example with sommeliers. We send them samples and we do so as well for Niepoort

wines. That way we achieve that products are presented in relevant media. Moreover, we take

care of sample requests for official wine tastings. If someone asks for Niepoort wines in order to

include them in certain tastings it’s us who send the products there. That way, we cover the back

of Verena and Dirk Niepoort on one hand. On the other hand it is obviously also cheaper to send

wines within Germany instead of sending them from Portugal. On top of that, we also know the

collaborators in Germany better than Dirk and Verena do.

KS: So that means all your promotion activities are focused on business clients, not on the end

consumer?

3

AF: No, usually we don’t approach the end consumer directly. However, we sometimes

collaborate with big retailers - most of the time online retailers – to initiate campaigns for the end

consumer. Speaking about strong online retailers such as Vicampo or wine in black, these are

clients taken care of by our key account team. If they approach us and say, for example, that they

would like to set up a special promotion including Niepoort wines, such as presenting Niepoort as

“Winzer des Monats” (wine maker of the month) on their website, they usually ask for cost

sharing, which is something we then coordinate with Dirk and Verena. Common promotional

online activities could also include promoting Niepoort in newsletters or on the front page. We

are the first point of contact for all of these things. Moreover, we are also frequently involved in

big, high profile events such as the Veritable, which recently took place in Plalatinate. You might

have heard of it. It’s a big wine tasting for the on-trade. Yet again we had a booth for Niepoort.

This time Dirk Niepoort attended in person. We are going to host two in-house exhibitions in

October in Munich and Frankfurt, the so called “Ardau Wein Shows” and just invited 7.5

thousand clients for those events. Verena will be there in person to present Niepoort’s portfolio.

KS: Hearing that you are engaging specialized retailers to a high extent, I assume Niepoort wines

are not in the least available in super- or hypermarkets. Is that correct?

Yes, that’s correct. You won’t find Niepoort wines in supermarkets. At least not initiated by us.

You have to consider that the German market is different from the Portuguese market for

example – or the French or English market. We supply specialist retailers only. However, this

also includes department stores such as Karstadt, Kaufhof or Manufactum. In the meantime we

also have clients that own private Rewe or Edeka stores. These owner managed stores have the

opportunity to extend the usual product range by, for example, an own wine selection. Since

these stores offer more special products than common supermarkets or discounters in general, we

don’t consider this to be an issue. Sometimes these supermarket owners are even more dedicated

than some specialized retailers. They make sure their staff are well trained. Which is not always

the case for small specialized retailers where sometimes only two to three people work. We

realized that these clients and also clients that work at department stores are often professional

sommeliers or took the WSET exam.

KS: So it is important for you that Niepoort wines are only available in selected, more

specialized channels?

AF: Yes, it is. That is different in other European countries. You might find Niepoort wines in

Tesco in the UK for example. Most of the countries have a different distribution structure for

wines than Germany does. Specialized wine stores are much rarer and hence, normal

supermarkets often stock also more sophisticated wines. German discounters indeed try to change

this. Just recently Lidl bought Bordeaux wines for several millions and they hired a master of

wine who is responsible for their wine selections. Discounters and supermarkets make huge

efforts to take away market share from specialized retailers. So obviously we receive requests for

Niepoort wines or also for other products on a regular basis. But at the moment we respond point-

blank with “no” to such requests. We discussed this topic with Dirk Niepoort as well just a few

weeks ago. The question was to what extent Dirk could imagine to – one day - sell the wine

“Fabelhaft” in the segment of premium supermarkets, given the fact that this wine is already

widely spread in Germany. But these are only ideas for the future.

4

KS: So this is not a positioning that you’re aiming for at the moment?

AF: No, definitely not. Niepoort wines are too special for this segment and also simply too

expensive. If I think of several Niepoort wines, they are definitely not wines for every day but

rather special and sophisticated wines. Wines for people who are very involved with wine and

really want to dispute with what they buy and drink. They obviously search for wines in

specialized wine stores, not in supermarkets.

KS: So which ones are the most important specialized wine stores for Niepoort in Germany?

AF: That is hard to tell, there are more than 1300.

KS: These are all independent wine stores? No chains?

AF: Yes, they are all independent, no chains. In Germany we have a high number of independent

wine stores as well as chains such as Jaque’s Weindepot, Barrique and so on. These chains

indeed have a big interest in buying Niepoort’s wines. Especially “Fabelhaft” is such a popular

wine in Germany, we sell around 300.000 bottles of it per year. This is certainly a wine these

stores would like to include in their portfolio.

KS: That means, even if it is a specialized wine shop, as long as it is not independent you

wouldn’t sell Niepoort wines to such retailers?

AF: No, usually not. Because this would make the independent retailers protest. This is also an

issue regarding online-retailers. Ardau has always collaborated with independent specialist wine

shops, so this is something we want to continue. However, the market is changing and in the end

we have to sell the wines that we buy from the producers. It’s important to find the right balance

here.

KS: Now that I have a better understanding of the position of Niepoort wines in the German

market I am a bit surprised. I assume with a sales volume of 300.000 bottles a year “Fabelhaft” is

the most sold Niepoort wine in Germany, right? At the same time, as far as I know, it is also the

cheapest one. How does this match the strategy of selling Niepoort as an exclusive brand?

AF: That’s a reasonable question. This was a conscious choice. “Fabelhaft” is meant to be a wine

for the new ones in the category. This is especially important for a Portuguese producer. Portugal

is not as famous as France, Italy or Spain for being a wine growing country. Offering a wine in a

“lower” price segment is crucial to introduce the wine brand and Portugal as a wine growing

country to consumers who are not familiar with it. Portugal has a good reputation as a wine

growing country but Portuguese wines are still in need of explanation. We asked Dirk

specifically for a wine for around 10 Euros for that reason.

KS: It sounds like Niepoort aims for positioning its wines as high-end products but then the most

sold wine is the cheapest of the portfolio. Is it possible that this is an issue Niepoort is facing?

AF: No, there is no issue. That is a misunderstanding. If you look at Niepoort’s sales in Germany,

they are definitely positive throughout the portfolio. If you look at prices of wines such as Batuta

or Charme, this is not surprising. These wines can easily cost around 70 Euros. So obviously you

cannot compare sales volumes of such high end wines with the ones of a 10 Euro wine. That is

5

the problem. We have a big share of port wines within Niepoort sales because their port wines are

just very good and are getting even better. But we have invested a lot to get there in the past years

and we can see it paying off today. Niepoort just has a lot of high end wines in its portfolio. This

is exactly why we asked Dirk for a wine like “Fabelhaft”, with an entry level price to make

people curious. Those who like the wine – I mean, “Fabelhaft” is still a typical Douro wine –

might then get to the point where they are willing to buy a Redoma or for festive occasions even

a Batuta or Charme. This is the idea behind it. Also to introduce these wines and the wine

growing regions to the upcoming generation of wine drinkers. The Portuguese regions are not as

popular as Bordeaux or Italy. If you think of wines from Bordeaux, you could almost say people

are used to spending high prices for a bottle from that region. Portugal is far from that. You can

say that it applies to all big brand names in the wine business, that you always need wines within

an entry price level. Otherwise the inhibition level is just too high.

KS: Regarding the fact that my goal is to set up a marketing plan for Niepoort which takes

market conditions and issues into account, would you say that one problem that Niepoort is

facing is that consumers are not aware of Portugal as a wine growing country, especially not as a

country that grows excellent high end wines?

AF: Yes, you definitely have a point there. And Portugal invested more into changing this in the

past. However, nowadays they are focusing intensively on their core market, which are the US

and some other countries. There used to be a wide range of communication materials to promote

Portugal as a wine growing country as well as well organized trips to Portugal for professionals

of the industry to give stakeholders a better understanding about the country’s unique resources.

Unfortunately, due to mainly economic reasons this is not the case anymore and Portuguese wine

producers nowadays do not only have to promote their wines but also the country of origin.

Another issue is for sure the German consumer. If you think about what German consumers pay

for a bottle of wine on average – that is far below 10 Euros. This is strongly driven by the

dominating discounters in Germany. So already “Fabelhaft” is far from what a “normal”

consumer is willing to pay, not to mention other Niepoort wines. You can say that – apart from

consumer who are really wealthy – most consumer struggle with buying wines that are more

expensive than 12 – 13 Euros. And I have to admit that you indeed can get really good wines for

like 6 Euros in Germany. Those are wines for every day, easy to drink, tasty. This is what a lot of

consumers in Germany are looking for. Price is just a very important choice cue in this country.

Not only for wines but for pretty much everything around food and drinks.

KS: With all the experience you gained, where do you see opportunities for Niepoort to grow in

Germany? Where do you think is it worth to invest? What areas are most crucial for Niepoort? Is

it the distribution channels or specific brands you think of or maybe marketing communications

for the end consumer?

AF: Well, I think sales and marketing communications for Niepoort wines in Germany is already

quite good. The fact alone that Dirk has traveled a lot in Germany to present his wines and that

both, Dirk and Verena speak German is very positive. They have supported us a lot and are very

engaged. Niepoorts are popular in the wine business and their name stands for high quality.

Where we see a clear opportunity for Niepoort wines that we would also like to investigate

further in the future is in the on-trade. Simply because consumers are much more open and ready

to take risk when choosing a wine than they are when buying wine in specialized stores. Wine

6

bars are also a particularly interesting concept in this regard. There, people can try wines by the

glass. This is how consumers are increasingly introduced to high quality wines. But we can also

see interesting developments in the online wine trade. If you look at Amazon for example. They

also start focusing more on high quality wines. Many online retailers have fine wine sections on

their website where they present wines from producers like Niepoort or Torres. However, these

are meant for consumers who actively search for such high end wines. As opposed to this, selling

wines through the on-trade provides the opportunity to proactively offer a wine such as

“Fabelhaft” to consumers who haven’t been aware of Niepoort or the potential of Portuguese

wines.

KS: However, selling through the on-trade does not provide much room for explanations. So for

example, it is hard to put across how interesting and sophisticated Portuguese wines can be in a

usual on-trade situation. Thinking about my own behavior in the on-trade: If there’s no German

wine I tend to choose an Italian or French wine, if possible from a varietal that I know, because I

know that it’s likely that I’m going to like them. So how does the on-trade as distribution channel

fit the less accessible Niepoort wines?

AF: Yes, that is correct. Especially because in Germany we only have a very limited Portuguese

restaurant scene. There are some good ones in Cologne and Düsseldorf, but for sure not as many

as you would find in many other countries. But you have to think of very fancy restaurants such

as Tantris in Munich or Schloss Elmau. In these, Niepoort wines are an integral part of the menu.

Niepoort is known for being one of the best wine producers around the world. For people who are

well versed in the subject of wine the country of origin plays only a minor role in this respect.

Moreover, we should also not forget the customers who approach a restaurant’s sommelier and

say that they want to try something new. And then it is important that the sommelier has Portugal

as a wine growing country in the relevant set and is generally open towards such less common

wines. Sommeliers in general feature prominently in promoting Portuguese wines. If I think of

Hendrik Thoma who promoted the “Fabelhaft” in a popular German TV cooking show a few

years ago – he advocated for Portugal as a wine growing country a lot. There’s certainly an

interest for Portuguese wines, but obviously we also need to continuously keep it alive. It is a

challenge indeed! Portugal is not the only country that produces amazing wines and Dirk

Niepoort is not the only good wine producer in Portugal.

KS: Would you say it is more important to advertise the brand Niepoort or to raise awareness of

and increase knowledge about Portugal as a wine country?

AF: I think both are equally important. And I think there’s a great potential since Portugal has

very authentic wines and owns a wide range of varietals. Portugal as wine growing country is

everything but boring and it is an appealing country in general. Personalities such as Dirk

Niepoort are making a big effort in putting that across. That is important because – as I

mentioned before – Portugal does not have the resources at the moment to invest in less

important markets like Germany.

KS: Talking about the limited popularity of Portuguese wines in Germany I am wondering how

port wines are performing in our country. As far as I know Niepoort has a high number of port

wines in its portfolio, right? Are they doing well in Germany?

7

AF: I don’t know exactly how other port wines are doing in Germany but Niepoort port wines

are doing well. Simply because Niepoort is a brand which is very well presented through the

brand ambassadors Dirk and Verena Niepoort. They are personalities and therefore the brand

Niepoort has a personality. It’s not an anonymous brand but a brand that is strongly linked to a

wine producer who is held in great esteem by sommeliers and other professionals. Dirk as an

absolute wine freak and this is how he easily connects with other people. I would say this is the

main reason for why most of our clients – except for a few who only buy “Fabelhaft” – also

always buy port wines. Port wine has a different image in Germany than it has in other countries,

such as in Spain for example. Many people remember it as a seniors’ drink. Though, also in this

context Dirk Niepoort broke the rules and showed that you can do fancy things with port wine

and what a special beverage it is. The interest for port wine is increasing and it offers the great

opportunity for specialist wine retailers to give a good account of them and present their

customers something special and great!

KS: After conducting some secondary research like looking at articles about Niepoort or at their

website I found that Niepoort is a highly innovative wine producer and certainly one with

personality – something you mentioned as well. Would you agree that these two aspects are two

of Niepoort’s greatest strengths?

AF: Yes, that it definitely true. Dirk is a person with a lot of very creative and innovative ideas.

Thinking about the look of his wines he’s someone who breaks new grounds. He chose silkscreen

labels for his port wines for example. And people appreciate that. It adds value to the wine!

Another example is again his “Fabelhaft” wine. There are customized “Fabelhaft” wines for a

high number of different countries. He always interpreted it differently matching the country in

which it is sold. There are numerous people who don’t know Niepoort but buy “Fabelhaft”

because of its fancy label and its affordable price. Then they try it and realize it also tastes

excellent.

KS: Regarding the great success “Fabelhaft” has had in the German market, do you think it

would be an opportunity to select another, pricier Niepoort brand and interpret it differently, just

as it was done for “Fabelhaft”, in order to draw more attention to Niepoort’s high-end wines?

AF: First of all, we don’t see “Fabelhaft” as a brand. The brand is Niepoort and “Fabelhaft” is the

entry-level wine under the brand Niepoort. But yes, thinking about how to better market the

higher-priced Niepoort wines in Germany – that is indeed a very interesting topic. Again, I see

the on-trade as a very important distribution channel here.

KS: You are mentioning the on-trade very often and seem to believe that it is a distribution

channel that provides great potential for Niepoort. Are there any thresholds Niepoort wines are

facing especially in this channel? For example a lower acceptance towards Portuguese wines

compared to French, Italian or Spanish wines?

AF: No, not at all. On the contrary: In upscale restaurants with own sommeliers Dirk has a very

good reputation. Mainly thanks to Dirk who is very dedicated, traveling to different countries to

present and teach about his wines. He also takes part in workshops that have sommeliers from all

around the world attending. You have to remember that we are talking about very upscale

restaurants.

8

KS: What is your impression on Niepoort’s brand image in Germany? Considering that the most

popular wine cost only around 10 Euros, would you say Niepoort is perceived as more affordable

as it actually is?

AF: That is hard to tell. Maybe 50/50 I would say. The ones who know the category obviously

know that there’s a lot more beyond the “Fabelhaft”. The ones who try it the first time won’t

know but as soon as they like the wine and therefore take a closer look at the brand will find out

quickly. I would say “Fabelhaft” and Niepoort’s more expensive wines address two very different

segments of wine drinkers. Whereas “Fabelhaft” is an everyday wine – well, for “everyday” it’s

already too expensive, so let’s say a special and popular wine with a unique labeling – for the,

let’s say “normal” wine drinker, other Niepoort wines target a highly involved consumer.

Therefore, these wines are competing with high-end wines from all around the world, including

Australia, Spain, Italy, and so on.

KS: Does Niepoort undertake any kind of promotion activities targeted directly to the end-

consumer?

AF: We initiated the creation of a brochure that is distributed to specialist retailers. Niepoort also

has a very informative website and is quite active on twitter and facebook. On such social media

platforms it becomes visible how many people really “follow” Dirk. We also initiated different

merchandising promotions in collaborations with specialized retailers. Such as wine glasses with

“Fabelhaft” prints.

KS: So these initiatives are operated by you, not by Niepoort?

AF: Yes, they are. Niepoort in the first pace is responsible for producing good wines and

providing them with an appealing labeling, paying attention to corporate design and what

consumers like. They also come up with creative ideas frequently which we then discuss and

develop further together. Some merchandising promotion such as Niepoort labled corkscrews or

aprons were brought up by them, some others by us. I also remember posters we produced,

showing a port wine pyramid in order to explain this kind of wine which lots of consumers don’t

know much about.

KS: You might know that Verena told me that Niepoort is particularly interested in growing the

share of their higher-priced wines. From a strategic point of view, considering that German

consumers are extremely price-conscious and that the “Fabelhaft” is doing so well in Germany,

don’t you think it could be more profitable to further invest in growing sales of this wine instead

of the higher-priced ones?

AF: I think that for the image of Niepoort wines it is important that the consumer is more and

more acquainted with the middle and higher priced portfolio, because these wines simply own

more authenticity than “Fabelhaft”. And I’m sure that there’s still potential for “Fabelhaft”, it

might be possible to increase sales volumes by other 100.000 or 200.000 bottles without

including new distribution channels. But in order to grow even further, it would be inevitable to

include other channels such as supermarkets or even discounters which would seriously change

and harm Niepoort’s brand image. And this is obviously something most wine producers don’t

want because their heart beats for their high-end wines, not for the entry-level wines. At that

9

point it would be necessary to split the portfolio and create two brands, such as Torres in Spain

did. They have a product line which is available in supermarkets, hypermarkets and discounters

and one which is only available at specialized retailers. For Niepoort that would mean to use

“Niepoort” only as an endorsing brand for the entry-level product line and as single brand for the

more expensive wines. Similar to how it is the case for “Fabelhaft” at the moment. This is

something we have discussed with Dirk before and asked him to which extent he could imagine

to further develop the brand “Fabelhaft” or if he wants it to continue being a strong brand in

specialized retail.

KS: Creating a new brand which is only endorsed by Niepoort and available in additional

distribution channels sounds like great opportunity to reach completely new consumer segments.

AF: That is true. However, such a step would involve three parties: The producer, us - the

importer – and the retailers. It is not that easy and in the end it is often the producer who simply

cannot imagine with making wines for supermarkets and discounters.

KS: Andreas, thank you very much for this very interesting and helpful interview! All the

information will be very useful for my thesis. I wish you a great weekend!

10

Annex 2 – Additional Information Provided by Andreas Fürbach, Marketing &

Promotion Manager at Ardau Weinimport

The following additional information was provided by Andreas Fürbach, Marketing & Promotion

Manager at Ardau Weinimport through several e-mails and phone calls:

Ardau buys Niepoort’s Dry White port, Ruby port and Tawny port for 3.57 Euros per 0.75

liter bottle. The distributor sells each bottle for 8.96 Euros to on-trade outlets and for 7.40

Euros per bottle to specialized retailers and specialist wholesalers (these prices are net prices

but include the “Monopolausgleich” of 1.15 Euros per bottle which has to be paid for port

wine according to the German “Branntweinmonopolgesetz”). The recommended retail price is

12.20 Euros including VAT. Ardau’s margin is relatively high due to the fact that the

distributor covers most of the marketing expenses for Niepoort in Germany.

Until 2-3 years ago Ardau provided bars and restaurants through the channel of specialist

wholesalers. As the number of these wholesalers is declining Ardau decided to sell directly to

“normal” restaurants and bars, too (before, they have directly sold their portfolio only to star-

awarded restaurants). The distributor is still developing in the area of bars. Valuable

relationships in the bar-scene and their own dedicated sales force are important resources in

this respect. In order to grow their business through the bar channel, Ardau exhibited their

portfolio at the Bar Convent Berlin (trade show for the bar scene) for the first time in October

2015. They primarily presented Niepoort’s products, Gin and sparkling wines there.

Frankfurt, Cologne and Dusseldorf are cities in which Ardau has already developed a network

in the HORECA channel. The distributor currently supplies between 20 and 30 bars and cafés

with their products in each of these cities. Andreas Fürbach evaluates these cities as the most

suitable ones to start promoting Port Fresco. He advises against focusing on big trendsetter

cities such as Berlin and Hamburg as competition in regards of other product launches in the

scene is high and many outlets subsist on tourism.

Ardau is currently considering employing a brand ambassador to better promote some of the

brands in their portfolio to the HORECA channel. The ambassador should be a well connected

and well-deemed bartender

There are two basic possibilities for the employment of a brand ambassador: Either the

ambassador solely promotes Niepoort or he or she promotes a portfolio of different brands that

11

appeal to the same kind of outlets and are distributed by Ardau. The latter is beneficial from

various points of view: Cost can be split among producers and promoting a larger portfolio

increases the probability that the ambassador can spark bar managers’ interest.

The typical wage for a beginner ranges between 2,500 and 3,000 Euros per month, for an

experienced brand ambassador costs between 3,000 and 3,500 Euros have to be expected.

Additionally, one has to take into account costs for the employee’s car, other expenses and

bonuses

Regarding costs for purpose-built Niepoort Port Fresco glasses, 1.80 Euros per glass

(minimum purchase volume: 1080 units) should be calculated. Furthermore, ca. 200 Euros

fixed costs arise for the Niepoort branding.

12

Annex 3 – Focus Group 1: Consumer Behaviour towards Port Wine and Alcoholic

Drinks in General


Research Proposal / Focus Group Guide (Main Points)

Underlying

management

decision problem

Can Niepoort port wine be turned into a lifestyle drink?

Problem

definition /

objectives of the

research

1. Determine young consumers knowledge of and attitude towards port wine

2. Determine young consumers’ preferences regarding alcoholic drinks

3. Determine young consumers’ behaviour when consuming alcoholic drinks

Approach to the

problem /

research

questions

1. Knowledge and attitude towards port wine

Do young consumers know port wine?

How much and what do young consumers know about port wine?

What do young consumers associate with port wine?

How do young consumers perceive the taste of port wine?

Do young consumers think port wine is attractive?

For what occasions, if any, do young consumers drink port wine?

Do young consumers know that port wine is mixable?

Do young consumers appreciate the general idea of consuming port wine

in mixed drinks?

2. Preferences regarding alcoholic drinks

General approach: Choose a best practice example (Gin Tonic*) and

understand its secret of success (from the consumer’s point of view) in

order to determine what it takes to establish parallelism with port wine

Why do young consumers like Gin Tonic?

How is Gin Tonic different from other alcoholic beverages for young

consumers?

What do young consumers associate with Gin Tonic?

Why, if so, do young consumers drink Gin Tonic more frequently than

many other cocktails or long drinks?

In what environment do young consumers choose Gin Tonic?

What drove young consumers to try Gin Tonic for the first time? *Note: Being an “old fashioned” drink in the past, Gin Tonic has become a very

popular long drink among young consumers in many countries including

Germany in recent years (Becker, 2012)

3. Consumer behavior regarding alcoholic drinks

How do young consumers choose alcoholic drinks?

When do young consumers drink which alcoholic drinks?

What is important for young consumers regarding alcoholic drinks?

Do young consumers often try new alcoholic drinks?

What motivates young consumers to try new alcoholic drinks?

Do consumers partition the market of alcoholic drinks in their mind

13

mostly according to the end benefit, the usage situation or brand names?

Research design Data collection and sample

Exploratory

Focus group, semi-structured

6 participants

Gender: Male (2) and female (4)

Age: 24 to 27 years old

Nationality: German

Consumers must consume alcoholic drinks in the on-trade on a frequent

basis

Consumers must like Gin Tonic

Duration: ca. 60 minutes

Warm up

“Thank you very much for coming here. The following focus group is

conducted to support the development of my master thesis. I am writing my

thesis in cooperation with Niepoort, a Portuguese wine and port wine

producer. Overall, it deals with their port wines and the German market.

Thus, I would like to know a bit more about what you know and think about

port wine and about your relationship with alcoholic drinks in general. I

would like to encourage you to contribute to this discussion with everything

that comes to your mind. Feel free to state your opinion and discuss it with

others. There are no right or wrong comments.”



Data analysis Topic Analysis

Limitations Network constraints: Participants are of very similar age; they are all

management students; they have lived in Portugal for more than a year (to

reduce the level of limitation the moderator often encouraged participants

to put themselves in their position before they moved to Portugal)

Moderator with limited experience


Topic Analysis (Main Results)

Knowledge and

attitude towards

port wine

Two participants did not know port wine at all, two knew it but have

never tried

Others have tried it a few times in their life as a dessert wine for special

occasions like Christmas, often with their grandparents

Their knowledge about port wine basically comprises that it is sweet, red

and a typical dessert wine from Portugal

Most participants did not know that there is white port wine

Associations and image: Red colour, Portugal, history, sweet, sticky,

traditional bottle, expensive, thick texture, conservative, a drink for old

people, a serious drink, liqueur, Christmas

Attractiveness: Attractive and suitable for special occasions and in small

quantities, not more than 2 glasses, it is not something you can drink a lot

14

of, cannot identify themselves with port (it is not important to them), it is

something special

One participant stated that he once has tried white port wine mixed with

tonic before, liked it and was surprised about the pleasant taste (he tried it

while he was living in Portugal)

All other participants did not know that port wine is mixable Note: For this section participants were reminded frequently that they should try

to think about what they knew and thought about port wine before they came to

Germany)

Understanding

the success of

Gin Tonic /

preferences

regarding

alcoholic drinks

Participants like the taste of Gin Tonic because it is refreshing, not too

sweet, variable (there is no other long drink which is equally flexible),

unobtrusive and tart (all other drinks usually contain a lot of sugar or

sugary mixers)

They also like the drink for less tangible characteristics: It is vintage, it

suits an elegant atmosphere, it is trendy, more sophisticated (than for

example rum coke), an experience, more exciting and unique than many

other drinks, it is a drink for mature people (rum coke, whiskey coke and

so on are drinks you consume when you are 18), unlike most cocktails it

does not annoy you after drinking more than one

Further aspects mentioned: The price (between 6 and 7 Euros) is not

cheap but still okay, as opposed to other (often very fruity or creamy)

cocktails it does not leave an unpleasant taste, one knows the ingredients

(thus knows for example, that there is not high amounts of sugar in the

cocktail), it suits many occasions (e.g. winter and summer time)

Participants cannot think a real good alternative for Gin Tonic, it seems to

be unique in what it delivers

All participants agree that they would neither order a Gin Tonic in a

simple pub nor in a restaurant, if they order a Gin Tonic is has to be

obvious that it will be nicely prepared (in a nice glass with a lot of ice and

pretty decoration) and of good quality, one stated that if it does not look

appealing and sophisticated , he also does not like its taste

Participants value the concept around Gin Tonic (decoration, glass,

preparation procedure, the fact that there are many different qualities and

artisanal brands), it is what makes this drink different and more

sophisticated than other drinks

They perceive it as a multifaceted drink that you can learn about, almost

like wine, and they like to learn about it and discover something new

Most participants tried Gin Tonic for the first time when their friends

drank it or recommended it to them or when they saw someone else

drinking it

Participants agree that Gin Tonic appeals to both, men and women, both

appreciate that it is not too sweet (women especially because it makes

them think it is healthier and has less calories than many other drinks),

especially women like it because it looks fancy

15

Consumer

behaviour

regarding

alcoholic drinks

Participants differentiate alcoholic drinks according to their level of

alcohol (beer and wine are different from long drinks and cocktails),

however, most of all according to the occasions in which they typically

consume them

Beer and wine are perceived as typical drinks for dinner, whereas they

would choose long drinks and cocktails only if they go out to bars and

clubs

What they order in bars (cheaper drinks with less alcohol such as beer and

wine or more expensive long drinks and cocktails) depends on the

atmosphere (if it is a nice bar and who they are out with)

None of the participants ever mentions any brands, they seem to think in

drinks as brands (Mojito, Caipirinha, Gin Tonic are mentioned very often

whereas no one mentioned any of the ingredients’ brands)

Participants state that they try out new drinks if they see someone else

drinking something that looks good or if the bartender recommends

something; they are also more likely to try something new when they sit

down, study the menu and come across ingredients that they like, in

general; they would only try a new drink in a bar that looks like it offers

drinks of high quality and well made

16

Annex 4 – Interviews: Bartenders’ Needs and Expectations


Research Proposal / Interview Guide (Main Points)

Underlying

management

decision problem


Problem

definition /

objectives of the

research

Determine bar managers’ and bartenders’ needs and expectations

Approach to the

problem /

research

questions

How do bar managers decide what they include in their portfolio?

What attitude do bartenders have towards port wine?

Do bartenders know Niepoort and if yes, what is their attitude towards the

company?

Are bartenders aware of port wine mixed drinks?

Could bartenders imagine including port wine mixed drinks on their

menu?

What would it take for Niepoort’ port wines to be considered by

bartenders?

What current trends do bartenders observe

Research design Data collection and sample

Exploratory

Interviews

Interviewer: Katharina Staab

Interviewees: Boris Bouzenna, bar manager (Bar ohne Namen, Frankfurt

on the Main), Zoran Lonker, bar manager (Moloko, Frankfurt on the

Main), Alexander Kreft, bar manager (Carlos CocktailBar, Karlsruhe),

Bernd Wulschnig, cocktail-mixing teacher (Tourism School, Kärnten,

Österreich)

3/4 interviewed bartenders work in famous German bars and are

responsible for the selection of alcoholic drinks served in the bar

Date: 30/09/15, 05/10/15, 06/10/15

Duration: Each interview 10-20 minutes

Warm up

“Thank you very much for taking a few minutes to answer a few questions.

Your answers will help me to develop my master thesis which deals with the

consumption of port wine in Germany. I am writing my thesis in cooperation

with Niepoort, a Portuguese wine and port wine producer. With this

interview, I would like to find out a bit more about how the bar business

works. Please answer all questions honestly and feel free to tell me whatever

comes to your mind. If you don’t mind I will record this interview.”



17


Limitations One interviewee is not German and does not work at a bar at the moment

(he was included in the sample due to his broad knowledge about the bar

business and the bartending experience he gained in the past)



Topic Analysis (Main Results)

Bar managers’

and bartenders’

needs and

expectations

Bar manager mention mainly three aspects that influence them in their

choice of beverages which they include on their menu and alcoholic

beverage brands that they carry in their portfolio: 1. Distributors pushing

a certain drink or brand, 2. Their own opinion on a drink or a brand, 3.

Which drinks consumers ask for

Distributors must convince bartenders that a product is of high quality

and explain them, how including it in their portfolio adds value for them.

Bar managers especially appreciate products that are not easily accessible

for consumers (e.g. in supermarkets) as that makes the bars the “owners”

of a drink

They state that often drink trends are driven by the marketing efforts of

big companies in the industry

Bartenders expect producers to involve them and win their trust by

making high efforts to make them familiar with their product (they

mentioned various examples such as Jägermeister: The company invited

bartenders from all over Germany to visit their production plant and to

participate in a Jägermeister cocktail mixing event, furthermore, they

award one year cocktail-mixing scholarships in New York to Germany’s

best bartenders)

The interviewees also stated that their choices depend a lot on what they

discover at bar trade shows (such as the Bar Convent in Berlin) and

through specialized media (such as the Mixology website and magazine)

Bartenders like port wine and describe it as an exceptional, interesting,

versatile and fascinating drink, often of superior quality, however, they

also mention that this is their perception as professionals and not the one

of the mass

The interviewees know Niepoort and hold the wine producer in high

regard, however, from their point of view the company operated in a

different business with different customers as the bartenders do

Bartenders are aware of port wine mixed drinks but do not know much

about it, however, they are generally very interested and can imagine that

it would be accepted by their guests

In general, all bartenders stated that they are constantly looking for

something new; especially at the moment as they feel like after the vodka

boom which came up in the end of the 90s and the following gin boom

which has been around for several years now some new trend has to rise

The interviewees stated that in order to make port wine appealing to

18

them, Niepoort would need to support them by showing them the best

way to prepare mixed drinks and giving them background information;

furthermore, they have to convince them that port wine can become a new

trend; they also expect the company to initiate trendy marketing for end

consumers

Bartenders agreed that the easier it is to prepare a drink and to obtain the

ingredients, the more likely it is that they give it a try

Current trends observed by bartenders: Preference for less strong mixed

drinks, herbs becoming more and more popular

19

Annex 5 – Port Wine Cocktail Recipes

Product Development – Procedure and Results

Background Identifying consumers’ preferences and bartender’s needs regarding

alcoholic drinks by the means of the conducted focus group and interviews

allowed for formulating requirements that the new port wine drink should

fulfill (see “Briefing”).

Bernd Wulschnig, diploma-wine-sommelier and bartender teacher at

“Kärtner Tourismus Schule” in Austria, agreed to address port wine mixed

drinks as a subject of his cocktail-mixing class.

During one week Bernd Wulschnig and his students experimented with port

wine, created and tested various drinks that fulfil the given requirements.

Out of several created port wine drinks, the 6 most suitable ones were chosen

to be tested by consumers.

Briefing Created drinks should fulfil the following requirements:

Have port wine as a main ingredient

Limited number of different ingredients

Easy to prepare

No difficult to obtain ingredients

Not too sweet

Refreshing

Recipes “Port Mojito”

6 cl Tawny Port

1 Lime (2 cl Lime juice, ¼ Lime cut in small pieces)

2 fresh mint sprigs

1-2 tea spoons white cane sugar

Sparkling water

Ice cubes

Muddle the lime in order to extract the juice, add sugar and stir until it is

dissolved, tap 2 whole fresh mint sprigs on the back of the hand to release the

fragrant aromas. Fold the mint and place in the glass. Gently ‘muddle’

(press) the mint a few times. Fill half of the glas with sparkling water, top up

with ice and finally add the port. Stir well.

“Port Caipirinha”

8 cl Ruby Port

1 Lime (2 cl Lime juice, ¼ Lime cut in small pieces)

2 cl sugar syrup or 2-3 bar spoons white cane sugar

Ice cubes

Muddle the lime in order to extract the juice, add sugar and stir until it is

dissolved, add port, stir again, add ice cubes

“Port Ginger Beer”

4 cl Ruby Port

10 cl Ginger Beer

Ice cubes

Orange zest

20

“Port Tonic Red”

5 cl Ruby or Tawny Port

Tonic Water (1 part Port, 2 parts Tonic Water)

2 cl Lime juice

Ice cubes

Slices of orange

“Port Tonic White”

5 cl Dry White Port

Tonic Water (1 part Port, 2 parts Tonic Water)

Ice cubes

Rosemary sprig

“Port Negroni”

2 cl Gin

2 cl Campari

2-4 cl port wine (Ruby or Tawny)

Ice cube

One bottle of tonic water

Port Tonic Red (red Port Fresco): Port Tonic White (white Port Fresco):

21

Annex 6 – Focus Group 2 and 3: Consumers’ Receptiveness towards Different Port

Wine Drinks


Research Proposal / Focus Group Guide (Main Points)

Underlying

management

decision problem


Problem

definition /

objectives of the

research

1. Determine if the created port wine drinks appeal to young consumers

2. Determine which port wine drink/s to enter the market with

3. Determine the drink’s/drinks’ name

4. Determine in which glass the drink/s should be served

5. Determine with what decoration the drink/s should be served

6. Determine willingness to pay for the drink/s

7. Determine in which on-trade outlets the drink/s should be available

8. Determine possible ways to trigger trial

9. Determine how the drink/s are different from others in consumers’

minds

10. Determine communication approaches

Approach to the

problem /

research

questions

1. General receptiveness towards port wine drinks

How do young consumers like the created drinks?

What do young consumer like and dislike about the created drinks?

Do the drinks fulfil the criteria determined by means of the previous

focus group?

2. Selection of port wine drink/s to enter the market with

Do preferences differ between young male and female consumers?

Is there one or are there several drinks that are preferred by the majority

of young consumers?

Would young consumers be overwhelmed if bars offered a variety of

new port wine drinks?

3. Name

Should the drink’s/drinks’ name/s include the word “port”?

Should the drink’s/drinks’ name/s include the word “Niepoort”?

Does a Portuguese name sound appealing to young consumers?

Regarding drinks that are based on already existing drinks (such as “Port

Mojito” and “Port Tonic”): Would names that emphasize the parallelism

be beneficial or confusing for young consumers?

4. Glass

How important is a drink’s glass for young consumers?

22

Do young male and female consumers have different preferences?

Is there one kind of glass that is preferred by the majority of young

consumers?

5. Decoration

How important is a drink’s decoration for young consumers?

Do young male and female consumers have different preferences?

What could be an eye-catching and appealing decoration for a port wine

drink?

6. Willingness to pay

What would young consumers expect a port wine drink to cost?

Would they expect different prices for the different port wine drinks?

Would they be willing to pay the anticipated prices?

7. Distribution

In which outlets would young consumers like to buy a port wine drink?

Where would young consumers be most likely to try a port wine drink

for the first time?

8. Trial

What could motivate young consumers to try a port wine drink?

9. Point of difference

How do young consumers differentiate the port wine drinks from other

alcoholic drinks?

10. Communication approaches

Would young consumers be interested to learn more about port wine

drinks and port wine in general?

Research design

Data collection and sample

Exploratory

2 focus groups, semi-structured

The 6 preselected drinks made with Niepoort port wine (as listed in

Annex 5) are to be served in order to be tested by the focus group

participants

Each participant is handed out an evaluation sheet (see below) in order to

assess and rank the 6 presented drinks; each drink has to be evaluated by

the means of a semantic-differential scale entailing characteristics of

alcoholic drinks that proved to be relevant for a frequently consumed

drink in the previously conducted focus group; participants are not

allowed to talk while initially tasting and rating the drinks (reasoning:

The evaluation sheet allows participants to capture their thoughts on each

drink and thus make it easier to recall them in the following discussion.

Furthermore, it allows for examining if participants just like the taste of

the drinks or if they also assign the desired characteristics to them. Lastly,

it facilitates capturing every participant’s opinion, unaffected by others’

opinions)

One focus group is to be conducted with 8 male participants, one with 8

female participants (reasoning: It is conceivable that male and female

consumers differ in their preferences regarding alcoholic drinks. Bearing

23

in mind that the tasting of 6 drinks by 8 participants per focus group

entails a complex discussion it would be challenging to identify

differences between male and female participants without observing them

separately)

Age: 23 to 26 years old

Nationality: German

Consumers must consume alcoholic drinks in the on-trade on a frequent

basis

Duration: ca. 90 minutes per focus group

Warm up

“Thank you very much for coming here. The following focus group is

conducted to support the development of my master thesis. I am writing my

thesis in cooperation with Niepoort, a Portuguese wine and port wine

producer. Overall, it deals with introducing one or several port wine drinks

to the German market which is why I would like you to taste, evaluate, rate

and discuss about the presented drinks. First of all, I would like you to taste

each drink and evaluate it by the means of the evaluation sheet. I kindly ask

you not to talk during this initial phase. You will get the chance to share

your opinion in the discussion afterwards. For the discussion I would like to

encourage you to contribute to the conversation with everything that comes

to your mind. Feel free to state your opinion and discuss it with others. There

are no right or wrong comments.”



Design of evaluation sheet

Semantic-differential scale:

Ranking:

24

Visual material presented to participants to evaluate preferences regarding

glasses


Analysis of evaluations and rankings of the different drinks

Limitations Network constraints: Participants are of very similar age; they have lived

in Portugal for more than a year (to reduce the level of limitation the

moderator often encouraged participants to put themselves in their

position before they moved to Portugal)

The characteristics listed on the evaluation sheet may cause participants

to think in certain patterns

The separation of male and female participants creates an environment

that does not fully correspond to a real life situation (men and women are

often together when consuming alcoholic drinks)


Due to the fact that the tasting took relatively long, some participants

tasted freshly prepared drinks while others tasted them when they were

not fresh anymore (e.g. the ice has melted), this may have influenced the

evaluation


Topic Analysis (Summarizing the Main Results From Both Focus Groups, Including

Evaluations of Drinks on the Evaluation Sheets)

General

receptiveness

towards port wine

drinks

Overall, the participants were surprised about how tasty the different port

drinks were

There was not a single drink which was assessed as bad by all participants

The only two drinks which got less than 4 points on average in one of the

two focus groups on (on a scale where is “Very bad taste” and 7 is “Very

good taste”) were Port Ginger Beer (rated 3.375 by the women’s group)

and Port Negroni (rated 2.625 by the men’s group)

The port drinks seem to appeal slightly more to women than to men (4 out

of 6 drinks were rated with appr. 5 points by the women’s group, 2 drinks

reached this threshold for the men’s group)

In general, it turned out that the tastes and preferences of participants are

25

very different (every drink was rated within a spectrum of at least 4 points

on the 7 point scale)

Selection of port

wine drink/s to

enter the market

with

The majority of participants stated that they would be overwhelmed with

more than one or two new drinks

Both groups agreed that the Port Mojito and Port Caipirinha wouldn’t be

new and unique enough to attract a lot of attention

Both groups generated and liked the idea of having the opportunity to

choose from a red and a white port wine drink

Some in the men’s group supported the idea to launch Port Tonic White

and Port Ginger Beer as these are two very different drinks, some others

disagreed because the two drinks do not match as they have very different

components

Even if some in the women’s group really liked Port Negroni, in the end

everyone agreed that the white and red Port Tonic would be the better

choice as they are not as “extreme” in their taste

The red Port Tonic especially appealed to women; they assessed it as a

refreshing, sophisticated and mature drink; in the men’s group it wasn’t

assessed in such a positive way

The white Port Tonic was also rated better by the women’s group, it

receives high scores on many aspects, however, it also found supporters

in the men’s group (4 participants ranked it 1st)

Name

Everyone agrees that “Niepoort” should not be part of the name as it

sounds forced, however, everyone really liked the bottle

The majority agrees that they do not like it if the entire name is a “fake

name” (e.g. a Portuguese word that sounds fancy)

Many participants mention that it would be important for them that the

word “port” is included in the name, as that way they have at least a clue

of what the drink is about

Many also mention that the word “port” in the name makes the drink

interesting, precisely because port wine is not known at all as a

cocktail/long drink ingredient

The participants seem to be split into two groups: One group prefers “Port

Tonic”, mainly because it sounds nice, tells them what to expect and

would make them curious as they also like Gin Tonic and thus assume

that they could like this drink as well. The other group prefers a name

consisting of “port” and a “fake word” because “Port Tonic” is so similar

to “Gin Tonic” that they would be confused

Whereas one group thinks the drink is somehow similar to Gin Tonic and

therefore it is right to indicate that it is the same kind of drink, the other

group states that it is a very different drink and should be marked as that

26

Glass

Everyone agrees that the glass is very important and often makes a big

difference when choosing a drink

Everyone liked the idea of being served a port wine drink in a unique

“Niepoort glass”. If one was created, it should look similar to this one:

(one of the drinks was served in this glass)

Another suitable option is this one:

Many participants in both groups agree that a bulbous glass fits very well

because it relates to wine. However, whereas many women think a wine

glass would fit, men don’t like this at all because it looks too snobby

All participants like the idea of being served a port wine drink in a big

cognac glass

Decoration Everyone agrees that an eye-catching and unique decoration as well as ice

cubes are very important

The only thing participants consider as a matching decoration for the red

Port Tonic is orange (either a slice or zest)

For the white Port Tonic the vast majority of the participants in both

groups like the rosemary sprig; some mention that a green gimmick

would look best

Other suggestions made by participants and liked by their peers were:

black current, blue grapes, pomegranate and star fruit

Whereas some participants mention that they would prefer if each bar

tender decides individually which decoration to put in the drink, many

others disagree and state that they would like it if the drink was always

“marked” by its same special decoration

Willingness to

pay Everyone agrees that they would expect the price to be between the one

of a wine and the one of a cocktail

Many participants mention that the price should be similar to a Gin Tonic

or Aperol Spritz

Everyone agrees that what they would be willing to pay depends a lot on

the bar and on the city it is located in

Price ranges mentioned were 7 to 10 Euros

Distribution Everyone agrees that the port wine drinks are typical bar drinks. They

would expect to find the drink in all kinds of bars (not only fancy ones,

even bar chains were mentioned) where cocktails and long drinks are sold

as this is the kind of drink they compare it with most

A bar would also be the surrounding in which the participants would try

the drink for the first time

Everyone agrees that they would not expect the drink in a night club and

27

that they cannot imagine to order it there

Everyone agrees that it’s a nice aperitif drink but they also state that an

aperitif is something they only order for special occasions

Trial Many agree that if they were handed out samples they would have

ordered the drink afterwards

Everyone agrees that many of the drinks look nice and if they saw

someone drinking it, it would draw their attention

The point of sale seems to be most important for participants, they

mention that inlays in menus showing a drink, little boards on the table

and barkeepers suggesting something usually makes them curious

Point of

difference The Port Tonic is considered to be a good alternative if you want

something more refreshing and less heavy than a wine but also not as

much as a cocktail

Some participants state that they would most likely choose a Port Fresco

instead of a wine, others would rather have it instead of a long drink or

cocktail

Having the opportunity to choose between two fancy drinks (red Port

Tonic and white Port Tonic) is considered to be an advantage and unique;

whereas the white Port Tonic is seen as the perfect summer drink, the red

Port Tonic is seen as the perfect winter drink

Everyone agrees that the drinks are suitable for many different occasions

(early evening, late evening, dinner, fancy bar, standard bar)

Everyone agrees that the drinks elegant and sophisticated

Some mention that they associate the drinks with Portugal, others

completely disagree

Everyone agrees that what it makes the drink unique in the first place is

that it is something completely new that they have never heard of

Communication

approaches Everyone agrees that the Niepoort bottle looks very stylish (male and

female participants liked the rabbit and the creatures on the bottle as well

as the “Drink me” tag)

The participants like the “traditional flair” around the bottle and the port

wine

They state to be very interested in learning more about port, the drinks

and the company Niepoort

28

Annex 7 – Survey: Port wine in Germany


Research Proposal

Underlying

management

decision

problems


Are young consumers the best group to target with such a drink?

Problem

definition /

objectives of the

research

1. Determine the level of knowledge about port wine among German

consumers of alcoholic drinks

2. Determine the image of port wine among German consumers of

alcoholic drinks

3. Determine the level of receptiveness towards the concept of offering

port wine in form of a mixed drink among German consumers of

alcoholic drinks

4. Determine the level of receptiveness towards the concepts of white and

red Port Fresco among German consumers of alcoholic drinks

5. Determine the perceived value of white and red Port Fresco among

German consumers of alcoholic drinks

6. Determine preferences for different names for the drink among German

consumers of alcoholic drinks

7. Determine the level of opinion leadership regarding alcoholic drinks

among German consumers of alcoholic drinks

8. Determine consumer behaviour regarding alcoholic drinks

Approach to the

problem /

research

questions

1. Knowledge about port wine

How many German consumers of alcoholic drinks have never heard of

port wine?

How many German consumers of alcoholic drinks have never tried port

wine?

How many German consumers of alcoholic drinks do not feel

knowledgeable about port wine?

Does the level of knowledge about port wine differ between age groups?

2. Image of port wine

What attitude do German consumers of alcoholic drinks have towards

port wine?

What associations do German consumers of alcoholic drinks have with

port wine?

Does the attitude towards port wine differ between age groups?

3. Receptiveness towards the concept of mixing port wine

To what extent are German consumers of alcoholic drinks receptive for

a mixed port wine drink?

Does the level of receptiveness differ between age groups?

Does the level of receptiveness differ according to gender?

4. Receptiveness towards the concept of white and red Port Fresco

To what extent are German consumers of alcoholic drinks receptive for

29

the white and red Port Fresco?

Does the level of receptiveness differ between age groups?

Does the level of receptiveness differ according to gender?

5. Perceived value

What would German consumers of alcoholic drinks expect the white

and red Port Fresco to cost?

6. Opinion Leadership

Does the level of opinion leadership with regards to alcoholic drinks

differ among age groups?

7. Drinking behaviour

How often do German consumers of alcoholic drinks go out at night

How many alcoholic drinks do they consume in such situations

Does consumer behaviour with regards to alcoholic drinks change

among different age groups?

Research design

Data collection and sample

Descriptive, single cross-sectional design

Partly exploratory (option to give several free-text answers included)

Survey conducted online

Convenience sample

Screening: Respondents must be German or must have lived in Germany

for a longer period of time, respondents must be consumers of alcoholic

drinks

Number of collected responses: 259

Questionnaire characteristics

In order to measure knowledge about port wine a tested scale for

”Knowledge (Product Class)” (Bruner and Hensel, 1996) was used

In order to measure attitude towards port wine several tested scales for

"Attitude towards the Product/Brand" (Bruner and Hensel, 1996) was

used; two elements were added ("a drink to mix/stand alone" and "for

young/old people")

In order to measure opinion leadership with regards to alcoholic drinks a

tested scales for "Opinion Leadership" (Bearden and Netemeyer, 1999)

was used

See the whole questionnaire below for further details

Data Analysis Cross tabs

Frequencies

Indpendent-samles t-test

Bivariate correlation (Spearman’s rho)

Text analysis

Limitations Convenience sample

Due to convenience sample a relatively high number (7%) of respondents

lives in Portugal or has lived in Portugal for a longer time (effect of those

respondents’ answers can be controlled by eliminating their response sets)

Self report bias

30

Annex 7.2 – Questionnaire

Note: The survey was conducted in German and translated into English afterwards.

Dear participant,

Thank you for taking your time to take part in my survey. My name is Katharina Staab and I am a

master in Management student at Nova School of Business and Economics in Lisbon, Portugal.

The following survey deals with the topics “consumption of alcoholic drinks” as well as “port

wine” and contributes to the completion of my master thesis in the field of marketing.

Please keep in mind that, while answering the following questions, it is not important how much

you know. There are no right or wrong answers. The goal is, that your answers are honest and

given intuitively. Obviously, this survey is 100% anonymous. It will not take more than 10

minutes.

Again, thank you very much for your participation. Have fun filling in the survey.

Best wishes,

Katharina

Q1: Do you live in Germany or have did you live in Germany for several years?

Yes

No

Q2: Do you ever consume alcoholic drinks when you go out?

Yes

No

First of all, I would be interested to hear if you know port wine and what you know about it? It is

not important if you know much, little or nothing about port wine; just, that you reply honestly.

Q3: Have you ever heard of port wine?

Yes

No

Q4: When was the last time you consumed port wine?

Never

More than a year ago

Within the last year

31

Q5: Please indicate to what extent you agree with the following statements:

(1)

Strongly

agree

(2) (3) (4) (5) (6) (7)

Strongly

disagree

I feel very knowledgable

about port wine. (1)

If a friend asked me

about port wine I could

give them advice about

different brands. (2)

If I had to purchase port

wine today, I would

need to gather very little

information in order to

make a wise decision.

(3)

I feel very confident in

the ability to tell the

difference in quality

among different brands

of this product. (4)

Q6: Now, I would like to know what comes to your mind when you think of port wine. The

following word pairs refer to characteristics of alcoholic drinks. Please indicate how you would

classify port wine respectively. Select the middle in case you do not feel able to make a

statement. (Again, keep in mind that there are no right or wrong answers, but that you should

reply honestly.)

(1) (2) (3) (4) (5) (6) (7)

Good (1) Bad

Likable (2) Dislikable

Low Quality (3) High Quality

Interesting (4) Boring

Expensive (5) Inexpensive

Appealing (6) Unappealing

Unappetizing (7) Appetizing

A drink to mix (8) A stand alone drink

Distinctive (9) Common

For young people (10) For old people

Worthless (11) Valuable

Q7: Thinking about port wine, what comes to your mind spontaneously? (You can list none, one

or more things.)

32

Q8: How would you rate those associations on the following scale?

(1) (2) (3) (4) (5) (6) (7)

Positive (1) Negative

Q9:

Please read the following text:

Port wine is a fortified wine from Portugal. Port wine has an alcohol

level of ca. 20% and is most often red and sweet, however, there are

also rosé as well as (dry) white port wines. The wine is known for its

versatile and complex aromas. It is available in different qualities.

Regarding prices, there are no upward limitations. Nevertheless,

there are also port wines of excellent quality for affordable prices (ca.

13 Euros per 0,75 l), as sold, for example, by the renowned company

Niepoort (see picture above).

Now, I would be interested in your opinion about the following idea:

Port wine is known for being a dessert wine, an aperitive or as a suitable drink for sitting in front

of a fireplace and smoking a cigar. However, what many people don’t know: It is also a great

ingredient for tasty mixed drinks. Professional and talented bartenders have experimented with

port and created refreshing, fancy and sophisticated drinks, in which white and red port wine is

mixed with other ingredients such as lime, tonic water, mint, ginger beer and various other

alcoholic beverages. The port wine mixed drinks are characterized by a unique combination of

complex and versatile aromas and freshness.

Please indicate with means of the following scale how you feel about the idea of offering a mixed

drink with port wine as main ingredient in Germany’s bars and restaurants.

I think this idea is:

(1) (2) (3) (4) (5) (6) (7)

Appealing (1) Not appealing

Q10: What do you like about this idea?

Q11: What don’t you like about this idea?

Q12: Now, let‘s be more precise: Imagine you go into one of your favorite bars and you see (e.g.

on the menu, with another guest or behind the bar) the following drink and the bottle of port

which is the main ingredient of the drink:

33

What you see is a so-called white Port Fresco. It is made of Niepoort dry

white port wine and tonic water. Usually, it is served in the shown glass

with two ice cubes and a rosemary sprig. Depending on personal

preference, the latter can be replaced by a slice of lemon or lime. The

bartender or the person accompanying you describes the drink as follows:

White Port Fresco is an alcoholic drink which selected bars in Germany

have started serving lately. It is unique in taste and thus not readily

comparable with popular drinks. The white port gives the white Port

Fresco a versatile, spicy-nutty aroma. Mixed with tonic water it’s a

slightly tart, refreshing drink with a balanced level of alcohol that suits

many occasions – as an aperitif during the late afternoon or before a meal

and as a drink when going out at night.

Please indicate with the means of the following scale how likely you would be to try this drink:

(1) (2) (3) (4) (5) (6) (7)

Very likely (1) Very unlikely

Q13: What do you like about this drink?

Q14: What don’t you like about this drink?

Q15: As shown here, what would you expect the white Port Freso to cost?

A price similar to beer (1)

A price similar to wine (2)

A price similar to Aperol Spritz or Hugo (3)

A price similar to a long drink (Rum-Coke, Gin-Tonic, etc.) (4)

A price similar to a cocktail (5)

Q16: Now imagine you go into one of your favorite bars and you see (e.g. on the menu, with

another guest or behind the bar) the following drink and the bottle of port which is the main

ingredient of the drink:

What you see is a so-called red Port Fresco. It is made of Niepoort dry

white port wine, tonic water and a dash of lime. Usually, it is served in

the shown glass with two ice cubes and a slice of orange. Depending on

personal preference, the latter can be replaced by a slice of lemon or

lime. The bartender or the person accompanying you describes the drink

as follows:

Red Port Fresco is an alcoholic drink which selected bars in Germany

have started serving lately. It is unique in taste and thus not readily

comparable with popular drinks. The red port gives the red Port Fresco a

versatile, fruity aroma which reminds on red berries. Mixed with tonic

water it’s a slightly tart, refreshing drink with a balanced level of alcohol

that suits many occasions – as an aperitif during the late afternoon or

34

before a meal and as a drink when going out at night.

Although the red Port Fresco is slightly sweeter as the white, the tonic water and lime make it a

drink which is also rather tart.

Please indicate with the means of the following scale how likely you would be to try this drink:

(1) (2) (3) (4) (5) (6) (7)

Very likely (1) Very unlikely

Q17: What do you like about this drink?

Q18: What don’t you like about this drink?

Q19: As shown here, what would you expect the white Port Freso to cost?

A price similar to beer (1)

A price similar to wine (2)

A price similar to Aperol Spritz or Hugo (3)

A price similar to a long drink (Rum-Coke, Gin-Tonic, etc.) (4)

A price similar to a cocktail (5)

Q20: Further suggestions for the drink’s name (optional):

Please answer the following questions about alcoholic drinks truthfully. Just as the results of the

whole survey, obviously also the answers to these questions will be analyzed anonymously.

Q21: In general, do you talk to your friends about alcoholic drinks?

(1) Very often

(2) (2)

(3) (3)

(4) (4)

(5) Never

Q22: When you talk to your friends about alcoholic drinks do you:

(1) Give a great deal of information

(2) (2)

(3) (3)

(4) (4)

(5) Give very little information

35

Q23: During the past 6 months, how many people have you told about alcoholic drinks?

(1) Told a number of people

(2) (2)

(3) (3)

(4) (4)

(5) Told no one

Q24: Compared to your circle of friends, how likely are you tob e asked about alcoholic drinks?

(1) Very likely to be asked

(2) (2)

(3) (3)

(4) (4)

(5) Not at all likely to be asked

Q25: In discussions of alcoholic drinks, which of the following happens most often?

(1) You tell your friends about alcoholic drinks

(2) (2)

(3) (3)

(4) (4)

(5) Your friends tell you about alcoholic drinks

Q26: Overall in all of your discussions with friends are you:

(1) Often used as a source of advice

(2) (2)

(3) (3)

(4) (4)

(5) Not used as a source of advice

Lastly, some information regarding your person:

Q27: Age

18-19 (1)

20-24 (2)

25-29 (3)

30-34 (4)

35-39 (5)

40-44 (6)

45-49 (7)

50-59 (8)

60 or older

Younger than 18

Q28: Gender

Male (1)

Female (2)

36

Q29: Approximately, how often do you go out at night per month?

1 - 2 times per month (1)





11 times per month or more (6)

Q30: Approximately, when you go out at night, how many alcoholic drinks with a relatively low

level of alcohol (e.g. beer, wine, etc.) do you drink on average? (This does not include the

consumption of alcoholic drinks at home)

1 or less (1)

2 (2)

3 (3)

4 (4)

5 (5)

6 (6)

7 or more (7)

Q31: Approximately, when you go out at night, how many alcoholic drinks with a relatively high

level of alcohol (e.g. long drink, cocktails, etc.) do you drink on average? (This does not include

the consumption of alcoholic drinks at home)

1 or less (1)

2 (2)

3 (3)

4 (4)

5 (5)

6 (6)

7 or more (7)

Q32: Do you currently live in Portugal or did you live in Portugal for a longer period of time (2

months or more)?

Yes (1)

No (2)

Q33: Highest level of education successfully completed:

None (1)

Hauptschulabschluss (2) (certificate of secondary education)

Realschulabschluss (3) (certificate of secondary education)

Abitur (4) (A levels)

Berufsausbildung (5) (professional training)

Bachelor (6)

Master (7)

Diploma (8)

PhD (9)

37

Q34: Current occupation:

Employed (1)

Self-employed (2)

Student (school) (3)

Student (University) (4)

Unemployed (5)

Other (6)

Q35: What is your disposable monthly income (including financial support from parents, BAföG,

etc.)

Less than 500 Euros (1)

501 to 1000 Euros (2)

1001 to 1500 Euros (3)

1501 to 2000 Euros (4)

2001 to 3000 Euros (5)

3001 to 4000 Euros (6)

4001 to 5000 Euros (7)

More than 5001 Euros (8)

I prefer not to comment (9)

Many thanks for your participation. Your responses were stored and you can now close your

browser.


Annex 7.3.1 – Knowledge About Port Wine

Q4: When was the last time you consumed port wine?

# Answer

Response %

1 Never

123 47%

2 More than a

year ago

70 27%

3 Within the last

year

66 25%

Total 259 100%

Statistic Value

Min Value 1

Max Value 3

Mean 1.78

Variance 0.68

Standard Deviation 0.83

Total Responses 259

Almost 50% of the survey participants have never tried port wine

38

Q5: Please indicate to what extent you agree with the following statements:

# Question

(1)

Stron

gly

agree

(2) (3) (4) (5) (6)

(7)

Stron

gly

disag

ree

Total

Responses Mean

1 I feel very knowledgeable

about port wine. (1) 1 7 15 17 20 44 155 259 6.09

2

If a friend asked me about

port wine I could give

them advice about

different brands. (2)

1 12 10 6 27 33 170 259 6.19

3

If I had to purchase port

wine today, I would need

to gather very little

information in order to

make a wise decision. (3)

7 12 10 17 25 44 144 259 5.89

4

I feel very confident in

the ability to tell the

difference in quality

among different brands of

this product. (4)

0 5 9 12 16 30 187 259 6.39

Statistic 1 2 3 4

Min Value 1 1 1 2

Max Value 7 7 7 7

Mean 6.09 6.19 5.89 6.39

Variance 1.99 2.01 2.68 1.45

Standard Deviation 1.41 1.42 1.64 1.20

Total Responses 259 259 259 259

Almost 50% of the survey participants have never tried port wine

Filter: Participants who do not live and have never lived in Portugal for a longer period of time

A higher percentage of survey participants older than 34 has heard of port wine than of

participants younger than 35

20-34 35+

164 51

91% 98%

17 1

9% 2%

Total 181 52

Age

Have you ever

heard of port

wine?

Yes

No

39

Note: The Chi Square is not shown since it is not reliable due to the fact that cells in the table have

an expected frequency of less than 5.This refers to all following cross tabulations with non-metric

data.


59% of survey participants younger than 35 has never tried port, this is the case for only 21%

of older participants


The younger age group shows higher average scores on the measures of product knowledge

about port than the older age group, meaning that they feel less knowledgeable

20-34 35+

106 11

59% 21%

40 26

22% 50%

35 15

19% 29%

Total 181 52

Age

When was the

last time you

consumed port

wine?

Never

More than a year ago

Within the last year

20-34 35+

n= 181 52

I feel very knowledgeable about port

wine. (1)

Mean (1-Strongly

agree to 7-

Strongly disagree)

6.38 5.58

If a friend asked me about port wine I

could give them advice about different

brands. (2)

Mean (1-Strongly

agree to 7-

Strongly disagree)

6.45 5.69

If I had to purchase port wine today, I

would need to gather very little

information in order to make a wise

decision. (3)

Mean (1-Strongly

agree to 7-

Strongly disagree)

6.18 5.25

I feel very confident in the ability to

tell the difference in quality among

different brands of this product. (4)

Mean (1-Strongly

agree to 7-

Strongly disagree)

6.59 6.06

Age

Please indicate to

what extent you

agree with the

following

statements:

40

Note: In order to test the 0-Hypothesis that there is no relationship between the two variables age

and knowledge about port wine, a spearman’s rho correlation analysis was conducted. The author

chose the Spearman’s rho as one variable in the tested relationship is ordinal (age groups).

Furthermore, the author decided to conduct a 1-tailed test as the assumption that knowledge about

port wine correlates positively with age seems reasonable. The variables used are the age bracket

selected by each participant and the mean of each participant’s scores on the likert-scale of the 4

product knowledge measurement questions (the higher the mean, the lower is knowledge).

There is a statistically significant (p-value < 0.01) weak (coefficient of 0.28) positive

correlation between age and knowledge about port wine

The 0-Hypothesis that there is no relationship between age and knowledge about port is

rejected

Annex 7.3.2 – Image of Port Wine

Q6: Now, I would like to know what comes to your mind when you think of port wine. The

following word pairs refer to characteristics of alcoholic drinks. Please indicate how you would

classify port wine respectively. Select the middle in case you do not feel able to make a

statement. (Again, keep in mind that there are no right or wrong answers, but that you should

reply honestly.)

41

# Question 1 2 3 4 5 6 7 Total

Responses

Mea

n

1 Good:Bad (1) 21 52 58 97 22 8 1 259 3.29

2 Likable:Dislikable (2) 16 33 73 112 20 5 0 259 3.39

3 Low Quality:High Quality (3) 1 9 23 95 56 57 18 259 4.69

4 Interesting:Boring (4) 17 51 62 94 18 17 0 259 3.37

5 Expensive:Inexpensive (5) 8 44 56 119 20 10 2 259 3.53

6 Appealing:Unappealing (6) 9 38 66 93 26 23 4 259 3.67

7 Unappetizing:Appetizing (7) 1 5 22 95 49 54 33 259 4.85

8 A drink to mix:A stand alone drink (8) 4 6 7 64 20 61 97 259 5.55

9 Distinctive:Common (9) 29 53 51 89 17 15 5 259 3.30

10 For young people:For old people (10) 1 5 8 114 60 54 17 259 4.76

11 Worthless:Valuable (11) 1 3 15 104 67 51 18 259 4.77

Statistic 1 2 3 4 5 6 7 8 9 10 11

Min

Value 1 1 1 1 1 1 1 1 1 1 1

Max

Value 7 6 7 6 7 7 7 7 7 7 7

Mean 3.29 3.39 4.69 3.37 3.53 3.67 4.85 5.55 3.30 4.76 4.77

Variance 1.50 1.14 1.51 1.56 1.26 1.65 1.65 2.25 2.01 1.22 1.23

Standard

Deviation 1.23 1.07 1.23 1.25 1.12 1.28 1.28 1.50 1.42 1.10 1.11

Total

Responses 259 259 259 259 259 259 259 259 259 259 259

Overall, survey participants do not have a strong attitude on port wine (all means are close to

4, the middle of the semantic-differential scale). Their opinion seems to be slightly more

positive (the means show a tendency towards the more positive characteristics on the scale)


20-34 35+

181 52

Mean: Good-Bad 3.41 3.15

Mean: Likable-Dislikable 3.53 3.23

Mean: Low Quality-High Quality 4.67 4.62

Mean: Interesting-Boring 3.45 3.35

Mean: Expensive-Inexpensive 3.53 3.67

Mean: Appealing-Unappealing 3.87 3.17

Mean: Unappetizing-Appetizing 4.7 5.29

Mean: A drink to mix-A stand alone drink 5.5 5.56

Mean: Distinctive-Common 3.36 3.38

Mean: For young people-For old people 4.83 4.62

Mean: Worthless-Valuable 4.69 4.87

Age

Please indicate

how you would

classify port wine

respectively.

Select the middle

in case you do not

feel able to make a

statement. (7 point

semantic-

differential scale)

42

There seem to be no major differences regarding attitude on port wine when comparing the

younger and the older age group (means are similar, sometimes the mean of the older age

group is closer to, sometimes the one of the younger age group).

Annex 7.3.3 – Receptiveness Towards the Concept of Mixing Port Wine

Q9: I think this idea of a port wine mixed drink is (1 Appealing – 7 Not appealing)

Comparing age groups:

Both age groups show receptiveness towards the concept of mixing port wine (means 2.69 for

20-34 year olds and 3.35 for 35+ year olds)

The variances of the two independent samples (two age groups) are not significantly different

(p-value of Levene’s test = 0.090 = higher than 0.05), thus the p-value for “equal variances

assumed” has to be chosen to analyse the data

The younger age group (20-34, labelled with 1) shows significantly (p-value = 0.011) more

receptiveness (lower mean: 2.69 compared to 3.34) towards the concept of a mixed port wine

drink

The 0-Hypothesis that there is no difference between the younger and the older age groups’

receptiveness towards the concept of a mixed port wine drink is rejected

Comparing males and females (at the age of 20-34):

43

Both, males and females at the age of 20-34 show receptiveness towards the concept of mixing

port wine (means 3.09 for males and 2.72 for females)

The variances of the two independent samples (males and females) are not significantly

different (p-value of Levene’s test = 0.577 = higher than 0.05), thus the p-value for “equal

variances assumed” has to be chosen to analyse the data

Males (labelled with 1) do not have a significantly different (p-value = 0.125) level of

receptiveness towards the concept of a mixed port wine drink than females

The 0-Hypothesis that there is no difference between males’ and females’ level of

receptiveness towards the concept of a mixed port wine drink cannot be rejected

Note: The answers were translated from German into English

Several participants indicated with their statements that they would be afraid that for a mixed

port wine drink only a port of low quality would be used

Q11: What do you not like about the idea of offering a mixed port wine drink?

"For me, port wine is a highly valuable product with a long tradition (loss of reputation?)…I assume that for a mixed

drink ports of low quality would be used…"

"something such expensive if nothing you would mix"

"You're diluting a high quality product"

"Port wine simply stands for itself. Compare it to a good red wine: You just don't mix it with ginger beer etc."

"If you're using a good port wine you're wasting it"

"The quality product port wine degenerates to a mixed drink"

"Considering usual port wine prices I would prefer to drink an unmixed port as otherwise I would have the feeling to not

fully appreciate it"

"A good port is too valuable for mixing"

"Mixing could lower the level of quality and cause headaches"

"I assume you would use cheap booze for such drinks"

"I like pure port. Thus, I consider mixing it as a sin. However, I've never tried it"

"Especially in case of a high quality port mixing it means wasting it"

"I think you should enjoy port wine purely in order to take full advantage of ist taste. It's too valuable for mixing it"

44

Annex 7.3.4 – Receptiveness Towards the Concept of White and Red Port Fresco

Q12: Please indicate with the means of the following scale how likely you would be to try a

white Port Fresco (1 Very likely – 7 Very unlikely)


Both age groups show receptiveness towards the concept of white Port Fresco (means 3.08 for





The younger age group (20-34, labelled with 1) does not have a significantly different (p-value

= 0.311) level of receptiveness towards the concept of white Port Fresco than the older age

group

The 0-Hypothesis that there is no difference between the younger and the older groups’ level

of receptiveness towards the concept of white Port Fresco cannot be rejected

45

Q16: Please indicate with the means of the following scale how likely you would be to try a red

Port Fresco (1 Very likely – 7 Very unlikely)


Both age groups show receptiveness towards the concept of red Port Fresco (means 3.42 for





The younger age group (20-34, labelled with 1) does not have a significantly different (p-value

= 0.320) level of receptiveness towards the concept of red Port Fresco than the older age group

The 0-Hypothesis that there is no difference between the younger and the older groups’ level

of receptiveness towards the concept of red Port Fresco cannot be rejected

Note: The answers were translated from German into English

Refreshing 23 Fruity 24

Tonic 21 Taste 13

New 16 Not too sweet 13

Taste 13 Tart 12

Rosmary 10 Red Colour 12

Interesting 10 Port wine 9

Port Wine 10 New 9

Not too sweet 9 Tonic 8

Tart 8 Orange 6

Combination 7 Drink 6

Nutty 4 Refreshing 5

Appealing 4 Interesting 4

Different 4 Combination 4

Lower alcohol 4 Appealing 4

Q13/Q17 - What do you like about this drink -

Text Analysis - # Mentions

White Port Fresco Red Port Fresco

46

The text analysis (counts of words and expressions) indicates that survey participants like the

concept of white Port Fresco especially because it is refreshing, made with tonic water and

new

The concept of red Port Fresco appears to be valued mostly for the fruity and not too sweet,

tart taste

Annex 7.3.5 – Perceived Value of Red and White Port Fresco

Q15/Q19: As shown here, what would you expect the white/red Port Freso to cost?

White Port Fresco: # Answer

Response %

1 A price similar to beer (1)

2 1%

2 A price similar to wine (2)

31 12%

3 A price similar to Aperol Spritz or Hugo (3)

146 56%

4 A price similar to a long drink (Rum-Coke, Gin-Tonic, etc.) (4)

59 23%

5 A price similar to a cocktail (5)

21 8%

Total 259 100%

Red Port Fresco: # Answer

Response %

1 A price similar to beer (1)

2 1%

2 A price similar to wine (2)

38 15%

3 A price similar to Aperol Spritz or Hugo (3)

134 52%

4 A price similar to a long drink (Rum-Coke, Gin-Tonic, etc.) (4)

58 22%

5 A price similar to a cocktail (5)

27 10%

Total 259 100%

Most (56%) survey participants would expect a white Port Fresco to have a similar price than

an Aperol Spritz or Hugo (popular long drink in Germany), 23% would expect it to cost as

much as a longdrink

Most (52%) survey participants would expect a red Port Fresco to have a similar price than an

Aperol Spritz or Hugo (popular long drink in Germany), 22% would expect it to cost as much

as a longdrink

One can draw the conclusion that survey participants seem to see a certain similarity between

long drinks (including Aperol Spritz and Hugo) and Port Fresco

47

Annex 7.3.6 – Opinion Leadership

The younger age group shows higher average scores on the measures of opinion leadership

with regard to alcoholic drinks than the older age group

Note: In order to test the 0-Hypothesis that there is no relationship between the two variables age

and opinion leadership with regard to alcoholic drinks, a spearman’s rho correlation analysis was

conducted. The author chose the Spearman’s rho as one variable in the tested relationship is ordinal

(age groups). Furthermore, the author decided to conduct a 2-tailed test as no definite assumption

about the direction of relationship could be made. The variables used are the age bracket selected

20-34 35+

200 52

In general, do you talk to your friends

about alcoholic drinks?Mean: 1 Very often- 5 Never

2.2 2.91

When you talk to your friends about

alcoholic drinks do you:

Mean: 1 Give a great deal of information- 5

Give very little information2.57 3.01

During the past 6 months, how many

people have you told about alcoholic

drinks?

Mean: 1 Told a number of people- 5 Told no

one2.51 2.98

Compared to your circle of friends, how

likely are you tob e asked about alcoholic

drinks?

Mean: 1 Very likely to be asked- 5 Not at all

likely to be asked2.54 3.41

In discussions of alcoholic drinks, which

of the following happens most often?

Mean: 1 You tell your friends about alcoholic

drinks- 5 Your friends tell you about

alcoholic drinks 2.78 3.31

Overall in all of your discussions with

friends are you:

Mean: 1 Often used as a source of advice- 5

Not used as a source of advice2.49 2.48

Age

48

by each participant and the mean of each participant’s scores on the likert-scale of the 6 opinion

leasership measurement questions (the higher the mean, the lower is opinion leadership).

There is a statistically significant (p-value < 0.05) weak (coefficient of 0.151) negative

correlation between age and opinion leadership with regard to alcoholic drinks

The 0-Hypothesis that there is no relationship between age and opinion leadership is rejected

Annex 7.3.7 – Drinking Behaviour

Q29: Approximately, how often do you go out at night per month?

(1 - 2 times per month (1) to 11 times per month or more (6))





The younger age group (20-34, labelled with 1) goes out significantly (p-value = 0.014) more

often (higher mean: 2.08 compared to 1.67) than the older group


frequency of going out at night is rejected

Q30: Approximately, when you go out at night, how many alcoholic drinks with a relatively

low level of alcohol (e.g. beer, wine, etc.) do you drink on average? (This does not include the

consumption of alcoholic drinks at home)

((1 or less (1) to 7 or more (7))

49





The younger age group (20-34, labelled with 1) drinks significantly (p-value = 0.004) more

drinks with a low level of alcohol (higher mean: 2.95 compared to 2.31) than the older group


consumption level of drinks with a low level of alcohol is rejected

Q31: Approximately, when you go out at night, how many alcoholic drinks with a relatively high

level of alcohol (e.g. long drink, cocktails, etc.) do you drink on average? (This does not include

the consumption of alcoholic drinks at home)

((1 or less (1) to 7 or more (7))





50

The younger age group (20-34, labelled with 1) drinks significantly (p-value = 0.001) more

drinks with a high level of alcohol (higher mean: 2.22 compared to 1.50) than the older group


consumption level of drinks with a high level of alcohol is rejected

Annex 7.3.8 – Demographics

Q35: What is your disposable monthly income (including financial support from parents, BAföG,

etc.)

(Less than 500 Euros (1) to More than 5001 Euros (8))





The younger age group (20-34, labelled with 1) has a significantly (p-value = 0.000) lower

income (lower mean: 2.92 compared to 4.67) than the older group


income is rejected

51

Annex 8 – Additional Information Provided by Alexander Kreft, Bar Manager at

Carlos CocktailBar

The following information was provided by Alexander Kreft, Bar Manager at Carlos CocktailBar

through several e-mails and phone calls:

Bartender would usually describe port wine as an alcoholic beverage with a unique taste as well

as distinctive and vibrant aromas

A snifter glass seems to be very suitable for a Port Fresco and bars usually have tem

A rosemary twig is easily accessible and not expensive (max. 10 Cents per piece), moreover it

suits the currently rising herb trend

Given a price of 8.96 Euros per 0.75 liter of Niepoort port wine, Carlos CocktailBar would

offer a Port Fresco for 5.00 Euros per drink including VAT. This price is based on “production

cost” of ca. 1 Euro per drink (5 cl of port per drink = 60 Cents, a 0.2 liter bottle of Schweppes

tonic water = 30 Cents, a rosemary sprig = 10 Cents) and the bar’s target margin. Alexander

Kreft assumes that most bars would charge a price of 4.50 Euros to 5.50 Euros according to

the location, inventory and staff of the bar.

52

Annex 9 – Hierarchical Partitioning of the Beverage Category from the Consumer’s

Point of View

53

Annex 10 – Information Provided by Verena Niepoort, Executive Director at

Niepoort

The following information was provided by Alexander Verena Niepoort, Executive Director at

Niepoort through several e-mails and phone calls:

Sales in Germany (2014):

Sales worldwide (2014): Ca. 10,219,000 Euros, 1,810,000 litres

The company is very flexible with regard to production capacity and would be easily able to

increase production so that the double amount of Ruby Dum Port, Tawny Dee Port and Dry

White Rabbit Port currently sold in the German market could be provided

In 2014 29,114 litres of the above mentioned port wines were sold in Germany, this sums up

to ca. 38,800 bottles and a value of 138,516 Euros

COGS sum up to ca. 2.5 Euros per bottle

Big port wine producers that already export decent quantities to Germany such as Ferreira,

Sandeman, Taylor’s and Dow’s are most likely to become Niepoort’s biggest competitors in

trying to become THE Port Tonic brand

54

Annex 11 – Channel Structure in the German Market

The following chart is based on information illustrated in Annex 1.2 and Annex 2:

*”Industrial Clients” refers to business customers such as the company BASF which has an own wine cellar to

supply their own gastronomy and their clients around the world

Niepoort

Ardau

Weinimport

Specialist

Retailers

Online

Retailers

Industrial

Clients*

Specialist

Wholesalers

HORECA

End

Consumer

Physical flow

Money flow

55

Annex 12 – SWOT Analysis

STRENGTHS

- The company has a very good reputation

- Niepoort has excellent port wines (also for

affordable prices)

- Port wine is well mixable and is well

balanced in his level of alcohol

- The port wine bottles have a unique and

appealing bottle design

- Niepoort stands for combining tradition with

innovation

- The company is the first to consecrate to the

development of port wine consumption

WEAKNESSES

- Niepoort is a small player in the market

- Production capacities are limited

- The company does not have a strong

distribution network in the bar scene

- Port is a serious drink

OPPORTUNITIES

- Consumers are interested in and curious

about new drinks

- There is a trend towards non-traditional

blends of alcoholic drinks

- There is a trend towards premium products

which increasingly happen to be from small

artisanal brands

- The preference for drinks with a lower

alcohol level is increasing

- The base of well-educated, trend oriented

consumers is growing

- The young generation is characterised by an

individualistic and modern lifestyle

- Young consumers do not have a strong view

on port wine

- Bartenders are already aware of Niepoort and

think highly of it

- Bartenders like port wine and show interest

in a port wine drink

- Bartenders especially value high quality

products

- Drink trends come in cycles and the last trend

(Gin Tonic) has been around for a relatively

long time

THREATS

- The big companies in the industry drive

trends with marketing activities that are

supported by high budgets

- Gin, rum and whiskey are expected to grow

- Much bigger and powerful port wine

producers might follow

- The aging population causes a declining

customer base and per capita consumption

- An eco-trend and growing health concerns

also inhibit the consumption of alcoholic

drinks

- The uncertain economic outlook restrains

customers from visiting on-trade outlets

- The mixing of Niepoort’s port wines might

lead to a “cheap” image of the brand in the

head of current Niepoort customers

- Young people that know port associate it

with a sweet taste, a sticky texture and think

of it as a drink that you do not drink often or

in high quantities

56

Annex 13 – Brand Identity Prism

According to Kapferer (2012) brand’s identity refers to what a brand manager or the person in

charge of a brand would like the brand to be, what the brand stands for and what makes it unique.

Kapferer’s brand identity prism is based on the conviction that brands must have a deep inner

inspiration, a character and own beliefs in order to guide consumers through the variety of brands

that are offered to them and to help them discovering their own identity by making certain brand

choices. The model captures six dimensions brand identity: Physical, relationship, customer

reflection, personality, culture and self image.

Physical: The physical dimension of a brand can be defined as the basis of the brand, capturing

product features, symbols and attributes. It is build upon salient objective features that represent

the brand’s backbone and its tangible added value.

Relationship: The relationship dimension describes how a brand acts towards, what it delivers to

and how it relates to its customers.

Customer Reflection: A brand always creates a reflection or image of the purchaser or consumer

which it seems to be addressing. Thus, customer reflection is not an image of the brand’s actual

target but an image of how the targeted customer wishes to be seen as a result of choosing a

certain brand.

Personality: A brand’s personality is composed by character traits which describe how the brand

would be if it was a person.

Culture: Whereas a brand’s physical facets are only the tip of the iceberg, a brand’s culture is its

essence, being intangible and not recognizable. The brand culture is said to be the most important

dimension of the brand identity because it is the ideological glue that ties everything together in a

long term.

Self Image: The self image of a brand refers to how the brand wants the consumer to feel when

purchasing the brand.

The brand identity prism’s structure gives indication of how the dimensions are related to each

other:

57

Horizontal Division of Prism: Brands can only exist if they communicate and behind every

communication there is a sender and a receiver. In the brand identity model, the picture of sender

is defined by the dimensions physical and personality. It is conveyed through a brand’s

communication. On the other hand, the dimensions customer reflection and self image build the

picture of receiver. When the brand communicates it always seems like a certain type of person is

addressed. Relationship and culture function as a bridge between sender and recipient by

appealing the receiver.

Vertical Division of Prism: The dimensions physical, relationship and customer reflection are

social facets which are visible and thus provide a brand with an outward expression. In contrast,

personality, culture and self image are facets incorporated within the brand, relating to its inner

spirit which is not visible in a direct sense.

For Port Fresco by Niepoort the following brand identity prism was developed:

Personality

Mysterious

Sophisticated

Innovative

Creative

Artistic

Culture

Tradition & Heritage

Portuguese Origin

Social life

Quality

Self Image

Fashionable

Assertive

Customer Reflection

Sophisticated

Knowledgeable connoisseur

Relationship

Brings class and full

experience for the senses

Physical

Niepoort port wine bottle:

Traditional, artisanal, fabulous

(Alice in Wonderland scheme)

Prepared Port Fresco: Unusual,

fancy look (glass, rosemary)

Picture of Sender

Picture of Recipient

Inte

rnali

sati

on

Ex

tern

alis

atio

n

Port Fresco

by

Niepoort

58

Annex 14 – Positioning Statement for the Growth Phase of Port Fresco

In case that the category of port wine mixed drinks establishes and other port wine producers start

to follow Niepoort, it will be crucial to develop the positioning statement in a way that it states

superiority towards other port wine brands. Moreover, the popularity of the product as an ingredient

for a mixed drink will allow the company to further develop the consumption of port wine by

introducing it as a tasty ingredient for a variety of mixed drinks (bartenders involved in the product

development process created a range of tasty mixed drinks which appealed to consumers, see

Annex 5). For the later stage of the product life cycle, the following positioning statement is

suggested:

To young (20 to 34) urban and fashionable German consumers of port wine mixed drinks (target),

Niepoort is a port wine brand for port wine mixed drinks (frame of reference), that provides the

perfect mixer for a variety of sophisticated cocktails that allow connoisseurs to demonstrate their

good taste (point of difference), because it was the first brand to understand the art of mixing port

wine (reason to believe).

59

Annex 15 – Channel Structure for Port Fresco

Based on the channel structure decisions made before, it seems reasonable to focus on outlets belonging

to the same geographical area for the launch of Port Fresco. A certain level of penetration is likely to

boost word of mouth about the new drink. Ardau Weinimport suggests that the ambassador targets the

cities Dusseldorf, Cologne and Frankfurt on the Main as the distributor is already well connected in

those regions. All three cities rank among the top 7 in the HWWI/Berenberg-Städteranking 2015 (city

ranking) which measures Germany’s biggest cities’ future viability according to demographics,

economics and location factors (Hamburgisches Weltwirtschaftsinstitut, 2015). Cologne appears to be

the most suitable place to start promoting Port Fresco as it has the highest number of students, young

people and bars, is the biggest of the three selected cities and is located close to Dusseldorf which

increases the likelihood of reaching another city by word of mouth before focusing on it (Bonial, n.d.).

After two years, the ambassador will start to include Hamburg in his or her sales rep activities.

The following chart shows the suggested channel structure for the launch of Port Fresco:

Niepoort

Ardau

Weinimport

Ambassador

(Sales Rep)

Specialist

Wholesalers

HORECA

End

ConsumerEmployment

Selling port

Promoting Port Fresco / Initiating port sales

Promoting Port Fresco / Selling Port Fresco

Limited to selected cities

Throughout Germany

Relevant channel members for

sales of Port Fresco

Specialist

Retailers

Online

Retailers

Industrial

Clients*

60

Besides increased efforts towards selected bars, Port Fresco should also be promoted with little effort as

part of common sales activities in HORECA outlets with which Ardau already holds strong

relationships. Regarding off-trade channels, Niepoort should hold on to the current strategy of only

selling its ports through specialist and online retailers. A range of specialist wholesalers resells

Niepoort’s wines and port wines to the HORECA channel which further enhances market coverage.

Not offering Niepoort’s products in supermarkets strengthens the drink’s exclusive positioning. This

approach is also appreciated by bars as it makes them the main “owner” of the new drink.

The determined channel structure will result in the following numbers for the 5 years covered by this

marketing plan:

Total #bottles sold for the preparation of Port Fresco 24,600.00

#bottles sold from Ardau directly to HORECA (90%) 22,140.00

#bottles sold from Ardau to specialist retailer who finally sells to HORECA (10%) 2,460.00


#bottles sold in Cologne and Dusseldorf (50%, due to direct selling through ambassador) 12,300.00

#bottles sold in the rest of Germany (50%, demand of HORECA channel members driven through non-local marketing

activities) 12,300.00

#bars in which Port Fresco is sold 180.00

#Port Frescos sold (1 bottle of port wine = 15 Port Frescos) 184,500.00

#Port Frescos sold per bar 1,025.00

#Port Frescos sold per bar per day 2.81

Note: Sales through events and pop-up bar are neglected due to limited relevance with regard to the overall

distribution scheme

Targeted Channel Structure

Targeted Geopgraphic Distribution Structure

Targeted Results of Direct Sales Efforts in Cologne and Dusseldorf

2016

61





#bottles sold in Cologne, Dusseldorf & Frankfurt (40%, due to direct selling through ambassador) 29,520.00



#bars in which Port Fresco is sold 300.00



#Port Frescos sold per bar per day 4.04


distribution scheme



Targeted Results of Direct Sales Efforts in Cologne, Dusseldorf & Frankfurt

2017





#bottles sold in Cologne, Dusseldorf, Frankfurt & Hamburg (30%, due to direct selling through ambassador) 55,929.90



#bars/restaurants/cafés in which Port Fresco is sold 500.00



#Port Frescos sold per outlet per day 4.60


distribution scheme

2018



Targeted Results of Direct Sales Efforts in Cologne, Dusseldorf, Frankfurt & Hamburg

62




Note 1: Sales through events and pop-up bar are neglected due to limited relevance with regard to the overall

distribution scheme

Note 2:From 2019 on, the ambassador will not target outlets in specific cities anymore but promote Port Fresco in

key customer outlets all over Germany




Note 1: Sales through events and pop-up bar are neglected due to limited relevance with regard to the overall

distribution scheme

Note 2:From 2019 on, the ambassador will not target outlets in specific cities anymore but promote Port Fresco in

key customer outlets all over Germany

2020


2019


63

Annex 16 – Pricing Split per Channel

Net prices per bottle of port/per Port Fresco:

Margins per channel:

NiepoortArdau

Weinimport

Specialist

Wholesalers

HORECAEnd

Consumer

3.57 €4.20 €

(5.00 € incl. VAT) 8.96 €

7.40 €

Niepoort White/Ruby/Tawny Port

Port Fresco

Money flow (price per bottle/drink)

8.96 €

Sales price (bottle of port) 3.57 Sales price (bottle of port) 8.96

COGS 2.50 Purchase price 3.57

Margin 1.07 Monopolausgleich 1.15

Margin 4.24

Niepoort Ardau (selling to HORECA)

Sales price (bottle of port) 7.40 Sales price (bottle of port) 8.96

Purchase price 3.57 Purchase price 7.40

Monopolausgleich 1.15 Margin 1.56

Margin 2.68

Ardau (selling to Wholesaler) Wholesaler

Sales price (Port Fresco) 4.20 Sales price (Port Fresco) 5.00

Purchase price (5cl port) 0.60 Purchase price (5cl port) 0.60

Purchase price (0.2l tonic) 0.30 Purchase price (0.2l tonic) 0.30

Purchase price (rosemary) 0.10 Purchase price (rosemary) 0.10

Margin 3.20 VAT (19%) 0.80

Margin 3.20

HORECA HORECA (incl. VAT)

64

Annex 17 – Behavioural Sequence Model

Behavioural sequence model for the purchase of a drink one has not tried before (Percy and

Rosenbaum-Elliott, 2012)

Who/What Need Arousal Consideration Purchase Usage & Post

Usage

Evaluation

Individuals

involved and

decision roles

Bartenders,

friends, others in

the bar as

initiators

Self, bartender

and friends as

influencers

Self as decider

and purchaser

Self as user and

the

accompanying

person

Where the stage

is likely to occur

In a bar/café

when being with

friends

In a bar/café

when being with

friends

In a bar/café

when being with

friends

In a bar/café

when being with

friends

Timing of stage Night time, often

on weekends

Right after

arousal

Right after

consideration

Right after

purchase

How stage is

likely to occur

Seeing others

drinking

something that

looks appealing,

asking the

bartender for a

recommendation,

getting a

recommendation

from a friend

Asking for taste,

price and

investigating how

a drink looks like

If curious and in

the mood to try

something new, if

the description

sounded

appealing

Telling others if it

tastes good or

not, being

observed by

others

65

Annex 18 – Creative Brief

Target Audience

Primary target audience: Young (20-34), urban and fashionable German OBS of alcoholic

drinks who have a keen interest in alcoholic drinks

Secondary target audience: Bartenders and bar managers

Marketing objectives:

Increase sales volume

Growing the German port wine market by broadening the range of occasions for which

consumers consider port wine as suitable

Action objectives:

Trial

Repeat purchase

Communication objectives:

Brand awareness: recognition

Create favourable brand attitude

Positioning Statement:

TO: Young (20-34), urban and fashionable German OBS of alcoholic drinks who have a keen

interest in alcoholic drinks

FOR: Port Fresco is a mixed port wine drink for social situations (differentiated)

POD: That offers a new sophisticated, not too sweet and refreshing experience (sensory

gratification) that allows connoisseurs to demonstrate their good taste (social approval)

Key benefit:

Offers a new sophisticated, not too sweet and refreshing experience (sensory gratification)

Reason to believe:

It is premised on more than 170 years of port wine tradition coupled with the best contemporary

art of cocktail mixing

Advertising should:

Emphasize the positive emotional outcome of enjoying a new sophisticated, not too sweet and

refreshing experience

Must mention:

Good taste

Mandatory:

Remind on responsible consumption of alcoholic beverages for consumers that are 18 years old

or older

Desired consumer response:

Trying Port Fresco and telling their friends about it

66

Annex 19 – Creative Idea

Port Fresco and the Niepoort port wines that it is made of will be embedded in a “Niepoortland

world”. As mentioned before, Niepoortland is a concept invented by the Portuguese artist Regina

Pessoa. It pictures a fantasy world that transfers images of Alice in Wonderland to Niepoort’s port

wine world. Except for the labels on the bottles of the Niepoortland series and a book showing

some images that was released more than five years ago, the Niepoortland concept has not been

used much. It serves as the perfect basis for the creative execution as it enfolds strong, eye-catching

and unusual images that convey a spirit of adventure and the idea of a surprising sensory

experience. Additionally, it provides an excellent foundation for appealing storytelling. The tagline

“It’s port o’ clock – time for something fabulous” delivers a trigger (“What time is it?” is a

frequently asked question), it links the drink offers a sophisticated experience with the fairytale

world Niepoortland in the world “fabulous” and last but not least emphasizes the positive outcome

of choosing a Port Fresco. Finally, “port o’ clock” can be used as a hash tag in order to further

enhance virality.

67

Annex 20 – Marketing Tool Implementation Schedule

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Production of

Port Fresco

glasses

Port wine

cocktail mixing

workshop for

bartenders in

Cologne

Participation at

bar convent

Berlin


Port wine

cocktail mixing

workshop for

bartenders in

Dusseldorf

Port wine

cocktail mixing

workshop for

bartenders in

Frankfurt

Port wine

cocktail mixing

workshop for

bartenders in

Cologne

Participation at

bar convent

Berlin


Production of

merchandise

material

Port wine

cocktail mixing

workshop for

bartenders in

Hamburg

Port wine

cocktail mixing

workshop for

bartenders in

Frankfurt

Port wine

cocktail mixing

workshop for

bartenders in

Cologne

Participation at

bar convent

Berlin

Pop-up bar in Cologne on several weekends

(including sampling to end consumers)

Search for and selection of

suitable brand ambassador and

PR agency (for the development

of the website, social media

presence and press releases),

briefing of agency and training of

ambassador

Sampling / sales / promotion (including handing out Port Fresco glasses) through brand ambassador (limited to Cologne and Dusseldorf)

Sponsoring of several events hold by "Schluck" / "Wine Vibes" / "Weinmomente"

Social Media and PR activities



Website maintenance

Pop-up bar in Cologne, Dusseldorf and Frankfurt on

several weekends (including sampling to end

consumers)

Pop-up bar in Cologne, Frankfurt and Hamburg on

several weekends (including sampling to end

consumers)



Website maintenance

Website maintenance

Building of mobile pop-up bar

Website development

2018

Sampling / sales / promotion (including handing out Port Fresco glasses) through brand ambassador (limited to Cologne, Dusseldorf, Frankfurt and Hamburg)

Sampling / sales / promotion (including handing out Port Fresco glasses) through brand ambassador (limited to Cologne, Dusseldorf and Frankfurt)

2017

2016

68


Production of

merchandise

material

Production of

Port Fresco

glasses

Port wine

cocktail mixing

workshop for

bartenders in

Berlin

Port wine

cocktail mixing

workshop for

bartenders in

Hamburg

Port wine

cocktail mixing

workshop for

bartenders in

Munich

Port wine

cocktail mixing

workshop for

bartenders in

Leipzig

Participation at

bar convent

Berlin


Production of

merchandise

material

Port wine

cocktail mixing

workshop for

bartenders in

Berlin

Port wine

cocktail mixing

workshop for

bartenders in

Hamburg

Port wine

cocktail mixing

workshop for

bartenders in

Munich

Port wine

cocktail mixing

workshop for

bartenders in

Leipzig

Participation at

bar convent

Berlin

Pop-up bar in Berlin, Hamburg, Munich and Leipzig

on several weekends (including sampling to end

consumers)

Website maintenance

Website maintenance

Pop-up bar in Berlin, Hamburg, Munich and Leipzig

on several weekends (including sampling to end

consumers)




2019

Sampling / sales / promotion (including handing out Port Fresco glasses) through brand ambassador (in selected bars all over Germany)

2020

Sampling / sales / promotion (including handing out Port Fresco glasses) through brand ambassador (in selected bars all over Germany)


69

Annex 21 – Financial Planning

Sales of suitable port wines for mixing Port Fresco:

White Port 12,267.00

Ruby Port 11,733.00

Tawny Port 14,800.00

Total 38,800.00

Niepoort sells each of these ports for 3.57 Euros per bottle to Ardau

COGS and distribution (shipping to Ardau) sum up to ca. 2.50 Euros per bottle

P&L (w/o Port Fresco) 2016 2017 2018 2019 2020

Volume White Port (#bottles) 12,300.00 12,300.00 12,300.00 12,300.00 12,300.00

Volume Ruby Port (#bottles) 11,733.00 11,733.00 11,733.00 11,733.00 11,733.00

Volume Tawny Port (#bottles) 14,800.00 14,800.00 14,800.00 14,800.00 14,800.00

Revenues 138,633.81 138,633.81 138,633.81 138,633.81 138,633.81

COGS + distribution cost 97,082.50 97,082.50 97,082.50 97,082.50 97,082.50

Contribution margin 41,551.31 41,551.31 41,551.31 41,551.31 41,551.31

Assumptions made for forecasting the financial result of the Port Fresco initiative:

Assumption 1: 50% of sold Port Frescos will be made with white port, 25% with ruby port (red) and 25% with tawny port (25%)

The above made assumptions lead to the following sales volumes for the relevant ports:

Sales Volumes 2016 2017 2018 2019 2020

Volume White Port (#bottles) for "usual" port wine consumption 12,300.00 12,300.00 12,300.00 12,300.00 12,300.00

Volume White Port (#bottles) for Port Fresco 12,300.00 36,900.00 73,800.00 118,080.00 165,312.00

Total Volume White Port (#bottles) 24,600.00 49,200.00 86,100.00 130,380.00 177,612.00

Volume Ruby Port (#bottles) for "usual" port wine consumption 11,733.00 11,733.00 11,733.00 11,733.00 11,733.00

Volume Ruby Port (#bottles) for Port Fresco 6,150.00 18,450.00 36,900.00 59,040.00 82,656.00

Total Volume Ruby Port (#bottles) 17,883.00 30,183.00 48,633.00 70,773.00 94,389.00

Volume Tawny Port (#bottles) for "usual" port wine consumption 14,800.00 14,800.00 14,800.00 14,800.00 14,800.00

Volume Tawny Port (#bottles) for Port Fresco 6,150.00 18,450.00 36,900.00 59,040.00 82,656.00

Total Volume Tawny Port (#bottles) 20,950.00 33,250.00 51,700.00 73,840.00 97,456.00

Volumes (#bottles) sold in 2014 in Germany

Assumption 2: In year 1, sales and marketing efforts will result in 24,600 bottles of port sold in form of Port Fresco using the full production capacity of white port in the

first year, the same applies to year two, from then on, sales will grow by 100%, 60% and 40%

All further marketing and sales expenses are usually paid by Ardau. In turn, the distributer profits from high margins (resells the port for 7.40 Euros to specialist retailers

and for 8.96 Euros to HORECA members)

If Niepoort would not launch the Port Fresco initiative, this would result in the following P&L for the next five years (growth is not expected as sakes of these port wines

haven't grown in the past either)

70

Marketing activities needed in order to generate the above listed sales are expected to cause the following costs:

The above listed assumptions lead to the following calculation of the following sums of marketing expenses for each year:

Marketing Expenses 2016 2017 2018 2019 2020

Brand Ambassador 15,000.00 15,000.00 15,000.00 30,000.00 30,000.00

Samples 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00

Glasses for selected bars 4,000.00 8,000.00

Merchandise material for selected bars 4,000.00 10,000.00 10,000.00

Workshops 1,500.00 4,500.00 4,500.00 6,000.00 6,000.00

Trade Shows 3,500.00 3,500.00 3,500.00 3,500.00 3,500.00

Events 3,000.00 3,000.00 5,000.00 5,000.00 5,000.00

PR & Social Media 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00

Website 10,000.00 3,000.00 3,000.00 3,000.00 3,000.00

Pop-Up Bar 15,000.00 10,000.00 10,000.00 20,000.00 20,000.00

Total 83,000.00 70,000.00 76,000.00 116,500.00 108,500.00

Niepoort's share of cost (40% of total) 33,200.00 28,000.00 30,400.00 46,600.00 43,400.00

Compiling expected revenues, COGS and distribution costs and marketing expenses leads to the following P&L for the Port Fresco initiative:

P&L (bottles sold for Port Fresco) 2016 2017 2018 2019 2020




Revenues 87,822.00 263,466.00 526,932.00 843,091.20 1,180,327.68

COGS 61,500.00 184,500.00 369,000.00 590,400.00 826,560.00

Marketing Expenses 33,200.00 28,000.00 30,400.00 46,600.00 43,400.00

Contribution margin -6,878.00 50,966.00 127,532.00 206,091.20 310,367.68

NPV=-6,878/(1+0.1)+50,966/(1+0.1)^2+127,532/(1+0.1)^3+206,091/(1+0.1)^4+310,367/(1+0.1)^5= 465,161.59

Considering not only port sales gained through sales of Port Fresco but also for "usual" port wine consumption results in the following P&L:

P&L (accumulated port wine sales) 2016 2017 2018 2019 2020




Revenues 226,455.81 402,099.81 665,565.81 981,725.01 1,318,961.49

COGS 158,582.50 281,582.50 466,082.50 687,482.50 923,642.50

Marketing Expenses 33,200.00 28,000.00 30,400.00 46,600.00 43,400.00

Contribution margin 34,673.31 92,517.31 169,083.31 247,642.51 351,918.99

Growth 63% 78% 66% 48% 34%

- Assumption 13: According to the fact that Ardau holds the larger profit margin and that the distributer is mainly responsible for marketing activities

conducted for Niepoort in Germany, 60% of all marketing expenses caused by the Port Fresco initiative will be covered by Ardau whereas Niepoort

covers 40%.

- Assumption 6: From year three on merchandising materials for selected bars will be produced (when Port Fresco has already gained some popularity and thus

barmanagers are likely to use it), starting with costs of 4,000 in year three, 10,000 are expected for year 4 and 5 as from year 4 on sales activities will no longer be limited

to selected cities.

- Assumption 7: One cocktail mixing workshop causes costs of 1,500 Euros, in year 1 one workshop is hold, in year 2 and 3 three workshops are hold, in year 4 and 5 four

workshops are hold.

- Assumption 8: Niepoort will participate at the bar convent Berlin every year by sharing a portfolio stand with other brands from Ardaus portfolio. A portfolio stand costs

4,760 Euros. Covering part of these costs plus additional expenses such as port wine used for demonstrations and wages will sum up to 3,500 Euros.

- Assumption 5: 2000 "Port Fresco by Niepoort" branded Glasses for selected bars will be produced in year 1, 4000 in year 4 (COGS + shipping: On average 2 Euros per

glass).

- Assumption 9: Niepoort will sponsor several events, leading to cost of 3,000 Euros in year 1 and 2 and due to a higher number of sponsored events to 5,000 Euros in year

4 and 5.

- Assumption 10: A PR & creative agency will take care of the creation of all advertising material (production of images, visuals, photos, pos material etc.), all press

releases for trade press and end-consumer press as well as of the coordination of Port Fresco's social media presence including all relevant social media platforms. This

will lead to cost of 30,000 Euros per year.

- Assumption 11: The creation of a Port Fresco website will lead to costs of 7,000 Euros. The maintenance and updating of the page will only create costs of 3,000 Euros

as content created by the PR agency can be used.

- Assumption 12: Building a mobile pop-up bar will cause cost of 5,000 Euros. Opening it at several different places will lead to cost of 10,000 Euros per year in the first

three years and to the double amount in year 4 and 5 due to the fact that cities all over Germany are supposed to be covered in those years. The costs include purchasing

licenses, paying wages, transportation cost etc.)

- Assumption 3: A brand ambassador causes costs of 45,000 Euros per year. Niepoort will share this manpower equally with two other brands distributed by Ardau in the

first three years and with one other brand from the fourth year on, getting 66% of the ambassadors capacity.

- Assumption 4: 400 samples (#bottles) for channel members and consumers will be provided each year, one bottle causes costs of 2.5 Euros (COGS + shipping to

Germany).

Annexes - Universidade NOVA de Lisboa › bitstream › 10362 › 17843 › 2 › Staab.Annex...big,...

Documents

Transcript of Annexes - Universidade NOVA de Lisboa › bitstream › 10362 › 17843 › 2 › Staab.Annex...big,...