Distribution Channels and Market Segmentation of Sirromet Wines

center-345633Literature Review – Review of Sirromet Wines Segmentation and Distribution Channel00Literature Review – Review of Sirromet Wines Segmentation and Distribution Channel
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Literature Review – Review of Sirromet Wines Segmentation and Distribution Channel
Marketers play a significant role in creating more targeted customer segments based on various demographics. Segmentation is a consumer-oriented approach that applies to any market and industry. An organization's distribution channel is a critical component of its marketing mix. Different organizations utilize different distribution channels depending on the products or services. The paper reviews two journal articles in the hospitality industry to analyze market segmentation and distribution channels for Sirromet Wines Company. The market segmentation article to review is; “Bassi, F., Pennoni, F., & Rossetto, L. (2021). Market Segmentation and Dynamic Analysis of Sparkling Wine Purchases in Italy. Journal of Wine Economics, 16(3), 283-304”. The distribution channel article the paper review is; “Bouzdine-Chameeva, T., & Zhang, W. (2013). Wine distribution channel systems in mature and newly growing markets: Germany versus China. In Academy of Wine Business Research Conference, Ontario, Canada (pp. 1-15)”. The two articles are relevant to our review and will be vital in analyzing the distribution channel and market segmentation of Sirromet Wines Company.
Part A: Sirromet Wines
Sirromet Winery is a family-owned enterprise located in Australia at Picturesque Mount Cotton. The winery Company offers various services to its customers in the hospitality industry. Thanks to its modern amenities, visitors to Sirromet may enjoy a winemaking experience like no other (Magriplis, 2019). Terry Morris is the mastermind behind the existence of Sirromet wines Company. Terry had an idea of creating excellent wine experiences after being chuckled at by his friends for having tasted sweet wine from Queensland. Terry first established his grapes farm in the Granite Belt region for its suitable climate and soils. After investing in producing quality grapes, wine manufacture became a feasible idea. In 2000, Sirromet Wines started selling its products to the public, offering an excellent experience for wines users (Magriplis, 2019). The Company has a workforce of 114 employees. The production of exquisite quality wines by Sirromet is attributed to its combination of cutting-edge technological advancements and traditional techniques.
Sirromet Wines Company offers a variety of products and services to its broad customer base. Sirromet wines offer products including wines, foods, and experiences. The various wine brands for Sirromet include the private collection, signature collection, vineyard selection, bald rock creek, in cahoots, and Le Sauvage. Sirromet Wines Company operates in a highly competitive environment both locally and internationally. Some of its competitors include companies like Childress Vineyards, Codorniu, Domaine Chandon, Taylors Wines, Freixenet, Nyetimber, and Denbies Wine Estate, among other firms. The Company's financial status is also a vital factor in its growth. During the 2021 financial year ended 31 December, Sirromet Wines recorded annual revenue of $24 million. Revenues for the first and second quarters in 2021 saw a revenue of $23.4M (Zoominfo, 2021). During Q2 2021, its growth rate in terms of the employees was at 8.57%, having increased the number of employees. The Company has made steady growth in its market share, having advanced its business in China and other emerging markets.
Part B: Market Segmentation paper
Bassi, F., Pennoni, F., & Rossetto, L. (2021). Market Segmentation and Dynamic Analysis of Sparkling Wine Purchases in Italy. Journal of Wine Economics, 16(3), 283-304.
The article provides an analysis of the expanded Italian market wines due to the prosecco consumption. It highlights the sparkling wines market's expansion in terms of volume and variety. This study examines the buying patterns of sparkling wine in supermarkets over two years using scanner data from a consumer panel (Bassi et al., 2021). The article applies the hidden Markov model in its analysis to capture consumers’ preferences and purchase sparsity data over a particular period. The paper identifies five distinct market segments and monitors their evolution. In the study, researchers looked at Prosecco-loving customers and found that their devotion to the wine fluctuates over time depending on where they live, their income, and the sort of family they belong to. Findings in the article are essential in advancing understanding of markets and marketing strategies.
The study employs multivariate response variables to attain a general overview of systematic purchasing processes in collecting data. An international agency provides data on Italian households through the scanner method. The agency evaluates data, including purchases information and extrinsic attributes of wine for the two years. Nielsen's methodology categorical variables provide socio-cultural features for the purchases and household aspects (Bassi et al., 2021). Information about consumers’ clusters is obtained from an analysis of socio-economic household aspects. A latent model gives consumer information in market segments. Covariates and probabilities data are evaluated based on the Markov chain. Panel and time-series data analysis is done based on inferential HMM developments. The expectation-Maximization algorithm is used to analyze market segmentation parameters. Bayesian Information Criterion identifies and analyzes customer segments and purchase performances. HMMs and standard error estimates provide data estimations and calculations regarding household elements and other market variables specified in the study.
Part C: Distribution Channel Paper
Bouzdine-Chameeva, T., & Zhang, W. (2013). Wine distribution channel systems in mature and newly growing markets: Germany versus ...