Marketing Research Into Wine Consumption Determinants in Vojvodina

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Marketing Research into Wine Consumption Determinants in Vojvodina

Suzana Salai, Milan Gašović, Mirjana Čelić

Abstract: Until a few decades ago, the 1. INTRODUCTION market of Vojvodina as a segment of the Serbian market played a crucial role in Vojvodina used to be renowned as a region of viticulture and wine pro- wine production. Wine consumption in duction not only at the national level, but in many other countries as well. the 1970s amounted to thirty litres per Wine consumers had the habit and ritual of wine consumption, which is capita, whereas forty years later, it has evident from the fact that wine consumption amounted to 30 litres in the been reduced to about three litres. The 1970s, whereas five years ago it plummeted to only 3 litres per capita. The development of technology in the modern- changes occurring in young consumers’ lifestyles and activities of beer day conditions tends to make a positive and soft drink producers resulted in re-channelled consuming habits, es- impact on daily life, which, however, is not pecially of the younger segments, and preference of competing beverages the case with viticulture, wine production at the expense of wine. In addition, wine consumption was mistakenly and consumption – a sphere where development trends have had the opposite associated with alcoholism and all its consequences. Wine is an alcoholic direction. Consequently, the centuries-old drink, but alcohol is not the only and the most significant ingredient. It tradition of viticulture is almost extinct, contains a plethora of various organic compounds and minerals required substituted by other drinks and cultures. by the human organism. Rather than encouraging alcoholism, moder- The economic and cultural development ate consumption of wine features as a component of diet with nutri- and wine production have been, so to say, tional, hygienic, prophylactic and medicinal value (Cindrić et al., 1994). neglected. In the meantime, producers of Research (Kovač & Pekić, 1991) describe the multifaceted influence of beer and soft drinks took over the domi- grapes and wine in the biochemical reactions of the human organism, nation, and these intensely promoted such as vitamin C economy in the organism, inhibition of enzyme sys- beverages have been widely adopted by tems responsible for connective tissue destruction, protection of collagen the consumers of younger generations. fibres in blood vessels, blood cholesterol reduction, excess free radical Wine, as “the divine drink, is the symbol elimination, antiviral properties etc. of happiness, wisdom, health and life”, is well known in most cultures, which should In recent years, under the influence of oenophilia present in mature enable the return of the old glory. markets, interest in wines (especially those with protected geographical designation) has revived in our conditions as well. The true wine cul- The potentials of wine are yet to be ture is acquired over a longer time period, as it implies expertise in viti- researched so that wine production can culture, knowledge of wine types, classification of wines by quality and reach, or even exceed its earlier place culture, the medicinal aspect of wine consumption, the art of serving, in society. The aim of this article is to research the geographic, demographic, label reading, wine temperature, wine glasses, matching wines to food, economic, sociological and psychologi- and many other things. The wine culture is full of “rules” which do not cal determinants predominantly shaping impose norms, but rather entail the beauty of experience, contribute to the behaviour of wine consumers and enjoyment, and ennoble soul and body. traditional producers in Vojvodina. The aim of this research is to establish the motives and attitudes to wines in Vojvodina, which can serve as a basis for wineries for applying Key words: wine consumption habits, consumption determinants, segmentation the appropriate marketing mix in creating consumer value and partner- of wine consumers ship relations with consumers and stakeholders. This research can also serve for improving the consumption of high quality wines that this re-

103 gion can provide, repositioning of wine and re-creat- Holistic marketers acknowledge that the marketing ing the lifestyle of the wine consumer market segment. environment sees constant emergences of new opportunities and new threats, and realise the importance of constant monitoring and adapting to this environ- 2. OVERVIEW OF LITERATURE ON ment, whose factors cannot be controls. Within the ENVIRONMENT DETERMINANTS global situation, the doyens of marketing and brand- ing, Kotler and Keller (2006), have identified six most Consumer behaviour is affected by a significant num- important determinant comprising the subject of ber of external environment determinants, and, in marketing research and pertaining to the macro-en- interaction with these, based on mutual impact, the vironment elements: demographic, economic, socio- internal factors such as mental state and personal- cultural, natural technological, and administrative- ity traits. This approach to consumer behaviour was political. conceived (Levin, 1951) as a result of the relation- The same approach to macro-environment is found ship between the consumer and his environment. In in Kotler, Wong, Saunders and Armstrong (2007). marketing theory, it was redefined according to which Corporate marketing responds differently to environ- consumer behaviour serves the function of interaction ment challenges. Some only watch without reacting, between interpersonal influences (reference groups, whereas others manage the environment by studying leaders and cultures) and personal (internal and psy- forces from the environment and create strategies for chological) determinants (Maričić, 150). Within the avoiding threats and using opportunities offered by external environment determinants, which almost this environment. In their opinion, macro-environ- equally influence all consumers in an environment, ment determinants include demographic, economic, the same source (153) adds general (geographic, de- natural, technological political and cultural forces, mographic, cultural, sub-cultural, economic system and micro-environment comprises determinants in- and business conditions) and very specific, i.e. deter- clude those that affect its ability to serve consumers, minants of micro-environment (interpersonal com- i.e. deliver value – the company, suppliers, marketing munication between consumers, influence of social intermediaries, competition and the public. and reference groups, lifestyle, income, consumption Marketing research conducted in this paper was inclinations etc), including the company’s market- based on the approach of domestic authors (Salai & ing activities. The same author includes the natural Božidarević, 2009), looking into the determinants of environment among geographical determinants, as a macro-environment and wine consumers as microen- “delicate balance and mutual dependence of natural vironment determinants sources on the one hand, and vegetation, wildlife and human labour on the other (162). Within internal determinants, mental state, the consumer’s personality 3. EXTERNAL (macro-environment) streaks and the features of his personality form the DETERMINANTS OF WINE consumer’s attitudes, opinions and motives, so that they are differentiated and manifested under the in- CONSUMERS’ BEHAVIOUR IN fluence of external determinants. THE PROVINCE OF VOJVODINA The classification of consumer behaviour deter- Wine consumers’ behaviour is significantly defined minants from the marketing aspects (Gutić & Bar- by the determinants of the environment they live and bir, 2009), regards the general determinants (global their personal (internal) determinants. Research into processes in the world, demographic movements, the determinants of these consumers’ environment processes and trends, technological development encompasses geographic, demographic, economic, and institutional aspects) as determinants of exter- sociological, social, cultural, political and legal deter- nal character, and the psychological and sociological minants. determinants and the internal determinants of consumer behaviour. In addition to these, consumer be- Geographic environment. The population’s con- haviour determinants include marketing instruments suming features, and thus differences in consump- (product, promotion and pricing), corporate factors tion, result from a whole range of determinants and (corporate and organisational culture and human po- the impacts of the geographic environment. Consum- tentials management) and communication determi- er behaviour relates to the geographic area, climate, nants. landscape, population density (urban or rural envi-

104 Suzana Salai, Milan Gašović, Mirjana Čelić ronment), and contemporary ecological conditions. The landscape of Vojvodina significantly influenc- The province of Vojvodina is located in the South of es meeting the population’s needs and desires in terms the Pannonian Basin, in the confluence of the Dan- of food, clothing and accommodation. It is manifested ube, the Sava, and the Tisa, taking up about ¼ of the in different lifestyles and behaviour patterns of con- territory of Serbia, with about 2 million inhabitants sumers which, from the marketing aspect, means the of various ethnic groups, speaking different languages need to apply regional marketing through micromar- and dialects. keting strategy. Such marketing is particularly significant for the wine segment. Climate makes a significant impact on consumer Within the research into geographic environment, behaviour. It influences meeting basic human needs, a significant determinant of wine consumption is i.e. food, clothing and accommodation. The province population density and the size of the urban and rural has predominantly moderate continental climate, environment. That is to say, the trends of industrialisa- with a growing trend in annual air temperatures tion and dynamic development of tertiary sector have and insolation patterns. Occasional autumn and late resulted in increasing urbanisation which has mani- spring frosty spells, irregular annual precipitation pat- fested itself in various forms and intensity in various ters and occasional droughts make an unfavourable surroundings. Such trends are also characteristic of impact on wine consumption and supply. The specific Vojvodina; farms in this area are slowly disappearing; features of the climate are more favourable to grow- population is migrating to cities, accounting for over ing white grapes and production of white wines. The 30% of the population residing in urban areas. How- climatic conditions, which enable gradual decomposi- ever, despite this growing urban trend, rural commu- tion of malice acid and maintenance of wine acidity, nities still predominate, playing an extremely signifi- thus giving the wines pleasantly fresh flavour, as well cant role particularly in the primary production, i.e. as choice of varieties, soil, technological factors, vili- viticulture. These trends draw attention to the issue fication, cultivation and nurturing are the significant of migration, i.e. geographic mobility of the popula- specifics of the wines from this region. tion, which is an important aspect for marketing in Landscape is a significant factor of the geographic segmenting, targeting and positioning wine. environment influencing the production and con- Demographic environment. Demographic indica- sumption of wine. Although Vojvodina mostly con- tors such as number, age structure and mobility of sists of plains, five distinct types of soil are significant population are extremely important in view of the for wine production: mountains, loess plains, sand fact that they determine the actual and potential de- plateaux, loess plateaux and alluvial plains. The vine- mand on the market or a market segment, and create growing area of Vojvodina includes the Srem region the consumers’ demographic profile. This approach (the unique vineyard strip of Mt Fruška Gora (Kar- produces objective and measure specifics of consum- lovci, Irig, Ilok, Šid and Slankamen vine-growing ar- ers which make a long-term impact on the companies’ eas), South Banat (Vršac Hills, Bela Crkva and Delib- micro and macro environment, and their marketing lato Sands), North Banat (Kikinda and Banat regions activities. along the Tisa) and the Subotica Sands (Palić and Demographic trends provide short- and mid-term Horgoš areas). Mt Fruška Gora and Vršac Hills are reliability, and make a great impact on wine consump- particularly important for wine production. Vineyard tion. Given that people make up the market, the pop- areas in Vojvodina cover about 10 thousand hectares ulation (size, growth rate, migration, age distribution, with a slowly declining trend (10,875 ha in 2005, 9,817 education levels, household structure, and regional ha in 2009), and, at the same time, a growth in yield specifics) is the main demographic factor. per vine 1.1 in 2005, 2.0 in 2009) and amount of wine Vojvodina has about 2 million people of fairly bal- (16,555 in 2005, 26,601 thousand litres in 2009).1 anced (almost fifty-fifty percent) gender structure. Vineyards account for a little less than 1% of the to- The number of households amounts to about 500 tal area of Vojvodina, predominantly privately owned, thousand, with family size of about 4 members, which and a minor part belongs to agricultural companies is insufficient for population growth, so that the mod- and cooperatives. ern-era epidemic – decline in population and it all entails is obviously present. The relative population growth is not maintained by natural birth rate, but 1 The Republic Bureau of Statistics, The Annual Statistical Report rather by migrations evident in this area. With regard for 2010, p. 213.

Marketing Research into Wine Consumption Determinants in Vojvodina 105 to this, it is essential to take account the cohort ef- it is also affected by price levels and interest rates. The fect. More precisely, the more recent generation – the consumers’ revenue levels, their distribution and dis- X and Y generation) have grown on (and become used cretionary earnings are significant for wine consump- to) consuming soft drinks – from Coca Cola to vari- tion. In the earlier period of aggregated information ous fruit juices, which has shaped a specific lifestyle. on market size and structure, consumer location and They build their habits and behaviour patterns which their revenue distribution were regarded as the main are different than those of their parents, which also trends in researching demand. In the modern-day applies to the forthcoming generations. The consum- conditions of consumer behaviour, consumers are ap- ers of the future will be different from the present-day proached from a different aspect. That is to say, in- cohorts by consumption patterns, which is significant stead of the average consumer, the focus of market- for wine marketing activities. ing nowadays is the individual, customised consumer The general age structure of the population of Vo- whose behaviour is defined by overall economic and jvodina inclines to middle age (the third position by market environment, revenues and expenditures, in- share is taken up by those aged 30 to 40) and is favour- clination to consumption or saving, available discre- able for wine consumption. The working population tionary earnings, price and non-price factors, etc.2 accounts for 60%, a little more than half of whom are Unemployment, poverty, change in the structure of employed. The educational structure is predominant- personal consumption towards a growth in expendi- ly high-school level, primary, and unfinished primary. ture for basic needs, illiquidity of economy and sig- Illiteracy rate, especially among mature consumers, is nificant fall in economic activity are the fundamental significant. About 10% of the population are highly indicators of economic environment in Vojvodina. educated, and can be regarded as wine consumers or The agricultural segment, or more precisely, viticul- potential consumers. ture and wine production have been in constant de- The ethnic structure is one of the demographic cline: vine-growing is organised mostly on small fam- determinants significant for wine consumption. The ily homesteads as well as plantations, which a trend multiethnic population of Vojvodina includes over 25 towards reducing the total area. different ethnic groups with varying customs, habits, Sociological environment. The consumer is a so- religious dominations and lifestyles. The demographic cial being, living in society and family from the mo- profile of Vojvodina significant for wine consumption ment of birth, forming values and attitudes that are is the following: built on in the socialisation process, learning how to Number of inhabitants (in millions) abt 1.96-2.0 adapt to the social environment, but also acquire his/ Annual population birth rate -5.2 her position in it. This points to the dynamic charac- Life expectancy (men/women) (72/77) ter of the environment’s sociological determinant, and Average age 40-59 their formation, modification or maintenance. Social Urban population over 30% transformation has resulted in growing differences Highest to lowest household between classes, but also in more difficult mobility - income ratio between classes, and the emergence of closed elite cir- Share of women in the total number of cles. Members of the lower classes are the most nu- - employed workforce merous, followed by middle and upper class. The in- Educated population rate 90.5 dividual’s role and status as a measure of consumption Average household number 3 propensity play a dominant role, in accordance with Source: The Statistical Bureau of Serbia class membership. Consumption of wines with protected geographical designation has therefore become Economic environment is the most important eco- a life indicator. Wine culture is mostly nurtured by the nomic determinant for consumer behaviour on the family. Having grown up in a family where wine is re- market. Purchasing power is essential to consumers spected also means creating new wine consumers. as much as to markets, as it represents the actual and Culture is one of the essential determinants, car- potential demand on the market. It is in the function ried on from one generation to another, creating a of current revenue, prices, cost-cutting, debts, avail- lifestyle and behaviour norms through values, atti- able credit, etc. Consumers’ purchasing power is rep- tudes, beliefs and other symbols. Behaviour accept- resented by products, services and financial assets able in given social circles is acquired through the (revenue, loans, assets and other forms of wealth), but 2 Maričić B.: Ponašanje potrošača, Ibid., p. 183.

106 Suzana Salai, Milan Gašović, Mirjana Čelić influence of culture, sub-culture and popular culture. tion of the purchasing power from one group of prod- The social reality of Vojvodina is one of the situa- ucts to another. The loss of wine culture has contrib- tions that have most contributed to the fall in wine uted to preference for other products; beer has taken consumption. “There are no people to drink wine” over the domination among adult consumers, and is the result of consumer research in Vojvodina. As younger consumers, who could consume a smaller a multicultural and multiethnic environment, Vojvo- amount of wine after meals have turned to various soft dina carries a cultural heritage defining most of the drinks. Consumers tend to unconsciously adopt gen- population, who not only consume but respect wine eral outlook defining their perception of themselves, (along with string instruments, food and hospitality). of others, of companies, society and nature. This re- However, lately, under the influence of cultural herit- sults in the existence of primary beliefs and values, age, they form only a part of the population, whereas as well as more variable secondary beliefs and values. others, mostly the younger population, have under- People sharing the same values stemming from their gone transformation. The multi-confessional charac- specific life experience or circumstances tend to share ter of Vojvodina does not make a significant impact common beliefs, preferences and behaviour models. on wine consumption, apart from the fact that wine Natural environment is the object of special care of constitutes a special, symbolic value of all religious the state, society and individuals. Significant trends in holidays. The modern-day popular culture, coupled the environment include lack of resources, rise in en- with the influence of media and promotion, has left a ergy prices, struggle against environmental pollution trace in consumer behaviour and wine consumption. and a changed role of the national government. The younger generation is especially prone to the One of the most powerful macro-environmental influence of popular culture and creating fashionable determinants is technology, shaping people’s lives in trends in the consumption of beer and soft drinks. contemporary conditions. Each technological novelty Wine, on the other hand, has not been aggressive or progress has its price. It is manifested in creative in taking up its position in the mass culture, so that destruction leading to progress and higher living lev- consumption of wine has kept declining. “Wine iden- els. What is significant for marketing are trends in tity” is preserved mostly owing to certain classes and technology such as almost unlimited possibilities of groups (i.e. middle class oriented to private sector). innovation, turbulent development pace and variable The members of the upper class are wine consumers research and development budgets. who regularly consume and are familiar with sorts, Vojvodina provides good natural conditions for whereas those who do it sporadically are not regarded wine production. However, this requires serious in- as connoisseurs. The situation is the same in the mid- vestments in main vineyards, rootings, grafts, cut- dle class, but their specific feature is that they are less tings, virus-free scions for expanding the plantations, likely to buy renowned wines. In both of these seg- raising profitability levels etc. Areas of vineyards, vine ments, wine takes up a special place and is not com- varieties, yield peer vine and production of grapes, pared with other drinks; for them, it accompanies which are predispositions for domestic wine produc- and witnesses all important events. Members of low- tion, have been showing a declining trend in Vojvo- er class are more inclined to other products (strong dina since 2000. Table wines account for over 64%, drinks and beer) and cheaper, lower-quality wines. high quality wine about 20%, whereas peak-quality It is therefore obvious that wine has retained the at- wines account for less than 15% of total consump- tention of a relatively small number of consumers in tion. The ratio between white and red wines is 64% Vojvodina. However, in correlation of class member- to 36% in favour of white wines. Grape production ship and status, wine has found itself in the position of shows that producers are opting for high yield rather lifestyle indicators of certain social segments compris- than high quality, resulting in adverse impact on the ing leaders, followers and imitators. Still, the basic im- wine production structure. The supply of wines on the petus in wine consumption is given by the segments domestic market also includes import of both wines that individuals identify with, which is the influence and grapes, which is more profitable for individual of family. Young people who grew up in a family that producers that production demanding considerable had wine on the table tend to continue the tradition in effort in terms of labour, finance and time. their own households. Political and legal environment includes laws, Social and cultural environment highly influences regulations, a whole range of special interest groups consumers’ tastes and preferences, resulting in transi- (such as organised consumer associations and gov-

Marketing Research into Wine Consumption Determinants in Vojvodina 107 ernment actions aimed at strengthening consumers’ consumption. Consumers who gained basic informa- rights and powers in relation to retails), ethical and tion from parents have enriched them in their own socially responsible actions. Political environment has lifetime in contact with friends, members of other recently undergone a positive shift in the winery in- segments, but also from experts through media, per- dustry in comparison to transition or some earlier pe- ceiving information from wine producers and their riods. The political factors have generally recognised own search for information. that the issue of viticulture is inseparably related to The empiric research was conducted in Vojvodina wine consumption, that wine culture is an inevita- on 400 respondents (0.2 of the total number of the to- ble segment of the country’s overall development, in tal of about 200 thousand wine consumers): terms of export. Such a view opens the possibility of - 45% men and 55% women; developing wine consumption culture and growth in - various age structure (25% aged 18-25; 10% aged demand on the domestic market, and, naturally, the 26-33; 20% aged 34-41; 12.5% aged 42-49; 15% region of Vojvodina. Positive agrarian policies ori- aged 50-57; 17.5% aged 58-65) ented to wine production has been acting through a - different education levels (57.5% secondary; 25% whole range of measures: subsidising vineyard revital- higher; 20% high; 7.5% master’s and doctoral isation, subsidising plantation development, subsidis- level); ing the production of wines with protected geographi- - the cross-analysis of age and education levels cal designation, adopting the Wine Act, modernising showed that consumers aged over 50 are the most wine-making technology, introducing the Wine Reg- educated; higher education is also mostly present istry etc. in the over-50 group, and only a small proportion is aged 34-41; higher education is present in two- thirds of the 34-41 age group, and 1/3 are aged 4. THE INTERNAL (psychological) 50-57. DETERMINANTA OF WINE - as regards marital status, half of the respondents CONSUMERS’ BEHAVIOUR are married, and half are single. IN VOJVODINA - 25% live in rural areas; 32.5% live in small towns and 42% in urban areas In addition to numerous external determinants, con- - employment structure is as follows: 45% of the sumers and their behaviour on the market are also respondents are employed, 25% are university stu- influenced by internal determinants, i.e. the way they dents, 17.5% are unemployed and 12% are retired see themselves, where the most decisive role is played 3 - the respondents’ assessment of their own financial by internal factors and internal processes , which act situation showed that 7.5% regard their situation towards acceptance of and response to external influ- as very good; 20% better than average; 55% as ences. Individual behaviour and intended consumer average, and 17.5% below average. behaviour on the market determine learning (as the basic analytic instrument for explaining behaviour), A conclusion can be drawn that most respondents personality traits, education, communication skills, are employed, with predominantly secondary school stability, knowledge levels, evaluations, emotions etc., and average financial situation. Therefore, the re- comprising the elements of the consumer’s mind- spondents are a representative sample, so that the re- set. Individual consumer behaviour on the market is sults of the conducted research can be generalised for predisposed by psychological determinants such as the whole population. This inference is significant in needs, motives and motivation, perception, learning, creating marketing approach to the market, the con- personality and attitudes. Reaching any of those de- sumers and potential consumers. terminants requires exposure to influences and con- The research has shown a close relationship be- sumer education. In modern-day conditions, infor- tween attitudes and lifestyles of wine consumers, in mation is the basis for consumer orientation. In the the sense that real wine lovers are characterised by conducted empirical research, information on wine calm disposition, energetic character and analytical predominantly originates from the family habits and personality. Furthermore, they are gregarious, open and very active. As for temperament, wine consumers are persons full of energy, mild, but prone to out- 3 Unable to make direct analyses of processes occurrin inside humans, psychology draws its conclusions based on the methods bursts, which is a consequence of their energy. They and techniques of indirect inference. are not self-centred, but are persistent and enjoy tri-

108 Suzana Salai, Milan Gašović, Mirjana Čelić umph. They have many interests, are fond of change, product attributes, which is an important source of creative and full of new ideas, and art is an important information for consumers. Consumer loyalty to par- segment of their lives. They do not approve of super- ticular wine brands is, however, comparatively small, ficiality; on the contrary, they are good planners, or- which points to the existence of considerable space ganisers and efficient performers. for wine producers’ marketing activities. Consumers Research through control question about acquir- often perceive wine identifying a brand with a variety ing information on wine has confirmed several times or a producer. that the family milieu is not only the source of first The results of research into consumers’ opinions information, but a lifetime source of learning about on wine prices show that one half perceives them as wines. The consumers’ own efforts come third after high, and the other half as low. Both segments, how- considering the opinions and attitudes of friends and ever, deem that, regardless of the price, they find it experts. Interestingly, knowledge resulting from inde- hard to afford this pleasure due to currently low pur- pendent search for information on wines is far bigger chasing power. As regards current situation, some- than the one received from the wine market through what more than half of the respondents are willing to marketing communication. In the respondents’ opin- pay between 500 and 1000 dinars for a bottle of wine, ion, perceiving information from wine producers is which shows that, rather than opting to low-quality, sporadic. The cross-analysis of the frequency of wine low priced wine, most consumer opt for the opposite. consumption and following wine producers’ informa- The consumers have a positive and tolerant attitude to tion that it is the highest among those who consume higher price of wine and are willing to allocate higher wine daily, and the information perception threshold amounts of money for buying a bottle of wine, if the of occasional wine consumers (those who consume it living standards allow it. once a month) is the lowest. Research into wine distribution channels shows As regards following marketing communication, that large retail chains mostly offer a considerable a recent phenomenon is organising marketing events range of imported wines of varying quality and do- related to propagating and adoption of wine. The mar- mestic wines of lower and medium quality, and only ket segment present at these events comprises con- recently are very few high-quality domestic wines sumers aged 50 and 57, and 26 to 33. Consumers aged included in this selection. Most of the retail facilities 34 to 41 show moderate interest in wine. The segment of corner shop type are poorly supplied with wines, of young visitors shows that their visit to wine-related usually of low quality. The most significant distribu- events is mostly related to other motives, such as pres- tors of high-quality wines from Vojvodina are off- ence of celebrities, entertainment or socialisation. licence shops and restaurants. Wine boutiques are The conducted marketing research on the motives owned of some wine producers, comprising their own of wine consumption has pointed out to the differen- and some imported wines. As for the importance of tiation among the respondents. More frequent wine marketing channels, i.e. places of purchase, as many consumers list the following reasons: enjoying “their” of 80% respondents do not care where they buy their product, relaxation, socialisation which cannot go wines. This points to the neglect of this marketing in- without wine; wine is the witness of beautiful and ro- strument and the need for a change in this area. mantic events, and beneficial for health. A common A modern-day marketing channel, slowly expand- reason for occasional wine consumers is that “there is ing through Vojvodina, is the Wine Route, or wine something in wine awakening special feelings, so that road. It is a specific form of tourism, referring to tours it is present in all special or festive occasions”. of wine cellars, wine tasting and enjoying local foods. Market research into wine consumers in Vojvodi- This is a specific form of wine retailing, including na shows that 60% respondents are unable to list five sightseeing, scenic routes, learning about the tradi- producers, and half of the respondents cannot list ten tion and specifics of wine-growing areas, villages and different wines, which points to inadequate consum- roads on the wine route, and their tourist offer. ers’ knowledge about the supply of wine on this mar- The correspondents’ overall replies show that most ket. However, as a rule, they have a positive attitude of them are satisfied with this, in view of the publicity to wines from Vojvodina; the image of local wines, received in the media, meetings with wine promot- however, is increasingly jeopardised due to a rise in ers, events devoted to wine, and wine used as prizes imports. This is confirmed by the respondents’ replies in raffles, as another method of sales promotion. Re- that as many as half of them prefer to buy imported search has shown that most respondents show that wines to domestic ones. Wine label is one of the basic most respondents are not well informed about legal

Marketing Research into Wine Consumption Determinants in Vojvodina 109 limitations in wine promotion. Although relevant leg- instruments has been inadequate or none. The fall in islation applies equal regulations for promoting wine the purchasing power has also contributed to the un- and beer, beers seems to be more aggressively present favourable situation in wine consumption. The overall in promotional campaigns. An interesting opinion is economic situation in the environment and among that wine producers do not invest sufficient effort to consumers has contributed to their reorientation to make their product more attractive to producers, but, the consumption of cheaper wines and other bever- there is another, contradicting opinion, held by more ages. What is also recorded is the loss in the tradition than half the respondents, that wine does need special of enjoying and consuming wine, pushing the centu- marketing effort. ries-old tradition into the distant past. Still, regardless In addition to wine routes significant in wine pro- of their income, a segment of wine culture still remain moting, it is necessary to mention Wine Brother- faithful to consuming high-quality wine and willing a hoods, and their long-standing tradition as guardians certain amount of money for securing “exceptional” of the honour wine, whose mission is to contribute to pleasure. Still, regardless of their income, the segment fostering the wine production and consumption cul- of wine culture still remains. Red wines are prevalent ture. Out of about 500 European Wine Brotherhoods, here, but seasonal character is present in consump- Serbia has five, four of which are in Vojvodina: “The tion – white wines in the summer and red ones in the Subotica Sands”, “St Theodor” and two by the name of winter. “St George”, all of them devoted to fostering wine cul- The price of wine differs depending on the qual- ture, scientific research into wine, humanitarian ac- ity, so that each price reflects not only quality, but also tivities, fostering spiritual values, peace and enhance- the consumers’ demands and capacities. Research has ment of all things related to life and wine. shown that the price disproportion has channelled the existing demand towards the consumption of lower- quality wines, additionally diminishing the existing 5. THE RELATION BETWEEN demand. SUPPLY OF AND DEMAND As pointed out above, Vojvodina used to have the FOR WINE IN VOJVODINA wine-consuming tradition, which has almost disappeared. If it was possible to substitute it with bear, ac- External and internal determinant influencing con- tions taken by producers, distributors, promoters and sumers define the demand on the market of Vojvo- all other stakeholders can contribute to its renovating, dina. In relation to the overall market, the number preserving and attracting new consumers, and sur- of hedonist consumers has been reduced, but this is vival and development of this branch of agriculture also accompanied by the fall in the number of con- on the domestic market. sumers, as the application of each of the marketing

Figure 1. The relationship Supply Demand between wine supply and demand in Vojvodina between 2000 and 2009. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

30.000 25.000 20.000 15.000 10.000 5.000 5 10 15 20

Wine in thousand litres Per capita consumption in litres

Source: Research data

110 Suzana Salai, Milan Gašović, Mirjana Čelić Conduct aimed at establishing the relationship be- their households. They are real, true connoisseurs of tween supply and demand in Vojvodina reveal the ex- wines and its features. This group also includes those istence of constant disbalance over the past ten years. who produce wine for their own needs and consider Fragmented supply, and inadequate technological fa- themselves top connoisseurs of wine and consump- cilities have resulted in proliferation in mediocre and tion. In addition to excellent knowledge of wine, they low quality wines. Absence of marketing research and regard themselves as knowledgeable in matching wine resultant decision making on promotion, brand de- and food, and truly enjoy wine. They refer to them- velopment, marketing strategies etc. have not reflect- selves as hedonists and always prefer wine to other ed the wine producers’ behaviour to a great extent. It beverages such as beer and coffee. Unlike those who is true that wine as a product is constantly the target of drink water after meals, they have a glass of wine, but controversial discourse on alcoholism, and must con- only when they regard the meal complete. They in- stantly be defended by wine producers and connois- sist on consuming high-quality wine, although they seurs. The current per capita consumption of wine is are flexible and willing to adapt their consumption about 3 litres a year, compared to 80 litres of beer. depending on the situation, but when they choose The graph shows an obvious disbalance between for themselves, they are guided by high quality. The wine production and consumption. After 2009, this price of high quality wine is not their decisive factor disbalance becomes even more express, as the pro- for purchase decision making. They are loyal only to duction doubles and the demand remains at the same “their” wine, but this loyalty does not exclude trying level. There are, however, some modest movements in new tastes, in order to achieve their own, unique ex- the area of macro environment determinant and some perience. The number of such consumers on the terri- consumer segments which will, if they continue, con- tory of Vojvodina, however, is small. tribute to possible changes on both sides – both sup- Within this group, one can identify those who do ply (from domestic sources) and demand. not consume wine daily, but sporadically. They are primarily motivated by price, and only then by quality of wine. They do not regard themselves as true con- 6. SEGMENTS AND PROFILES OF noisseurs of wine; they are open to suggestions and WINE CONSUMERS IN VOJVODINA tasting other wines. The majority of consumers in Vojvodina are char- Research into consumers’ motivation has resulted in a acterised by average purchasing power, preference for conclusion about the possibly of creating a consumer higher-quality and average table wines. They do have profile according to the criteria of wine consumption a wine consuming habit, they do search for informa- frequency, motive for wine consumption, and in- tion wishing to consume as good wines as possible, volvement in the purchasing process. It is necessary and make their purchase decisions by considering ar- to point out that the boundaries between most pro- guments rationally. They regard themselves as knowl- files tend to overlap significantly, but is significant for edgeable in wines, but quality is nevertheless the de- planning the marketing strategy. cisive factor. For this reason they consume not only The research has pointed to three segments and wine, but also spritzers and coolers. their profiles according to frequency of consumption: Consumers below average purchasing power who Consumers who consume wine regularly, on a daily have a consumption habit mostly prefer low-quality, or at least weekly basis. These are mostly more mature low-priced wines. They do not care about purchase consumers from different income brackets. The con- place; all they care for is to find larger amounts (sev- sumption is closely linked to personal experience and eral litres) in plastic bottles, and give preference to feeling of enjoyment. quantity over quality. This group also includes people Consumers who consume wine rarely, only on spe- prone to alcoholism, which does not mean that there cial occasions. Consumption on social occasions is are no individuals who enjoy such wines because these dominant in this segment. However, these consumers are these are the only ones they can afford. do recognise the importance of wine, by emphasising Consumers determined by price – in the conditions “special occasions”. of aggravated economic situation, the decisive deter- Wine consumer segments according to consump- minant for a large majority of consumers is the price tion motives include: of wines. In this segment, true wine connoisseurs are Consumers determined by habit consume wine reg- willing to spend a considerable amount of money for ularly, and have a tradition of wine consumption in a bottle of wine, but most of them lower their criteria

Marketing Research into Wine Consumption Determinants in Vojvodina 111 and consume lower quality and cheaper wines due to tremely complex, as it is difficult, or even impossible high prices of top-quality wines. to segment and create a particular consumer profile Consumers determined by emotional motives ac- in isolation without intertwining elements, from mo- count for 12.5% of respondents, who regard the sym- tives to shopping behaviour, preferred retail outlet bolic value of wine and its image as the essential fac- and a whole range of other determinants listed above. tor. They consider wine to be linked to social status and lifestyle. Research has shown that this segment of consumers is not small. Religious denomination is not 7. OPPORTUNITIES AND THREATS a factor that has developed such an attitude to wine, OF EXTERNAL, STRENGTHS but red wine still gives a special sense to religious holi- AND WEAKNESSES OF THE days. INTERNAL BEHAVIOUR Consumer segments according to involvement in purchasing process: A SWOT matrix based on the results of conducted re- Routine consumers are fast decision makers, and search was based for future consumption of wine in treat wine like, for instance, bread or milk. They do Vojvodina. The external environment of this analysis not seek additional information, exactly know which comprises the variables of opportunities and threats, wine they want, and very often buy several litres. Rath- whereas strengths and weaknesses are identified in er than seeking new products, they buy targeted wines the internal environment. due to low price, at particular times, in low-end retail Based on the conducted research, the constructed outlets. This consumer segment is numerous due to SWOT matrix is used for developing strategies that the difficult economic situation in which people live. can be created on strengths capable of eliminating Consumers of limiting behaviour have certain expe- weaknesses, exploiting opportunities or facing threats. rience in wine consumption and knowledge of wine. The TOWS matrix is used for easier linking of exter- They seek new information, but what guides their be- nal and internal determinants of the environment and haviour is product attributes. They are willing to in- formulating strategies. It is the conceptual framework volve more in order to select a better and higher qual- for identifying and analysing threats and opportuni- ity wine. ties in the external environment, and assessing weak- Consumers of extensive behaviour do not take up nesses and strengths in the internal environment. a large share of wine consumers, except within the This matrix has resulted in four strategies: 1.Maxi- segment of new consumers, as it entails great involve- Maxi (S-O), presenting the strengths and opportuni- ment, unformed criteria for assessing criteria and, in ties, i.e. possibility of exploiting opportunities with ex- most cases, exist when the need is entirely new.4 isting strengths; 2. Maxi-Mini (S-T) presents strengths A consumer is a complex being, so that this seg- in relation to threats, so that the endeavour would mentation and profiling of wine consumers is ex- be focussed on maximum utilisation of strengths to eliminate or at least minimise threats; 3.Mini-Maxi 4 Kotler lists four forms of behaviour depending on engagement (W-O) strategy points to how to overcome weakness- in the shopping process. The first three are applicable in the case of wine consumption in Vojvodina: es in order to exploit opportunities; and 4.Mini-Mini (W-T) is an utterly defensive strategy aimed at reduc- 1. Behaviour aimed at reducing the discrepancy between expectation and satisfaction – found in consumers of higher ing weaknesses and avoiding threats. involvement in wine purchasing, who seek information and have certain expectations from wine in terms of their own satisfaction. These consumers have set standards and high CONCLUSION knowledge of wine culture, and consume assorted wines 2. Brand-dependent behaviour – the closest to most consumeres The most significant determinants of the direct im- of average involvement seeking variety, and opt for particular pact on reducing wine consumption (the order of list- wine brand depending on their financial abilities ing does not reflect the order of significance, for they 3. Habitual behaviour – present in one segment of consumers characterised by low-level involvement in wine shopping, are all equally important) in Vojvodina are: decline in treating it routinely. consumers’ purchasing power, inadequate production 4. Complex behaviour – currently not present on Vojvodina of wine varieties of grapes, devastation of vineyards wine market, as it essentially entails high level of involvement (resulting from unfavourable age structure of grape in shopping, which is globally not present for this product. producers, inappropriate variety selection, inadequate Source: Čelić, M. (2011) Marketing istraživanje ponašanja potrošača vina na tržištu Vojvodine (master’s thesis), p. 106 workforce and economic situation in this industry, pur-

112 Suzana Salai, Milan Gašović, Mirjana Čelić EXTERNAL DETERMINANTS OPPORTUNITIES THREATS - modernising the existing winery capacities - unfavourable demographic changes - strengthening small consumers - unfavourable economic situation - increasing the competitiveness of wine production - decreased purchasing power and supply - increased import of cheaper wines - cost-cutting in wineries - aggressive promotional campaigns of competing - raising consumers’ interest in wine beverages industry - implementing marketing and brand creation - inappropriate legislation - permanent marketing research - forceful and aggressive promotion - expertise and tradition in viticulture and wine - a large number of inadequately technically equipped production producers - long history of winery development - insufficient education of new producers - cultural heritage of wine consumption - high prices of wine on the market - respondents’ positive attitude to wine - the most frequent of mediocre quality wine - geographic advantages - inadequate promotional activities - proximity of larger urban areas - lack of marketing concept application - broad assortment and product range of high-quality - lack of finance wine of limited production amounts - lost tradition of wine consumption - possible supply of wine through rural tourism - inadequate frequency of consumption although wine - multiethnic and multicultural environment has a whole range of positive effects on human - consumer education organism - consumers’ openness to information from wine - low share of younger consumers in wine producers consumption - relatively low level of consumption culture - average values of involvement in purchase decision making STRENGTHS WEAKNESSES INTERNAL DETERMINANTS chase price of grapes, irregular payments, unfavoura- promotion and undefined marketing strategy. It can ble credit terms etc), aggressive campaigns of bear and be said that support to this industry branch, both in juice producers, inadequate supply of domestic wines material and moral terms has disappeared. in retail facilities and wine boutiques, a comparatively The created image of Vojvodina as a wine con- low awareness level of wine quality, inadequate wine suming and respecting region has remained to date –

Internal Strengths Weaknesses External S-O strategy: Maxi-Maxi W-O strategy: Mini-Maxi strengthening producers and increasing influence the quality of consumption and consumers’ interest through the foundations renewal of tradition of consumption through Opportunities of tradition of production, cultural heritage consumer education, plan implementation, of consumption and positive perception by permanent marketing research and consumers promotion S-T strategy: Mini-Maxi W-T strategy: Mini-Mini influence the consumption of domestic wines, invest without relying on state support Threats through good supply (in terms of quality and price) and strengthened legislative protection of domestic producers

Marketing Research into Wine Consumption Determinants in Vojvodina 113 string instruments, wine, food and hospitality are the investment, which is obvious from its fragmentation prevailing symbols in the description of Vojvodina. and weak technical and technological level of equip- This, however, is a part of cultural heritage rather than ment and a multitude of lower-quality wines, which a created image. Wine does not have its place in the has, along with the lack of marketing strategy, resulted popular culture, which is one of the causes of gradual in low consumption mostly oriented to table wines, loss of the tradition of consuming top-quality wines. where most consumers pay more attention to quantity The supply of and demand for wine in Vojvodina rather to quality and brands of consumed wines. show serious discrepancies. The supply lacks serious References:

1 . Cindrić, P., Korać, N. & Kovač, V.( 1994): Sorte vinove 5. Kotler, P., Wong, V., Saunders, J & Armstrong, G. loze:metodi i rezultati ispitivanja. Novi Sad: Prometej (2007). Principi marketinga (4th ed.). Zagreb: Mate. 2. Ćelić, M. (2011): Marketing istraživanje ponašanja 6. Kovač, V. & Pekić, B. Proantocijanidoli grožđa i vina, potrošača vina na tržištu Vojvodine, unpublished Savremena poljoprivreda 34(34) pp. 5-17 master’s thesis. Subotica: Faculty of Economics in 7. Maričić, B (2011).: Ponašanje potrošača. Belgrade: Subotica Centar za izdavačku delatnost Ekonomskog fakulteta 3. Gutić, Dragutin & Barbir, Vice (2009). Ponašanje u Beogradu. potrošača. Makarska: Fortunagraf. 8. Salai, S., & Božidarević, D. (2009) Marketing 4. Kotler, P., & Keller, K.L. (2006). Marketing istraživanje. Subotica: Ekonomski fakultet u Subotici. menadžment (12th ed.). Belgrade: Data Status.

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Marketing istraživanje determinanti potrošnje vina u AP Vojvodini Suzana Salai, Milan Gašović, Mirjana Čelić

Do pre nekoliko decenija vojvođansko tržište je kao ovih intenzivno promovisanih proizvoda proizvođača, od segment srpskog tržišta imalo odlučujuću ulogu u proi- strane potrošača mlađe generacije. Vino, kao „božansko zvodnji vina. Potrošnja vina je u sedamdesetim godinama piće simbol je sreće, mudrosti, zdravlja i života”, dobro iznosila trideset litara per capita, dok se četrdeset godina je poznato u većini kultura što joj ipak mora omogućiti kasnija ona smanjila na oko tri litre. U savremenim uslo- nastavak stare slave. vima razvoj tehnologije uglavnom ima pozitivan uticaj na Potencijali vina tek treba da se istraže na način da po- svakodnevni život, što nije slučaj sa proizvodnjom vina, trošnja vina dostigne, pa čak i prestigne svoje nekadašnje vinskom kulturom i njenom potrošnjom, u kojoj sferi su mesto u društvu. Cilj ovog rada je da se istraže determi- razvojni trendovi imali obrnuti efekat. Posledicom toga, nante (geografske, demografske, ekonomske, sovciološke duga negovana tradicija vina je skoro izčezla, omogućujući i psihološke) koje u najvećoj meri opredeljuju ponašanje da njeno mesto preuzmu druga pića i kulture. Ekonom- potrošača i tradicionalne proizvođače vina u Vojvodini. ski i kulturni razvoj i proizvodnja vina su na neki način zapostavljeni. U međuvremenu proizvođači piva i bezalko- Ključne reči: navike u potrošnji vina, determinante po- holih pića su preuzeli primat, što je naišlo na prihvatanje, trošnje, segmentacija potrošača vina

Kontakt: Suzana Salai, PhD, Full Professor, University of Novi Sad, Faculty of Economics in Subotica, Segedinski put 9-11, Subotica [email protected]

Milan Gašović, PhD, Visiting Professor, University of Novi Sad, Faculty of Economics in Subotica, Segedinski put 9-11, Subotica [email protected]

Mirjana Čelić, M.Sc. „Svetozar Miletić“ Secondary School of Economics, Novi Sad, Serbia [email protected]

114 Suzana Salai, Milan Gašović, Mirjana Čelić