8 Flashcards
Identifying the target consumer
Not all products will appeal equality to all consumers
- need to identify the type of consumer that the product is aimed at so that the marketing strategy can be tailored to their wants/ needs
- a product that does not provide something different will have limited successes
Analyzing the current market
- consider both internal and external market forces
- objective analysis of the health of the business
- consider current and potential customer trends
Most common is SWOT strenght, weakness, opportunities, threats
SWOT analysis – Strengths
-Competitively priced
-High quality
-Unique wine
- Strong customer base
- Broad market
- Highly skilled/knowledgeable
SWOT analysis – Weaknesses
- High production cost
- Limited marketing activity
- The wine not widely know outside its region of production
SWOT analysis – Opportunities
- new & growing markets
- gap in market for new products of different price points
-market trends
-week local currency, making
SWOT analysis – Threats
-competitors
- possible changes in legislation
- changing tastes
Consumers over social health & impact of alcohol
Market segmentation
Groups of consumers who will be attracted to their product and tailor the product and the marketing of that product to them
Aim is to choose a group who have sufficient similar preference and needs to create a meaningful market and can be targeted by co.
Segmentation is often based on variable which include:
B a D G a P
Behavior
Demographic
Geographic
Psychographic
Segmentation based on geographic variables
Relate simply to where the consumer live
Country, region, city
And whether they live in an urban or rural area
-usually these are too broad and cover too wide a range of people to be meaningful
Segmentation based on Demographic variables
Age Gender
Ethnicity Family status- single, children
Income Level of ed- college? Masters?
Occupation Socioeconomic
Status- individual or family’s position in society relative to others based on their income, level ed and occupation
Segmentation based on psychographic variables
lifestyle- people who go out to eat & drink, health conscious
- personality-people who show off wealth or knowledge
- value and beliefs- vegetarians, prefer products that are organic, environmentally friendly, Fairtrade
-Interests – interested in wine from a particular country or region?
Segmentation based on behavior variables
-what BENEFIT (e.g. quality, value for money, prestige)?
-WHEN buy (e.g. regularly, only on special occasions)?
- WHERE buy (e.g. supermarkets, specialist wine retailers)?
- HOW often, WHAT volume, brand LOYALTY?
- level of INTREST (e.g. enthusiast, moderate interest, indifferent)?
- early adopters (i.e. people who are keen to buy new products when they come on to the market) or late adopters?
Define High-involvement consumers?
- have a deep interest in the wine they drink
- Are keen to try new products
- tend to spend more on wine
Define Low-involvement consumers
- have little interest in the detail of what they drink
- stick to a few products that they know
- unlikely to spend on wine
Consumer segregation created by Hall
Segregation based on wine tourism
1 Wine Lover - those w/ great interest in, knowledge of, high income and high education
2 Wine Interested- those w/ great interest in wine, moderate wine knowledge, college ed w/ moderate income
3 Wine Curious - those w/ a moderate interest in wine but limited knowledge, moderate income, and med level of ed, they see wine as an opportunity to maintain social relations
Wine Intelligence segregation model known as Portraits
Name the US Portraits?
E M P ty B a S K e t
Experienced explores Bargen hunters
Millennial treaters Senior Sippers
Premium bran suburban’s Kitchen Casuals
What is the goal of Wine Intelligence segregation model
- companies pay for access to info to target specific consumers
- make realistic estimates on how many consumers will fit the profile
The Wine Intelligence portrait describes what characteristics of the consumer?
WHO ARE THEY demographic groups
WHY THEY DRINK level of involvement & motivations and behaviors
WHAT DO THEY DRINK wine buying habits
Experienced explores
Who are they? – aged primarily 35-54, higher spenders who are confident in their wine knowledge
Why do they drink? Wine allows them to relax or socialize w/ friends and family, it’s a regular treat for them
What do they drink? -large repertoire, and enjoy trying new styles and regions
Millennial treaters
Who are they? Frequent and adventurous wine drinkers, highest spenders
Why do they drink? Wine is a part of their social lives; they enjoy it as part of their lifestyle and its good for their image
What do they drink? – open to a large repertoire, enjoy trying new styles and regions yet with limited awareness of brands
Premium bran suburban’s
Who are they? – frequent, core wine drinkers from across the US and across all age groups
Why do they drink? – a glass of wine at the end of the day is a frequent treat
What do they drink? Looking for good value everyday wine and know their brands
Bargain hunters
Who are they? Older drinkers, more preoccupied w price and looking for a cheap deal
Why do they drink? Drink wine infrequently, mostly at home
What do they drink? Tend to stick to easy choices in terms of brands and varietals
Senior sippers
Who are they? Older, less frequent wine drinkers, low spenders, unconfident and unknowledgeable
Why do they drink? A relatively affordable and healthy choice for an occasional drink
What do they drink? Consume from a narrow repertoire that is driven by low prices
Kitchen casuals
Who are they? Middle aged or older and infrequent wine drinkers, typically disengaged w/ the category
Why do they drink? To relax at home w/ an informal meal
What do they drink? Consume a narrow repertoire that is driven by low prices
Define market research
- Is the gathering and analysis of data about a particular market segment in order to understand what that segment wants or needs
- can be useful during all stages of the market process
- understand if there is a need for the product and if so what features, how much would they pay for it?
- important for creating a market strategy
- confirm approach to segmentation is accurate
In developing the aim of market research, what question should be asked?
-
what information is needed:
e. g. what price are consumers prepared to pay for a particular product? -
from whom will the researchers gather data:
e. g. a small group of consumers from a particular segment or a cross-section of the public? - how will the research be carried out
Examples on how market research can be carried out?
*survey – a series of questions designed to investigate the opinions, feelings, actions or behaviors of a large group of people.
*focus group – a small group drawn from the relevant consumer segment, brought together to discuss and comment on the topic being researched.
*interviews – one-to-one discussion of the topic being researched.
*observing consumer behavior –
*secondary research – research is carried out by using data already available in the public domain or available as a report from a mkt research co
What information can be utilized by observing consumer behavior?
- useful to determine the wants and needs of consumers
- may be useful in the marketing process to monitor the success of a campaign
- make adjustments to campaign
How can marketing influence a consumer’s behavior?
-considering the product itself
- bring attentions to a need/ want
- direct consumer -where to buy that product, reduce effort
- highlight the selling point of the product -luxury status, organic
- influence the evaluation of the alternatives
-understanding what appeals to a target, their lifestyle, influences their decision, can be useful to ensure marketing strategy
What environments are there to observe a customer’s behavior?
-Watching customer -how move around the shop
-interact with other customers – retail / hospitality staff build loyalty w/ customers
-store loyalty cards- record of purchases
-web analytics
- how long did a customer visit, spent money on the page
- lighting, music, décor in a shop/ restaurant.
Key marketing objectives include?
T A S P
1 what TYPE of marketing strategy does the company want to pursue
- what are the AIMS of the marketing strategy
3 how will the SUCCESS of the strategy be measures
- within what time PERIOD should the objectives be achieved?
Key Marketing objective
-what type of marketing strategy does the company want to pursue
The more clearly defined the objectives, the easier to analyze:
1 Undifferentiated or mass- appealing to whole market, or large section, with a single product- branded wines in supermarket
2 Niche- aiming a product at a specific segment of the market
3 Multiple – either appealing to numerous segments w/ 1 brand
(each segment will potentially require different mkt approach)
-or launching several brands each targeting different sgmts
Key Marketing objective
-what are the aims of the marketing strategy-examples include?
launch a new product
communicate improvements to existing product
increase sales
increase market share
improve brand awareness
improve brand identity
attract new consumers
Key Marketing objective
-how will the success of the strategy be measures- examples include?
Profits
Value of sale
Market share?
Key Marketing objective
-within what time period should the objectives be achieved?
A short-term strategy
Vs.
Several years strategy?
Another important element is budget
