GM drinks as UK importer and sales agency for wines Essay Example

  • Category:
    Business
  • Document type:
    Research Paper
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    600

GM Drinks

Supervisor

The wine market sector in United Kingdom (UK) attracts many players. As a result, there has been stiff competition over the past decades. During the Euro financial crisis, the UK’s wine sector was negatively affected and experienced all time slump in wine sales (Donnelley 2010, p. 2). Despite the slump experienced in the UK wine business, new market entrants such as GM drinks have recorded great success (Siddle, 2015, p.1). GM drinks is a company that specializes in the importation of UK wines. GM was founded in 2012 since then GM experienced tremendous growth (Siddle 2015, p. 1). The following paper analyses GM sales strategy and compares it to the competitors

The GM Drinks marketing strategy credited with the success is the cash and carry. In the UK, there are over 45,000 cash carry shops, which provide high potential for wine distributors. However, the wine suppliers have not taped the cash and carry sector (Siddle 2015, p.1). GM Drinks has leveraged on the opportunity, and the cash carry sector has contributed to the growth of the company. The marketing strategy entails building good relationships with the grocers. The relationship is based on establishing partnerships to build their businesses (Siddle 2015, p. 2). GM marketing strategy also includes building of own label wines that are also distributed in the cash and carry. In addition to the branding strategy for their wines, and the successful cash and carry strategy, GM Drinks also works with major multiples. The strategy of working closely with the major multiples ensures that the company enjoys targeted services to reach many customers. GM Drinks also uses the platforms of Amazon and Majestic to sell wines (Siddle 2015, p.2).

GM faces competition from many wine importers and retail distributors in UK who have established their market presence. Different distributors have different marketing strategies. The commonly used marketing strategies include the use of discounts, branded stores and extensive advertisement by use of internet and mass media platforms (Donnelley 2010, p.8). The technological developments on internet have also created new platforms in which wines distributors market their wines. An example of key competitor in the wine sector is the Waitrose, which enjoys a market share of 55% (Donnelley 2010, p.10). Unlike GM that leverages on cash and carry strategy, Waitrose has different strategies. Key to the strategy is the use of media to market its wines. The media messages strategically posted on the high profile impact sites. By the use of the media messages, Waitrose has reinforced quality cues for its wines and created brand stature. The use of mass media such as television increased the coverage of Waitrose brand among the key target customers (Donnelley 2010, p.9). In addition, Waitrose has a loyalty scheme that ensures that that allows its loyal customers to receive discounts and stand a chance to win special prizes.

The core marketing strategy for GM Drinks is the establishment of close relationships with customers and working with the right wineries and ensuring the products are placed on platforms of right companies. The unique marketing strategies have paid off and enabled GM to overcome the stiff competition from big companies such Waitrose. For instance, in 2014, the company recorded sales increase of up to 13% and distributed over one million bottles despite being in operation for three years.

References

Marketing Society, pp. 2-14. Accessed from,Waitrose Marketing Excellence: Transforming Performance through Perceptive Brand Extension.Donnelley, R. 2010.

February, 2014]th [27file:///C:/Documents%20and%20Settings/user/Desktop/stella1/marketing%20excellence%202%20waitrose%20case%20study.pdf

Siddle, R. 2015. GM Drinks Shows How Cash And Carry Sector Can Be Key To Sales. London: Harpers, pp. 1-2. Accessed from,

http://www.harpers.co.uk/people/gm-drinks-shows-how-cash-and-carry-sector-can-be-key-to-future-sales/511614.article
[27th February, 2014]

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