Marketing Research

31 Pages 7827 Words

lack of awareness among consumers about the types of wine available. In a restaurant setting consumers often shy away from ordering wine because they may feel uneducated about the types of wine offered or uncertain about which wine would best compliment their entrée. Restaurants have attempted to address this problem by educating their servers and providing progressive wine lists, but if a person doesn’t understand the difference between a blush wine and a full-bodied wine or if they feel it is a hassle to ask questions the end result is the same, no wine has been sold. A further symptom is distribution-the lack of presence in bars or at least the presence of quality wine. Even those people who drink wine on a regular basis do not order wine when they are at a pub or bar. The reasons behind this are very well founded. Bars usually only carry two types of wine, a chardonnay and a merlot and these two choices are usually only changed annually. Customers expect that there is not a great selection of wine in a bar and usually just opt for a beer or a mixed drink. With the amount that people spend drinking socially, Fetzer is missing a huge market segment. Some women will settle for an inexpensive wine at the bar, but if they had other alternatives of wine they would drink wine more often.
Defined
Fetzer is facing three significant problems. One problem is that Fetzer lacks adequate distribution. Fetzer is distributed enough to maintain sales, higher growth potential. Fetzer is not meeting the value expectations of their customers with their current wine pricing. This problem stems from consumers who are aware of the grape glut in California, and who are expecting high-quality wine at a historically lower price. As consumer continue to learn more about the grape glut their expectation are increasing. Finally, the most significant problem associated with Fetzer is that they are not allocating their resources effectivel...