The Irish wine market

The current issue and full text archive of this journal is available at www.emeraldinsight.com/1751-1062.htm The Irish wine market: a market segmentation study Sarah Geraghty Shannon College of Hotel Management, Shannon, Ireland, and Ann M. Torres Cairnes Graduate School of Business and Economics, National University of Ireland, Galway, Ireland Abstract Purpose The Irish wine market has experienced unprecedented growth in the last 15 years; drivers of growth include increased affordability and accessibility of wine and improved branding. The purpose of this paper is to examine how the Irish wine market may be meaningfully segmented for successful brand positioning. Design/methodology/approach This research adopts a lifestyle segmentation approach by linking lifestyle values, product attributes and buying and consumption patterns. The primary research is descriptive in design, employing a self-administered questionnaire to collect quantitative data on wine consumer behaviour. Efforts made to ensure a highly representative sample included choosing a large sample size, administering the questionnaire in a range of outlets, and gathering information from wine drinkers with wide ranging involvement levels. Findings The research identifies three clusters of wine consumers: casual wine buyer, value seeking wine buyer, and wine traditionalist. Together, the clusters provide an insight into consumers behaviour. The high correlation of statistics from this research with those of The Wine Development Board suggests the data findings are representative of the population. Research limitations/implications A limitation of adopting a behavioural basis in conducting the segmentation is the highly descriptive nature of the resulting data. Examining behaviours give an insight into how consumers act, but fails to take into account the underlying motivations and rationale for consumer actions. The use of more complex segmentation bases, such as value systems and lifestyles may yield a richer understanding of the Irish wine consumer. Originality/value The profiles provide wine marketers with an insight into Irish wine consumer behaviour. The demographic information and the buyer behaviour data provide marketers with points of access to their target market. Brand positioning can be improved by ensuring the brand communicates and emphasises the product attributes, which the targeted segments value the most when choosing wine. Keywords Ireland, Wines, Market segmentation, Brands, Marketing Paper type Research paper The Irish wine market 143 Introduction The Irish wine market has experienced unprecedented growth in the last from 15 to 20 years. From 1990 to 2007, total wine sales in Ireland have more than quadrupled, increasing from 1.7 to 7.6 million cases. In the 13 years between 1994 and 2007, wine s proportion of the Irish alcohol market more than doubled from 8 per cent to 17.9 per cent (Wine Development Board, 2007). Growth in wine consumption is forecasted to continue with a growth of 15 per cent expected by 2012 (Euromonitor, 2008). As the wine drinking culture in Ireland is relatively new, the segmentation of the market and brand positioning is in its infancy. Further study into segmentation is required to improve the profitability of the industry, and to develop choice and the accessibility of wine for Irish consumers. The specific purpose of the paper is to examine how the Irish wine market may be effectively segmented for improved brand positioning in Ireland. Thus, the paper aims to determine the key trends in the Irish wine market, examine the International Journal of Wine Business Research Vol. 21 No. 2, 2009 pp. 143-154 # Emerald Group Publishing Limited 1751-1062 DOI 10.1108/17511060910967980

IJWBR 21,2 144 state of marketing in the wine industry, evaluate different approaches to segmenting the Irish wine market, and develop profiles of the resulting segments. The Irish wine market The Irish wine market has experienced remarkable growth with the number of wine drinkers in Ireland doubling since 1990 and with over five times as much table wine being consumed in 2007, as was consumed in 1990 (WDB, 2007). The increased consumption of wine in Ireland over the last 15 years is attributed to the improved accessibility, affordability and branding of wine (Moran, 2002). To emphasise the significance of the growth in wine consumption in Ireland, the level of growth in wine buying is compared with growth in the overall food and beverage sector. Practically all wine bought in Ireland is imported. Between 2000 and 2004, wine sales (and therefore imports) increased by 56 per cent (WDB, 2004), while the overall imports of the food, beverages and other animal products category increased by only 18 per cent in the same time frame (CSO, 2006). For a marketer assessing the Irish wine market, equally important to the growth in consumption, is the huge shift in the type of wine preferred by the Irish wine drinker. Specifically, there is a notable shift towards New World wines, with diminishing preference for Old World wines (WDB, 2007). New World wines refer to wines from regions outside of Europe. Prominent New World wine producing regions include South Africa, Australia, New Zealand, Chile, Argentina and California. Old World countries refer to European countries with a long history of wine production, such as France, Italy, Germany and Spain (Fielden, 1994). Up to 1990, the majority of wine consumed in Ireland was Old World wine, and accounted for 94 per cent of the market (WDB, 2007). Since 1990, there has been a steady shift in demand towards New World wine, which in 1990 accounted for 6 per cent of the market and in 2007 held a 71 per cent market share (WDB, 2007). Historically, French wines were the market leader in the Irish wine market, but since 2001, Australia now has the largest market share, accounting for 26 per cent of wine consumed in Ireland (WDB, 2007). In 2006, the top ten wine brands in the Irish still light wine market accounted for nearly 25 per cent of total sales. These top ten wine brands and their respective brand shares are Jacob s Creek (3.2 per cent), Blossom Hill (2.7 per cent), Rosemount (2.6 per cent), E&J Gallo (2.5 per cent), Wolf Blass (2.5 per cent), Hardys (2.3 per cent), Concha Y Toro (2.3 per cent), Long Mountain (2.2 per cent), Santa Rita (2.1 per cent) and Carmen (1.9 per cent), all of which are from New World countries (Euromonitor, 2008). Understanding the shift in the country of origin preference is important as it represents an important shift in preference for style, taste, brand, price and other wine variables. Testing country of origin preference is, therefore, an essential element in this Irish wine market study. Marketing of wine The production of wine is a specialised area, and the wine industry has traditionally adopted a production-focused mindset with the complexities of viticulture and vinification having occupied the attention of specialists in the area (Thomas and Pickering, 2003). Bruwer et al. (2002) note the agricultural basis of the wine value chain, and the industry is often criticised as employing mass marketing campaigns (Gluckman, 1990; Spawton, 1991a; Hall and Winchester, 1999; Bruwer et al., 2002). According to Thomas and Pickering (2003), the marketing of wine is in its infancy, relative to the long history of wine making and wine drinking. Aggressive marketing was uncommon in the industry with vineyard operators relying on the strength of their

reputation to compete in the marketplace (Hall, 2004). In the early 1990s, an interest in branding emerged in the industry as a method of coping with changes in distribution and the growth of wine retailing. In 1991, the European Journal of Marketing dedicated an issue to the marketing of wine, where Spawton (1991b, c, d, e) through a series of articles, provides an insight into the state of wine marketing. This special issue served as an introduction to marketing for the industry, with the purpose of illustrating the advantage and necessity in developing a customer mindset. There is a realisation in the industry that its future is geared to meeting the expectations of the wine consumer. That has contributed to the growing importance of wine marketing within the industry (Spawton, 1991b, p. 6). Gluckman (1990), in a frequently cited article, presents a number of challenges facing the wine marketer in branding wines. Most notably, a move towards own brand labelling by retailers reinforces the necessity for strong wine brands. This need for improved branding of wine has prompted the undertaking of research in wine markets. In an industry which is relatively new to marketing, and in the Irish wine market, which has seen tremendous growth and transformation, there is a need for greater understanding of the market dynamics. Market research in general, and market segmentation in particular, has a potentially pivotal role to play in assisting wine marketers to position their wine brands effectively. The Irish wine market 145 Role of market segmentation Weir (1960, p. 95, as cited in Yankelovich, 1964) provides the following description of what a market is, and more importantly, what it is not: The market is not a single, cohesive unit; it is a seething, disparate, pullulating, antagonistic, infinitely varied sea of differing human beings every one of them as distinct from every other one as fingerprints; everyone of them living in circumstances different in countless ways from those in which every other one of them is living. This description of a market is a colourful representation of popular marketing thought on the composition of markets in the late 1950s and 1960s. Smith (1956), in what is considered a landmark article (Reynolds, 1965; Haley, 1968; Wind, 1978; Green and Krieger, 1991; Lin, 2002) introduces a marketing strategy labelled market segmentation, as an approach to competing successfully in the reality of an environment of imperfect competition. The original article by Smith (1956) introduces market segmentation as a strategy. Market segmentation strategy was considered an alternative to product differentiation strategy to deal with diversity in the market. While the initial representation of the market segmentation strategy is based in economic theory, market segmentation developed as one of the most foremost concepts in marketing thought (Wind, 1978; Johnson et al., 1991; Lin, 2002). At a broad level, market segmentation provides a marketer with a clearer focus on customer needs, and thereby aids decision making for improved competitive advantage (McDonald and Dunbar, 1992; Croft, 1994; Kotler and Keller, 2003). While Croft (1994) highlights market segmentation as aiding decision making in general, Yankelovich (1964) specifies what exactly segmentation analysis can achieve. In identifying groups of customers with similar needs, a marketer has the information required to target the most profitable group with the most potential. With this knowledge a marketer can develop product lines and promotion activities, choose advertising media, advance positioning of offerings and improve timing of advertising

IJWBR 21,2 146 to appeal to the segment of the market whose needs possess the greatest profit potential. A critical decision to be made in conducting segmentation research is choosing an appropriate segmentation base. A segmentation base is the criteria used to divide the defined market into groups of consumers with similarities. At the most basic level a market can be split up according to the profiles of the consumers. Variables such as demographics, geographic location of consumers and the socio economic class to which they belong, are considered profile segmentation bases. The behavioural segmentation category includes bases such as usage occasion, benefits sought, perceptions and beliefs, while the psychographic bases category includes lifestyle and personality variables as a means for identifying groups of consumers with similarities. The more abstract and less concrete the information required for the segmentation base, the more difficult it is to measure responses and their link with behaviour. In choosing a segmentation base for a wine market study there are a number aspects to the market which need to be considered. Literature on wine consumer behaviour focuses on two areas; the factors influencing wine consumer behaviour; and the wine consumer s purchasing decision-making process. An effective wine segmentation study would be one which aids understanding of these two areas and aids marketers in evaluating how stimuli, such as brand positioning strategies, influence wine choice. According to Bruwer et al. (2002), wine markets have been segmented using all the bases identified above. For the purpose of an Irish wine market segmentation study, behavioural segmentation with an involvement basis proves a suitable choice as it is an approach, which yields insight into consumer behaviour, but is not overly difficult to measure (Lockshin et al., 2001). Employing a behavioural segmentation base allows for the decision making process and the influencing factors of the Irish wine consumer to be tested and makes the process and the factors the basis for splitting up the market into meaningful and actionable segments. A key consideration in exploring the wine consumer decision-making process and consumers evaluation of alternatives, is that wine attributes represent intrinsic and extrinsic cues for the consumer. Sanchez and Gill (1998) illustrate how consumers have preferences according to the bundle of benefits they are seeking. The challenge in understanding these preferences is the large number of wine attributes which exist, and therefore, the greater number of possible bundles of benefits that are present. Wine attributes include: brand name, producer, grape variety, blend of grape varieties, vintage, region of origin, price, label, bottle type, cork type, bottle size, colour of wine, style of wine and level of alcohol. Due to the large number of wine attributes, wine consumers have a wider range of considerations in making purchasing decisions. Examining the hierarchy of importance of wine attributes to Irish wine buyers is a central consideration in segmenting the market. Methodology The research design is primarily descriptive in nature as similar investigations into other wine markets have been descriptive in design (Orth et al., 2005; Johnson et al., 1991; Hall, 2004; Bruwer et al. Li and Reid, 2002; Johnson, 2003; Thomas and Pickering, 2003). Due to the descriptive nature of this research, a quantitative approach to primary data collection is most suitable. Quantitative data is appropriate for determining and understanding the behaviours and characteristics of a large sample of wine drinkers. Specifically, survey data collection was undertaken, with a questionnaire collection instrument administered through a personal interview. The

questionnaire was two pages in length with 15 tick box questions. The questionnaire posed questions to gather data on four topics: volume of usage, buying preference, product involvement, and demographic information. As an accurate sampling frame was unavailable for the population of the 1,451,000 wine drinkers in Ireland (WDB, 2004), non-probability sampling was undertaken. The sampling type was convenience sampling, as wine buyers were approached at the point of purchase. Convenience sampling has been employed in previous wine segmentation studies, namely, Australian wine market research by Hall (2004) and Bruwer et al. (2002). To ensure the sample was as representative of the population as possible, a large sample size of 300 was chosen and the questionnaire was administered in a variety of outlets to gather information from wine drinkers with wide ranging involvement levels. The fieldwork took place over three weeks in June 2006, in eight wine selling outlets in Galway City and County. This approach is similar to other wine segmentation studies (Bruwer et al., 2000; Hall and Winchester, 1999) where the fieldwork was limited to one region of the market being researched. Research by Bruwer et al. (2000) in segmenting the Australian wine market using a wine-related lifestyle approach is based on fieldwork conducted in Adelaide, while Hall and Winchester s (1999) findings, confirming empirically segments in the Australian wine market, are derived from questionnaires administered in Melbourne. The fieldwork locations for this research consisted of four supermarkets, two off licences and two wine shops. The supermarkets and off licences were in both Galway City and Galway County locations, and the wine shops are situated in Galway City. In total, 316 questionnaires were collected, and after nine were removed for failing a screening question or being incomplete, 307 questionnaires were coded and inputted into SPSS for analysis. The Irish wine market 147 Findings There are two sets of findings resulting from the primary research: an overall wine sample analysis and a segment analysis. The overall wine sample is composed of 64 per cent female respondents and 36 per cent male respondents. In terms of age group, over 75 per cent of the sample is aged between 25 and 54 years. The consumer behaviour data reveals the average Irish wine drinker buys seven bottles of wine per month, spending E10.57 a bottle, with an average monthly spend of E80. Wine is usually bought in a standard size bottle of 75 cl (95 per cent) in either a supermarket (42 per cent) or off licence (35 per cent) and is mostly red wine (43 per cent). Wine is most frequently consumed when dining at home (50 per cent ), followed by when dining out (20 per cent). The five most important product attributes when buying wine are: price per bottle, style of wine (e.g. fruity), region of origin (e.g. Burgundy) and brand name (e.g. Jacob s Creek). The most popular wine is Australian wine, followed by Chilean, French and South African wine. A comparison of the overall wine sample findings with the Wine Development Board s (2004) national statistic shows the characteristics of the research sample are similar to the characteristics of the national market. The sample findings for the country of origin preference are notably similar to the WDB (2004) statistics (see Figure 1). One exception is US wine, which is preferred by just 3 per cent of the sample, but 13 per cent of the national statistics. The similarities between the two sets of statistics suggest the sample data findings on consumer behaviour are representative of the population.

IJWBR 21,2 148 Similarly, Figure 2 compares the age category of the sample finding with the age categories of the WDB (2004) population. With the exception of the 65 or older category, the age profile of the two sets of data are similar. Discrepancies between the current research and the WDB (2004) findings may be explained by the time lapse between the two studies, or by the WDB research population being wine consumers, while the current research population was wine buyers. Segment analysis Similar to other wine segmentation studies (Johnson et al., 1993; Bruwer et al., 2002), a k-clustering approach to segmentation was adopted. The k-clustering approach is an exploratory approach, which examines the relationships between more than one variable and produces clusters based on these relationships. The benefit of employing a k-clustering approach is that clusters are formed based on actual relationships within the data set, and not prior assumptions by the researcher. Using the k-means algorithm is a hierarchical method of clustering which reassigns cases to segments whose centroid is closest to the case (Punj and Stewart, 1983, Figure 1. Wine country of origin preference Figure 2. Age category bar chart

p. 139). Table I illustrates the final cluster centres of 17 variables for three clusters. Three of the variables relate to buyer behaviour characteristics (i.e. volumes and average spends). An involvement variable is included in the k-clustering analysis. The involvement variable was developed using Lockshin et al. (2001) product measurement instrument. Fourteen variables in the k-cluster analysis were variables quantifying the importance to the sample of fourteen wine characteristics when choosing wine. The final two variables are the type of wine most frequently purchased, and the age category of the sample. Figure 2 compares the age category results for the WDB (2004) and the total sample of this research. As there is a difference in the two sets of results, age category was included in the k-clustering. The researcher chooses how many clusters are desirable before conducting the k-clustering analysis. As highlighted by Bruwer et al. (2002), there can be difficulty in determining how many clusters are appropriate. A trial and error approach was adopted and the k-clustering was conducted four times to firstly produce two clusters, then three, four and finally five clusters. The four sets of results were assessed to determine which set of results yielded the most sizeable and actionable clusters. Of the four sets of results, the k-clustering which yielded three clusters was found to produce three distinctive and substantial clusters, and these clusters were accepted as the three final segments. To develop three segment profiles, the data for the three clusters is The Irish wine market 149 Cluster centres Variables Cluster 1 Cluster 2 Cluster 3 Z score: volume 0.18632 0.33730 1.60283 Z score: spend/bottle 0.16927 0.24974 1.30819 Z score: spend/month 0.27710 0.34964 1.98710 Z score: involvement 0.21729 0.56249 0.62528 Z score: importance of grape variety 0.25668 0.66091 0.72939 Z score: importance of price 0.06235 0.07827 0.44606 Z score: importance of region 0.40238 0.72778 0.33886 Z score: importance of producer 0.35536 0.71356 0.48412 Z score: importance of vineyard 0.31924 0.69765 0.58266 Z score: importance of style 0.13083 0.34610 0.39587 Z score: importance of label design 0.00906 0.01580 0.00611 Z score: importance of bottle shape 0.03512 0.15622 0.27148 Z score: importance of alcohol level 0.04597 0.03643 0.08320 Z score: importance of type of cork 0.25169 0.37475 0.00192 Z score: importance of classification 0.36283 0.73904 0.52164 Z score: importance of vintage 0.40836 0.79482 0.49064 Z score: importance of brand name 0.24067 0.22381 0.34926 Z score: importance of awards 0.22874 0.32039 0.05092 Z score (type 1) (mostly red wine) 0.29977 0.41475 0.08011 Z score (type 2) (mostly white wine) 0.24734 0.54503 0.46319 Z score (type 3) (both red and white wine) 0.06406 0.12322 0.56999 Z score (type 4) (mostly sparkling) 0.09111 0.20914 0.19246 Z score: age category 0.02718 0.22515 0.48219 Total number of cases in each cluster Cluster 1 Cluster 2 Cluster 3 Number of cases 159 107 41 Per cent 51.8% 34.9% 13.4% Total valid 307 Missing 0 Table I. k-cluster analysis: final cluster centres

IJWBR 21,2 150 cross tabulated. Three profiles of the average wine buyer in each segment are developed below, followed by a commentary on how the findings are of use to wine marketers. Segment profiles Segment 1: Casual wine buyer (52 per cent of the sample). The average wine buyer in this segment is female, aged from 45 to 54 years, buys on average six bottles of wine per month, spends on average E10 a bottle, resulting in an average monthly spend of about E60. She is moderately involved in the purchase, with the region of origin, price per bottle, and grape variety being the most important criteria when buying wine. This wine buyer chooses wine they like over more concrete attributes such as alcohol level and price. The style of wine and the brand name are also important. She shows a preference for red wine, and buys in the supermarket usually choosing Australian or French wine. As the Segment 1 wine buyer chooses wine according to more ethereal qualities like style and brand, over more concrete wine attributes, this segment possibly has a casual approach to choosing wine, and is therefore labelled a Casual Wine Buyer. Marketing to the casual wine buyer The casual wine buyer Segment has the greatest the degree of variability of country of origin preference, with the top two wine countries, Australia and France, being from both Old and New Worlds of wine. The segment is therefore suitable as a target market for wine brands from all countries in both the Old and New World, particularly, Australian, France, Chile, South Africa and Spain. For the casual wine buyer, region of origin is the most important product attribute in choosing wine. Emphasising in the brand communication message, the country from which the wine originates, may be an effective method for wine brands to gain membership in the target market s evoked set of alternative brands. The style of wine preferred by the casual wine buyer is red wine (58 per cent of the segment) with a low preference for white wine (13 per cent of the segment). In promotion activities, such as special price offers when buying more than one bottle, marketers targeting the casual wine buyer Segment, should avoid combining both red and white varieties of the same brand, as the casual wine buyer shows a high preference for red wine. In reaching the casual wine buyer, wine marketers must be conscious, that while wine is usually bought in supermarkets, off licences and wine shops are also popular places of purchase. The variety in country of origin and place of purchase in this segment, gives this segment an image of being casual and informal in their approach to wine buying. A possible point of difference for wine brands targeting this segment could be a casual and informal brand identity, to mirror the possible sentiments of its target market. Segment 2: Value seeking wine buyer (35 per cent of the sample) The average wine buyer in this segment is also female, but slightly younger than the casual wine buyer, being in the age category of 25 to 34 years. Similar to the casual wine buyer, she is employed, with secondary or third level education. She spends on average E55 a month on wine, on five bottles. She is the least involved in the wine purchase process of the three segments. For the average buyer in Segment 2, wine is chosen in a purchase situation based on price, style of wine, and brand name, alcohol level and grape variety. Price is the most important aspect of the purchase decision,

with alcohol level also of importance, which might suggest she looks for measurable indicators of getting value for her money. This wine drinker buys wine in the supermarket or off licence, drinks the majority of wine at home and buys both red and white wine. This segment shows a preference for New World wine, with 80 per cent of the countries of origin of wine bought by this segment being New World countries. The importance of easily comparable indicators of value (price and alcohol level) in choosing wine gives this segment the title Value Seeking Wine Buyer. Marketing to the value seeking wine buyer The value seeking segment shows greater preference for wine from New World countries, and proves a suitable target market for wine brands from Chile, South Africa, Australia and the USA. Attracting the value seeking segment requires marketers to emphasise product attributes that are easily measurable. As price is the most important product attribute, attracting this segment with a low price is an obvious positioning strategy. The level of alcohol is also one of the top important attributes in choosing wine. Brands that communicate the value for money qualities of the wine, and resonate with the segment s desire to find affordable wines, may succeed in attracting this segment. The value seeking segment is an attractive segment, despite buying less and spending less than either of the other segments. The profile highlights a segment with consistent preferences and behaviours, which might suggest a greater propensity to being brand loyal, making the segment attractive to wine marketers with a brand image of value for money. The Irish wine market 151 Segment 3: Wine traditionalist (13 per cent of the sample) Unlike the other two segments, the average wine buyer in Segment 3 is male, aged between 35 to 44 years, and self-employed with third level education. He is greatly involved in his purchases and buys on average15 bottles of wine per month, spending on average E16 a bottle, resulting in an expensive average monthly spend of E235. He chooses wine according to traditionally perceived indicators of wine quality such as grape variety, style, region, classification and vintage. Price does not appear in his top five criteria for choosing wine. The Segment 3 wine buyer prefers Old World wines, which account for 63 per cent of the segment s country of origin preferences. The top three wines of preference are from France, Spain and Italy. This wine buyer predominantly buys his wine in wine shops. Despite adopting a connoisseur approach to choosing wine, he is similar to buyers in the other segments, in that wine is consumed most often when dining at home, and is usually bought in standard size bottles. Due to the importance of traditional indicators of wine quality (i.e. classification and vintage), the average wine buyer in this segment may be referred to as a Wine Traditionalist. Marketing to the wine traditionalist While the wine traditionalist segment accounts for just 13 per cent of the market, in the context of average spend per month, the segment is equally large as the casual wine buyer segment. The wine traditionalist segment is a suitable target market, for Old World wine brands, especially French, Italian and Spanish brands. The wine traditionalist segment may also be suitable as a target market for New World wine brands, especially Australian and Chilean wine, provided the brand message

IJWBR 21,2 152 communicates specific indicators of quality, namely, the grape variety, classification, vintage, region of origin and the style of wine. Marketers targeting the wine traditionalists should note the segment may also buy wine by the case, and is most likely to buy both red and white wine. Similar to the casual wine buyer segment, the wine traditionalist shows variety in the type of wine bought, which may suggest, gaining brand loyalty may be difficult. However, the large average spend per month (E234.03) deems the wine traditionalist segment an attractive target market for wine brands which command a higher price. Figure 3 illustrates the proportion of the sample in each segment. Conclusion The research examines how the Irish wine market can be effectively segmented to improve brand positioning. The increases in consumption of wine and increases in preference for wine from New World countries are key trends in the Irish wine market. Consumer behaviour, particularly involvement in wine purchases, and the importance of wine attributes, are necessary considerations in a wine market segmentation study. In terms of relevance, substance, and accessibility, a k-clustering segmentation design, with a behavioural basis including an involvement variable, proves to be an appropriate approach to segmenting the Irish wine market. The profiles of the three resulting segments: casual wine buyer, value seeking wine buyer and wine traditionalist, are sizeable, accessible, relevant and actionable. The profiles developed as a result of the primary research, provides wine marketers with an insight in Irish wine consumer behaviour. Specifically, marketers are provided with accessible and sizeable segments, with meaningfully distinctions and similarities drawn between them. Brand positioning can be improved by ensuring the brand communicates and emphasises the product attributes, which the targeted segments values the most when choosing wine. The demographic information and the buyer behaviour data provide marketers with points of access to their target market. The involvement base, when used in conjunction with other behaviour variables, proves effective in producing sizeable, accessible and actionable segments. A limitation of adopting a behavioural basis in conducting the segmentation is the highly descriptive nature of the resulting data. Examining behaviours give an insight into how consumers act, but fails to take into account the underlying motivations and rationale for consumer actions. The use of more complex segmentation bases, such as value systems and lifestyles would wield a richer understanding of the Irish wine consumer. A second suggestion for future research is an empirically tested wine market behavioural segmentation study, to confirm the findings in this research at a national level. In answering the research question, the Irish wine market can be effectively segmented, with a k-cluster design, with a behavioural basis. Effectively segmenting Figure 3. Final segments

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