What Generation Y Have Become One Of The Biggest Growth Areas For Wine Businesses Essay

The winery industry can be categorized into red and white wine segments. The red wine segment, measured by tonnage of varietals crushed, has grown at a compounded annual rate of 4.7% for 10 years from 1989 to 1998, and a year over year growth rate of 8.2% from 1998 to 1999. Judging by the strong growth rate experienced in the red wine segment, it is reasonable to conclude that the red wine segment is in the growth phase of the life cycle model. In addition, production of red wine varietals which are relatively unknown such as syrah and sangiovese nearly doubled in a year from 1998 to 1999. The white wine segment, however, is at the mature phase of its life cycle as the segment shrunk slightly by 0.42% from 1998 to 1999. Overall, the industry is still at the growth stage lead by growth in the red wine segment.

The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition

Baby Boomers are the most powerful demographic group in history. Businesses thrives or fails based on their ability to keep pace with the likes and dislikes of this economic powerhouse known as the baby boomers. At 76 million strong, boomers have the influence to rule the marketplace and make sure they keep a place set just for them as the

The scope of the innovation expertise that New World wine producers have is value-chain wide in scope, and in-depth enough to completely re-order manufacturing, fermentation, distribution channel, pricing, marketing and customer service (Cholette, 2009). New World wine producers

The first of three issues the network was obligated to focus on was customer acquisition. The growth of users, both individuals and wineries, on the network is what supported the growth of the network and community. In fact, without the user base, there would be no growth of the network and no revenue generation. It was evident that neither Vaynerchuk nor Ronga knew how to draw individual users or wineries to the network and consistently reinforce growth in this area. In particular, there was a lack of understanding of the growth relationship of individual users and wineries such as balancing recruiting efforts and the ability to grow the two groups simultaneously. Also, the resources that were used in the case of recruiting were heavily dedicated to recruiting wineries and not even with individual users. Though, they had periods of strong user and winery growth that were defined by the marketing strategies that they used. However, it was not enough in drawing long term growth of the network. Thus, equivalent strategies surrounding individual users and wineries should have been present in the Cork’d case.

In 2001 there were over 1 million wine producers worldwide, and no firm accounted for more than 1% of global retail sales. Because of this, it would be nearly impossible for the Robert Mondavi winery to dominate sales in any region. Due to Mondavi’s efforts, the winery became one of America’s most innovative,

This industry has seen very limited growth since 1986. Based on Exhibit 4 (C-271, the total wine consumption in the US) and Exhibit 5 (C-271, per capita wine consumption in the US) the wine industry is in the maturity stage. It could

Chateau Margaux is one of the five first-growth Bordeaux wine producer; it and has one of the finest names of Bordeaux and the number of drinkers worldwide is growing through the years. Chateau Margaux’s wines are used by the connoisseurs and luxury consumers. They are facing an uncertain future, because of losing market to New World producers (such as California, Australia, South Africa and New Zealand) which have lower prices and more accessible flavours. Nowadays wine drinkers are changing tastes, which could cause a big problem.

In the most recent years, domestic sales of wine has declined constantly. The wine consumption is becoming more occasional. This is partially due to an aggressive anti-alcohol campaign and driving restrictions set by the local government, but also facilitated by a lack of marketing strategy: the wine market is loosing touch with the youth (the average age of wine drinker is gone up from 35 to 55) and young people are getting more keen to beer or alcohol pops.

Looking at what is commonly referred to as Generation Y might therefore be an insightful way to discuss how the recent epoch changes to the economic, social, political and technological context in which individual and society exist. Generation Y is a term used in the popular press, company research and some academic research. Organizations have started to recognize that Generation Y is somehow different and have started to find out how they are different. Although Generation Y is one of the more popular terms for this generation, there are various other terms and names have been applied to it,

The millennial generation has become known as the most technologically able group based on their connectivity with the digital world. This causes businesses to take different approaches on marketing to them. Millennials cannot be marketed the same way other generations could due to how differently they perceive technology. Millennials also have a different perception of marketing, wanting to be involved in the process of a product. Theorists including Michael Serazio, Don Tapscott, and Katherine Taken Smith believe millennials are changing the way products are made because of their involvement. However, there are others such as Trebor Scholz and Tiziana Terranova who believe that this is an example of free labor in the digital world. As a result, Businesses in the commercial market must understand who millennials are and how important interaction is to them in order to keep them as customers.

Consumer segmentation in the wine industry takes on many forms: demographic, geographic, behavioral, and others+ In the United States, one of the most promising new demographic segments is the

Nowadays, in the “Old World” countries of Europe, where the bulk of the volume is still produced, this is of great concern. However, consumers, especially younger drinkers, prefer the high quality wine from famous brands which are imported into Europe by the “New World” player, and the growth rate is at average10% per

This paper will outline an executive summary of a marketing strategy of a new wine brand to a targeted audience that will incorporate the buyers motivation, psychographics, and demographics. A description of the overall marketing strategy will include advertising, customer relationship manager and a Public Relations campaign. Finally, a an overall strategy to position the brand against the competition will be outlined.