"Increasing the retail presence of Qld wine" - 11 May 2006
Background
The Department recently contracted ACNielsen to conduct market research into increasing the retail presence of Qld wine.
Research was focused on wholesale opportunities for Queensland wine and included results from in-depth interviews and focus groups with consumers and the liquor/hospitality trade.
ACNieslen produced a 109 page report and a 15 page Executive Summary (pdf 78kb)
The research synopsis may be useful to promote discussion of this issue among the industy.
The research findings will assist both the Department and Queensland wine industry to idenitfy wholesale opportunities.
The research will also assist QWIA in completing Strategy Action E1 (Developing a State Marketing plan - Wholesale sector).
Key Findings
Consumers and the trade note that the quality of Qld wine has recently improved markedly.
Queensland wine however, still has perception issues due to negative experiences of the past therefore any trade activities MUST be quality focused.
The industry must recognise that Queensland wine quality can be very varied.
Both groups (and ACNieslen) feel that the time is not right for a wider campaign to brand or market Queensland wine.
Many within the trade recognised that customer loyalty is bought on customer relationships, not deals and discounts - the latter is clearly not the market for Queensland wine.
In terms of wholesale sales, restaurants will be central to the Queensland wine industry's future; restaurants provide consumer access, credibility and demand momentum.
Recently, the industry has produced many quality wines that have won, and earned, the respect of independent and eminent Queensland and interstate judges, the media, some restaurants and the specialist retail trade.
Wineries should be encouraged to enter wine shows and work the media to gain respect.
Consistency of supply is also a major issue with the liquor/hospitality trade. With many believing the industry has a long way to go to deliver consistent quality wine products that are readily available to consumers.
Both consumers and the trade want the Queensland wine industry to be successful and are willing to support but it must be in partnership.
. The trade would like
o Wineries to provide tasting stock for consumer tastings and trials
o This would reduce the risk of losing hard-won customers
. Consumers would like
o To try before they buy
o This is because there are many good and 'safe' alternatives available
o Consumers also want some assurances that they can have regular access to the wine if they like it
Summary
Despite past experiences and current perceptions, consumer and trade alike are prepared to give the Queensland wine industry another chance. All want to see a viable local wine industry they can proudly support.
It is strongly recommend that both the Industry and the Government make every effort to nurture and champion a wine industry that has quality as its foundation.
It should be noted that in these times of an increasingly discerning consumers, and hard-won customer relationships in retail and hospitality, this is a rare second opportunity to launch the Queensland wine industry.
The suggested approach for the use and promotion of Qld wine by the Industry and Government is that every opportunity is made to manage perceptions of the quality of the industry and its product, rather than the breadth of the wine industry in Qld.
ACNielsen recommends the industry and Government follow a 3 tier promotional system.
1. 'Promote the best of the best'
2. 'Promote good wines from wineries that have a retail focus'
3. 'Promote Queensland's wine tourism regions'
It should be noted that because of the focus on quality not every Queensland winery will directly participate in all of the above promotions. However they should will benefit.
The time is right for a "demand pull" strategy - not a "marketing push" strategy. That is, demand will be driven by consumers and trade seeking out quality Queensland wine.
A strategy that promotes, champions and rewards quality will raise the bar and improve the environment for the entire industry.
On the other hand, a strategy that adopts a universal promotional target for all producers may have significant negative impact on both quality producers and the entire industry.
And given that the consumer and the trade are prepared to give the Queensland wine industry one more chance, to deliver and promote anything less than a culture of quality could prove to be a case of "Twice bitten, three times very shy".
Last updated 27 June 2006.
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© The State of Queensland (Department of Tourism, Fair Trading and Wine Industry Development) 2006.