Ch. 18 - Sales Promotion and Personal Selling

      

      Fine wines and champagnes are generally not the kind of items that average consumers purchase with coupons, rebates or special offers. Dom Perignon is no exception, and consumers often find themselves paying full price when purchasing this coveted champagne. Because Dom Perignon is a luxury brand item, marketers for the company are weary about lessening the brands name by offering significant discounts on their product. Although Dom Perignon does not subscribe to sales promotion directed at the consumer, it does offer sales promotions when dealing with their wholesalers and retailers. Because Dom Perignon exports most of the bottles that they produce, they are able to offer retailers outside of France cases of champagne less the tax they would normally pay. A tax free discount on multiple cases of Dom Perignon can mean hundreds of dollars saved for retailers and large wholesalers. Nightclubs and restaurants are also privy to this tax exempt discount provided they meet the minimum requirement of bottles purchased.

      Representatives for the wines and spirits of Dom Perignons parent group, LVMH, rely heavily on personal selling and relationship selling in order to ensure that retailers and restaurants keep their products in stock. LVMH also represents notable champagnes and spirits such as Moet & Chandon, Hennessey,  Veuve Clicquot, Belvedere vodka and Krug. Typically, representatives for LVMH will have standing accounts with different wine shops, restaurants, nightclubs or wholesalers that have agreed to stock and sell the alcohols that LVMH offers. These representatives tend to have long standing personal relationships with those who buy alcohol for these different companies. When dealing with a potentially perishable luxury brand item, it is imperative that those doing the buying feel comfortable and secure when purchasing large amounts of expensive alcohol should something go wrong. Through these long standing buyers, representatives are able to network appropriately and gain qualified leads in order to secure more accounts within the given industry. LVMH representatives are then able to do the necessary research and preapproach for companies that appear promising for future accounts.