Market Segment Analysis to Target Young Adult Wine Drinkers
Market Segment Analysis to Target Young Adult
Wine Drinkers
Elizabeth C. Thach
School of Business and Economics, Sonoma State University, 1801 E. Cotati
Ave., Rohnert Park, CA 94928. E-mail: Liz.Thach@sonoma.edu
Janeen E. Olsen
School of Business and Economics, Sonoma State University, 1801 E. Cotati
Ave., Rohnert Park, CA 94928. E-mail: Janeen.Olsen@sonoma.edu
ABSTRACT
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
Millennial or Echo Boomer segment, which is being targeted by many consumer industries due to its size and buying power+ For the wine industry, this group currently fits the legal drinking age range of 21 to 28+ This empirical study describes the perceptions and attitudes of 108 Millennials regarding wine and what the wine industry can do to better market to them in a responsible manner+
Results indicate that there is a need for greater wine advertising to this group utilizing fun, social, and relaxed settings; more innovative packaging and labels; a focus on “value” wines; as well as taste enhancements and environmental emphasis+ @EconLit citations: M310# + © 2006 Wiley Periodicals, Inc+
1. INTRODUCTION
With the recent oversupply of wine on the global market ~ Penn, 2004! and a persistent plethora of new and second or third wine labels being introduced, wine marketing continues to be highly competitive and challenging+ Due to this situation, many wine marketing experts recommend that we need to focus our efforts on finding new populations of wine consumers ~ Baenen, 2002; Cartiere, 2001; Diaz, 2002; Gillepsie, 2005!, rather than just redoubling efforts with existing consumers+
Wine marketers in the United States have primarily focused on the existing population of wine consumers, which are the very large and affluent Baby Boomer generation, at 80 million strong ~ Lancaster &
Wine Drinkers
Elizabeth C. Thach
School of Business and Economics, Sonoma State University, 1801 E. Cotati
Ave., Rohnert Park, CA 94928. E-mail: Liz.Thach@sonoma.edu
Janeen E. Olsen
School of Business and Economics, Sonoma State University, 1801 E. Cotati
Ave., Rohnert Park, CA 94928. E-mail: Janeen.Olsen@sonoma.edu
ABSTRACT
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
Millennial or Echo Boomer segment, which is being targeted by many consumer industries due to its size and buying power+ For the wine industry, this group currently fits the legal drinking age range of 21 to 28+ This empirical study describes the perceptions and attitudes of 108 Millennials regarding wine and what the wine industry can do to better market to them in a responsible manner+
Results indicate that there is a need for greater wine advertising to this group utilizing fun, social, and relaxed settings; more innovative packaging and labels; a focus on “value” wines; as well as taste enhancements and environmental emphasis+ @EconLit citations: M310# + © 2006 Wiley Periodicals, Inc+
1. INTRODUCTION
With the recent oversupply of wine on the global market ~ Penn, 2004! and a persistent plethora of new and second or third wine labels being introduced, wine marketing continues to be highly competitive and challenging+ Due to this situation, many wine marketing experts recommend that we need to focus our efforts on finding new populations of wine consumers ~ Baenen, 2002; Cartiere, 2001; Diaz, 2002; Gillepsie, 2005!, rather than just redoubling efforts with existing consumers+
Wine marketers in the United States have primarily focused on the existing population of wine consumers, which are the very large and affluent Baby Boomer generation, at 80 million strong ~ Lancaster &