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.