“Marketing Wine to Generation X” A work in progress By Roz Howard and Jenny Stonier NSW Wine Press Club Fellowship

2 Copyright Roz Howard & Jenny Stonier 2001 Your journey into wine What was it like for you? Was it love at first sight/taste? Let’s think back to our first wine experiences... Positive experiences? Entertaining? Exhilarating? Euphoric? Let’s think outside the square. WOW.

3 Copyright Roz Howard & Jenny Stonier 2001 Today’s Objectives Describe Generations X Y & Z Appreciate the universal traits Identify Generation X’s wine consumption trends Explore how wine marketers can turn this around Focus on ‘The human experience’

4 Today’s Many Generations (Australia)

5 Copyright Roz Howard & Jenny Stonier 2001 Fellowship Objectives To gain an understanding of the psychographics (measurement of activities, interests and opinions) of Generation X, To improve the acceptance by and marketing of wine to Generation X’ers, To develop a plan to recruit them.

6 What is Generation X? Generation X refers to people born from 1961 to 1980 This refers to 5.74 Million Australians 30% of the population year olds (Workforce entry group) year olds (Main marrying group) year olds (Main child bearing group) Source :IBIS Business Information Pty Ltd Copyright 2000, IBIS Business Information Pty Ltd

7 Current consumption statistics Wine had a disproportionately low share of consumers in the age cohort. 36% Beer Drinkers 32% Spirit Drinkers 21% Drinking Wine vs 31% for the total Australian population drinking wine. Source: ABS & Lawrie Stanford, Wine Industry Analyst, AWBC, Wine Industry Journal (Jan/Feb 2000)

8 Copyright Roz Howard & Jenny Stonier 2001 Current consumption statistics Sales of wine within Australia are growing annually at a rate of only 2%. This is not high enough to sustain existing increases in wine production. OPPORTUNITY By applying new tactics to marketing, the wine industry could see Generation X becoming responsible for 50% of Australia’s wine buying between 2005 and 2015.

9 Copyright Roz Howard & Jenny Stonier 2001 Method Literature Review Survey schedule of Australian Gen Xers (Involved) Surveys of 636 Wine Australia, Australian Society of Wine Education Tasting Theatre participants (Gen X=393, 40+=243) (Highly Involved) Surveys of Wine Production students at Charles Sturt University at Wagga (Not Involved) Surveys of Marketing students at University of SA

10 Copyright Roz Howard & Jenny Stonier 2001 Did you grow up in a family where wine was regularly drunk in the home? Yes n=636

11 Copyright Roz Howard & Jenny Stonier 2001 Is wine the main alcoholic beverage you drink? Yes n=636

12 Copyright Roz Howard & Jenny Stonier 2001 When buying wine, which of the following influences do you take into account? Recommendation by retail staff Wine waiters Show awards Wine reviews Recommendations from friends and family Packaging and labelling Discounts or special offers Price Visits to wineries Advertising

13 Copyright Roz Howard & Jenny Stonier 2001 When buying wine, which of the following influences do you take into account? Recommendations from friends and family A lot n=636

14 Copyright Roz Howard & Jenny Stonier 2001 What influences wine buying decisions. Wine reviews A lot n=636

15 Copyright Roz Howard & Jenny Stonier 2001 What influences wine buying decisions. Visits to wineries n=636 A lot

16 Copyright Roz Howard & Jenny Stonier 2001 What influences wine buying decisions. Recommendation by retail staff n=636 A lot

17 Copyright Roz Howard & Jenny Stonier 2001 What influences wine buying decisions. Wine waiters n=636 A lot

18 Copyright Roz Howard & Jenny Stonier 2001 Ranking of buying influences on Gen X Most Least

19 Copyright Roz Howard & Jenny Stonier 2001 Recommendations to the Wine Industry. Part 1 Target Friends and Family, Opinions Leaders Third Party endorsement Continue to provide wine reviewers with finished samples and interesting facts Recognise the importance of visiting ‘the source’ Plan & Promote wine tourism experiences Train Wine Makers in the Art of Public Speaking and Customer Service or…

20 Copyright Roz Howard & Jenny Stonier 2001 Recommendations to the Wine Industry. Part 2 Train retail and hospitality staff to effectively communicate with year olds Don’t Patronise Gen Xers Encourage wine industry networking and career growth Design Products, Packaging and Labelling which reflect the integrity of the company Broaden wine advertising to...

21 Copyright Roz Howard & Jenny Stonier 2001 Recommendations to the Wine Industry. Part 3 Make learning about wine fun and interesting :-) Promote responsible consumption and get ‘on side’ with womens & health magazines espousing a zero alcohol consumption lifestyle 4 P’s what about the 4 B’s?

22 Source: Australian Men’s Health May 2000

23 Copyright Roz Howard & Jenny Stonier 2001 Recommendations to the Wine Industry. Part 4 The beverage market is competitive, target the future wine market NOW!

“Marketing Wine to Generation X” A work in progress By Roz Howard and Jenny Stonier NSW Wine Press Club Fellowship

“Marketing Wine to Generation X” A work in progress By Roz Howard and Jenny Stonier NSW Wine Press Club Fellowship