Posts tagged ‘Resellers’

Two-Buck-Chuck Wine: Are Volume-selling and Exclusives Still Relevant Channel Strategies?

By Beth Vanni, Director, Market Intelligence

I have had the good fortune to marry into a large Italian family — a family of fantastic cooks with very sophisticated palates and a great appetite for good wine. During a conversation with my father-in-law over the Christmas holidays, we discussed what constitutes a good table wine. He reminisced about how his father and grandfather always had a big jug of a (mediocre) Cabernet and drank two glasses with every meal. He lamented, despite his current financially comfortable position, how most families can’t afford a good $25-30 bottle of wine at every meal and how there’s a great market to be had for affordable daily wine. The conversation then led to a retailing phenomenon in the wine business that had caught his attention, and the attention of his other wine-purist (dare I say “snob”) friends.

He called it “Two Buck Chuck” wine, available at Trader Joe’s (a west coast specialty grocery chain). The real wine label is Charles Shaw, a label owned by Bronco Wine Co., currently the 8th biggest wine producer in California. Fred Franzia, the company’s President and a shrewd entrepreneur, has the west coast Napa Valley wine vintners up in arms selling a case of his signature Merlot or Syrah for $1.99 per bottle.. yes, $2.00 per bottle. Under $25.00 for a full case. The Charles Shaw label is sold exclusively by Trader Joe’s stores. Bronco sells 72 million bottles of Charles Shaw label wine every year. Says Frazia, “we had the brand, and the other growers had a huge supply of high-quality wine.” And consumers LOVE it — it’s flying off the shelves at Trader Joe’s by the case. The quality is consistent and more than palatable for non-snob wine consumer, and it’s getting strong ratings including a 10/10 rating from http://www.CheapWines.com. So, what’s the relevance of all this to IT products being sold through indirect channels? A fair question… let me explain. (more…)

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January 11, 2010 at 9:23 pm Leave a comment

The VAR 500:Strange Bedfellows

Beth Vanni

Beth Vanni

I’m so glad I get time to sit on airplanes. Really. It seems to get the unlikely place where I get the best, most cogent reading done, while locked in those tiny seats. This morning that reading involved the much-awaited CRN VAR 500 issue (May ‘09) – OK, I’m a little behind….
So, there are three things I’m usually interested in with this issue;
1)  Who’s in the top ten?
2) how many new entrants have made it onto the list?
3) What the average year-to-year growth rate is of the overall group?

Granted,I’m still waking up to my first cup of Southwest Airlines coffee and I’m trying to glean a couple of these three things. But, immediately I have to do a double-take. It’s in the second sentence of the article. “The figure ($597,588,818,754 – total VAR500 annual revenues) is roughly $200 billion (yes, billion) more than last year’s number, largely because of the inclusion of the vendor services arms.” Huh? The vendor’s services arms?southwestairlines

Vendors were placed on a separate list of 25 in 2007 and 2008 and called “the Vendor Top 40” listing. The publication explains that the vendors were reintegrated onto the list, “recognizing their value as solution providers.” Well, yes, vendors add a lot of value to the IT market through their technologies and services. And, through the customer reach and services of their channel partners. But, isn’t putting the vendors’ own direct services divisions in clear and direct ranking competition with their very own channel partners IN A CHANNEL FOCUSED PUBLICATION pretty much heresy?   Now, I’m smart enough to understand that one size doesn’t fit all.  Would anyone really argue that IBM Global Services is a major force among independent global systems integrators in the IT market?  No, unless they wanted to forfeit their job.
(more…)

June 25, 2009 at 12:18 am Leave a comment

5 Year-Olds Playing Soccer

By Diane Krakora.

I was in Las Vegas, yet again, for the start of yet another conference season. You’d  think because I met my husband at a conference in Vegas (at N+I 15 years ago) that I would have a fondness for this place.  But I don’t.  It’s noisy, smoky and usually hot, which I like, but it is actually cold this time.  No matter, most likely I won’t be going outside for the three days I’m here.

I’m here for the HP America’s Partner Conference (APC). As I waked into HP CEO and Chairman Mark Hurd’s keynote the evening prior to the start of the conference, the band was blaring and the room was packed with anticipation.

(more…)

March 20, 2008 at 7:25 am Leave a comment


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