3. Products and Services
3.1. Product
Wine (Grape Wine) – BWC Inc. offers great varieties of wine. The wine types can be categorized by species of the grape, the regions of the vineyards, the countries, the year of harvest, and the levels of different standards.
Food (Meals & Tapas) – BWC Inc. offers different kinds of food and each of the food matches for different kinds of wine. In lunch & diner sections, we offer the traditional meal sets with wine. However, the major consumption our customers would make is to order wine set paring with tapas set. The customers who order a wine set could have a set of bread and cheese on house. The meal options will be less while the tapas’ will be various. For the tapas, we offer seafood such as shrimp, lobster, crab and oyster and also provide high quality steak in an adequate size to pare with wine.
3.2. Service
Dining – BWC Inc. offers normal dining service in meal time (11:30 am~14:30 pm & 17:30 pm~10:30pm). There will be several sets of meal for our customers to order. Customers can have a special discount if they order meal with wine set.
Afternoon happy hours – BWC Inc. offer special price for customers who would like to have an afternoon wine, instead of afternoon tea. Basically, all of the wine set will be sold at 10~20% discount.
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Gathering – BWC Inc. offers gathering services such as birthday party, family reunion, friends’ gathering and business meeting, etc.
Nightlife lounge style – BWC Inc. will operate as a lounge at night (11:00pm~2:30pm).
Customers can have a set of wine with some delicate food. There will be Jazz Band Performance all the time in 2 shifts. Customers can order a private box in advance with different minimum charge. They can also choose to sit at bar or stand against the long table to enjoy the moment.
3.3. Key Success Factors
Innovative Business Strategies – On the perspective of the consumers, unlike normal restaurants, BWC Inc. serves wine pares with food, not food pares with wine. One the perspective of the suppliers, BWC Inc. adopts a unique “zero wine inventory” strategy (this strategy will be explained in the Channel Strategy of Marketing Plan) and creates a win-win situation. Our customers can see plenty of wine from different country, region, and grape variety in our restaurant. These innovative business strategies will not only attract the wine-lovers but also make more customers become one of them. With foreseeable high customer loyalty, this strategy can generate good and sustainable profit margin.
High-tech equipment – BWC Inc. sells wine mainly in glass but also in bottle. The nature of wine is different from liquor. One bottle of whiskey can be consumed over several years after opened, while one bottle of wine can only last for few hours after opened. Wine itself is a living beverage; the taste changes after opened just like telling a story and make the
drinker fall into the world of wine. The nature of taste time limit makes most wine consumers have no chance to taste diversified wine at one time. BWC Inc. will adopt the wine dispenser system to solve this problem.
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The wine dispenser’s advantages are:
1. Increase the profit margin - Consumers can lower the risk of buying the wine they don’t like through the dispenser. For example, when a customer is going to buy wine that he or she never tastes before, a bottle is $1,000 and a glass is $150 (1/10 of a bottle), which would he or she choose? Obviously, most of the wine-lovers would choose to buy a glass to avoid that this wine might not meet their appetites. Meanwhile, BWC Inc. can have higher profit margin.
2. Good storage of wine and keep the wine fresh – Generally, wine’s aroma, tannins and structure will be devastated in 8~24 hours after opened. Once the wine has been opened and storage in the dispenser, the machine will fill the bottle up with inert gas to prevent the wine with the air. The wine will be storage in a stable temperature from
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5%~18%, depend on different wines. With the dispenser, a bottle of wine can be preserve in a good condition for 3 weeks the most.
3. Lower the cost of labor and good control on the quantity – Everyone can easily operate the machine. BWC Inc. can save the cost of labor training. Also, thru the machine to dispense the wine can have a good control on the quantity of each glass.
Flexible Consumption Options – Customers can experience an ultimate unrestrained consumption in BWC. Our customer can order a glass of wine, a bottle of wine or a set of wines by glasses depend on his/her own preference. With a reasonable additional payment, one can have sets of food to pare wines. Like the services mentioned before, customers can also come to BWC to enjoy their lunch and dinner. Our customers can have the great services with diversified options.
Competitive Prices – BWC Inc. offers our customers the best quality of wine with the most competitive prices. The so-called “most competitive” is compared with our competitors which are hotels, restaurant, café, and night club. Basically the wine’s prices in BWC will be similar to the prices of the wine retailers. If you compared the price in a glass rather than in a bottle, it will be even much cheaper in BWC. Our customers can easily do the budgeting to consume in BWC. (This key success factor will be explained in detail in Pricing Strategy in Marketing Plan)
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4.1. Marketing Environment Analysis
Economic Environment
Taiwan is thirsty for opening new entertainment options. This is the story why we believe that we could afford a good life. The island has a GDP per capita about USD35,700 (Republic of China National Statistics, 2012; cf. 5). The consumption per capita is highly concentrated on urban areas. The average propensity to consume is .45 in urban areas, twice than the Taiwanese average (ibid, cf. 26). As a rule of thumb, wine consumption boost as income per capita overreach
USD25,000 (on real terms) and average propensity to consume is higher than .40 (Hall &
Mishkin, 1982; cf. 34). Taipei City is already there.
Wine Business Environment
Mass consumers have slightly increased their consumption but it remains unrelated to restaurants or wine bars (Beijing Sinomonitor International, 2007; cf. 3). Consumers use retailers as the main channel for buying wine, however, it is significant to mentioned that evidence suggested that consumption in hotels, restaurants and cafes (Horeca) has been concentrated in this last channel in Mainland China (New Zealand Trade & Enterprise, 2010; cf. 3). In Taiwan, horeca is still lagging behind due strong monopolistic conditions, especially regarding location (Beijing Sinomonitor International, 2007; cf. 27). Most wine distributors in Mainland China are foreign enterprises that have diversified sales during the last 10 years using final retailers to penetrate the market (New Zealand Trade & Enterprise, 2010; cf. 7). Brand positioning it is still low but national brand is highly regarded, especially on restaurants and cafes.