Complete Real Exam Questions And Correct Answers
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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
What is a merger? - ANSWER-- Two businesses join
together to create a
business with greater resources and capabilities that
should be more
competitive than the individual businesses were
on their own
,- Should be equal partnership
in theory
What is acquisition? - ANSWER-- Also know as takeover
- When one company buys another company, which then
becomes a subsidiary of the purchasing company
- Reasons: usually to acquire capabilities which the purchasing
company believes it lacks, creating a more competitive
business; or to save small company from going out of
business
Cite benefits of small company in a takeover - ANSWER-Despite
loss of control, there is usually increased investment, and new
routes to market because of the large distribution networks
How does a broker differ from a distributor? - ANSWER--
Distributor is paid by
producer to sell wine on its
behalf
- Brokers are independent intermediaries who represent neither
party. They do
not enter into any deals, they merely make them happen.
Low overheads -
smaller fees (2% of the contract price
usually)
Cite benefits of using broker - ANSWER-- Intimate knowledge of
a particular, often specialized market
, - Bring together buyer and selling, saving the parties time and
effort of seeking each other out
- Know wines available and prices willing to sell at
- Also know style and volume buyers are looking for and price
they are prepared to pay
Describe broker's role in different contexts - ANSWER--
Bordeaux: courtier, have legal status, intermediaries between
Chateaux and négociants
- Bulk wine: ensure correct vats are delivered
- Fine wine trade: facilitate deal between those who buy and sell
rare wine
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