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Wine Marketing: Different Wine Consumers (2)

In my previous post I used Amazon wine book reviews to look for content that interests wine drinkers. I’ve got my own views on wine segments but 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%)

It suggests that the key segments for local wine retailers are

  • 1. Conservative, Wine Knowledgeable Wine Drinkers (20.9% of wine drinkers)
  • 2. Image Oriented, Knowledge Seeking, Wine Drinkers (22.3%)
  • 4. Experimenter, Highly Knowledgeable Wine Drinkers (19.0%)

Wine Segments – a really short summary relevant to wine retailers

  • Conservative wine drinkers want to be buy wines they already like, no advice needed thanks.
  • Image-Oriented seek information and will believe more expensive wines are better quality.
  • Experimenter wine drinkers are keen to receive advice, will act on a knowledgeable sales person’s recommendation, and like to try different wines.

Wine Segments – a short summary

Segment 1 – Conservative, Wine Knowledgeable Wine Drinkers (20.9%)
The consumers in this segment of the Australian wine market are likely to be

  • tertiary educated males (63%),
  • male/female ratio is 70:30,
  • working in a professional capacity
  • with over half having a total household income in excess of $75,000 per year.
  • These consumers demonstrate connoisseur-related tendencies,
  • are interested in the provenance of the wine they drink
  • and are involved in wine storage and preparation for drinking rituals
  • they are likely to have a cellar at home or some other space used solely for the storage of wine
  • and they use the correct glassware, decant their wine and check it for spoilage prior to consuming the wine.
  • They derive enjoyment and satisfaction from drinking wine
  • and approximately 40% of them drink wine every day.
  • These consumers display a good knowledge of wine and wine-related matters.
  • When purchasing wine, the occasion during which the wine will be consumed plays a role in the purchase decision.
  • They are somewhat reluctant to purchase wines that they have not tried before
  • and they do not seek information or advice when purchasing wine.
  • Rather, they tend to rely on their own knowledge and beliefs and hence their purchases could become ‘stereotyped’ – they are likely to purchase similar styles of wines over the years and do not exhibit variety seeking or experimenting behaviour.
  • Their purchases are rarely spontaneous, although they have a wide selection of brands from which to choose. Their preferred retailers are fine wine specialist stores.

Segment 2 – Image Oriented, Knowledge Seeking, Wine Drinkers (22.3%)
Consumers in this segment share many of the characteristics of the previous segment. They are likely to be

  • tertiary educated males (65%),
  • male/female ratio is 80:20,
  • with over half having a household income in excess of $75,000 per year.
  • They also display connoisseur tendencies and are interested in the provenance of the wine they drink
  • and they have a dedicated cellar (or space) for storing wine.
  • They indulge in pre-drinking rituals and about 40% drink wine every day.
  • These consumers have some knowledge about wine and they are actively seeking to further their existing knowledge.
  • One way in which this is manifested is that they take more notice of wine-related media today than they did two years ago, a reflection of their growing interest in wine.
  • When purchasing wine, they seek information about their prospective purchases and are guided by the views of wine writers and other opinion leaders.
  • They are risk averse, as they tend to purchase in accordance with the recommendations of others.
  • They are particularly mindful of the price of the wines they buy, but this does not mean that they buy cheap wines.
  • Rather, they tend to have the view that the more expensive the wine, the better it is.
  • They have been drinking wine for some time, probably since their university days, but they now have the income to buy the wines recommended by others.
  • Their preferred retailers are fine wine stores.
  • They derive a lot of enjoyment and satisfaction from drinking wine and like the image that drinking wine portrays.

Segment 3 – Basic Wine Drinkers (16.8%)
These wine consumers

  • have little time for the rituals and image that often surround the drinking of wine.
  • They drink wine because they enjoy it.
  • These wine drinkers are comparatively well educated relative to the general population, with 40% having a tertiary education,
  • however, their average household income is lower than all but one other segment, with 36% earning less than $50,000 per year.
  • The male/female ratio is 60:40, an indication that the male dominance in the previous two segments is diminishing.
  • When purchasing their wine, this segment does not take into account the occasion during which the wine will be drunk and they seek little information about their purchases.
  • They have a number of safe brands from which they choose their wine – these brands have served their purpose in the past and will do so in the future.
  • Their average amount spent per week on wine is relatively low.
  • They are less frequent drinkers of wine than some other segments.
  • Their preferred retailers are national wine chain stores.

Segment 4 – Experimenter, Highly Knowledgeable Wine Drinkers
(19.0%)
The consumers in this segment

  • share the same connoisseur tendencies and the interest in the provenance of the wine and the associated rituals as segments 1 and 2.
  • What separates them (in part) from those other two segments is their very detailed knowledge of wine and wine-related subjects.
  • This segment had a significantly higher mean general wine knowledge score than the next highest scoring segment.
  • Although they have this detailed knowledge, they have the desire to learn more and are therefore updating their knowledge on a regular basis.
  • They are also likely to be well-educated males (61%), male/female ratio = 70:30, with household earnings in excess of $75,000 per year (57%).
  • The other main distinguishing factor is their approach to buying wine. They like to take a risk when buying wine and they are keen to drink wine that they have not tried before. They are experimenters in their wine buying.
  • They are also keen to ask for advice and seek information about the wines they are considering. This is consistent with their quest for knowledge and their interest in the provenance of the wine.
  • This can also lead to spontaneous buying of wine – perhaps a sales person has recommended a wine and provided information about that wine and this consumer is happy to buy something different based on that recommendation.
  • As a result of this experimenting approach, they do not have a safe set of brands from which they purchase, although it is likely that they become brand loyal to those wines that meet their ‘experimenting’ needs and wants.
  • Their preferred retailers are fine wine stores.

Segment 5 – Enjoyment Oriented, Social Wine Drinkers (20.9%)
This segment has

  • a predominance of female consumers,
  • with the male/female ratio 40:60.
  • Half of the drinkers in this segment have tertiary qualifications,
  • but their average household income is lower, with 36% earning less than $50,000 per year.
  • The average age of this segment is lower than that of segments 1,2 and 3.
  • The consumers have little time for the rituals and image that surround the drinking of wine,
  • but they do derive enjoyment and satisfaction from drinking wine.
  • Almost 40% of these consumers only drink wine during the weekend, which is consistent with socialising and just enjoying a glass of wine.
  • They are less likely to drink wine on a daily basis than all other segments and they have the highest rate of once a week consumers, therefore they could be classified as more occasional drinkers.
  • Their average weekly consumption is correspondingly the lowest of all segments at just over 8 glasses.
  • In their purchasing behaviour, the occasion during which the wine will be consumed plays some part.
  • They seek some information before purchasing wine and they exhibit some variety seeking or experimenting traits, perhaps because of the information they receive.
  • These consumers also exhibit quite strong spontaneous buying behaviour and the packaging and labelling of a bottle is an influence in their purchases.
  • This may indicate that this segment is attracted to so-called ‘concept’ brands.
  • Their preferred retailers are national wine chain stores.

*From: Johnson,  T, & Bruwer, J. “An Empirical Confirmation of Wine-Related Lifestyle Segments.”  International Journal of Wine Marketing Volume 15 Number 1 2003

Trackbacks

  1. […] 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 by the same people who came up with some Drinker Segments (see my post Wine Drinker Differences 2). […]

  2. […] with the other studies I’ve seen in the wine and alcohol beverages industry. See my post on Different Wine Consumers (2) in […]

  3. […] were wine enthusiasts who like to explore little known boutique wines (actually they exist see this post about […]

  4. […] following posts will look at what I consider to be the best published consumer segment study and related to that how consumers reduce purchase […]

  5. […] as per this wine consumer research by Constellation; or Image Oriented and Experimenters in this wine consumer research by Johnson and […]

  6. […] 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 by the same people who came up with some Drinker Segments (see my post Wine Drinker Differences 2). […]

  7. […] particular?Wealthy consumers who will purchase their wine at your local wine store regularly. Some wine research has identified these and called them Experimenters and Image Oriented.Here is a quick […]

  8. […] Machine learning covers scores of different types of algorithms, I’m guessing its normal cluster analysis as used for this sort of study.Kudos to KloutStill, I like the way they do this.Rather than pretend there is only one sort of […]

  9. […] of segmentation based on various studies both proprietary (my own work experience) and published (academic and corporate).The one you choose to focus on will be probably the most important choice you make […]

  10. […] studies on it. Indeed I’ve previously written about two particular studies I admire from Johnson & Bruwer and Constellation Wines.Having commissioned, analyzed and utilized this sort of research I’ve […]

  11. […] following posts will look at what I consider to be the best published consumer segment study and related to that how consumers reduce purchase […]

  12. […] with the other studies I’ve seen in the wine and alcohol beverages industry. See my post on Different Wine Consumers (2) in […]

  13. […] 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 by the same people who came up with some Drinker Segments (see my post Wine Drinker Differences 2). […]

  14. […] were wine enthusiasts who like to explore little known boutique wines (actually they exist see this post about […]

  15. […] as per this wine consumer research by Constellation; or Image Oriented and Experimenters in this wine consumer research by Johnson and […]

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