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New York Wine Bottles Strategic Marketing Analysis

Introduction:

New York is also very famous for its wine. New York consider as old home for operating winery in the country. Fine wine going to produce at a small handful of New York for the start ups of this business. Now New York produces 240 wines and become the fourth largest country in the world. New York grape, its juice and industry of wine produce higher than $4.8 billion and give a strong benefit to the economy of New York. $408 million in local and state taxes, 175,000,000 bottles of wine and more than 400 wineries are some statistics. All related information, resources, and impact on economy are very major issues of wine industry in the new York. NuVine Company is going to sell plastic bottles in New York and going to review market potential of plastic bottles, and all necessary recommendations related to product and its promotions. (newyorkwines)

Market Potential in New York:

  • Scale of wine production: more than 40 different types of grapes are produce but almost 70% grapes are cultivated in the New York consumed as juice not for wine. But the growing sectors of fine wine grapes are going to increase and experiments on different varieties are going to be starting to get finest level of wine. For white wine the coolest growing area like Finger Lakes are very suitable but for red wine warmer area like Riesling and gewürztraminer are reasonable. More than 200 million of wine bottles are make in the New York. More attention and focus is given to more cultivation of grapes for getting more profit from this industry. (worldwidewinetours, Copyright © 2008–2018 – WorldWideWineTours)

Wine traits are also found in different places alike southern Adirondacks and the thousand islands. The wine and grape foundation related new study show that almost $4.8 billion per year impact shown by wine and grape industry on the economy, which include payroll, taxes, tourism and investments. So wine industry play a very vital role in making its economy strong. New York economy becomes more strong and sustainable with the more development of wine and grape industry. The usage of wine and grape juice increase day by day and consumer want more variations in the taste of wine and grape juice.  Wine is also become a value added product and a main part of economic engine. As we see different farming operations, wine making and grapes growing business also affected by the weather conditions. The agriculture department of US provides a federal disaster declaration to many countries for growing wineries capable to get loans and other helps to recover the losses due to prolonged winter and uncommon frigid. (Cazentre, updated March 31, 2014)

  • Usage of plastic wine bottles: plastic packaging is help full in reducing energy used, wastage and green house emissions and also minimizes the environmental footprints. In wine industry, many leaders are doing too much working to improve its operation’s sustainability and many winers already used plastic bottles for selling or shipping. Innovated plastic help in keeping wine yummy, fresh and light weight in their environmental load. Some wineries used plastic normally PET for wine. These bottles also used in soft drinks. Fog mountain brand present wine in California in one litter PET bottles which are less packaging, and reduction in carbon prints. Naked winery also uses different designs of wine for outdoor use. Plastic bottle are lighter in weight as compare to glass. It also helps in saving fuel costs and emissions from shipping. Now it’s become common to serve single wine bottle in plastic due to light weight and shatter resistant. Plastic bottles are easily recycle and its recycling rate going to increase day by day. (Plastics, June 12, 2015)

The waste hierarchy focus on minimization of all packaging with ensuring the content‘s integrity. Its basic goal to use all resources efficiently. Wine glass bottles are considered as almost 500000 tones of packaging in the household stream of wastage. If all industry sector are shift to lighter packaging then almost 150000 tones of cost price can be saved. Now in many supermarket shelves, lighter weight wine bottles are placed which represent a major step of change in the industry. Due to thinner Walls, lighter weight bottles have to face some failure but glass rite wine mention that now such type of plastic bottles are going to produce which are high compensates for the reduction of weight. Normally, Narrow Neck Press and Blow process are used to produce lightweight bottles. So lightweight bottles are stronger as other heavy counterparts. According to perception of consumers, height is considered more important as compare to weight related to the value of wine. So light weight bottles must be equal to the standard height in order to improve the affect of consumer preference for bottles.  Study show that the link between thickness of glass and the protection of light are not consider the same. So a less thickness will cause smaller protection from light. In wine sector, glass is considered as reasonable packaging material for wine bottles. Brands also present wine in liquid cartons, PET, bag in box, pouches and aluminum. Pet consider as more reasonable for lighter packaging. At 54g a Pet bottle weight is almost 440g low as compare the average weight of glass. WRAP enhance the bigger environmental effect of PET wine bottles and dealing in the UK with many retailers. A complete audit of the new product was taken to find the comparative carbon performance for new packaging system. Research shows that clear and positive effect of lightweight PET bottles on the environment. So after introducing lightweight material for wine bottles, many industries are shift to this packaging instead of glass packaging. (wrap.org.uk)

Product Recommendations:

Different types of wines are available in the markets .wine bottles are found in different shapes. Normally, more than 12 shapes of wine bottle are seen in the market. But basic shapes of wine bottle are three that find in retailer shelves: Bordeaux has most simple and common shape of bottle which has high and straight sides and having distinct shoulders. Consumer this type of bottle for many purposes. Burgundy bottles have slighter broad base which have gently sloping shoulders. These type of bottles used for Chardonnay and pinot Noir. Alsace wine is thinner and taller as compare to other bottles with sloping shoulders gently. In these bottles sweet wines are served and they become more popular due to Riesling. Champagne bottles are consider as sparkling wine because they are heavy and keep in them high pressure material. Port, sherry and other wine bottles normally have a bubble in their neck. That helps in excess trap sediment as you pour. Chianti bottles are not for common usage which consider as raffia basket woven all around its base. Basically, these bottles are round in shape from the ends and need some basket which helps in standing on table. Some other shapes are squat onion and mallet bottles, normally found in Spanish wines and also corset shaped bottles which are curve from the middle look like a bowling ball.

Different people think that different shapes include differ type of wine but when we have different tastes I wine than what happen if we select different shapes. Difference in shape of bottles are regional variation that [present glass blowing techniques. Shape come at second for the selection of wine. It’s simply a matter of tradition; some people select the wine according to shape or color. So looks may be change but its taste remains the same.  In different bottles the punt is also present, it just like a dimple on the bottom of wine bottles. In previous days, punt mark show where glass attaches with the bottle. It provides extra stability to bottle. Now, punt is not required but some wineries also attach them with bottles because it helps in sediment settlement of the wine and also make the bottle stronger. So punt is considered as part of tradition. But some consumer think that punt is a form of cheating but in real wine is sol with the volume not by the dimension. So large punt is providing enough space to keep, maximum volume of wine. (Dumoski, September 4, 2013)

Glass wine bottle are normally standard 750ml or .75 liters. The standard size of wine bottle in the US was fifth of gallon which equals to .757 liters. Extra large and novelty bottles wine become biblical figures and predominant kings in the Israel. Biblical area consider to that thing which occur on large scale. Super large wine bottles are considering the same. Mostly wine bottles are found in green color. Rose like wine are given in clear bottles red wine provided in dark green bottles and white wine provided in light green bottles. For save from oxidation, green bottles are used for wines. Oxygen is considered as food for wine when you open the bottle. Special decanters are present to help in infusion of oxygen after opening the wine. But when oxygen combines with wine, it ruins its taste and makes it like vinegar. Some wines are fermented before going into bottles but some are fermented within the bottles. Riddling related to moving the bottle with its neck at down side and shake lightly and to move the sediments twist the bottle from its bottom. When wine transfer from big or large bottles to small bottles its taste going to change due fermentation and greater oxidation included in the wine. (SLINKARD, Updated 12/31/17)

Consumers are depending on its layout, used color and imagery which is mention on its label to show the quality and personality of brand. After price, label is the second most important thing which consider while purchasing of wine. Traditional labels are sign of high quality.  The main thing is that how consumer differ quality and how they become willing to pay for wine bottle that has not the same label as they used previously as compositional pattern. Colors have some specific meaning and in marketing and corporate strategies and communications they are become fundamental tool. These meaning are used for product and making different brands. Shapes are also important in marketing strategies. Selected labels have different effects on the purchase intent of consumer and related to personality of brands. Brand equity represents a connection between consumers and product that focus on link between price and quality .colors are related to objects with various sides, there must be a link between color and objection the evaluation scale  of basis of preferences. Colors can be used at potency scale. The more potent the color due to more saturated color. It shows that the color effect the nature of object. But the effect of color on potency of object and its activity are systematic and consistently linked with or through various dimensions. Color is also an important marketing tool because of its powerful interpretations. Labels are also important in the purchasing point of view of wine. Old people stuck with old brands and labels and they didn’t want to leave their previous labels. So the recreation of labels is very complicated. Labels show different attributes which consumer verify to assess the quality of product. Labels are mentioning the location from where they formed their size and shape. They also measure the size of bottle and having capacity to give information to consumers and tell more benefits due to consumption of wine. Front label is to attract the consumer and show the name of product while the back label present all required information related to wine. Color and imagery are too much effect the intention of purchase and personality of brand. The more colorful label show strong effect on its quality and willingness to purchase that product. Rich and dark colors are belonging to high quality and colorful labels show less seriousness and more interesting and unique taste of wine. (Gon¸calves, May 2008)

Promotion Recommendations:

In the wine industry the heavy user concept can be alter because if its consume at high amount it can cause health damage. So in US wine industry, its promotion related to consumption is also reminded to take this in a reasonable quantity. But according to marketing point of view, market attract consumer and force them to purchase high price bottle in trading to generate high amount of revenue. Recent research show that almost 40% adults are belongs to drinking wine. And 33% consider as highly drinker or those who take many time in a week. And remaining are occasionally drinkers. High frequency consumed users are cover 81% of overall wine. High frequency consumers are the result of high marketing of wine. They purchase a majority of wine and look as opinion leader in the wine product.

Many marketers show in their research that specific percentage of consumers is present in the market that purchases products in high amount. This means 80% purchase due to 20% consumers. This concept explains in the Twedt segmentation which distributes the consumer into three types: non-byres, light and heavy. But research also explain that huge amount users are not always best behaved because they also conscious with price. US is known to be the biggest wine market in term of volume and value. It is also measured that wine revenue reached to $40 billion with the sale of domestic products of 69% sales. And 31% imported wine. (Olsen, 2015.04.001)

In latest wine markets, the promotion and advertising of product is very much important. But in previous times, product is depending on purity, price and quality. Brands create the markets and brand image. Marketing strategy include five different step in promotion and advertising of product: product development, pricing, market segmentation and targeting, promotion and advertising campaigns and physical availability.

Wine bottles are very much popular among different adults specially those who are addict with wine. New brands want o promote their wine and attract consumers with different techniques. They offer different price discounts at the time of newly introduction in the market, so those who are price conscious may once came and purchase their wine bottle. Next thing is that wine must be available in all easily handle sizes so consumer can use in travelling, in going for picnic or many other purposes. As we see different colors and sizes of wine bottle, we also offer new and attractive taste which like by consumers and they want t try these new tastes.

In advertisement, also show that what age group of people have to use wine and how they affect their health. Because underage adults or children may not use the wine of any brand or taste so must specify that these are only for young people who have 20 plus age.  Basically, wine industry are run a Avery high level and demand of wine increase day by day so the production also increase and promotion become an extra element in this industry. We can promote the wine as PET bottle instead of glass bottles which are easy to use, light in weight and durable for long term for all consumers. High quality plastic used for making the bottles which are profitable for wine industry and more people use it because of its carrying facility. If we talk about the point of view of wineries and venture then it’s also suitable for business because it is cost saving and easy to transfer from one place to another without any damage threat. But proper care must be required in packaging of wine bottles to maintain its quality and taste. So effective promotion tools are also required to introduce your product in the biggest, market.

Conclusion:

After all above discussion, we can see that New York is the biggest market place for the growth and selling of wine and grape juice. And its economy has very positive effect with the production of wine. Its industry earns a huge amount of revenue from all over to world. People like its taste, color, size and label and attract towards it, also paying sufficient amount for the purchasing of wine.

References:
  • Cazentre, D. (updated March 31, 2014). How the wine industry spread across New York state and grew into a $4.8 billion business (maps).
  • Dumoski, S. (September 4, 2013). Wine Bottle Shapes: Just The Facts.
  • Gon¸calves, L. d. (May 2008). Message on a Bottle: Colours and Shapes in Wine Labels.
  • newyorkwines. (n.d.). New York Wine FACTS & FIGURES.
  • Olsen, L. T. (2015.04.001). Profiling the high frequency wine consumer by price segmentation in the US market.
  • Plastics, P. (June 12, 2015). Wine—How Plastics Can Help Reduce Its Environmental Footprint.
  • SLINKARD, S. (Updated 12/31/17). Do You Know the Different Wine Bottle Sizes?
  • worldwidewinetours. (Copyright © 2008–2018 – WorldWideWineTours). The History of New York’s Wine Industry.
  • wrap.org.uk. (n.d.). Lightweight wine bottles: less is more.

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