UK Wine Industry: Growth and Trends

This assignment delves into the flourishing UK wine industry. It requires an analysis of current trends in wine consumption and production within the country. Students are tasked with examining the impact of factors like new entrants, changing consumer preferences (towards sparkling wines), and the overall growth of the sector. Additionally, the assignment explores marketing strategies employed by UK wine producers to capture market share and cater to evolving consumer demands.

MARKETING RESEARCH IN
PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................1
Secondary data analysis...................................................................................................................1
1.4 Review of academic sources.................................................................................................4
Research objective and design.........................................................................................................6
Aim:.............................................................................................................................................6
Objectives:...................................................................................................................................6
Research type..............................................................................................................................6
Data collection method...............................................................................................................6
Research approach:.....................................................................................................................7
Research Design..........................................................................................................................8
Data analysis...............................................................................................................................8
Sampling.....................................................................................................................................8
Cover Letter for Questionnaire...................................................................................................9
Questionnaire..............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Index of Tables
Table 1 English wine industry.........................................................................................................2
Table 2: Popular drinks in UK.........................................................................................................2
1

INTRODUCTION
Marketing can be determined as a communication process through which organization
conveys information regarding their product and services. This process is very important
companies as it enable to develop good perception regarding customers mind towards the
product. Present research is on business expansion for ViniSicily which produces red and white
wine in Italy for more than three centuries. Different ways with the help of which cite firm will
be able to make business expansion at UK.
Secondary data analysis
The UK has been regarded as a premium wine producing region that also has a presence of 500
vineyards that are spread over England and Wales (Sparkling Wine, 2016). They cover an area of
4,500 acres which further leads to production of sparkling and still wines.
Table 1 English wine industry
Number of Vineyards: 470
Average Size of Vineyard: 4.3 Hectares
Annual Production (2014): 6.3m bottles
Total Hectare under vine: 2,000+ Hectares
(Source: Key facts, 2015)
UK is one of the largest market for wine and according to a data, the most popular drinks
in UK is as follows:
Table 2: Popular drinks in UK
At restaurant In a Pub At Home
White wine Larger Red wine
Red wine Cider White wine
Larger Ale Larger
From this it can be stated that at homes the most refereed drink is red wine. According to
this data people of UK mainly prefer to drink red wine followed by white wine. On the other
hand, people who visit restaurants prefer to have white wine as their first preference and are
2

followed by red wine. In addition to this, the rate of UK per capita wine consumption is
increasing at an increasing rate (Wine Consumption To Rebound In 2015, 2014). According to
the study conducted by IWSP it has been forecasted that the wine consumption will increase by
3.3% and that also between 2015 to 2019. In this context, it can also be stated as that the
consumption of wine will reach up to 24.6 litres per head. UK market is second in the world
where sparkling wine is been consumed highly and the rate is expected to grow by 12.2% 2018.
In addition to this, the volume of sparkling wine in UK in the year 2008 was 8.68 million and it
became 11.23 million in the year 2014 (WSTA Market Overview, 2015). IN addition to this, in
2016 the rate will reach up to 11.82 million. Moreover, it has been estimated that about 60% of
UK population and that is about 30 million people prefer to drink wine.
The opportunity for sparkling wine is very high as the consumption of still wine has
fallen. There are many disadvantages for the people who consume still wine and on the other
hand, people are understanding the benefits of consuming sparkling wine. According to a survey
conducted by Vinexpo and IWSR, it has been found that the between 2010 and 2014 the rate of
still wine has drooped up to 8.2%. This shows that people of UK are getting aware regarding the
negative impact of drinking still wine (UK Sparkling Wine Industry Takes Off, 2015). With this
respect, the government is also taking active support in reducing the rate of still wine. In this
context, about 1.3 million units of alcohol have been removed for UK market. In addition to this,
about 91% of the product of alcohol contains warning about drinking for pregnant women. From
this it can be stated that organization will be able to make their business effective as because of
decrease in still wine, the rate of sparkling wine is increasing at an increasing rate. According to
the survey, it can be stated that sparkling wine is one of the hottest category in the world
(Bryman 2015). However, one of the main competitors for ViniSicily is Prosecco which the
strong competitor as it is the only one which provide similar product like ViniSicily. It has
further been found out that consumers of UK have started to realize the importance of high
quality of wine that is produced in UK. In this regards, there has been a rapid soaring of demand
and a greater number of producers have started flocking into UK market. ViniSicily stands to be
amongst one of them. The WSTA has further predicted that there can be doubling in the volume
of land that is covered by vineyards in UK for a time span of coming 7 years (Lyons, 2015).
There are various tools which used in order make the business expansion and among the tools
one of the best tool which can be use Porters five forces. There are mainly five steps used which
3

are market entrance. In this UK market can be determined as stepping stone for entering to other
European markets. The government of UK and the customers are open to new tastes from new
organizations (Cavusgil and Cavusgil, 2012). In addition to this, the retails in UK make it very
easy for the new origins to be visible when compared with other countries. For example, the
cited firm will be able to get huge support and will be able to hire wine marker with the help of
which firm will be able to deliver their customers better services. Next factor is product
competition, ion this context, the as it was discussed above the sale of wine has increased and it
has enabled to emerge with new organizations who are delivering same type of product to
customers. With this respect, it can be estimated that out of 10 people there will be 6 people who
would prefer to have wine. Wine can be determined as one of the best alternative for alcohol
(Tan and Sousa, 2013). Wine with low alcohol percentage will help in anticipating consequences
of government policies. Company competition, there are many retail organizations like Tesco,
Sainsbury, etc. who are strong buyers. With the help of these retails cite firm will be able to
make their business expansion and make their product reach to customers effectively. From this
it can be stated that the organization will be able to achieve their desired goals and objectives
effectively as UK retail industry and the government are very helpful in increasing their sales.
Potential competition, there are many competitor in UK which provide all types of wine. With
this respect, the organization needs to make use of different promotional strategies with the help
of which brand image can be developed (Lahat and Shoham, 2014). Further, it is important that
organization should their unique selling point (USP). It includes geographical indication or
origin, packaging, sustainability, etc.
In order to develop sparkling wine there are different types of methods. But one of the
main factors required is the glass manufacturing process known as 'blow blow' bottle with the
help of which sparkling wine is developed. The economic growth of the country that UK is very
high. As a result, the buying power of consumer is also high. In addition to this, the organization
will be able to get the materials through which the product will be developed they products.
In this context, it can be stated that UK is a huge market in which cited organization that
is ViniSicily will be able to make their business expansion effectively. However, one of the main
disadvantages in UK for selling sparkling wine is high tax rate. The rate of taxation for wine has
gone up to 55% (Sparkling Wine, 2016). As a result, the organization needs to increase the price
4

of their product so that they will be able to earn profit and business operation could be operated
effectively.
From the above analysis it can be concluded that UK market has been continuing to attract a
huge number of new entrants for wine production. This is as the market has kept itself open in
terms of new taste and experiences; this has further led to creating high degree of rivalry. Which
is most likely to be faced by Italy based ViniSicily as well. But still overall conditions stand to
favourable for their company to make its mark in UK market.
1.4 Review of academic sources
According to Turnbull and Valla, 2013, it is very important to conduct market research in
order to market business expansion (Turnbull and Valla, 2013). As per Tan and Sousa, 2013
research enables to know the taste and preferences of customers effectively. In addition to this, it
enables to make changes in the product according to the needs and requirements of service users
(Tan and Sousa, 2013). Katsikeas, 2014, stated that customer's satisfaction id only possible when
organization will deliver their product and services according to customer’s requirements this is
very helpful to satisfy them (Katsikeas, 2014). In addition to this, as per Eng and Ozdemir, 2014,
there are many factors because of which the buying behaviour of customers affects and among
all the factors one of the main factor is price (Eng and Ozdemir, 2014). Gnizy and Shoham,
2014, stated that price is one of the main factor because of which buying behaviour of consumers
is highly affected (Gnizy and Shoham, 2014). As per Akgün, Keskin and Ayar, 2014, customers
prefer buy the product which is been provided to them at high quality but at low price. When
service users get to know that the services or the product provided to them are high, then it is
very helpful in increasing the sales and in developing good perception among customers (Akgün,
Keskin and Ayar, 2014). There are many research conducted and it has been found that
organization which are effective enough to provide their customers with high quality and in less
price, then the sales and revenue highly increases (Tan and Sousa, 2013). According to Lahat and
Shoham, 2014, marketing is very important in developing brand image (Lahat and Shoham,
2014). However, Cavusgil and Cavusgil, 2012 stated that there are many tools which can be used
by companies with the help of which brand image can be developed. The best way is by
developing advertisements and by displaying on television, radio, newspapers, social sites, etc.
Among all the tools for advertisements one of the best tool is social media as the rate of internet
users are increase drastically. Moreover, the purchase through online is also increasing (Cavusgil
5

and Cavusgil, 2012). From this, it can be stated that organizations which deliver their goods
through online, the growth is very high and it contributes effectively towards the achievement of
goals and objectives effectively. As per Berthon and et.al., 2012 the rate of youth in UK is very
high and people for the above 12 years consume vine and even people of age 60 above can
consume it (Berthon and et.al., 2012). In this context, the target audience are very large and cited
organization will be able to make their business expansion effectively. There are many
organizations which provide similar product and services to customers and in order to be
different there are many things which can be followed with the help of which firm can gain
competitive advantages. It includes things like value added services, product differentiation, cost
differentiation, etc.
As it was discussed above, one of the main factor which affects the customers buying
behaviour is pricing. There are different types of strategies which can be used in order to enter
into the market (Turnbull and Valla, 2013). With this respect, strategies include skimming
method, penetration pricing, premium pricing, economy pricing, psychological pricing, etc.
Among all the given strategies one of the best which can be used by organization in order to
make their business expand should be through penetration pricing. According to this pricing
method, the price of the product are been provided to customers at reduced rates compared with
its comparators. This is very helpful in increasing the sales instantly. Slowly, when customers get
to know about the product, then the prices is raised. Through this strategy organizations will be
able to make their business expansion effectively and efficiently.
As per Haghighi and Salarian, 2014, there are different ways through which brand image
of the organization can be developed (Haghighi and Salarian, 2014). In this context, organization
is meant to deliver the things which have promised to do so. In the product, if the instruction
states that the product has been developed with the help of so and so ingredients, then it is very
important that organization do include all the ingredients in it as it states. As per Oumlil, Lewis
and Merenski, 2015, the message which the organization wants to provide to their customers
should be clear and service users should understand it effectively. Customers will be attracted to
those products which will enable to provide their customers will clear understanding about the
product. In addition to this, the feature and the benefits should also be added (Oumlil, Lewis and
Merenski, 2015). When companies follow these things, then they can develop brand image
among customers mind. Apart from all this, organization should constantly understand their
6

customer’s needs and requirements and make changes in their product and services accordingly.
This is very helpful to satisfy customers and in achieving their goals and objectives effectively.
Research objective and design
Aim:
“To critically analyse the importance of brand image at the time of entering in UK
market: a study on ViniSicily.”
Objectives:
 To understand the major concepts of brand image.
 To critically analyse the role of branding of ViniSicily in international market.
 To suggest appropriate strategies to ViniSicily for maintaining strong brand image in UK
market.
Research type
To be in tune with the above mentioned aims and objective, the research type that will be
used by researcher is qualitative. The research type is apt from the present study as studying the
phenomenon related to importance of brand image while masking a market entry requires an in
depth analysis.
The strength of this technique is that the study carries out an in depth examination of any
phenomenon that is taken into consideration. In case of present study the phenomenon is related
to brand image and market entry (Katsikeas, 2014). It further gives a chance to resear4cher for
exploring new research areas. However, the limitation of this research type is that there is a huge
chance of data replication. Moreover, the business that is likely to be exhibited by researcher is
unavoidable.
Data collection method
In order to achieve the aim and objective data has been collected by making use of
secondary as well as primary data. In order to collect primary data questionnaires will be
developed with the help of which the research will be conducted effectively (Berthon, Pitt and
Shapiro, 2012). In order to get proper data, managers of cited firm will be selected who will fill
up the questionnaires. These questionnaires will be delivered to them with the help of emails.
Questionnaires will include all the questions through which they will achieve the objectives of
the research. This questionnaire will be send to 5 members of marketing team.
7

The strength of questionnaire method for primary data collection is that it is al ow cost technique
where in the need is just to design questionnaire and send it to respondent. There is also an
absence of research biasness. The weakness of the method is in terms of no control on how the
questions have been answered by respondent followed by receiving a low response rate
(Ong'anya, 2009).
In addition to this, secondary data will also be collected through which other relevant
data regarding the brand image can be collected. It will also include information importance and
proper steps which will help in increasing the brand image among customers mind. Secondary
research are very helpful in collecting the relevance of brand image, its impact over the firm and
customers (Eng and Ozdemir, 2014). It includes various sources like books, journals, blogs,
articles, annual reports, etc. There are many researchers who have conducted various researches
on various areas related to brand image and these research will be helpful in getting secondary
data. The advantage of secondary data collection technique is that it is economical and time
saving process by which data related to importance of brand image at the time of entering in
wine UK market can be studied Moreover, the advantage of secondary data collection technique
is that it is economical and time saving process by which data related to importance of brand
image at the time of entering in wine UK market can be studied easily. It may further improve an
overall importance about brand image as well as UK wine industry (Haghighi and Salarian,
2014). However, there is a question mark on the accuracy as well as outdated nature of the data's
that has been collected by the researcher through secondary research.
Research approach:
It plays vital role in achieving the research objectives in general and specific manner. In
accordance with the research objectives deductive research will be conducted. Deductive
research can be defined as a process in which the researcher would provide general information
and then they will go to specific details. According to the aim stated, it is important to
understand basic things about brand image (Gnizy and Shoham, 2014). Hence, deductive
approach will aid in moving from general area of brand image to specific one being brand image
to be attained by ViniSicily by making an entry to UK wine market. Hence, the deductive
technique seems to be most suitable for the study. The technique is favourable for the present
study as the researcher will not need to observe a wide set of observational evidence so a to reach
8

at a valid conclusion. The weakness of the method is that the major premise on which the study
has been based may not be true. This may result in creation of a false conclusion.
Research Design
Research design can be determined as appropriate method which enables to develop the
whole research plan in an appropriate manner. Research design is selected by the researcher
according to the numerical and subjective concept of the investigation. In accordance with the
current investigation research will make use of research will be used in order to know about the
brand image of the organization (Oumlil, Lewis and Merenski, 2015). This research design
enables to make survey and study analysis methodology. In addition to this, it also helps in
understanding the concept of brand image, its importance, significance, etc. In accordance with
the given situation, descriptive research is very helpful as it enables to make the topic effective
and reliable. It enables to increase the confidentiality of the research. One of the main
disadvantage is that, there are chances that it may lead to errors if not done properly.
Data analysis
According to the research objective the researcher will make use of qualitative and
quantitative research. Both the research will be helpful in collecting numeric as well as
theoretical data for the research. For the analysis of the data research will make use of thematic
as it will be helpful in analysis the collected data effectively (Cavusgil and Cavusgil, 2012). In
order to examine subjective information, thematic is very helpful. This will be helpful in
covering the number of graphs, chats and diagrams with the help of which researcher will be able
to present the research effectively. In order words, it can be stated as one of the most effective
method in analysing the primary information. When the data is collected through questionnaire,
it becomes difficult for the research to understand the data effectively but with the help of
thematic research data is been effectively divided and analysed. The use of thematic is not
effective when the sample size is very less. For example, if the sample size is 5 then the use of
thematic is not much effective. On the other hand, if the sample size is 50 or more, then thematic
analysis is very helpful (Tan and Sousa, 2013). This way researcher will be able to provide
proper justification towards the research objectives.
9

Sampling
According to the research aim and objective, the researcher will send questionnaire to
five marketing members of ViniSicily. This will be helpful in getting an appropriate solution for
the current research.
Cover Letter for Questionnaire
Jason John
Employee of XYZ research company
Address: 846/534, Wooden Street, UK
Date: 19-Apr-2016
Respected Sir,
XYZ research company is aiming to conduct research on analysing the importance of
brand image at the time of entering in UK market by your organization. In an ongoing effort in
completing the research, we expect to have your support so that the research could be completed
effectively.
In this context, I am attaching a questionnaire which has to be filled by the marketing
manager of your company. So kindly, do take time to fill up the questionnaire so that research
objectives can be achieved.
We will send you the copy of data which will help your organization in making business
expansion at UK.
Your sincerely,
Jason John
Questionnaire
1. Name: ________
2. Age:_______
3. Gender: ________
4. Do you feel that brand image is important for the organization?
 Yes
10

 No
5. Which one is the most important factor for company to enter into a UK market?
 Political
 Distribution channels
 Legal frameworks
 Consumer demand
 Economic condition of country
6. Which is the essential element that required to promote brand image in UK market?
 Customer perception
 Quality
 Price
 Promotion and advertisement
7. Can a good brand image of the company help it to enter into international market?
 Yes
 No
 Do not know
8. By which techniques, do you think company can strong its brand image in UK market?
 Promotion
 Digital marketing
 Quality
 Pricing
9. Recommendation through which brand image can be improved: __________.
CONCLUSION
From this report, it can be articulated that it is very important for the organization to
make market research. This is very helpful in knowing the tastes and preferences of the
customers. In addition to this, firm also gets to know the strength of the market and it is very
helpful to know whether the organization will be able to make their business expansion
effectively or not. In addition to this, is it is important for the firm to make use of promotional
strategies so that they will be able to increase their brand image.
11

REFERENCES
Books and Journals
Turnbull, P.W. and Valla, J.P., 2013. Strategies for international industrial marketing. Routledge.
Katsikeas, C.S., 2014. Journal of International Marketing: Objectives, Challenges, and the Way
Forward. Journal of International Marketing. 22(1). pp.1-4.
Berthon, P.R., Pitt, L.F. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and
creative consumers: Implications for international marketing strategy. Business horizons.
55(3). pp.261-271.
Eng, T.Y. and Ozdemir, S., 2014. International R&D partnerships and intrafirm R&D–
marketing–production integration of manufacturing firms in emerging economies.
Industrial Marketing Management. 43(1). pp.32-44.
Haghighi, A.N. and Salarian, S., 2014. The role of culture in international marketing, relying on
Resistive Economy. The Open Access Journal of Resistive Economics (OAJRE). p.87.
Gnizy, I. and Shoham, A., 2014. Uncovering the influence of the international marketing
function in international firms. International Marketing Review. 31(1). pp.51-78.
Oumlil, A.B., Lewis, W.F. and Merenski, J.P., 2015. Getting the Most Out of Trade Fairs in
International Marketing. Springer International Publishing.
Cavusgil, S.T. and Cavusgil, E., 2012. Reflections on international marketing: destructive
regeneration and multinational firms. Journal of the Academy of Marketing Science. 40(2).
pp.202-217.
Tan, Q. and Sousa, C.M., 2013. International marketing standardization. Management
international review. 53(5). pp.711-739.
Lahat, A. and Shoham, A., 2014. Benchmark the marketing and operation capabilities for
international firms export performance. Procedia-Social and Behavioral Sciences. 109.
pp.998-1000.
Akgün, A.E., Keskin, H. and Ayar, H., 2014. Standardization and Adaptation of International
Marketing Mix Activities: A Case Study. Procedia-Social and Behavioral Sciences. 150.
pp.609-618.
Bryman, A., 2015. Social research methods. Oxford university press.
Zikmund, W. and et.al., 2012. Business research methods. Cengage Learning.
Bhattacharyya, D. K., 2009. Research methodology. Excel Books.
12

Alvesson, M. and Sköldberg, K., 2009. Reflexive methodology: New vistas for qualitative
research. Sage.
Silverman, D., 2010. Qualitative research. Sage.
Pickard, A., 2012. Research methods in information. Facet publishing.
ONLINE
Ong'anya, G. V., 2009. QUESTIONNAIRE AS A DATA COLLECTION INSTRUMENT.
[Online]. Available through:<http://onganya.blogspot.in/2010/03/questionnaire-as-data-
collection.html> [Accessed on 19th April 2016].
Key facts 2015. 2016. [Online]. Available
through:<http://www.englishwineproducers.co.uk/background/stats/> [Accessed on 19th
April 2016].
Lyons, 2015. New entrants to UK wine production push dramatic sector growth. [Online].
Available through:<http://www.harpers.co.uk/news/new-entrants-to-uk-wine-production-
push-dramatic-sector-growth/526671.article> [Accessed on 19th April 2016].
Sparkling Wine. 2016. [Online]. Available
through:<https://www.thedrinksbusiness.com/2016/02/sparkling-wine-the-hottest-
category-in-the-world/> [Accessed on 19th April 2016].
Wine Consumption To Rebound In 2015. 2014. [Online]. Available
through:<https://www.thedrinksbusiness.com/2015/01/uk-wine-consumption-set-to-
rebound-in-2015/> [Accessed on 19th April 2016].
WSTA Market Overview. 2015. [PDF]. Available
through:<http://www.wsta.co.uk/images/Research/Market-Reports/LWFOverview2015.pdf
> [Accessed on 19th April 2016].
Vinisicilia. 2016. [Online]. Available
through:<http://www.vinisicilia.com/en/shop/Sicilian_red_wines-2-1.html> [Accessed on
19th April 2016].
UK Sparkling Wine Industry Takes Off. 2015. [Online]. Available
through:<https://www.thedrinksbusiness.com/2015/07/uk-sparkling-wine-industry-grows-
by-105/> [Accessed on 19th April 2016].
13