Raventos I Blanc Competitive Position (Swot)

Raventos i Blanc’s competitive position Raventos i Blanc’s brand was built on strong values such as high quality, uniqueness, character of the wine, property of the vineyards, tradition and heritage of a family business, perfection and innovation even if the low size of the business limits the investments in innovation and technology. From the competitive perspective, the company has two different positions in the Spanish market and in the external market. In Spain, Raventos i Blanc’s brand was perceived as a prestigious medium-high quality brand among a select niche market (“97% of cava consumption in Spain is for making toast.

We are in the remaining 3%” – Manuel Raventos) also thanks to the classification as a Vino de Calidad Producido en una Region Determinada (VCPRD). Despite of this the brand was not generally well known. It was sold mainly through distributors (50 in Spain that counted for 80% of the company income) that in turn sold the products to restaurants (mainly) and specialist shops and supermarkets with a gourmet section but not in the large chain and in hypermarkets. The restaurant selected were medium-high-end restaurants.

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The other 20% of the company’s sales derived from direct sales. As for abroad, Raventos i Blanc’s brand was even less well known and for this reason faced the completion of lower quality sparkling wine. Foreign countries count for 14% of the company’s turnover thanks to the fact that Spanish wines had a good reputation abroad and Raventos i Blanc was one of the few companies marketing wines and cavas under the same brand name. Abroad sales were managed trough 40 importers choosing more specialized distributors in the mature markets.

Raventos i Blanc’s position and the cava market situation can be represented like this. STRENGHTS ? Brand image based on tradition and Experience ? Vino de Calidad Producido en una region Determinada (VCPRD) ? Family business with its own grapes ? Unique wine’s character and experience ? High quality sparkling wine (Champagne method) ? Prestigious brand in a niche market ? Wine generates volume and revenues in restaurant markets ? Production and distribution synergies between cava and wine THREATS ? Cava business is highly seasonable ?

Highly concentrate market in Spain ? Champagne leadership ? Cava seen as low-price product in most of the mature markets ? Some consumers look only for prestigious and exclusive products ? Different degree of regulation in the different markets WEAKNESSES ? Low brand recognition, especially abroad ? Nationally, not well-known. Abroad, even less ? Limited size and volume of production (no economies of scale) ? Compared to competitors, limited resources to dedicate to innovation and technology ? Focus on Spain (80% sales) ? Limited knowledge of the consumer ?

Limited control over the distribution and sales ? Dependence on the revenues coming from wine OPPORTUNITIES ? Premium cava brands sold in specialist outlets or restaurants ? Recommendations are key when consuming cava in restaurants ? Segment of consumers that look for high-quality product, with tradition and history, not brand image ? Spanish wine means good market acceptance and reputation ? Markets such as France and Italy, even if very competitive, are characterized by expert and demanding customers very aware of product quality