Situational Analysis Assignment Help & Essay Help on UK Wine Market
Situational analysis is essential before developing any marketing strategy, as it gives good idea of external and internal environment. Here we look into the UK wine market with the help of two lenses, one being the macro analysis and the other being micro analysis. Let us look into the wine market with the help of macro analysis. (as researched by assignment help and essay help team)
Macro analysis assignment help by MyAssignmenthelp.com
To assess the macro environment of the UK wine market, we use Finlay's DEEPLIST framework (Finlay, 2000). DEEPLIST stands for DemographicEnvironment, Economic, Politics, Legal, Information, Social and Technology. By using this framework, we get a clearer picture of UK wine market, which at later stage helps us to formulate the marketing strategy (assignment help) for Jacob's Creek brand of wine.
Demography of the Wine Market as found by Essay help team at Myessayhelp.co.uk
Demography of the wine market hastwo major dimensions of gender and age. Wine drinking is not particularly linked to any gender as concluded by essay help and custom essays. Both males and females can be potential customer for wine, which is unlike the case with rest of the spirit market. For example, beer is preferred by male group while champagne/ sparkling wine is associated with female group. There are three main segments in terms of the age (researched by essay help), first segment has people from 25-34 years, second segment has people form 35-65 years and the third segment has people with 65 plus years of age. Wine consumption increases with age. The peak consumption is at the age group of 34-54 years. In future, it is expected that 25-34 years of age group and group having people with 65 plus years of age, will see double digit growth, while 54-65 years age group will see a slight decrease in coming five years.
Environment of the UK Wine Market researched by assignment writing team
The wine drinking cannot be particularly related to seasonality, however the sales of white wine and rośe increases during the summer season. The summer of 2009 is expected to be hotter than the previous year and hence increase in white wine androśe sale are expected.
Economics
Recession has affected many industries and wine industry is not an exception. Due to current downturn, consumers have decreased their spending in discretionary expenses like spending in wine or going out for dining and wining. A strong Euro has resulted in the increase of price of wine for consumers and lower margin for European suppliers. However, this phenomenon has given good returns to new world countries like South Africa. Strong Euro is also preventing European manufacturers from competing with the new world manufacturers.
Politics effect on wine market
Current recession has resulted in the increase in unemployment rate. Overall, there are 2.2 million unemployed people in UK in 2009. (Assignment help & custom essays help) Mintel's consumer research has shown that non-working consumers drink relatively less red and white wine causing decrease in sales volume.
Legal aspects in the market (assignment help)
British government has increased the taxes on the wine resulting in the increased prices for the wine. This move by government is adversely affecting the volume of the business, as people are buying less. Currently, there is speculation about the size of glasses in which wine will be served in the pubs. The glass size is predicted to get smaller resulting in less wine consumption through on-trade business.
Information
There is no single information about the effect of wine on health . Consumers are confused about the effects caused by wine consumption. Few studies by our assignment help team claim that drinking wine would increase average life expectancy while other claims that even small amount of wine can cause heart diseases, strokes and infertility. Further young consumers are not much aware of variety of wines due to lack of proper information, and they often buy the tried and tested wine resulting in less or no experimentation in wine purchases. Hence, the sales volume of wine has decreased. Branding seems to be the key for better sales volume and sales value.
Social
The health environment in UK is changing. People are getting more aware about their health. According to one report, it was found that one fifth of people were drinking less wine because it was less healthy. The on trade business by has suffered because people are spending less in wining outside, while people are indulging in drinking wine at their homes resulting in the increase in the off trade business. The social stigma attached with ‘binge drinking' has further fueled the less consumption of alcohol.
Technology
The wine manufacturing is now using lots of artificial flavorings and additives ranging from oak clippings to milk powder and that too without mentioning on the packaging. Because of this malpractice, people have raised serious issues.
Micro Analysis done by assignment help for university students
In the micro analysis we mainly look into the competitive scenario of the wine market, the consumer behavior and the role of distributors and suppliers.
Competitive Environment
Wine is low calorie alternative to beer also it is liked by both males and females unlike other spirits. In past decade wine has grown its share from 19 -24% among alcohol drinkers. It appeals to larger audience as compared to its competitors like beer, whisky etc. Beer is planning to get back its share by associating with food and targeting women audience. Pear cider is being pushed this summer season as a better alternative to wine for its fruit-property. Opportunity for sparkling wine to take share from still wine, as the former is a cheaper variant as compared to the later. Further, in other spirits the consumer penetration peaks at 18-24 years of age and generally declines as people age, while in wine the peaking is seen in 35-44 years of age group and penetration is high even at 65 plus age group. Champagne has higher appeal among ABC 1s as compared to wine. Coors has recently trying to target women in lager beer category.
Consumer Behavior research assignment help & essay help
Consumers are increasingly getting health conscious and as a result are drinking less wine (consumption of wine per adult) as compared to previous years. In addition, the messages by health ministry are particularly affecting the wining habits of female. More over due to recession people are spending less on discretionary purchases like wine. Consumers now prefer to drink in home (off trade) rather than at pubs (on trade) resulting in decrease in the sales value.
Distributors
Over the time, the super markets have evolved as major distribution channel for sales of wine to the end consumers. To increase the sales in recession-hit market these supermarkets are resorting to heavy discounts on mid to high price range of wines, which is inhibiting the consumers to trade up and damaging the chances of premiumisation of wine.
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