Media Release
December 7 2009
Research tool to keep wine marketers out of the red
Australian
wine makers will have a better nose for succeeding in the lucrative US
wine market using an effective new computer-based method to predict
consumer preference.
The new ‘Decision Support System’ which operates with simple slider bars
and drop down menus was initially tested in the Australian market and
then in the United States, focusing on red wine in the $12-$40 price
range. Using a range of likely market variables and comparing these with
data from AC Nielson, it helps users predict how well a new or changing
product may fare in sales with changes to price and other marketing
variables.
Test results for this price range in both Australia and the US show wine
style and wine chemistry do not have a big effect on the probability of
purchase for a selection of wines. By far the most influential factors
were brand, origin, packaging, price, and grape variety.
Research and development for the project was carried out as a
collaboration of the University of
South Australia, Australian Wine
Research Institute and the
University of Technology Sydney’s Centre for the Study of Choice (CenSoc),
with funding from the Grape and Wine
Research Development Corporation.
University of South Australia wine marketing researcher
Professor Larry Lockshin said the US wine market is the largest and
most important export market for Australian wine which currently makes
up about 10 per cent of the lower cost market for wine varieties – on
par with Italy’s market share.
“There is great opportunity for producers and marketers of quality
Australian wines to better understand the US wine market and develop
strategies that will see an increase in US sales,” Prof Lockshin said.
“Our US market research revealed that some fairly simple techniques
could help influence sales of higher priced Australian wine, such as
brief on-shelf descriptions of wine flavours, critics’ point scores and
indication that wines had won competition medals and awards, and even
raising price in some cases.
“Our work with CenSoc has been about combining our expertise in
marketing wine with their technical expertise in developing processes to
accurately measure and analyse consumer choice and behaviour.”
CenSoc Executive Director
Professor Jordan Louviere said the new online tool provided a fast
and convenient guide for wine makers to test marketing strategies –
possibly before investing large sums of cash.
“On the left side of the screen are a series of sliders and drop down
menus to set up the marketing conditions for a new or changed variety of
wine,” Prof Louviere said. On the other side of the screen the predicted
outcomes will appear. Over 130 different Australian wines are
represented within the tool.
“From the menu the wine marketer can choose to factor in items such as
price, medals won, alcohol content, provision of on-shelf flavour
description, critical reviews, availability for tasting and more. Any
combination of these and other factors can be selected and adjusted to
help predict the likely success of the product.
“It could tell you whether something as simple as the costly addition
of a gold medal winning sticker to a wine bottle will be likely to
increase sales and by how much. Knowing such things can save a lot of
money, time and heartache.”
Contact for interview
-
Prof Larry Lockshin office (08) 8302 0261 mobile 0417 891 732
Prof Jordan Louviere office (02) 9514 9799
Media contact
- Kelly Stone office (08) 8302 0963 mobile 0417 861 832 email kelly.stone@unisa.edu.au