The Case of Australian Shiraz in the Context of the Australian Domestic
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Regionality and drivers of consumer liking: the case of Australian Shiraz in the context of the Australian domestic wine market. Trent E. Johnson A thesis submitted for the degree of Doctor of Philosophy University of Adelaide Faculty of Sciences School of Agriculture, Food and Wine Wine Science and Business Group May 2013 Thesis Summary Understanding the needs of consumers is a fundamental principle of marketing and Shiraz is arguably the most important grape variety produced in Australia, as it is the variety most widely associated, both domestically and globally, with Australia’s wine industry. This three part project examined consumers in the Australian domestic wine market in respect of their liking of Australian Shiraz and provided up to date market intelligence on that market. The first stage of the project consisted of a study that segmented the Australian domestic market using a newly developed Fine Wine Instrument (FWI) that consisted of three variables, as the base. This instrument identified three segments in the market which were denoted: “Connoisseurs”; “Aspirants”; and “No Frills” wine consumers. The Connoisseur segment consumed more wine, spent more money on wine and was more knowledgeable about wine than the other segments identified in the market. The results demonstrated that this segment of consumers was important to the Australian wine industry, as they offered large potential lifetime earnings to the industry. This project also identified a number of stable segments within that market and provided updated information on the market. The next stage introduced the Shiraz variety into the project and was motivated by Wine Australia’s “Regional Heroes” brand segmentation. The aim of the project was to identify those sensory attributes that might differentiate Shiraz wines from a number of delimited Australian Shiraz producing regions. The study employed a number of wine experts to undertake a sorting task, where wines that were perceived as similar by the experts were sorted together in groups. If wines from a single region were perceived as similar, then ii they were sorted together. The data from this task identified three dimensions that separated the wines and these dimensions generally represented sensory attributes associated with Australian Shiraz. The wines also underwent sensory descriptive analysis which confirmed that the wines occupied diverse sensory spaces. However, identifying specific sensory attributes that differentiated wines from different regions was problematic and we concluded that any future studies of this type should concentrate on a single wine region, with a large cross section of wines from that region, rather than examining a number of wines from many regions. The last study combined elements of the previous two, where a diverse sub set of twelve of those Shiraz wines was tasted by a cohort of Australian Shiraz wine consumers and the consumers rated their acceptability, or liking, of each wine. Those consumers also completed a questionnaire so that they might be segmented using the FWI developed in the first study. The sensory data for each of the wines was married with the consumers’ acceptability data and the sensory attributes that drove the liking (and disliking) of the wines were identified. A similar exercise was undertaken with a cohort of wine experts and the results compared. The results demonstrated that as consumers’ wine knowledge and wine involvement increased, their wine preferences mimicked those of the wine experts and they preferred more elegant and complex wines. By comparison, the consumers with lower levels of wine knowledge and involvement tended to prefer wines that demonstrated more one dimensional fruit and oak characters. This technique of marrying sensory with consumer data can be transferred to any wine style and identified consumer segment. iii The project provides the wine industry with tools that might enable producers to better identify and meet the needs of their consumers. This, in turn, might improve their profitability and increase consumer satisfaction, both admirable goals. iv Declaration I declare that this thesis is a record of original work and contains no material which has been accepted for the award of any other degree or diploma in any university or other tertiary institution. To the best of my knowledge and belief, this thesis contains no material previously published or written by another person, except where due reference has been made in the text. The manuscripts included in this thesis have not been previously submitted for the award of any degree at the University of Adelaide or other University. I give consent to this copy of my thesis when deposited in the University library, being made available for loan and photocopying, subject to the provisions of the Copyright Act 1968. The author acknowledges that copyright of work contained within this thesis that may be published resides with the copyright holders of those works. I also give permission for the digital version of my thesis to be made available on the web, via the University’s digital research repository, the Library catalogue, the Australasian Digital Thesis Program (ADTP) and also through web search engines, unless permission has been granted by the University to restrict access for a period of time. Trent Johnson May 2013 v Panel of Supervisors Dr Sue Bastian, Principal Supervisor School of Agriculture, Food and Wine The University of Adelaide Mr Brian Croser, AO, External Supervisor Managing Director, Tapanappa Wines Former Deputy Chancellor, The University of Adelaide vi Acknowledgements This thesis is dedicated to my late father, John E Johnson. I hope I have made him proud. This has been quite a journey and I have met a whole lot of people who have helped, mentored and motivated me throughout it. If I have omitted anyone, it is not deliberate and I apologise in advance. Sandra, Anna, Amy, Crystal, Damo, Renata and Chris have all played a part along the way and your support is much appreciated. Many thanks to Brian Croser for his early input and impetus for the project and his ongoing help during its duration and to Peter Dry for his input during the submission stage. Thanks to the University of Adelaide for their support via a scholarship and also to Orlando for their support. Thank you to Anne Hasted for her invaluable statistical advice. To Karel and Barb who were always supportive and let me know that there was life outside of study - like running, latterly riding, travelling and above all, friendship, fun, food and wine! vii Through my training I met Cyd and Gary from Modesto in the US. Our friendship with them has blossomed and we have now spent time in each others' homes. Now that the journey has finished, I am confident that the friendship will not. To Mum and Dad in the early stages and latterly Mum - thanks for all of your support and love. Last but certainly not least, I would like to thank two amazing women, without whom, none of this would have happened. The first is my principal supervisor, Sue Bastian, but she is far more than that. She is the person who first sowed the seed of a PhD in my mind and then took on the responsibility of guiding me through the process. She has a wealth of knowledge, is forever positive and kept me positive throughout the journey and I am proud to call her a friend. Finally I come to my wife, Brenda. I said a few years ago that she had put up with a lot when I decided to take on post grad study at a time when she might have contemplated slowing down herself. Ten years on and not much has changed - I studied and she was the bread winner. Uncomplaining about working, always supporting, encouraging (and occasionally cajoling), she has been my strength, my rock and my love. I couldn't have done it without her. viii Table of Contents Thesis Summary ............................................................................................................ii Declaration ..................................................................................................................... v Panel of Supervisors .................................................................................................... vi Acknowledgements ..................................................................................................... vii Table of Contents ......................................................................................................... ix Table of Tables ............................................................................................................ xii Table of Figures .......................................................................................................... xiv 1 Introduction ............................................................................................................. 1 1.1 Background to the research................................................................................ 1 1.2 Research problem .............................................................................................. 3 1.3 Justification of the research................................................................................ 6 1.4 Methodology...................................................................................................... 7 1.5 Outline of this report.......................................................................................... 9 1.6 Delimitations of scope and key assumptions .................................................... 11 1.7 Conclusion......................................................................................................