WHAT IS GENERATIONAL MARKETING? Generational Marketing: Targeting the Millennials. Types of wine consumers. Consumer Images 2/21/2013

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1 Generational Marketing: Targeting the Millennials CONSUMER BEHAVIOR Consumer behavior is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups.... Some Basics About Wine Consumers Multiple alcohol consumers Trend setters are predominately female Wine is a high risk/high cost venture for many people Least brand loyal consumers Types of wine consumers High involvement Traditional connoisseur Lifestyle interest Reads back labels and ads Interest in education Uses intrinsic cues Buys across a range More adventurous Low Involvement Enjoys taste Often tied to consumption situation Chooses safe wines Extrinsic cues Consumer Images Actual Self Image how you see yourself Ideal Self Image how you would like to see yourself Social Self Image how you think other people think about you Ideal Social Self Image How you would like them to think about you Expected Self-Image what is realistic in the future WHAT IS GENERATIONAL MARKETING? 1

2 GENERATIONAL MARKETS And their wine buying decisions/rationale Sociable Bargain Hunters Not typically going to tasting rooms to buy Baby Boomers and Silent Generation Low involvement Narrow repertoire Frugal Conservatives Tasting rooms become get away. Not looking to buy Majority Generation X Men and women, children at home Tendency toward white wines Spend less per bottle Influenced by brand Mainstream At-Homers Most likely to buy at tasting rooms Generation X and Baby Boomers High involvement Typically 40+ age, both male and female, likely to have children over 18 yrs Upper middle income WHO ARE THE MILLENNIALS? And why are they becoming so important? 2

3 Millennial Generation Statistics Ages birthdates ranging from late 1970 s- late 1990 s Around 96 million in the U.S. making up about 30% of the current population Most likely to live longer at home and heavily influenced by family Represent 18% of the wine consumed in the U.S. + 22% Core: Drinking wine once a week or more Marginal: Drinking wine 1-3 times per month Millennial Influence in Wine More likely than other generations to: Start drinking wines that their parents drink (gateway wines) Buy wines they ve never tried before Consult reviews (not based on medals) Visit wine bars Consume more wine per occasion Use social media to share their experiences with wine as they happen Segments from the Wine Market Council Report The two types of Millennial Wine Drinkers 3

4 Adventurous Connoisseurs Most likely to buy at tasting rooms, based on experience and quality Upper Millennial Generation High involvement, core consumers who like experimenting Singles, married, often without or with young children Packaging is increasingly important The Complexity of Packaging Weekly Treaters More likely to come in for tastings and single bottle purchases of higher value Low involvement Under 30, men and women, more women High tendency to white wine Supermarket shoppers Spend $$ HOW DOES THIS EFFECT YOUR TASTING ROOM? Millennials are the NEW Wine Club Tasting Room suggestions from Millennial Wine Drinkers 4

5 References THANK YOU! Questions? Wine Marketing and Branding Manual, Amy Mumma, Central Washington University boutmwd 5

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