Analyzing the US Retail Wine Market Using Price and Consumer Segmentation Models

Abstract:

Globalization and other driving forces have dramatically altered the competitive landscape of the wine industry. Winery managers must understand how these changes can affect pricing and product strategies at the retail level. The objectives of this research effort are threefold.  First, the traditional industry price segmentation model will be revised in order to incorporate current industry developments arising from these driving forces. Second, the revised price segmentation model will be used in conjunction with a consumer behavior segmentation model to analyze the US retail wine market. These two segmentation models are analytical frameworks that winery managers can use to identify market opportunities and to assist them in the formulation of their product and pricing strategies in the highly competitive US marketplace. Third, these two segmentation models will be also used to explore the industry ramifications from a hypothetical market scenario for 2008.

Author(s):

Richard M. Castaldi, Ph.D., Professor of Strategic Management

Susan Cholette, Ph.D., Assistant Professor of Decision Sciences
cholette@sfsu.edu