FirstCape Case Study: Tapping into the Needs of the UK Wine Consumer

With the underlying shift from on to off trade drinking in the UK, the importance of wine to the alcohol market has grown. This case study assesses how, by focusing on brand communication, brand architecture, product ranges and formats, as well as price and promotional activities, the brand was one of the biggest winners across the entire UK CPG arena in 2009

• Achieve sales growth by identifying how alcohol manufacturers are tapping into underlying consumers trends to drive sales growth * Enhance credibility during sales pitches by understanding the drivers of off trade wine drinking in the UK * Stimulate ideation and invigorate brands by learning from best practice examples specifically from the alcohol industry * "Enhance your market positioning and concept development efforts and reduce risk for new product launches and increase the chances of success”

Datamonitor research has shown that in the UK, price and preferred brand are the key drivers of drink choice, and this is particularly true of wine drinkers. Wine marketing often misses the target and perceived as elitist and a “private club”. The wine brands most relevant to consumer needs are those that will succeed in generating volume sales.

• What drives choice of alcoholic beverage? * What have been the factors driving a successful brand in the UK alcohol market? * How has the nature of new product development in the wine market changed over the past three years?

Table of contents

OVERVIEW
Catalyst
Summary

ANALYSIS
FirstCape has taken the UK wine market by storm
UK wine sales have benefited from the shift to the off-trade, which is characterized by price conscious shopping and high promotional activity
Price is the most prominent issue for most wine drinkers in their purchase decisions
Promotional activity has been a key part of FirstCape’s success
Fewer and cheaper new wine skus are being launched in the UK
FirstCape benefiting from the importance of brands to the wine drinker
The FirstCape brand has benefited from the growth in popularity of South African wines
The World Cup has provided a unique opportunity for brand South Africa
FirstCape has used sustainability as a route to product differentiation, albeit in an understated manner
FirstCape Café Collection targets health conscious consumers
Balancing price, profitability and rate of sale in the future will be vital for further success
Ethical and environmental concerns will become a hygiene factor in the future
Conclusion and implications

APPENDIX
Case Study series
Supplementary data
Methodology
Further reading and references
Secondary research
Primary interviews
Ask the analyst
Datamonitor consulting
Disclaimer

Related research categories

By sector: Consumer (in Trends), Wine (in Wine & Champagne)

By market: United Kingdom (in Europe)