WSET LEVEL 4 D2 EXAM \ latest version \ graded a+\ comprehensive
questions and verified accurate solution\\ 100% pass!!
Cite advantages and disadvantages of selling directly to consumers -answer--
Advantages: full profit
- Disadvantages: additional administrative, logistical and staffing costs
Cite options for selling directly to consumers -answer-- Cellar door
- Events
- Wine clubs
- Online
Why are cellar door sales attractive to customers? -answer-- The experience: see
where the wine is made, tasting, learn the story
- Foreign tourists: wine may be unavailable or expensive in their country
Cite benefits of cellar door sale to producers -answer-- Larger profits
- Engage directly with consumers: good for marketing since there is chance to taste
- Build up brand awareness and loyalty: cellar door customers more likely to buy in the
future
- Word-of-mouth marketing
- Trial new products and get feed back - reducing market research cost
Cite disadvantages of cellar door sales -answer-- Disrupt important work
- Take up space and need to be staffed
- To overcome: cellar door in nearby town
Cite benefits of event sale to consumers -answer-- In towns and cities with other
attractions
- Attract larger number and wider range of people
- "Destination effect" in wine regions
Cite disadvantages of event sale to customers -answer-- Producer need to pay to
exhibit wine
- Travel expenses and additional staff
- Competition with other producers
Cite benefits of wine clubs to customers -answer-- Opportunity to purchase wine at
reducer price for delivery
,- Other benefits such as access to wines not normally available to the general public,
free tour, invitation to exclusive tastings
- Easy access to wine they enjoy
Cite benefits of wine clubs to producers -answer-- Offered as part of wine tourism,
reducing the need to find other outlets
- Marketing purposes: continue to stay in contact with members, word-to-mouth
marketing
Cite disadvantages of wine club sales -answer-- Additional work
- Send out wine details
- Process order and ship wine
- Risk of lost or damaged bottle
- Administrative in dealing with 3-tier system in USA
Cite benefits of online sales -answer-- Customers have the comfort of buying at home
- No intermediary costs - larger profit
Cite disadvantages of online sales -answer-- Added cost of delivery
- Set up and maintain reliable website
List major retail outlets to end consumers -answer-- Supermarkets
- Deep discounters
- Convenience retailers
- Specialist wine retailers
- Hybrids
- Online retailing
- Global travel retail
- Wine investment companies
Give a few examples of major supermarkets -answer-Walmart - USA
Woolworths - South Africa
Carrefour - France
T'escortait - British
Which outlet has the largest share of wine sale? -answer-Supermarkets, in USA, UK
and France
What kind of wines can be found at supermarkets? -answer-- Large producers
- Well-known and popular regions and varieties
- Style that appeal to a range of customers, who may have little knowledge
- Local wines in producing countries
- Small amount of wine from artisan producers under the producer's label - on the
understanding that when they sell out, there is no more available - attractive to
consumers with a strong interest in wine
,Compare the use of well-known brands and private label wines in supermarkets -
answer-- Well-known brands: attract customers; do not promote customer loyalty
- Private labels: promote customer loyalty; need to be available in large volumes and
need to be from large producers
What is private label wine? -answer-- In order that customers cannot easily compare
prices, supermarkets stock wines bottled under labels exclusive to them (even if they
are available elsewhere under different labels)
- Promote customer loyalty
- Need to be available in large volumes, from large producers
Cite advantages of private label wine for producers -answer-- Attractive opportunity to
sell large volume
- High level of market exposure, sometimes in more than one country
- No intermediary costs
- Supermarket-employed winemaker may work closely to supervise production and
ensure quality control - help improve quality of other wines
Cite disadvantages of private label wine for producers -answer-- Competition to stock in
supermarkets means that supermarket wine buyers have enormous negotiating power,
especially when it comes to price - low profit
- Substantial fees to have wine stocked, and desirable placement
- Cover price promotions
- Contracts with strict requirements regarding quality control, time and manner of
delivery, packaging and labeling - or may be refused or penalized
- May be delisted if not selling sufficient quantities
What are deep discounters? Give examples -answer-- Share many features of
supermarket but sell at lower price
- Offer permanently lower prices, rarely offer price promotions
- E.g. Trader Joe's; Aldi and Lidi (Germany) ; Netto (Danish)
How do deep discounters achieve lower price points? -answer-- Lower profit margin,
rely on volume
- Shops are basic: goods stacked on pallets rather than shelves
- Away from prime retail location - lower rent
- Limited product range - more streamlined, easier to maintain
- Many private labels - opportunity for producers
- Rarely stock major brands, work with less well-known producer with lower overheads,
buying up whatever stocks may be available
What kind of wine can be found at deep discounters? -answer-- Private labels
- Small-producer wines with low overheads
- Small amount of expensive wines in more affluent areas or before holidays - attract
customers with stronger interest in wine, who may discover other products they like
, Cite benefits of producer working with deep discounters -answer-- Private label-large
volume
- Work with less well-known producer with smaller overheads, who have a surplus of
wine to sell
- Buy directly from producers, cutting intermediary costs
- Though strike hard bargain, do not charge suppliers for stocking their products
- No promotion costs
Cite features of convenience stores -answer-- Closer to where people live
- Open longer
- May be independently owned or a part of franchise
- Store popular brands, similar to supermarkets but smaller
- Tend to be more expensive
Why do convenience stores tend to be more expensive than supermarkets? -answer--
Smaller premises - rents proportionately higher
- Premises designed for other purposes, less efficient
- Higher proportion of staff relative to their size
- Franchise arrangement - fee to franchise owner
What kind of producers are attracted to specialist wine retailers? Why? -answer-- No
purchasing power of larger retailers - focus on wine from smaller producers
- Average price sold is higher - high involvement consumers
- Can have hand sell
What are high involvement consumers? -answer-Those who are more interested in
wine, willing to spend more per bottle than the general population
Cite major features of specialist wine retailers -answer-- Specialise in wine, sometimes
premium spirits and beers, some sell cheese and delicatessen foods
- Most independently owned
- Some specialise in particular styles of wine; some deal with premium wine, en primeur
- Small producers, high involvement customers, higher price
- Personal service: hand sell, build up relationship with regular customers, learn about
likes and dislikes, suggesting new wines and let them know when their favorite wine is
on offer; customers trust staff
- Special events such as tasting and educational class
What is hand sell? -answer-- Tell story of wine
- Provide information about wine, variety, food pairing
Cite disadvantages of producer working with specialist wine retailer -answer-- Smaller
quantity
- Need to employ distributor
- Highly dependent on retail staff
questions and verified accurate solution\\ 100% pass!!
Cite advantages and disadvantages of selling directly to consumers -answer--
Advantages: full profit
- Disadvantages: additional administrative, logistical and staffing costs
Cite options for selling directly to consumers -answer-- Cellar door
- Events
- Wine clubs
- Online
Why are cellar door sales attractive to customers? -answer-- The experience: see
where the wine is made, tasting, learn the story
- Foreign tourists: wine may be unavailable or expensive in their country
Cite benefits of cellar door sale to producers -answer-- Larger profits
- Engage directly with consumers: good for marketing since there is chance to taste
- Build up brand awareness and loyalty: cellar door customers more likely to buy in the
future
- Word-of-mouth marketing
- Trial new products and get feed back - reducing market research cost
Cite disadvantages of cellar door sales -answer-- Disrupt important work
- Take up space and need to be staffed
- To overcome: cellar door in nearby town
Cite benefits of event sale to consumers -answer-- In towns and cities with other
attractions
- Attract larger number and wider range of people
- "Destination effect" in wine regions
Cite disadvantages of event sale to customers -answer-- Producer need to pay to
exhibit wine
- Travel expenses and additional staff
- Competition with other producers
Cite benefits of wine clubs to customers -answer-- Opportunity to purchase wine at
reducer price for delivery
,- Other benefits such as access to wines not normally available to the general public,
free tour, invitation to exclusive tastings
- Easy access to wine they enjoy
Cite benefits of wine clubs to producers -answer-- Offered as part of wine tourism,
reducing the need to find other outlets
- Marketing purposes: continue to stay in contact with members, word-to-mouth
marketing
Cite disadvantages of wine club sales -answer-- Additional work
- Send out wine details
- Process order and ship wine
- Risk of lost or damaged bottle
- Administrative in dealing with 3-tier system in USA
Cite benefits of online sales -answer-- Customers have the comfort of buying at home
- No intermediary costs - larger profit
Cite disadvantages of online sales -answer-- Added cost of delivery
- Set up and maintain reliable website
List major retail outlets to end consumers -answer-- Supermarkets
- Deep discounters
- Convenience retailers
- Specialist wine retailers
- Hybrids
- Online retailing
- Global travel retail
- Wine investment companies
Give a few examples of major supermarkets -answer-Walmart - USA
Woolworths - South Africa
Carrefour - France
T'escortait - British
Which outlet has the largest share of wine sale? -answer-Supermarkets, in USA, UK
and France
What kind of wines can be found at supermarkets? -answer-- Large producers
- Well-known and popular regions and varieties
- Style that appeal to a range of customers, who may have little knowledge
- Local wines in producing countries
- Small amount of wine from artisan producers under the producer's label - on the
understanding that when they sell out, there is no more available - attractive to
consumers with a strong interest in wine
,Compare the use of well-known brands and private label wines in supermarkets -
answer-- Well-known brands: attract customers; do not promote customer loyalty
- Private labels: promote customer loyalty; need to be available in large volumes and
need to be from large producers
What is private label wine? -answer-- In order that customers cannot easily compare
prices, supermarkets stock wines bottled under labels exclusive to them (even if they
are available elsewhere under different labels)
- Promote customer loyalty
- Need to be available in large volumes, from large producers
Cite advantages of private label wine for producers -answer-- Attractive opportunity to
sell large volume
- High level of market exposure, sometimes in more than one country
- No intermediary costs
- Supermarket-employed winemaker may work closely to supervise production and
ensure quality control - help improve quality of other wines
Cite disadvantages of private label wine for producers -answer-- Competition to stock in
supermarkets means that supermarket wine buyers have enormous negotiating power,
especially when it comes to price - low profit
- Substantial fees to have wine stocked, and desirable placement
- Cover price promotions
- Contracts with strict requirements regarding quality control, time and manner of
delivery, packaging and labeling - or may be refused or penalized
- May be delisted if not selling sufficient quantities
What are deep discounters? Give examples -answer-- Share many features of
supermarket but sell at lower price
- Offer permanently lower prices, rarely offer price promotions
- E.g. Trader Joe's; Aldi and Lidi (Germany) ; Netto (Danish)
How do deep discounters achieve lower price points? -answer-- Lower profit margin,
rely on volume
- Shops are basic: goods stacked on pallets rather than shelves
- Away from prime retail location - lower rent
- Limited product range - more streamlined, easier to maintain
- Many private labels - opportunity for producers
- Rarely stock major brands, work with less well-known producer with lower overheads,
buying up whatever stocks may be available
What kind of wine can be found at deep discounters? -answer-- Private labels
- Small-producer wines with low overheads
- Small amount of expensive wines in more affluent areas or before holidays - attract
customers with stronger interest in wine, who may discover other products they like
, Cite benefits of producer working with deep discounters -answer-- Private label-large
volume
- Work with less well-known producer with smaller overheads, who have a surplus of
wine to sell
- Buy directly from producers, cutting intermediary costs
- Though strike hard bargain, do not charge suppliers for stocking their products
- No promotion costs
Cite features of convenience stores -answer-- Closer to where people live
- Open longer
- May be independently owned or a part of franchise
- Store popular brands, similar to supermarkets but smaller
- Tend to be more expensive
Why do convenience stores tend to be more expensive than supermarkets? -answer--
Smaller premises - rents proportionately higher
- Premises designed for other purposes, less efficient
- Higher proportion of staff relative to their size
- Franchise arrangement - fee to franchise owner
What kind of producers are attracted to specialist wine retailers? Why? -answer-- No
purchasing power of larger retailers - focus on wine from smaller producers
- Average price sold is higher - high involvement consumers
- Can have hand sell
What are high involvement consumers? -answer-Those who are more interested in
wine, willing to spend more per bottle than the general population
Cite major features of specialist wine retailers -answer-- Specialise in wine, sometimes
premium spirits and beers, some sell cheese and delicatessen foods
- Most independently owned
- Some specialise in particular styles of wine; some deal with premium wine, en primeur
- Small producers, high involvement customers, higher price
- Personal service: hand sell, build up relationship with regular customers, learn about
likes and dislikes, suggesting new wines and let them know when their favorite wine is
on offer; customers trust staff
- Special events such as tasting and educational class
What is hand sell? -answer-- Tell story of wine
- Provide information about wine, variety, food pairing
Cite disadvantages of producer working with specialist wine retailer -answer-- Smaller
quantity
- Need to employ distributor
- Highly dependent on retail staff
