Seminar 5: Identifying Target Market Identifying

Target Market – Domaine de la Chapelle

29/04/2024
Today’s Seminar

• Bases for segmentation

• Effective segmentation
• Segments for Domaine de la Chapelle
• Positioning statement
Preparation for today

• See NOW for the ‘Domaine de la Chapelle’ case study

• Answer questions at the end of the case for preparation

needed

• What are the bases for Segmentation?

• Identify 3 segments of potential customers for Domaine de la
Chapelle.

(20mins)
What does the Case Study tell us? Issues…

• Wine Lake depressing supply • Wine snobbery

• Years of neglect
• Low value sales for ‘everyday
wine’
• Rules regarding naming and
ingredients (AoC)
• Branding issue – grape,
winemaker or region?
• Higher quality  lower yields
• Importance of agents/merchants
• Power of customer
• Who are the ‘influencers’?
• Cash flow problems
• High storage costs

• Access to UK market via • Delayed payment

Supermarkets or wine merchants • Growth of wine sales online
• Supermarkets want large • Uncertainty in the market –
quantities at low prices BREXIT / economic issues
Understanding Consumers

Who is important? How do they buy?

What are their

Consumers
choice criteria?

Where do they When do they

buy? buy?
Activity(10 mins):

What are the bases for

Segmentation?

• Answer without checking your notes

Bases for (Consumer) Segmentation
• Demographic • Purchase behaviour
– Age, sex, family life cycle – Loyalty
• Geographic • Purchase occasion
– Country/region, climate, – Emergency, everyday, present
language • User status
• Socio-economic – Heavy, medium, light, non-user
– Income, education, occupation • Benefits sought
• Psychographics • Attitude to product
– Personality, Motives & – Perceptions differ/quality
Lifestyle expectations
 Do not segment for the sake of it!
Effective Segmentation

substantial
measurable
actionable
accessible
differentiable
International marketers seek segments with similar needs across
several country markets

(Kotler et al, 2009)

Activity(35 mins):

How could Domaine de la Chapelle use

segmentation theory/methods to their
advantage?

Prepare wine market segmentation. Identify min 3 segments

of potential customers for Domaine de la Chapelle.

Present a poster of your segments in front of the group.

Johnson & Bruwer’s study
(NB: relates to Australia!)
Segment Description
Enjoyment Orientated, Youngest, mainly female,
social wine drinker red or white
(20.9%)
Image Orientated, 2nd oldest, 42% drink wine
knowledge seeking daily, red preferred
(22.3%)
Conservative, 54% = 35-54, high
knowledgeable wine earners, red preferred
drinker (20.9%)
Basic wine drinkers Oldest, M:F=60:40, red or
white
Experimenter, highly 54% = 35-54, mostly male,
knowledgeable red preferred
 The Irish Wine Market
CASUAL (Geraghty
WINE BUYER (52%) & Torres,
Female, 45-542009)
years, average 6 bottles/month at
average €10/ bottle. Moderately involved in the purchase, with the region of
origin, price, and grape variety being the most important criteria when buying
wine. Chooses wine they like over more concrete attributes such as alcohol level
and price. The style of wine and the brand name are also important. Preference
for red wine, and buys in the supermarket usually choosing Australian or French
wine.

VALUE SEEKING WINE BUYER (35% ) Female, 25-34. Similar to above,

employed, with secondary/HE education. Buys c5 bottles/month at €11 each.
Least involved of the 3 segments. Chooses on purchase situation, based on price,
style of wine, brand name, alcohol level and grape variety. Price is the most
important aspect, preference for New World wine (80%).

WINE TRADITIONALIST (13%) Male, 35-44, self-employed, HE educated.

Buys c15 bottles of wine/month, €16/bottle. Chooses wine according to grape
variety, style, region, classification and vintage (not Price!). Prefers Old World
wines (63%). Predominantly uses wine shops.
What Sources can you use?
Academic Journals
•Journal of Wine Research
•European Journal of Marketing
and International Marketing
Review
•International Journal of Contempo
rary Hospitality Management
•Journal of Small Business & Enter
prise Development
Market Information Reports
•Passport (Euromonitor
International)
Wine: 3 trends for 2017 / Grape
Expectations: The Global Wine
Landscape & Decanting the Trends
Dec 2015
Alcoholic Drinks in the UK – July ,
2017
• MINTEL
Alcoholic Drinks Review – July 2016
Alcoholic Drinks: Attitudes towards
Gifting – Sept 2016
Still, Sparkling and Fortified Wine UK
– October, 2016
•Wine Intelligence
Academic journal articles: such as….
BRUNNER TA & SIEGRIST M (2011) ‘Lifestyle determinants of wine consumption and spending on wine’, International
Journal of Wine Business Research, 23/3, 210-220
BRUWER J & BULLER C (2012) ‘Country-of Origin (COO) brand preferences and associated knowledge levels of
Japanese wine consumers’ Journal of Product and Brand Management, 21/5, 307-316
CHRYSOCHOU P, KRYSTALLIS A, MOCANU A & LEIGH LEWIS R (2012) ‘Generation Y preferences for wine’, British
Food Journal, 114/4, 516-528
ELLIOT S & BARTH JE (2012) ‘Wine label design and personality preferences of millenials’, Journal of Product and
Brand Management, 21/3, 183-191
FORBES S L (2012) ‘The influence of gender on wine purchasing and consumption’, International Journal of Wine
Business Research, 24/2, 146-159
GERAGHTY S & TORRES A, (2009),’ The Irish wine market: a market segmentation study’, International journal of
Wine Business Research, 21/2, 143 - 154
GERGELY S & HOFFMANN D (2014) ‘Consumer segmentation based on usage of sales channels in the German wine
market’, International Journal of Wine Business Research, 26/1, 27 – 44
JOHNSON T & BRUWER J, (2003), ‘An Empirical Confirmation of Wine – Related Lifestyle Segements in the Australian
Wine Market’ International Journal of Wine Marketing, 15 / 1
MOLINA A, GOMEZ M, GONZALEZ-DIAZ B & ESTEBAN A (2015) ‘Market segmenetation in wine tourism: strategies for
wineries and destinations in Spain’ Journal of Wine Research, 26/3
MUELLER S, REMAUD H & CHABIN Y (2011) ‘How strong and generalisable is the Generation Y effect? A cross-cultural
study for wine’, International Journal of Wine Business Research, 23/2, 125-144
POMARICI E, AMATO M & VECCHIO R, (2016) ‘Environmentally Friendly Wines. A Consumer Segment Survey’,
Agriculture and Agricultural Science Procedia, volume 8, 534 - 541
Example SWOT
STRENGTHS
• High quality premium
product
• Motivated family business
• Differentiated product
• Recognised brand that has
won accolades
WEAKNESSES
• Cashflow challenges
• Low control of distribution
channels
• Small capacity
• Lack of marketing skills
• Limited use of
communication channels

OPPORTUNITIES THREATS
What have you come up • Recession
with? • Competition – other wines
(France, Europe & New World)
• Other drinks
• Attitude to alcohol (cultural/
health/ religious)
• Uncertainty in the market
due to the UK referendum
result
Targeting

• “The selection of one or more market segments towards which

marketing efforts can be targeted” (Pickton & Broderick, 2014:168)
• Evaluate the various segments based on:
– Size and growth
– Structural attractiveness
– The company’s objectives and resources
Using different Segmentation Variables
Women’s Hair Care

Psychographic
Benefits : Glossy Hair @50%
2.0M

Behaviour
Usage: (Washes hair daily) @48% 4.0M
Premium Hair products

8.4M
Demo: 25-44:

32.5M
Demo: Women:
63.2M
Total UK:
Positioning

• What's the promise

your brand provides
customers?
• And how will your
business deliver on
that promise?
• This is the time to
identify aspects of
your product or
service that are the
primary
differentiators from
the competition.
 How to write a positioning statement?

To… Who is the consumer target? Target

Your brand is… Where do you play? Category
That… Where do you win? Benefits
That is Why should they believe us? Reason to believe
because…
Positioning statement - example
Positioning statements – more examples
• Coca-Cola Positioning Statement:
• For individuals looking for high-quality beverages, Coca-Cola offers
a wide range of the most refreshing options -- each creates a
positive experience for customers when they enjoy a Coca-Cola
brand drink. Unlike other beverage options, Coca-Cola products
inspire happiness and make a positive difference in customers' lives,
and the brand is intensely focused on the needs of consumers and
customers.
• Amazon Positioning Statement:
• For consumers who want to purchase a wide range of products
online with quick delivery, Amazon provides a one-stop online
shopping site. Amazon sets itself apart from other online retailers
with its customer obsession, passion for innovation, and
commitment to operational excellence.
STP – Activity

• Assess attractiveness of identified segments for Domaine de

la Chapelle and choose the most attractive one.
• Create a positioning statement for the chosen target
segment.
Session takeaways

Please reflect on 1-3 key points

that you are going to take away
from this session.
Thank you
for your
attention 
Any
Questions?