Postgraduate courses
MANAGING THE WINE BUSINESS FOR PROFIT
Subject Code: BUSS5083
School: Marketing
Introduction
We would like to welcome all the students studying Managing the Wine Business for Profit. This subject is an integral part of our Postgraduate Studies in Wine Marketing. Often marketing is about doing things in order to make sales. We don't always teach or consider that marketing activities cost money and must repay the expenses, as well as show a profit. It is the aim of this subject to show students how wineries earn money, and to link that to the marketing planning.
This subject is very hands-on, in that you will be in effect 'managing' a simulated winery. We are also asking students to work on the assignments in teams as a way of simulating work groups in industry.
Course Statement
Managing the Wine Business for Profit is a specialist subject designed to improve the participant’s understanding of the financial health of the wine business. The subject also covers the basics of costing wines within a portfolio. Marketing managers must make decisions based on the costs and cash available for the products they sell. It is no good increasing the size of a brand if it isn’t making any money or try to axe a line that is. But often marketing managers don’t have a clear picture of the actual costs. However, costs are not written in stone. Many of the costs in a complex winery operation must be allocated; and the allocation can be done in different ways, each of which affects the final costing. So marketing managers must understand the basics of the allocation procedures. The course then leads to using the cost information to developing a brand plan and the necessary cash flow to develop that plan. In this way Managing the Wine Business for Profit is a realistic exercise in marketing management for a medium sized wine company.
Aims
Students completing this subject should understand the different methods of costing individual wines in a portfolio. They should be able to understand basic financial statements and cash flows of a wine producing company. Finally, students will be able to integrate this knowledge with brand development in order to budget for future expenditures and sales.
Learning Objectives or Outcomes
Each study module has a specific set of learning objectives. On completion of the subject, the student should be able to:
- Understand the basics of cost accounting, including activity-based accounting.
- Be able to read and understand basic financial statements relating to wine production and sales.
- Be able to estimate the cost of production for individual wines in a portfolio.
- Understand and develop cash flow statements.
- Develop a good understanding of brand management in the wine industry.
- Be able to link the branding and marketing needs of a winery with the cash necessary to implement those plans.
- Be able to justify budgeted marketing expenditures.
Hours of Study
Students will be expected to spend at least 8 hours and no more than 12 hours per week working on material for this subject. In this time you are expected to cover reading, written work (electronic) and research before and including the completion of the assignment work.