Introduction to Wine SWOT Analysis
Wine SWOT analysis proceeds in the same way as in any other sector. This article presents a SWOT analysis for the particular case of Château Musar in Lebanon. See https://chateaumusar.com
STRENGTHS
- Very strong brand story with significant historical underpinning since foundation in 1930s
- Good level of brand equity especially among high-involvement consumers
- Long history of organic production
- Effective cellar door operation which attracts high-spending customers
- Great ageing potential
- Production can be described as “Bordeaux blend with a twist.” This is a strong combination of an established and well-known pattern but with some extra interest
- Some competition but no other serious players in Lebanon currently
- Good and reliable sales into France because of historical relationship between the countries
- Extremely high quality consistent product
- Good local supplies of skilled and unskilled labour
WEAKNESSES
- Distance of winery from vineyards causes risk of oxidation damage and heat stress to grapes in transit to winery
- Whites are not close in importance to the flagship red blends and there is little serious portfolio diversification
- Cellar door sales are somewhat impeded by the distance of Lebanon from western Europe and the US
- Online operation exists but does not ship huge volumes for logistical reasons
- Large volumes of water needed: not easily sourced
OPPORTUNITIES
- Can reach new consumers who are interested in exploring wines from novel locations. This is a major segment of the high-involvement market.
- China has an increasing population in the mid-wealth range. There is though little penetration of premium wine from regions beyond those that are extremely famous such as Bordeaux or Burgundy
- Explore movement of product into China via partnerships with apps which are very important in that market
- Find ways of improving the logistical bottlenecks to move more product via online channels
THREATS
- Continued political instability in Lebanon
- Peg of local currency to USD has broken meaning import costs will increase dramatically
- Because of this, increased taxation is likely to result
- Intensification of local regional conflict could impede winery and vineyard operations including labour supply and transport of product
- Local competition does exist and could gain importance, diluting the position of Musar as the sole well-known producer in Lebanon; moreover if such competitors move product downmarket, this could dilute the soft brand equity of Lebanon
- Poor internet bandwidth and consistency of power supply
Conclusions of Wine SWOT Analysis
The overall position revealed by a wine SWOT analysis is clear. Musar is in a very strong position provided the political/security situation remains stable.
See also: https://timlshort.com/2020/04/20/marketing-creating-the-brand-story-in-wine/