Multiples could be left behind if they don't take a good look at their strategy for selling wine, argues David Bonney Take home wine replaced beer as Britain's favourite tipple this year, not because it is cheap, but because we like it. Yet the supermarkets stand to lose ever larger chunks of that market to online merchants. For years, the category management of wine has been half-hearted, confusing and contradictory. In short, a mess. However, this hasn't stopped the multiples growing their share from 55% to 60% since 1994. But that effortless growth could come to an end if they don't stop to think about their strategy, and that includes embracing the internet. Supermarket wine areas are full of shoppers bewildered by a sea of bottles. There are often no clear signposts either by country, quality or brand. In desperation we look for signals could it be that the white labels with elaborate script are French or Italian, and the modern, brightly coloured labels are Australian? Existing strategies are confusing and inconsistent. Some products, such as single malts, appeal to the high-end connoisseur. When it comes to wine, though, supermarkets think we are all connoisseurs, yet encourage us to buy on price with their promotional strategies. In France, Italy and Spain, wine drinkers have inherited a centuries-old knowledge of grape varieties, regions and even producers. We do not have this background in Britain. The success of the New World producers has been down to their ability to pull themselves out of this confusion. Their brands refuse to be drawn into the game played by their Old World counterparts based on traditional marketing techniques. As a result, brands are seen as offering reassurance, consistency and value. In fact, branded wines now have a 17% share of the market. In many categories, this would be so blindingly obvious it need not be said. However, a trip to any supermarket explains its relevance. Wine aisles are often placed next to products such as pet food, where shoppers select items they recognise from a layout that helps them spot similar products, often signposted by a familiar brand. Branding isn't the only way to take the confusion out of buying wine, however. The internet has the capability to improve the shopper experience further. Internet retailers offer the sort of ease of shopping associated with other aisles in the supermarket, as well as creating an opportunity to inject the sector with entertainment and a chance to build knowledge. There are at least 40 retailer sites in the UK and some trade sources are predicting 2000 will see the entrance of major multinational players with serious money to invest. The reason for their popularity is clear. Wine web sites are fun. They use exciting graphics to mirror the purchase decision criteria and are full of helpful and enthusiastic descriptions, suggestions for meals, as well as special offers. The sites are not limited by space so can offer as much, if not more, choice than a shop. And, of course, you don't have to lug your purchases home. Once people get used to buying wine online they will migrate to the sites that are easiest and most fun to use. The specialist wine merchants such as Château Online are taking the negatives out of buying wine, but also bringing back some of the fun associated with specialist shops. By 2001 up to 5% of wine volume and 7% of value will be delivered to the home, according to the International Wine Clubs Association. So how do supermarkets make sure they get their slice? Understanding the shopper's purchase decision process, particularly the role of brands, is critical. For suppliers, there is an opportunity to offer retailers genuine consumer insights and together develop category strategies that put the right point-of-purchase marketing execution in place. Category management is a winning formula in all the major markets why not in wine? For the retailer, featuring wine in e-shopping strategies is not enough. Some fundamentals need to be ascertained. How much of a selection do shoppers need to see to choose where they buy their wine? The sheer number of different wines can result in diminishing returns if it hinders rather than helps. Promotions in wine should be about more than price cuts, and retailers should think about mixed taste deals, as the specialist off licences do. The Iceland site offers "Winter Warmer" or "Kitchen Supper" mixed cases, for budgets from £45 to £145. You can look at the selection by price per bottle or country of origin. There are wine writers' favourites or, if you fancy a browse, click on "Search our Cellars" for a virtual tour. The Oddbins Champagne site allows you to make the perfect choice based on preferred flavour, budget, vintage or brand. Or just select one of four scenarios, such as "I want to impress someone but I'm short of cash" and it will suggest a bottle for you. Marks and Spencer, Tesco, Victoria Wine and Oddbins all have web sites that are much easier to buy from than their corresponding high street store. Waverley Direct, another well laid-out site, uses the interactive facility to run an online survey. The challenge is clear. Retailers must sort it out in store to protect the traditional market and think carefully about the e-offering at the same time. n David Bonney is group client director at Glendinning Management Consultants {{MANAGEMENT FEATURE }}

Topics