Venture Concept
To explain my venture concept I
will divide this report into three sections. The first section will pertain to
the Opportunity that I am fulfilling. The Second Section will incorporate the
elements of Innovation that run alongside my project. The Third section will
map out how I plan to use my Venture Concept to take advantage of said
Opportunity. This assignment gives the reader a good idea of how I plan on
taking advantage of a market where an opportunity is present.
The Opportunity that exists is a lack
of sufficient alternatives. Most wine drinkers that are ages 21-30 tend to buy
their wines at the supermarket. After interviewing many millennials on their
wine habits I also have discovered that they usually don’t pay more than fifteen
dollars for a bottle of wine. The shelves at the supermarket are stocked with
Californian wine. It is hard to compete with Californian wines in the current
market. There is too much competition. The opportunity is to introduce a French
wine that can beat the California wine in price, environmental impact, and
taste with less toxic chemicals. The Forces driving change in the Industry are
increased pressure on companies like Monsanto that control the Food and
Beverage industries. Reports are showing that many of the pesticides used on
Californian wines are leaving residual toxins in the end product. The wine
industry has fed the demand for cheap wine by increasing yield and production
at the cost of our health. I feel that as more reports come in we will have a
movement towards what I like to call “BIO” wines. Bio is the word used in
Europe to describe Organic “Biologically” friendly products. Another
Opportunity that exists is a weakening Euro. The weakening Euro is friendly to
European exportation. I will be able to Import French wines that can compete
with the low prices of Californian wines. The Market is defined both demographically
and geographically. Demographically I have to focus on lower cost wines because
of the Demographics of Gainseville. Geographically
I am comparing California’s Nappa Valley to Frances’ Bordeaux, Burgundy, or
Rhone Valley Regions. Geography is important in the wine industry because the
land is the deciding factor to whether a wine will be good or not. It is a
common practice to add minerals and other nutrients to soil before the grapes
are grown. This practice is not necessary in many regions of France where the natural
weather cycle of the year has been recycling nutrients to produce nutrient rich
land for hundreds of years. I have also noticed in my interviews that the
average American customer is not loyal to the current selection of wines they
now have. Most simply by the wines because of the price and have fallen accustom
to the often sub-par taste. When I mention French wines they feel that they are
not sophisticated enough to appreciate or afford them. Little do they know that
Europeans are drinking wine from the supermarket at 6 dollars a bottle. The
Opportunity is huge but I want to focus city by city. Florida definitely has a
drinking problem which is one of the reasons I would start here. The Vacation
style living found in Florida is a perfect catalyst for a strong wine industry.
The window of Opportunity is open until someone capitalizes on the current
Market situation.
Innovation strategy is a key
element in any business venture. I plan on providing an innovative product in an
innovative way. My line of French wines have been using the same techniques for
hundreds of years. My Venture is Innovative because I’m bringing products that
have never seen the United States. Technology has definitely made the wine
industry more efficient. Most Wineries now have sorting machines where they can
place the grapes through to ensure that only the highest quality grapes are
used for the end product. The Machine vibrates the grape bundles so that all
the dirt and extra stems fall from the grapes. It also lets small malnourished
grapes fall through giving the wine a more uniform/consistent taste. Hybrid vines
are also being used to combat pest issues and weed issues. The new hybrid vines
are also more resistant to periods of drought. My company will make money by
selling each bottle with a certain margin. The price I sell to stores and
restaurants will be enough to pay for the taxes and fees that come with
importation. I will use the majority of my sales to then secure more contracts
and increase shipment sizes.
My Venture Concept is geared
towards bringing in organic French wines to areas where European wine isn’t
present. I will select different wines for cities with different Demographics.
I will meet the demand that exists for exotic wines that taste better and are
better for the environment. Our generation is becoming more aware of our impact
on the environment and I want to be a part of the movement towards sustainable
consumer products. I will have little competition on the low end side of the
price index. I will need to visit more wineries that produce organic wine at
reasonable prices. My biggest competition would come from California wines moving
towards organic. Fortunately I’ll still be able to beat them when it comes to
taste. My greatest resource currently is the connections I’ve made with
wineries that are exporting around the globe just not in the United States.
This experience in the Import/Export business will strengthen my knowledge of
international markets and get me started on a project I am passionate about.
Hope you guys are as inspired as I am. Cheers!
