I’m going to design some local market research. This will allow me to estimate the most important and sensitive elements of opening this particular wine store. It’s an easy and cheap, but statistically valid, way of doing research. I’ll create some questions, put it into a online survey form (SurveyGizmo), deliver the invitations to a representative local sample, and process the survey.
According to the Wine Market Council 20% of US adults drink wine at least once a week and 14% drink it less often. Project Genome, a wine company research study released to the public, found that 32% of consumers make up 54% of industry profits. Indeed one segment called Luxury Enthusiasts make up 3% of drinkers but 16% of profits. Other research on wine drinkers includes a very good Australian study by Johnson and Bruwer was came up with similar results to Project Genome. Whatever study you use, it generally shows that premium wine tends to be drunk by identifiable segments, and if we understand them better than our competitors then our marketing will be more compelling and successful.
Tony Spawton on why consumers buy wine. He says, ‘the expectations of the consumer varies with the occasion for which the wine is purchased. The wine consumer is promiscuous in brand, price, region and style so to suggest that the consumer is stuck in one category is a fallacy. Consumers are most influenced by the advice of others “people drink other peoples’ wines” a phrase I coined in the late 1980’s. Brand is important as a choice factor and variety is a given. Another phrase of mine is, “the package sells the first bottle the wine maker the second”. The extrinsic attributes need to be distinctive to break though the clutter and jog the consumer memory whether in the retail store or the restaurant.’
We don’t make the purchasing experience easy for consumers. There is an overwhelming number of SKUs to choose from, many labels look the same, the classification by wine origins is not obvious for everyone. For most consumers, it’s intimidating. It has been established that in average, consumers make a wine selection in 40 seconds, [so wine labels] being visible is important (care of Isabelle Lesschaeve, wine researcher).
I’ve just been speaking to a senior wine industry figure and he has pointed out the issues that a traditional wine specialty store has with women. Many wines stores are full of fantastic wine. They accurately reflect what the wine store owner loves, and can speak passionately about if given the chance. However they may not be what half of the market wants, the ‘half’ being women
I stumbled across this 18-month study commissioned by Constellation Wines US on Wine and Vines. Ties in nicely with the other studies I’ve seen in the wine and alcohol beverages industry. Key points for a local wine retailer are: Traditionalists – Shop at retail locations that make it easy to find favorite brands…
Wine Drinkers are often confused about wine. They need to make a decision about what wine to purchase and yet often the quality and taste profile is uncertain – or risky. They take certain measures to reduce that risk including seeking information, tasting, relying on well known brands, and relying on price as an indicator of quality. Some market research has been done…
The best academic research on wine drinkers is an Australian study that I believe is also very applicable to the US, UK and New Zealand. The Segments are: 1. Conservative, Wine Knowledgeable Wine Drinkers (20.9% of wine drinkers); 2. Image Oriented, Knowledge Seeking, Wine Drinkers (22.3%); 3. Basic Wine Drinkers (16.8%); 4. Experimenter, Highly Knowledgeable Wine Drinkers (19.0%); 5. Enjoyment Oriented, Social Wine Drinkers (20.9%)
If we can understand why people buy and consume wine then we can create better ad copy, website content and emails. So I’m doing some of posts on different wine consumers, or “segments”. This wine drinker segmentation is based off analyzing Amazon wine book categories. It provides some excellent ideas on website content.