luxury market report
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MahasPresentation.pptx
Global Luxury Market
A brief overview of the Luxury Chocolate, and Wine industries.
By: Maha Alnami
Overview of the Luxury Sectors
Chocolate
The Chocolate industry has grown to be rather large over the years, amassing over $161.56 billion industry-wide. However, it wasn't always like this. Competition in this sector is fierce, with no clear dominator present. It's split into three sub-sectors, between plain chocolate, dark chocolate, and milk chocolate. According to a study by Mintel in 2013, milk chocolate is by far the most popular; taking up 65% of the market, while it's arguably more healthy brethren, Dark chocolate and Plain chocolate, are left to compete for the remaining 35%.
Wine
The wine market has recently seen some push-back, with the newer generations (namely, Millennials and Gen-Z) preferring less and less alcohol in their lives; however they are working to adapt through this change, instead opting for more luxury; more quality than quantity, the opposite of past decades. The wine industry, however, has always been large. Used largely in religion and as a form of luxury, it currently has a net worth of over $302.02 billion.
The History of Chocolate
Chocolate, was "invented," in 1847. The Dutch, after discovering the Cacao bean, had little to no use for it. So, they experimented with it. A certain Joseph Fry, discovered that by adding melted cacao butter back into Cocoa. Around 1867, the first company to commercialize chocolate, a small chocolate factory, named Cadbury began selling chocolate candies around England. As more companies jumped in, and experimented more with this elusive plant and ended up with a majority of the things we have today.
Challenges in the Chocolate Industry
The largest challenge I believe someone will face in the chocolate industry is obscurity, while brands like KitKat, Hershery's, Godiva and Dove have a tight grip around the market, difficulty will arise when attempting to compete with them. As of the time of writing, they are not experiencing any issues in selling their chocolate, they achieve this by clever placing in stores just by the checkout, making you impulse-buy most of the time.
The History of Wine
Wine, has been around for the past 9,000 years, discovered in different ancient nations in different times, matter of fact, the oldest winery in the world is currently 6,100 years old! It's still up and running in Armenia. As of recently, the wine industry has been going through rough waters, with the new generation showing less and less interest in alcoholic beverages.
My Costumer Character: Wendy Bendoni
Wendy Bendoni is a Professor, Chief of Marketing at Woodbury University, and a Producer. She is a millionaire, and almost halfway there to a billion. For parties and events, she fancies Mr Fogg's Wine and cocktails, imported straight from London's bar. As for chocolets, she always contacts Godiva for special orders, a perfect gift. She is married, and a mother. She lives a luxerious life with many perks, such as a Private jet and her mansion in Malibu. Her favorite memory was her husband's proposal, on top of Mr. Fogg's flying machine in Britain.
SWOT Analysis: Wine Industry
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Rich history
Personalized service; catering
Rural culture
Sample before purchase
Connections with costumers and other wineries; "brotherhood"
Heavy in real estate (like McDonalds)
Small scale business
Profit margins, high startup cost
Small workforce
Largely isolated locations
Very high regulation
Obscurity
Recent uptick in traffic
Possibility for case clubs
New laws
New growers and wineries attracted
Underage backlash
ABLE Commission
Monopoly
Regulation changes
Mr. Fogg's Tavern
Mr. Fogg's is a rather special tavern, a man started it in his own home, inviting patrons and friends to what will soon be a luxerious bar for gentlemen in london. It's luxerious not because of price; though that plays a certain factor into it, but because of the limited entries, it is hard to enter the place. Not to mention, being inside of Mr. Fogg's residence captivates anyone who enters.
Mr Fogg's Brand Prism
Fancy, Gentlemanly
British, Late-Victorian
Welcoming to all who love the time period
Victorian period; fancy suits and pocket watches
Everyone knows everyone, lots of regulars
A luxerious place for people with good taste
Small scale, friendly
Welcoming environment,
open to anyone.
Family owned, family ran
Californian-made, simple life
Caring, encouraging
Old winery, old traditions
Hall's Brand, Napa Valley
A wine brand close to us, is Hall Napa Valley. Hall, is a recent addition to the industry. Founded in 2003, the birth year of my son, they make sure to have a welcoming, family-first environment. Their land, in the Napa Valley, was historically one of the largest wineries in North America. After buying over 500 acres of the old estate's land, Mr. And Mrs. Hall began their small company, which hosts weekly visits to their beautiful vineyards. The wine itself, isn't very expensive, but it is of high quality as the material used to make them is very high quality, aged in mahogony wood barrels.
John Kelly's Brand Image
John Kelly's Chocolate, founded in 2004, Hollywood, is a brand of luxury chocolate that sells at high prices for hand-made chocolate packages. John Kelly's, has been very successful due to their innovativeness with chocolate and they've invented a "new kind" of chocolate, which they call the "truffle fudge," which has been a hit among costumers. They provide free shipping for orders*, and live boutiques. They offer customization, and limited catering to companies and for special events, as well as gifts. The customization, from what I've seen, goes well in depth, with the coloring of the packages and calligraphy on the chocolates.
John Kelly's Brand Prism (2004)
Importance of self; pure luxury
Transparent, timeless product
Family, connections
High quality, meaningful
American "home-made," smooth sailing
Brought together, sweet as chocolate
Godiva's Brand Image
Godiva has always been a "fancy," chocolate place, with great tactics to boost their percieved luxury. Founded in 1926, Belgium, Godiva Chocolatier had a hard first few years, before being boosted to their current levels of success. They've gone to a single store in Belgium, to worldwide success, not only selling Ice Creams and Chocolate, but Coffee and breakfasts in some places, almost becoming like a "Star bucks," of sorts.
Godiva's Brand Prism (1926)
Striking figure, royal colors
Timeless chocolate, good faith
Elegence, connection-forming
High quality Belgian chocolate, with good craftsmanship
Belgian made, strong work ethic
Elegent, luxerious, welcoming
SWOT Analysis: Luxury Chocolate ind.
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The strengths of Luxury Chocolate are:
Cravings; hunger drives a need for the product.
Chocolate is seen as a gift; and is bought at outrageous prices because of it.
Weaknesses of the Luxury Chocolate Industry
Higher profit margins
Too saturated, growing competition
New companies suffer from profit margins
Lack of marketing
Opportunities in the Luxury Chocolates
Higher quality, higher profits.
Quality hasn't come to a peak yet.
Distributors favor carrying chocolate.
Social media can be used for advertising
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Professionals up the quality of materials in order to seem more luxerious, and make more overall profit
Significant threats to the Chocolate Industry
EU Cadmium regulation (488/2014)
Bulk chocolate manufacturers luring consumers away from luxury chocolate
Smaller number of high quality cocoa beans available
Profit margins driving companies out of business almost weekly
Change for the Wine Industry
The wine industry is going through a massive shift, due to the disinterest in alcohol, and is focusing much more on luxury, and quality more than quantity. The demographics change is bringing a need for innovation, and there is doubt that the wine industry of today or yesterday will be the same wine industry of tomorrow.
-Note, the chocolate industry is not experiencing any major upsets
Chocolate Luxury Hierarchy
Godiva Chocolatier (<$530)
John Kelly's (<$246)
Lindt & Sprungli (<$166)
Toblerone (<$25)
Artisan du Chocolat (<$35)
Mars, Hershey's (<$5)
References
https://www.mr-foggs.com/mr-foggs-story/
https://www.johnkellychocolates.com
https://twitter.com/bendonistyle
Values
Experience is the product
Manufacture
Homemade
Victorian Era
History
of the product
