Awareness, Attitude and Usage of Wine Among SEC a Urban Indian Consumers by Researching the Following Factors
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Awareness, Attitude and Usage of Wine Among SEC A Urban Indian Wine Consumers JUNE 2016 WORD COUNT*: 9337 *Excluding table of contents, titles, sub-titles, tables, graphs, glossary, references and appendices. © The Institute of Masters of Wine 2016. No part of this publication may be reproduced without permission. This publication was produced for private purpose and its accuracy and completeness is not guaranteed by the Institute. It is not intended to be relied on by third parties and the Institute accepts no liability in relation to its use. Index 1. Glossary ......................................................................................................... 1 2. Summary ........................................................................................................ 3 3. Introduction .................................................................................................... 5 3.1 Overview and Need for the Study .............................................................. 5 3.2 Objectives of the Study .............................................................................. 7 4. Literature Review ........................................................................................... 9 4.1 The Historical Context ............................................................................... 9 4.1.1 Alcohol in Indian Mythology and Ancient History ......................... 9 4.1.2 Alcohol Use in Post-Independence India (1947 – 1979) ............ 10 4.2 The Contemporary Indian Wine Industry (1980 onwards) ....................... 10 4.2.1 Domestic Wine Production ......................................................... 11 4.2.2 Wine Imports .............................................................................. 12 4.2.3 Wine Consumption ..................................................................... 14 4.3 Importance of Wine Consumer Studies ................................................... 16 4.4 Relevance of Awareness, Attitude and Usage (AAU) Studies on Wine ... 17 4.5 Significance of AAU Studies in International Markets .............................. 17 4.6 Lack of Wine Consumer Studies on the Indian Wine Industry ................. 18 4.7 Alcohol Consumer Studies in India .......................................................... 19 5. Methodology ................................................................................................ 21 5.1 Overview.................................................................................................. 21 5.2 Target Group ........................................................................................... 21 5.3 Survey Partner ......................................................................................... 22 5.4 Quality Checks ........................................................................................ 22 5.5 Stage 1 Qualitative Study ........................................................................ 23 5.5.1 Sampling Strategy ...................................................................... 23 5.5.2 Interview Technique ................................................................... 23 5.5.3 Survey Design ........................................................................... 24 5.6 Stage 2 Pilot Survey ................................................................................ 25 5.7 Stage 3 Quantitative Study ...................................................................... 25 5.7.1 Sampling Strategy ...................................................................... 26 5.7.2 Interview Technique ................................................................... 27 5.8 Limitations of the Study ........................................................................... 27 6. Results and Analysis .................................................................................. 29 6.1 Overview.................................................................................................. 29 6.2 Awareness and Usage Module ................................................................ 30 6.2.1 Wine Styles ................................................................................ 30 6.2.2 Country of Origin ........................................................................ 32 6.2.3 Regions of Origin ....................................................................... 34 6.2.4 Grape Varieties .......................................................................... 36 6.3 Off-Trade Usage Model ........................................................................... 38 6.3.1 Frequency of Wine Purchases ................................................... 38 6.3.2 Occasion Context of Wine Consumption ................................... 42 6.3.3 Typical Wine Spend ................................................................... 44 6.3.4 Wine Buying Channels ............................................................... 47 6.3.5 Choice Cues When Selecting Wine ........................................... 49 6.4 On-Trade Usage Module ......................................................................... 50 6.4.1 Occasion Context of Wine Consumption ................................... 50 6.4.2 Typical Wine Spend ................................................................... 52 6.4.3 Wine Format Choice .................................................................. 56 6.4.4 Choice Cues When Selecting Wine ........................................... 58 6.5 Attitudes to Wine Module ......................................................................... 59 6.5.1 Attitude to Wine.......................................................................... 59 6.5.2 Reasons to Drink Wine .............................................................. 63 6.5.3 Attitudes to Domestic and International Wine ............................ 64 6.6 Additional Findings .................................................................................. 69 6.6.1 Frequency of Consumption of Domestic and International Wine 69 6.6.2 Off- and On-trade Usage of Domestic and International Wine ... 72 7. Conclusions and Recommendations ......................................................... 75 8. Bibliography ................................................................................................. 83 9. Appendices .................................................................................................. 91 Appendix 1 - Quantitative Consumer Survey Questionnaire ......................... 91 Appendix 2 - Approved Research Paper Proposal ...................................... 109 1. Glossary Term Description AAU Awareness, attitude and usage ASSOCHAM Associated Chambers of Commerce of India CAGR Compounded Annual Growth Rate Consumer The ‘Indian wine consumer’ unless otherwise mentioned as Chinese wine consumer, American wine consumer etc. Delhi Capital of India. For the purpose of this study, ‘Delhi’ includes New Delhi and urban areas in the neighbouring states of Haryana, Uttar Pradesh and Rajasthan. Dry states States in which the manufacture, distribution, importation, and sale of alcoholic beverages is prohibited by law. Rs./Rupees Indian national currency. Approximate conversation rates (as of 25-05-2016): £1 = Rs. 98.97, US$1 = Rs. 67.30 CWE Chief Wage Earner i.e. the person who contributes most to the household income. SEC Socio economic class. Classification of households used by market researchers to categorise Indian consumers on the basis of education levels and occupation of the CWE. SEC A Socio economic class A consisting of individuals who are considered as upper income earners, by way of being educated above diploma/graduate levels and/or are office executives or businessmen employing 10+ employees. Usage Wine purchase and consumption behaviour among consumers 1 © Institute of Masters of Wine 2016 2 © Institute of Masters of Wine 2016 2. Summary Often cited as an important emerging market for wine, India’s immense and evolving consumer population presents a number of opportunities. Despite its growing importance, little is known about the Indian wine consumer. As the Indian wine industry gains momentum and wine is desired by a wider spectrum of Indian consumers, there is a greater need to understand them better. Indian wine drinkers are largely upper income earners and located in the urban centres of Mumbai, Delhi, Bangalore, Pune and Goa, which account for the majority of India’s wine consumption. This research paper surveys 878 SEC A urban consumers across these main consumption centres with the aim of understanding their awareness, attitude and usage of wine; and examines varying trends in these factors across age, gender and geography. Survey highlights: Consumers have a limited understanding of wine styles and regions. Consumers are rapidly accepting wine as a healthy, lifestyle beverage. There are significant variations in how wine is perceived and consumed across India. Females and 25 to 34 year olds represent an increasingly important market segment. Insights from the study will have a direct commercial relevance for wine producers, importers, exporters, and marketers engaged in the Indian wine industry. 3 © Institute of Masters of Wine 2016 4 © Institute of Masters of Wine 2016 3. Introduction 3.1 Overview and Need for the Study India is widely recognised as a global economic powerhouse. With 1.2 billion people, it is the second most populous country in the world (Central Intelligence Agency 2016) and has the world’s largest