Which winery to represent: what influences the distributor's choice?

Abstract

PURPOSE - Researchers have investigated consumer choice influencers for wine but there is little empirical research of the influencers of decisions along the wine supply chain. Whilst consumer choice is important to understand, the products available for consumers to choose from depend on the choices made along the supply chain. This research seeks to begin the investigation through examining the influencers that affect a distributor’s choice when considering taking on a new winery. DESIGN/METHODOLOGY/APPROACH - Initial qualitative interviews of Distributors in Australia were used to establish and then pilot a decision (choice) set for use in a quantitative Best-Worse study. The results from the initial quantitative phase now offer an opportunity to extend the study into other geographic markets. FINDINGS - A consistent hierarchy of influencers was identified in the sample, which was able to demonstrate a difference in decision-making influencers between low and high volume distributors, lower and higher margin distribution firms as well as between those with an On-Premise focus opposed to Off-Premise focussed. A clearly different approach to decision making is seen in the higher volume and off-premise distributors in this survey. PRACTICAL IMPLICATIONS - The findings may assist wineries better align their product offering with the supply chain through understanding the decision influencers of distributors and their consumer target markets and the influencers vary in the channels they seek to use to attain marketing goals.