Measuring Success and Marketing in Small Wineries in Australia

Abstract

The purpose of the research reported here was to discover what marketing approaches small wineries employ and to what degree they could be attributed to their success. The article describes how the particular issue of measuring ‘success’ and what constituted ‘marketing’ was tackled and reports on the use of this in the subsequent empirical work. Five exploratory hypotheses were derived relating to the way in which ‘success’ could be measured and the contributory factors leading to the use of marketing. For small businesses that are classified at one of three levels of success the article reports what marketing activities were conducted. Data was gathered by personal interview from small wineries in the three main wine producing states and five main regions within these. The study found that: small winery operators are able to very consistently rate themselves and each other on success. Broadly, there were three factors that were used by them to gauge success: (i) wine quality and respect for this by peers, (ii) lifestyle, and (iii) business performance. Wineries at a particular level of success tend to use similar marketing activities and these differ somewhat from level to level. Those at higher levels of success are able to more comprehensively define ‘marketing’ and their customers and engage in marketing activities in a more discriminating way.