Regional Brand Perception of Wine Tourists within a Winescape Setting by Dr. Johan Bruwer 4 March 2014 WineValueChain Insights
Presentation Outline Wine region Wine tourism Destination branding Winescape setting Research objectives, research questions, etc Results.only some though (paper(s) available) Regional comparisons, etc. Questions - Answers
We Live in a Global Village Today The consumerist societies of today increasingly look for products and services with which they can identify and connect - Branding must provide this and.. Identity (meaning) Reference point Trust Authenticity Value proposition Enduring
Wine is the Ideal Product to Provide the Opportunity for Consumers to Identify and Connect Its regulatory aspect - denoting origin is a legal requirement Gives wine authenticity (solid foundation/roots) Using origin can result in desirable (place) brand images built Place-based marketing is therefore a definite business strategy
Two Basic Strategies Relating to Origin Coexist in the International Wine Markets Old World wines Designations of Origin (DOs) (best example: France) Mostly Inbetween Though New World wines Grape Varieties (best examples: Australia & NZ)
The Definitions/Terminology of Origin are Highly Contentious The French term, Appellation d'origine Contrõlée (AOC), refers to a set of comprehensive regulations that specify the precise geographic area in which a given French wine can be made. In the wine world, an Appellation is a designated growing area governed by the rules and regulations established by its federal government and local governing body. Such rules vary from country to country but are somewhat similar in their attempt to stimulate the production of quality wines. These regulations are established by the Appellation d'origine Contrõlée (AOC) in France, the Denominazione Di Origine Controllata (DOC) in Italy, the Denominación De Origen (DO) in Spain, the Denominacäo De Origem (DOC) in Portugal, the American Viticultural Areas (AVA) in the USA and the Geographic Indications Committee (GIC) in Australia. (Barron's Educational Services, Inc, 1995; AWBC, 2008)
For Centuries They ve Been Doing It..In Italy.
Much More Recent: In the New World - Finger Lakes, NY
How important is Origin to Consumers and Should and Can a Wine Regional (Winescape) Image be Measured?
Consumers Wine-buying Decision Factors in Liquor Stores Buying Element-specific Level Wine quality Wine style (taste) Wine grape variety Previous consumption or purchase Price Recommendation from friends/colleagues Reputation of the winemaker Wine Region Wine product brand Try something different Year of vintage Advertising and promotions Recommendation from retail store staff Awards and medals Recommendation of wine writers Winery and tasting room visits Packaging and labels Recommendation of restaurant staff Cellaring potential of wine Attendance of a wine festival or event 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 (Australia) (n = 386) (Bruwer & Ramsey, 2012)
Niagara Peninsula (Canada) Tasting Room Visitors: How Important is Region of Origin When making a Decision to Buy a Wine in a Liquor Retail Store or Restaurant? 1 2 3 4 5 6 7 Completely Unimportant Neither Important nor Unimportant Extremely Important Extremely important 13.7% Important 22.3% Somewhat important 21.6% Neither important nor unimportant 27.5% Somewhat unimportant 5.8% Unimportant 2.8% Completely unimportant 6.3% (n = 958) Mean = 4.77 ( Bruwer & Lesschaeve, 2010)
However, is the Proof in their Drinking of These Regionally Branded Wines or Not!? Only 35.5% can actually mention an Ontario (Canada) wine region or Niagara subregion/appellation! ( Bruwer & Lesschaeve, 2010) In a similar study in South Africa more or less similar results = 34.2% recall of regions (note: not sub-regions) ( Bruwer, 2009)
A Spearhead Grape Variety or Wine Style. Should a region have one or instead be known for its diversity?
(Purely Marlborough, 2008) (Wine Marlborough, 2008)
Regionally Branded (New World - Australia)
Establishing Wine Sub-regions is Currently in Vogue (in the New World ) New Zealand Hawke s Bay = 5 Central Otago = 7 Ontario (Canada) Niagara Peninsula = 12 (OtagoWine, 2008) USA Sonoma County = 13* Paso Robles = 11 Regional brand image fragmentation or strengthening?!
Does Regional Branding Really Make it Any Easier?
Brand Awareness Pyramid.. Awareness = reflects strength of the regional brand s presence in the consumer s mind (BUT is only ONE indicator of future sales!) Top of Mind Brand Recall Brand Recognition Unaware of Brand ( Bruwer, 2004)
Hierarchy of Australian Wine Regions Reflecting Awareness (only) Barossa Hunter Valley Coonawarra McLaren Vale Margaret River, Clare Valley, Yarra Valley, Adelaide Hills Rutherglen, Mornington Peninsula, Tasmania, Langhorne Creek ±60 Others!!! (Bruwer, 2012)
Main Research Objective: To conceptualise wine region destination s (brand) perception in the process integrating, i.e. servicescape and destination tourism theories, to describe the winescape concept. Research Questions: What are the perceived destination characteristics of a wine region, in other words, the winescape dimensions, by its visitor groups, specifically first-time vs. repeat and in-state vs. out-of-state based visitors? What are the motivational reasons for winery visits by wine tourists that could underpin their perception of the winescape? What is the nature of the main antecedents (excluding the motivational reasons) pertaining to the wine tourism (travel) aspects of winery visitors?
To Operationalise the Research Study... Sample frame: visitors at winery tasting rooms (Finger Lakes, USA) Time-based systematic random sampling technique Self-administered questionnaire (exit survey) - response rate = 81% Final sample size = 334 respondents Collected full range of wine tourism (tasting room) metrics Used free-form approach to determine regional image perception Data-reduction technique via NVivo software instead of attribute-based Relationships examined; research questions answered, etc.
Tasting Room Visitors Socio-demographics snapshot... Baby Boomers 50%; Gen-X and Gen-Y 50% Origin in-state (New York) = 42%; out-of-state origin = 58% High SEG (78% post-secondary education; 47% income $75,000 p.a.) Household size = 2.5 persons (1.9 persons drink wine) Travel party size = 3.6 persons
Motivational Reasons Rankorder for Visiting Winery Tasting Rooms in Region Total Study First-time Repeat Means Means Means Taste wine (1) 1.95 (1) 1.93 (1) 1.97 Buy wine (2) 2.39 (2) 2.58 (2) 2.23 Entertain myself and/or others (3) 2.82 (3) 2.54 (3) 3.01 Learn more about wine in general (4) 2.96 (5) 2.84 (4) 3.05 Have a day out (5) 3.26 (4) 2.83 3.56 Experience the atmosphere 3.43 3.45 (5) 3.42 Find a unique wine 3.50 3.04 3.85 Eat at winery's restaurant 4.19 3.65 4.43 Rural setting 4.34 4.07 4.49 Socialise with others 4.53 5.09 4.26 Find information 4.90 4.25 5.21 Go on a winery tour 4.95 4.48 5.37 Meet the winemaker 6.83 6.00 7.25
Response % Number of Regional Winescape Elements Provided by Respondents 90 80 70 60 50 40 30 20 10 0 0 1 2 3 4 5 Number of Winescape Elements per Respondent Total number of winescape elements elicited = 54
Convinced by now that Regional Brand Building Strategies. Should be.. RESEARCH-INFORMED?!
???
Finger Lakes Wine Region s Characteristics Description of Regional Characteristic n % 1 Beautiful scenery - landscape, views, lakeside setting 189 69.2 2 Wine quality - taste, uniqueness, variety - positive reference 78 28.6 3 Ambience of region - tranquillity, peacefulness, getaway 51 18.7 4 Winery estates - quality, variety, close together, boutique 49 18.0 5 Vineyards - cultivated agricultural look 39 14.3 6 Local residents - friendly, great hospitality, family-orientated 35 12.5 7 Restaurants, bars, pubs - positive references 34 12.4 8 Climate and weather - fresh air, unpolluted, clean area 30 11.0 9 Towns/villages - quaint, charming, interesting 23 8.4 10 Accessibility - to New York, Philadelphia, Watkins Glen 19 7.0 11 Riesling great - reputation for great white wines 17 6.2 12 Tourism infrastructure - good accommodation, tourist focus 13 4.8 13 Activities - variety of things to see and do, fishing, biking 11 4.0 14 Food quality great - gourmet experiences 8 2.9 15 Wine tastings - well organised, lots of variety, professional 6 2.2 602
Winescape Dimensions of Finger Lakes Regional Characteristics Winescape Dimension Total First-time Repeat % % % Destination features - nature related environment 69.2 67.2 70.8 Destination features - winery structures and vineyards 33.3 32.8 33.8 Products - wines and other (cottage) industry products 31.5 25.2 36.4 Ambient factors (atmosphere, climate) 28.6 25.2 31.2 Signage and layout (spatial functionality, proximity) 20.9 20.2 21.4 Service staff and local residents 13.9 11.8 15.6 Destination features - heritage-related, towns/villages 8.1 10.1 6.5 Fun (type and variety of activities available) 7.3 6.7 7.8
Winescape Dimensions of Finger Lakes Region s Characteristics Winescape Dimension Total In-State Out-of- State % % % Destination features - nature related environment 69.2 70.9 68.2 Destination features - winery structures and vineyards 33.3 35.9 31.8 Products - wines and other (cottage) industry products 31.5 32.0 31.2 Ambient factors (atmosphere, climate) 28.6 21.4 32.9 Signage and layout (spatial functionality, proximity) 20.9 14.6 24.7 Service staff and local residents 13.9 15.5 12.9 Destination features - heritage-related, towns/villages 8.1 11.7 5.9 Fun (type and variety of activities available) 7.3 5.8 8.2
Winescape Dimensions Within the Wine Region s Servicescape Context Servicescape Dimensions Signs, symbols and artefacts No previous experience with the winescape Nature-related Wineries and vineyards Wine and other products Ambient conditions Perceived Servicescape Ambient factors Signage and layout Space/function Previous experience with the winescape Service staff and locals Heritage-related towns Fun - activities-based (Bruwer & Lesschaeve, 2012)
Some Conclusions.. Exploratory insights confirm that: Winescape setting framework can successfully integrate servicescape, place-based marketing, tourism destination choice theories Nature-related winescape dimension by far outweighs all others Confirms the hedonic pleasure-seeking nature of wine tourism (Bruwer & Alant, 2009) First-time & repeat visitor dynamic impacts upon winescape perception In-state & out-of-state visitors winescape perceptions differ significantly Increasing distance from region is pivotal in winescape s perception Etc, etc.
THANK YOU! QUESTIONS?