UK Wine Market Analysis and Trends

This assignment delves into the UK wine market, requiring students to analyze various aspects such as consumer preferences for red and white wine, foreign versus domestic wines, and price sensitivity. It also explores different distribution channels and import patterns from various nations. Students need to identify current trends and potential future developments within the UK wine market.

Market research about Wine

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
Secondary data analysis...................................................................................................................4
Review of academic sources ...........................................................................................................8
Research objectives and design.....................................................................................................11
Questionnaire design......................................................................................................................14
Summary/ conclusion.....................................................................................................................15
REFERENCES..............................................................................................................................16
ILLUSTRATION INDEX
Illustration 1: Import by UK from different nations in past years...................................................4
Illustration 2: Demand for red and white wine in UK in million amount........................................5
Illustration 3: Sales of win in UK through different channel of distribution...................................7
Illustration 4: Consumption of wine by youngsters in UK..............................................................9

EXECUTIVE SUMMARY
This report is prepared on the wine industry of the UK. In this report various aspects of UK wine
industry are covered. Along with this an attempt is made to understand consumer behavior of the
UK people in terms of consumption of wine and factors that affects their demand for wine. On
the basis of collected secondary data it is identified that UK market have lots of growth potential
however, it is very difficult to understand consumer behavior of the people because same of male
and female is different from each other. Hence, it can be said that this research study is very
useful for readers.

Secondary data analysis
UK wine market is world sixth largest in terms consumption of same all over the world.
In past few years declining trend to some extent is observed in the UK wine market but it is still
a large market across the globe. As per facts available it is observed that UK import heavy
amount of wine from foreign nations. The major exporting nations that are selling their wines to
UK are Australia, France and Italy (Wine market research, 2016). This is very important plus
point for Vini Sciily because this fact is reflecting that wine produced by Italy company's is
specially preferred by the UK people. Hence, there is great possibility for acceptance of Vini
Sciily products in the UK. Huge export of wine by Italy to UK is indicating that there is huge
opportunity for the firm in the UK market.
Illustration 1: Import by UK from different nations in past years

If we compare white wine and red wine trends in the UK market then it can be seen that
latter wine is consumed more in the UK market then former type of wine. White wine
consumption reached to 53.3 million in the UK market. Whereas, consumption of red wine reach
to 55.2 million in the UK market. Hence, it can be said that people in the UK are preferring red
wine more then white (Ritchie, 2011). This reflects that on establishing business in the UK firm
must give due attention on the red wine market but along with this it must also give focus on
white market. This is because there is little difference in level of consumption of white and red
wine in the UK market. This again reflects that there is huge scope for Vini Sciily in the UK
market because it is chiefly producing red and white wine and both type of wine are heavily
consumed in the UK market.
It has been observed that in UK people are consuming premium wine. It can be said that
wine consumption to some extent decline in the UK but people are preferring to consume costly
wines. This reflects that consumer behavior of people changes and they are consuming less wine
but when they purchase same always focused on buying quality wine (Lloyd and Payne, 2014).
This means that in the UK market there is heavy demand for high quality of wines and people are
Red wine White wine
52
52.5
53
53.5
54
54.5
55
55.5
55
53
Column C
Illustration 2: Demand for red and white wine in UK in million amount

even ready to pay heavy price for same. From this fact huge business and profit making
opportunity is observed in the UK if analyze economic environment of the mentioned nation. UK
economy is giving moderate performance and it will increase at rapid pace in the future time
period. Hence, in future to great extent demand for wine will increase and trend of purchase of
same at high price will also increase. Hence, if Vini Sciily today open its business in UK then it
can earn heavy amount of revenue in future time period. Thus, there is great business opportunity
for the firm in the UK market.
It has been seen in the UK market that 80% of wine sales takes place through retail
outlets. Remaining 20% sales takes place through bars, restaurant and hotels as well as other
food service venues (Andrews and Turner, 2012). This reflects that Vini Sciily must open its
own retail oulets in the UK or must sale its products through already exited distribution stores. If
it will pay entire focus on selling products through restaurant and hotels then it will not get
success in the market. This also indicate consumer behavior of the people and reflects that
youngsters are the major consumers of the wine in the UK and they prefer to consume wines at
their own rooms or other places instead of restaurants and hotels. This can be used as input in
crafting advertisement for the firm product. In advertisement it can show that youngsters are
taking wine in their rooms with their friends. By doing so firm can craft its product
advertisement according to consumer behavior of the people.

UK wine market is fairly competitive and most of firms are focusing on providing their
products at low price to the customer's. Consumers are aware about the wine varieties. Red wine
is gaining popularity in UK and entire Europe. This indicate that there is a strong demand for red
wine in the UK market. Firm is already selling red wine and it has long experiences in same.
Thus, this reflects that there is huge scope for the firm in terms of opening of business in the UK
market (Crouch and Housden, 2012). If firm will make available its red wine at both high and
low price then it will be able to enhance its market share in the UK wine industry rapidly. Thus,
there firm by opening its business in the UK market can tap available opportunity at initial stage.
Many firms that are operating in the wine industry of the UK are promoting their wines
with regional story. Means that if in specific region special type of wine is consumed at large
scale then firm associate its product with that region. By doing firm try to create special image of
its products among the people. Hence, Vini Sciily can also use its homeland country image in
terms of wine in order to sale its product. Wine produced by Italy company;s have great demand
in the UK (Davis and et.al., 2013). Thus, by doing advertising on the basis of origination of
product in Italy firm can create its product special image among the people and can promote
demand for its product in the UK wine market.
Retail sales Restaurents/hotels
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
80.00%
20.00%
Column C
Illustration 3: Sales of win in UK through different channel of distribution

In relation to marketing firms operating in the UK wine industry are focusing on doing
product promotion by using specific methods. Most of the firms are use catalog in order to
promote their product and along with this they also use personnel agent in order to do marketing
of their product. These are company employees and do marketing on behalf of company. Firms
are also doing advertisement of their products through various channels of communication.
Firms operating in the UK wine industry are focusing on the public relation as a tool for doing
marketing of their product (Temperley and Ho, 2012). This indicate that firms that are operating
in the UK wine industry are focusing on the different ways by doing which they can promote
their products. Vini Sciily can use all these methods in order to promote its product because by
using all these marketing methods firm will be able to reach different type of customer's.
Summary of secondary data analysis
Data collected above are indicating that there is very huge growth potential in the UK
market and firm if open its business in the UK market then it will get huge success in the
mentioned market. This is because Italy is major exporter of wine in the UK market and people
are preferring Italian wines. This will act as plus point for the firm when it will start selling its
product in the UK market. Study on consumer behavior of the people is indicating that to some
some extent demand for wine decline but people are preferring to buy premium wines. Demand
for wines will increase in future and such a decline in consumption of wine is very small. Hence,
it is not matter of concern for the firm (Bowie and Buttle, 2013). Conditions in the UK are
positive and it is clear that there are ample opportunities for the firm in the mentioned nation.
Review of academic sources
According to Baverstock, (2015) UK wine market is at maturity stage in terms of wine
purchase and consumption. In UK wine consumption become part of lifestyle in case of most of
adult customer's. In relation to buyer behavior it is observed that situation and occasion for
purchase and further usage have a very heavy influence on people purchasing decisions. Gender
wise consumption of wine also get changed. In UK people purchase wine to consume same in
group, private. They also purchase wine for informal home consumption or to gift some one.
This reflects that there may be some specific purpose behind purchase of wine. In UK women
consume more wine then men and wine purchase is a part of their grocery shopping. According
to Jeacle, and Carter, (2011) it is also find out in past researches that that gender wise there is a

significant difference in attitude towards purchase of wine. Which means that there is a specific
purpose behind purchase of wine by the people in the UK. It may be purchase for household,
further use and gift purpose. But objectives behind purchase of wine also very gender wise.
Means that in case of male there may be different purpose behind purchase of wine then female.
One of the big change that comes in the consumer behavior of the people in past years is that
earlier people like to consume bear but know people of UK specially youngsters are prefer to
consume wine.
Rigby, (2011) claims that currently, over 60% of the UK adult population is consuming
wine which is a very huge percentage and indicating that now more and more people are shifting
from bear to wine. It is find out in past researches that are conducted on the UK wine consumers
that product price and familiarity with the product are the two major cue to the purchase of wine
made by people in the UK. Which means that wine purchase objective and and price as well as
familiarity with the product are some of the important factors that are greatly affecting consumer
behavior of the people of UK. These are the factors that triggered demand for specific type of
wine from people side. Hence, it is very important for Vini Sciily to understand these factors in
Consuming wine (Youngsters) Not consume wine (Youngsters)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
60.00%
40.00%
Column M
Illustration 4: Consumption of wine by youngsters in UK

proper way in order to prepare product advertisement in legitimate way and to create loyal
customer base in the UK.
According to Panayi, (2011) price is one of most important criteria that is acting as
buying criteria for the people in the UK. There are both type of people and some of them like to
consume wine which is available at low price. Whereas, there are some of the consumers that
like to prefers wine that is available at premium price. Hence, it can be said that price is acting as
choice criteria for the people in the UK. Thus, Vini Sciily must focus on making available its
wines at both price level. This is because firm in order to expand business in the UK can not
focus on single category of consumers. It will need to satisfy needs of each and every type of
person in order to develop loyal customer's base in the UK.
Rigby, (2011) claims that Familiarity is acting as another factor that is an important
criteria that is followed by the people while making purchase decisions related to wine. It has
been observed that most of people that are drinking wine for long time are familiar with most
type of wine of different brand. Such kind of people remain stick to the wines with which they
are closely familiar. Whereas, those who does not to take wine so much time are not familiar
with all sort of wines. Hence, they keep on trying different type of wines. Hence, it can be said
that familiarity with the product is also acting as important criteria for people while making
purchase decisions related to wine.
According to Fox, D. and et.al., (2014) origin is another important factor that is
considered while making purchase decisions. Every nation some product is famous and people
prefer to buy that product. If wine of any nation is assumed good then people like to consume
wine of that nation in order to get better taste. Hence, origin of the wine or company of the
specific nation that is producing wine also act as important criteria for people while making their
purchase decision related to wine.
Research objectives and design
To perform a background research into the UK wine market and preparer a solid market
analysis
In order to enter in to any market specially foreign market it is very important to
understand same. Vini Sciily wants to enter in to new market which is UK and it is very
important to understand people and their buying behaviour in order to establish and make
business successful in the foreign market. In this regard background research was conducted on

UK wine market and market analysis is done (McLoughlin, 2014). Under this broad
understanding is developed in relation to UK people and their preferences. Trends related to UK
wine market are also identified and analysed properly. By doing so scope for opening of new
branch in UK market is identified.
To examine the trends and developments in the UK wine industry
In present study trends and developments in the UK wine industry are identified. It is
observed that in UK wine market there is huge growth opportunity for the business firm because
60% of population of youngsters is drinking wine. It was very important to examine trend and
development in the UK wine industry because firm is planning to open its business in the UK. If
performance of industry in the mentioned nation will not be good then firm can not earn profit in
same because there is no growth potential in the industry. If firm will open its business in such
kind of industry then it will face loss in its business. Hence, creation of this research objective
was very important in present study.
To analyse the consumer behaviour of the people of UK
Firm can not commence its business in any nation merely by looking at growth potential
of that specific nation. It is also very important to understand consumer behaviour of the people.
It has been observed that many top multinational companies whose name is very popular across
the world get failed in their business on foreign land because they does not give any importance
to understanding of consumer behaviour of the people (Crouch and Housden, 2012). As a result
they make mistakes in promoting and selling their products on the basis of taste and quality.
Result, was that large and well known firms failed to establish their business on foreign land.
Thus, it was very important to determine this research objective in order to make sure that
research results will provide useful inputs to the Vini Sciily in understanding people of UK.
To identify the buying criteria that are used by people for purchasing wines for consumption
Buying criteria are the factors people consider for making purchase decisions. It is very
important to identify the factors that act primarily acts as motivating factor for people in making
purchase decisions. If firm will produce and sales as well as do marketing of its products on the
basis of these factors its product will be acceptable to the people quickly and firm will capture
huge market share at fast pace in the industry (Baverstock, 2015). Hence, determination of this
research objective was very important in present study in order to understand target customer's
very closely.

Research methodology
Research design
Research design refers to the different techniques that are used for data collection. It is very
difficult to select appropriate method of data collection. Hence, in research design different
categories are determined like exploratory, descriptive and experimental research design (Farrar,
2010). There are different methods of data collection that comes under these research design
categories. Descriptive research design is used when researcher know something about the
research topic and he wants to know more about that subject of research. Exploratory research
design is used when researcher does not know anything about the research topic and he wants to
gather basic information about the research topic. Experimental research design is used when
researcher needs to conduct any scientific research. In present study exploratory research design
is selected for the research because basic to specific information is selected in order to
understand UK wine industry in proper way. When this research was started none of information
about the UK wine industry was available. Apart from this there was no knowledge about the
UK wine industry. Hence, exploratory research design is used in the research in order to collect
entire data for research. There are two type of research one is qualitative and other is quantitative
research. Qualitative research is a research in which theoretical matter related to research topic is
collected in the research (Panas and Pantouvakis, 2010). Whereas, quantitative research is a
research in which facts and figures are collected from various sources of information and
collected data is analysed in order to conduct research on specific topic. In present study
quantitative research is done and facts as well as figures are analysed as well as they are
presented in theory form in the report. By doing this deep understanding about UK wine market
and people of UK as well as their consumer behaviour is developed. In order to conduct this
research both primary data and secondary data will be collected. In present study secondary data
is already collected and its results are interpreted. Questionnaire is the second research method
that will be used to conduct this research. In order to collect data related to research objectives it
is very important to distribute questionnaire among people and to collect data from same
(Gazzaniga and Heatherton, 2015). The main strength of this research is that it not only focus on
understanding UK wine market but also lay down special emphasis of understanding
consumption pattern or buyer behaviour of UK people. Hence, it can be said that present study is
going on right direction. Due to understanding of the UK wine market firm will be able to tap

potential of the mentioned market (Rutter and Schopler, 2012). On other hand understanding of
the buyer behaviour of the UK people will help firm in making available product to the people
according to their needs and wants. Hence, this is major advantage of this research. The main
merit proposed research method is that by using same data related to consumer behaviour of the
people will be collected in proper way. There will be high reliability of data that is collected
from questionnaire. One of main merit of this method is that by using same answers can be
collected on number of questions. The main weak point of present study is that if same will send
by post to the sample units then respondents may give wrong answer. This may affect validity
and reliability of research results. Every attempt is made to make sure that collected data is
reliable and research is producing reliable results.
Questionnaire design
Justification on questions that are included in questionnaire.
Do you think that people are preferring to consume foreign wines
This question is selected in research because if firm will come to know about level of
preference of people in relation to foreign wines then it will be able to identify scope of business
in the UK. By collecting answer on this question broad understanding on UK wine market will
get developed.
People are preferring to consume red wine then white wine
This question is included in research because Vini Sciily is already producing bo9th type
of wine. Results of this question will help firm in identification of wine on which it must pay due
attention if it open its business in UK.
People know prefer to consume wine instead of bear. Do you agree
This question was asked to identify trends and developments in the UK wine industry in
order to identify business opportunity for the firm in the UK market. This will help firm in
formulating its business strategy.
Currently, people are preferring to consume wines that are available at premium price
This question was also asked to identify trends and developments in the UK wine
industry. Response on this question will help in measuring people pricing preference and trend
related to same in the UK wine market. Thus, firm will be able to prepare its pricing strategy in
proper way.
There is difference in intensity of consumption of wine by males relative to females

This question is included in questionnaire for understanding consumer behaviour of UK
people. Hence, this question is related to the research objective.
Male and female buying criteria are different from each other
In order to enhance sale of product in short duration it is necessary to identify whether
male and female have different buying and this was major research objective. By collecting data
on this question firm will come to know about the fact that either male and female use different
criteria for making their purchase decisions or criteria is same in case of both genders. Hence,
this question is relevant to research objective.
Hence, from analysis it can be said that all questions in the questionnaire are relevant and
related to objectives that were determined for conducting a research. Thus, this research will
produce useful results and will help others in properly understanding UK wine industry and
consumer behaviour of the people in terms of wine consumption.
Summary/ conclusion
On the basis of above discussion it is concluded that UK wine market has good growth
potential and in future demand for wine will increase in the mentioned nation. In UK people are
preferring to consume foreign companies wine and due to this reason there is great scope for the
firm in the UK market. Consumer behaviour of the people is different in case of gender and it is
find out in the research that females consume more wine then males. It is also find out in the
research that there are different buying criteria of the people and they use same while making
purchase decisions. Hence, it is very important to sale product on the basis of criteria that people
often used to make their purchase decisions. By doing so in short duration firm can enhance sale
of its product in short duration. It is also find out in the research that people are preferring red
wine over white wine and due to this reason firms must primarily focus on selling red wine in the
UK market then white wine.

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Online
Wine market research, 2016. [Online]. Available through: <
http://store.mintel.com/industries/drink-and-tobacco/alcoholic-drink/wine>. [Accessed
on 26th April 2016].

Questionnaire for research
Name: _________________
Age: _________________
Gender
 Male
 Female Vini Sciily
 Transgender
Do you think that people are preferring to consume foreign wines.
 Yes
 No
People are preferring to consume red wine then white wine
 Strongly agree
 Agree
 Neutral
 Disagree
 Highly disagree
People know prefer to consume wine instead of bear. Do you agree
 Yes
 No
Currently, people are preferring to consume wines that are available at premium price.
 Strongly agree
 Agree
 Neutral
 Disagree
 Highly disagree
There is difference in intensity of consumption of wine by males relative to females.
 Strongly agree
 Agree
 Neutral
 Disagree
 Highly disagree

Male and female buying criteria are different from each other.
 Strongly agree
 Agree
 Neutral
 Disagree
 Highly disagree