Table of Contents
2.4Marketing Channel Performance5
Exhibit 1 - Distribution of wine sales by price class8
Exhibit 2 - Wine drinking habits by category and employment8
Exhibit 3 - Age distribution of wine drinkers by category9
Exhibit 4 - Wine Sales by category9
Virtual Vineyards started in January 1995 and within 10 months was averaging 1500 visitors a day and enjoying a revenue growth of 20% per month.
They have successfully segmented the wine market and identified an upper income group of computer literate professionals who share Peter Granoff's appreciation of fine wine.
The website is considered fast and easy to use with some nice features to make online shopping convenient and secure.
Although they have developed a high level of automation the order process is not yet completed and still requires manual intervention.
The web site contains extensive information about vineyards and winemakers and all letters and email are answered.
Virtual Vineyard's adaption of technology has not been so successful. They overestimated the amount of web traffic and are therefore paying more than they should for the site. To mitigate this they are considering expanding to other products.
They've also bought some expensive hardware and software to generate extensive customer data that they are not yet able to properly analyze.
*Downsize the infrastructure by selling off surplus equipment (rather than try selling other products).
*Properly automate the sales process.
*Analyze customer data (rather than rely on individual feedback).
*Recognize that at present wine sales are Virtual Vineyards's core business and concentrate on making it profitable.
Virtual Vineyards opened for business in January 1995 and has now been running for just over a...