Callaway Winery Market Research Report

Callaway Vineyard & Winery

Report

Table of Contents

I. Problem Definition 3

II. Research Objectives 3

III. Research Implementation 3

3.1.1 Wine Description Study 5

3.2.1 Wine Terminology Study 5

3.3.1 Wine Label & Price Study 6

IV. Marketing Recommendations 8

V. Consultant Biography 9

VI. Appendix 10

VII. References 14

I. Problem Definition

пÑ"? Callaway Winery is an established and profitable winery. Recently, Callaway’s profits have steadied, and with many competitors, the company seeks to boost its market position. Callaway Winery’s objective is to maximize their profits while focusing on customer needs, increasing prestige, and determining how to market to their different customers.

пÑ"? Callaway wants to focus on its customers and their needs. Callaway Winery has a wide range of customers consisting of different income levels, social status, etc. Through research, Callaway’s customers consist of expert wine drinkers, semi-expert wine drinkers, and non-expert wine drinkers.

пÑ"? Because Callaway is looking to increase its profits, it is focusing on the needs of its target market. In relation to this, Callaway would also like to increase its prestige in the wine community. To fulfill these objectives, specific questions that should be addressed are the following. Should Callaway change the overall terminology of their wine bottles? Should Callaway change the overall description of their wine bottles? Should Callaway change the overall way the label looks on the wine bottle, including color, description, and size of the label?

пÑ"? Broken down in this objective are the different criteria different customers use in determining which wine to buy and consume. These are the questions that arise. Are wine experts more stimulated by communication messages using non-wine expert terminology? Are non-wine experts more stimulated by communication messages using non-wine expert terminology? And do non-experts prefer and understand most wine descriptions?

II. Research Objectives

Proposals (need to redefine and further answer “WHY”)

Wine experts are more stimulated by communication messages using wine expert terminologies.

пÑ"? Wine experts are more likely to purchase a wine that uses communication only understood by other wine experts.

пÑ"? Wine experts purchase wines that they believe are meant for wine experts.

пÑ"? Terminology is used to target a particular type of consumer.

пÑ"? Terminology is related to the type of wine that is purchased by different types of consumers.

пÑ"? Terminology tells about the wine and allows the consumer to estimate if they are going to like or dislike that particular bottle of wine.

Non-experts do not fully understand most wine descriptions.

Non-experts associate expensive and good quality wine with an eloquent label.

Experts, semi-experts, and non-experts associate the quality of wine with a higher price.

III. Research Implementation

Focus Groups

пÑ"? The focus group session was conducted with identified semi-experts and non-experts at a local bar.

пÑ"? The focus group will be used to determine the respondent’s interests, motives, lifestyles and attitude towards wine purchases and consumption.

пÑ"? These sessions were administered by a highly trained interviewer-analyst who oversaw the discussions to ensure that the respondents stayed focused on the scope of the session.

пÑ"? The focus group lasted about 40 minutes.

пÑ"? The questions posed were open-ended in order to obtain subjective information about the participant’s attitudes toward wine.

пÑ"? This marketing research firm sent out two of its members to do a qualitative research focus group. Our primary objective in this study was to do a qualitative study to find out customer preference for wine in terms of wine terminology, wine description, and wine labels and prices.

пÑ"? The focus group was conducted on November 21, 2005, around 10:30 p.m. at a local bar in Chatsworth. There were six individuals that participated in the focus group, both male and female, who will be referred to as Group Members #1 - #6.

 Group Member #1: (Dave)

 Group Member #2: (Paul)

 Group Member #3 (Alissa)

 Group Member #4:(Ed)

 Group Member #5: (Jason)

 Group Member #6: (Don)

пÑ"? All Group Members were brought together and asked to participate in a focus group. All the group members were informed that they were participating in a Cal State Northridge marketing research student project for Callaway winery. Members were not given any other additional information, including, but not limited to, who are the target market for this study, and why and what the researchers were going to do with the research concerning terminology, description, label, and price.

In-Depth Interviews

пÑ"? Brief personal interviews were conducted with wine experts at a local winery vineyard.

пÑ"? During