Ch. 8 - Segmenting and Targeting Markets

   
     When it comes to segmenting the market, Dom Perignon relies heavily on their centuries of experience in dealing with specific target markets to appropriately market and sell their champagne. It is important that marketers for Dom Perignon assess their market segments carefully so as not to waste time attempting to sell to the wrong groups. Specifically, marketers for Dom Perignon are mostly concerned with geography, age and income. Marketers for the company know that in terms of geographic segmentation, luxury champagne will inevitably sell better in certain locations versus others. For example, a high end restaurant in Las Vegas is far more likely to exhaust a case of Dom Perignon than a restaurant of relatively the same caliber in Nebraska. Marketers know that restaurants and wine shops in large cities, such as Las Vegas, tend to sell more champagne because of their larger populations and generally higher income. That is not to say that high end restaurants in more rural areas like Nebraska should not be targeted, however marketers know that they must put forth more effort in high-density areas in order to ensure more sales and subsequently higher profits.
      As with the marketing of any alcohol, market segmentation in terms of age will always be an important factor. In the US, legal drinking age is 21 and therefore alcohol must be marketed to this group specifically. Not only is it illegal to market alcohol to minors, it is also a fruitless endeavor on the part of the marketer. If Dom Perignon were to market their product to those under 21, even if the marketing were successful, the target market would be unable to purchase the product by law.
      Perhaps the most important factor in determining market segmentation for Dom Perignon is income. Because Dom Perignon is a luxury brand item, and therefore very expensive, the income of those being marketed to must be highly considered. Dom Perignon is marketed to only those who can afford it, namely the upper and upper middle class. Dom Perignon has made it abundantly clear who their fiscal target market is, and does not offer coupons, deals or discounts in order to make it more affordable. Their prestigious and specific market is part of the reason they have gained such a favorable reputation in the champagne world.
      Psychographic segmentation is also very important when marketing for Dom Perignon. Potential buyers' personalities, motives and lifestyles are all highly considered. When a consumer purchases a bottle of Dom Perignon, they are inevitably making a statement about the kind of life they lead, whether it is accurate or not. Because Dom Perignon has become a status symbol throughout the world, the consumer is projecting an image about themselves that is prestigious, wealthy and powerful. Personality-wise, the average Dom Perignon consumer is affluent and high-class. Their motives are status-related and their lifestyle is opulent, carefree and indulgent. All of these factors contribute highly to Dom Perignons market segmentation and help the marketer to hone in on a very specific target market.
      Because Dom Perignon is a fine champagne and not just a sparkling wine, they have a niche market in the wine world and have positioned themselves as the pinnacle of excellence. In the eyes of Dom Perignon, they are the end-all-be-all in terms of champagne; a caliber of wine that others companies strive to be. They have positioned themselves firmly at the top, an element of product differentiation that has kept their product in high demand for centuries. As far as Dom Perignon is concerned, they have no serious competition to speak of in terms of quality champagne and therefore have built an empire based on being the business model that other wine producers can only hope to be. Because they have established themselves so steadily at the top of the food chain, there is no room for Dom Perignon to reposition themselves as a company in the near future.

Ch. 11 - Developing and Managing Products

      Recently, many alcohol companies have attempted to introduce new product lines into already existing markets. Companies like Smirnoff and Absolut vodka are creating a myriad of flavor infused vodkas that have hints of everything from whipped cream to jalapeños. Likewise, whiskey and bourbon companies like Jim Beam and Johnny Walker use different distilling processes in order to offer different product lines at different prices. New and interesting ideas can be introduced into these markets because spirit manufacturers are able to develop their technique over time. However, unlike spirit manufacturers, this kind of trial and error strategy does not work for Dom Perignon or for wine producers in general. Because sparkling wine is such a niche market, it would be unwise for producers to jeopardize Dom Perignons reputation by attempting to make it new or different. It harkens to the saying "if it ain't broke, don't fix it". Dom Perignon is committed to creating the best tasting champagne in the world, therefore they are constantly striving to improve their product any way that they can. While each vintage is unique in its own way, that does not mean that each vintage is necessarily a new product. Because wine makers rely on the quality of their grapes to produce a superior wine, a large part of the production is heavily reliant on factors that are out of the producers' control.  Climate, insects and vine rot are all variables that producers take precaution against but are unable to fully eliminate. It is for this reason, that Dom Perignon must take extra care to produce a quality wine. Once a harvest is used up, it is gone forever and marketers for Dom Perignon fear that if the outcome of a new product is unfavorable, they will inevitably lose money on a product that could easily have succeeded had it not been tinkered with.
      It is not to say that Dom Perignon produces one product and one product only however. Prices for the champagne do vary, and if the grapes have a particularly good year, the price for that vintage goes up substantially. However, as mentioned earlier, these are not new products and the quality of a vintage is based largely on the climate in the region at the time of harvest. To ensure a well rounded product line, Dom Perignon  currently offers a rose varietal, a vintage 2003 and an oenotheque. Each style of champagne varies in price and bouquet, ensuring that there is something for every potential buyer. Occasionally, Dom Perignon will use collaborations with artist types in order to liven up the sale of a vintage. Again, while not a new product, it is a way to reconfigure the brand image and potentially attract new clients to Dom Perignon.