Categories
Wine Business

Wine SWOT Analysis: Château Musar

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/