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FirstCape Tapping into the Needs of the UK Wine Consumer

Amid the economic downturn, price has become the key issue in the UK alcohol market with consumers turning to the off-trade where prices are lower and, in doing so, trading down to cheaper brands. The brands that have performed well in the UK wine category are those aligned with consumers’ ‘recessionary mindset’.

This article explores one such brand, FirstCape—a South African wine brand—and determines that it has been successful by taking its marketing cues from the wider CPG arena in developing promotions, product tiering, branding, range, and pack sizes and formats that are relevant to consumer needs and wants.

Such has been the success of FirstCape that it was named as one of the top 5 brands in the UK in terms of value growth in the entire grocery channel. Important contextual factors driving this include the following:

  • In the UK, the off-trade has become an even more important channel for wine sales, particularly with the switch of meal occasions from the on-trade.
  • The 3 bottles for £10 promotional deals have characterized the wine market with retailers focusing on price and availability, rather than wide product ranges.
  • Brand success has been achieved by adopting a market strategy that meets the differing needs of both frequent and infrequent wine drinkers.
  • Balancing the trade-off between low price, rate of sale and profitability, and aligning with the growing eco-consumerism trend will be the key challenges going forward.

Find this interesting. For more, check out MarketLine FirstCape Business Case Study: Tapping into the Needs of the UK Wine Consumer. You may also check out our Buy Reports section for thousands of other company, industry & country analysis reports.

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