D2C10 Analyzing Market & Identifying Consumer

Question 1

What do you need to cover to identify your target market?

Answer 1

• You need to do some sort of segmentation
• You need to do market research
  
  • Formal research (available for purchase)
  • Informal research via observation of customer behaviour

Question 2

What is the aim of segmentation

Answer 2

• Identify the customer
• How much the customer is prepared to pay
• Where the wine will sell
• How should the wine be marketed.

Objectives of segmentation thus:

• Understand the needs and wants of customers and then segment those with sufficiently similar preferences
• Choose a group or segment that can be targeted by companies
• Segment size should be small enough to focus a strategy around it

Question 3

What variables are segmentation based on

Answer 3

4 sets of variables

Geographical

• where they are located

Demographic -

• age, gender, rce, family status, income, education, occupation, socio economic group

Phsycographic

• lifestyle, personality, values, beliefs, interests

Behavioural

• benefit / value sought, where they shop, level of brand loyalty, interest in wine (enthusiast/in between/ indifferent) ; early or late adopters

Note

• people who share psychographic /behaviourial characterists are more likely to behave similarly than people who live in the same area or are of the same age group.

Question 4

Typical segmentation groups already available and analysed.

Answer 4

There is no perfect model for segmentation.

Wine industry commonly uses high and low invovlement consumers

High Involvement- deep interest, keen to experiment, tend to spend more

Low Involvement - little interest, stick to a few options, do not spend more than the minimum they have to

Further examples

Hall:

Wine lovers - interested, good knowleldge, good income, good education

Wine interested - interested, mod knowledge, university educated, moderate income.

Wine curious - mod interest, limited knowledge, moderate income, med education, wine is a means to maintain social relations.

Question 5

List the US portraits based on the segmentation model of Wine Intelligence in 2018

Answer 5

(who are they, why do they drink wine, where do they buy it and what do they buy?

Engaged explorers

• Who?: young, confident wine drinkers, enjoy new wine
• Why wine?: Wine is part of the lifestyle - they spend time and money
• Where? The drink in shops, wineries, they are the highest spenders both on and off premise.
• What? Broad repertoire, enjoy new varieties / regions / styles

Premium brand suburbans

• Who?: Mid / old age; frequest drinekrs; lower spending knowledgeable
• Why wine?: Enjoy wine socially on premise for casual dining
• Where? Supermarket shoppers, previously known wineries, often in bulk for value
• What?: Broad repertoire, not experimentors, prefer domestic regions and know what they like

Contented Treaters

• Who?: Intelligent , high spending, know what they like
• Why wine?: infrequent drinkers, enjoy sociably treat to pair with dinner
• Where? Liquor stores, wine shopes and wineries to stock up
• What? More maintstream, not experimentors, prefer domestic, know what they like

Social newbies

• Who?: young, freq drinkers, rely on recommendations
• Why wine?: often drink on premise, social situations, friends and fam
• Where? conveneince drinkers at any location
• What? explore options, enjoy trying niche carieties and regions

Senior Bargain hunters

• Who?: Infreq drinkers, the oldest, good knowledge
• Why wine?: low confident in knowledge so they drink at home
• Where?: supermarket, value driven
• What? narrow repertoire stick to what they know, despite knowledge

Kitchen casuals

• Who?: very infrequent drinkers, the oldest and little interest
• Why wine?: dont understand much and little interest to learn, mostly drink at home informally
• Where?: supermarket, highly price conscous
• What? narrow repertoire, stick to what they know.

Question 6

Why is market research necessary and what information is collected for this purpose?

Answer 6

Objective and benefits of market research include:

• Gathering and analysis of data on segments - understand wants/needs
  
  • NB tb clear on objectives of the research - so one gets the right data and right analysis
  • include: what is needed, from whom, howit should be collected (focus grp, interview, survey, observation, secondary research)
• This data is useful -
  
  • before starting work on a new product - understand demand, what product, what price
  • in creating the strategy - it will confirm the approach before starting an expensive campaign

Another way of doing market research:

Observing consumer beaviour

• might be helpful to find out needs and wants
• might be useful to monitor the success of a campaign
• methods include
  
  • obeserve customers in store
  • store loyalty cards
  • nteraction with other customers
  • web anayytics

Note

• marketing van influence behaviour
  
  • focus or draw attention to…. (something the cons did not previuosly know they wanted)
  • can direct to where it is available - reduce the effort to find)
  • highlight selling points (luxury status, organic grown, competitive price) - thus influence evaluation and buying decision.

Summary think Cookie

• Understanding what appeals to the target consumer,
• where they shop,
• what they read and watch and
• what can influence their purchase decision
• is very useful data to ensure arketing startegy is as effective as possible.