Table of contents
Guido Berlucchi & Co. SpA is one of Italy’s leading sparkling wine producers. After years of outstanding success, the company finds itself facing a stable market, with competition becoming even more intense, distribution more complex and consumers more sophisticated. The executive Committee is convinced that the strategy that drove the company’s development in its first 40 years needs to open up a new growth path, thus this marketing plan for the strategy for the upcoming three years. External Analysis
Approximately 35% of the 313,000 million inhabitants of the U.S. drink wine at a per capita rate of 11.5 liters. In terms of demographics 69% are white, 14% Hispanic, and 11% African American, with the remainder 9% from other races. The average age of the American wine consumer is 49, with Millennials making up 26% of wine consumers, generation X-ers aged 35-44 at 19%, ages 45 to 54 at 21%, and those over 55 at 34%. 24% of wine consumers in the U.S. have a college degree
Segmentation by frequency
Wine consumers are divided into two categories, core wine drinkers and marginal wine drinkers. The core group drinks wine once a week at least and represents 57% of wine consumers whereas the marginal group has a glass of wine in a time span ranging from once every 2 or 3 months to 2 or 3 times a month. 38% of all wine consumers have a glass of wine more than once a week and are considered to be the high frequency wine drinkers.
Segmentation by age
Thirty two percent of baby boomers (47 to 65) have a glass of wine compared to 17 percent in 2005. 62 percent of Generation X-ers (aged 35 to 46) are core wine drinkers, compared to only 43 percent in 2007. 6 percent of Millennials (aged 17 to 34) drink wine on a daily basis, 26 percent of them drink wine several times a week and 19 percent drinks once a week on average. This comprises the core wine drinking segment of Millennials, accounting for 63 percent of them compared to 37 percent in 2007. There is a significant difference between younger Millennials (17 - 25) and older Millennials (26 – 34). Older Millennials consume wine with greater frequency, consumed more glasses of wine per drinking occasion (2.92 glasses on average) and were found to be highly experimental as 89% of older Millennials frequently purchase wine of an unfamiliar brand. Also interesting is that 60 percent of older Millennials found “fun and contemporary” looking labels of great importance when choosing wine to drink at home compared to just 31% of Baby Boomers. All Millennials and high end wine drinkers throughout the Generation X and baby boomers often visit wine related web sites and Facebook pages or follow wine twitter accounts. The generational differences are also noticeable in the preference of domestically produced wines and imported wines. * 63% of Millennials, (70 million consumers), are reported to either “primarily drink imports” or “equally drink imports and domestics” * 43% of Generation X members (44 million consumers) report the same preferences * 32% of Baby Boomers (77 million consumers) report these preferences
Segmentation by geography
Wine consumption per person is lowest in the Midwest where 13% buys 4 or more bottles per month compared to 24% in the South, 25% of those in the North East and 29% in the West where 10% of the adult population even purchases 11 or more bottles per month. The top three states for Wine consumption are California, New York and Florida. The top three emerging markets, where the capita per wine consumption has grown the most over the past three years are Texas, Illinois and New Jersey Western states, especially those that produce wine locally such as California, Washington and Oregon, have proven more likely to favor...
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