Wine retailing in Ireland: the diffusion of innovation

Abstract

PurposeThe purpose of this paper is to investigate how new wines are introduced to and adopted by the consumer within the grocery retail sector in Ireland.Design/methodology/approachSemi‐structured interviews were carried out with eight wine buyers/distributors for the grocery retail sector in Ireland and two retail store managers. Interviews were conducted early in 2004. Observation of wine displays in stores was used to confirm marketing communications and promotional techniques employed.FindingsThe findings confirmed a market that is growing, especially in the grocery retail sector and at the lower end of the pricing points. Competition and a desire for growth create the demand for new products and all the elements of the marketing mix are used to support the market entry and adoption of the product by the consumer.Research limitations/implicationsThis is an exploratory study with a small sample size; further studies could be carried out to confirm the findings of this study or to replicate elsewhere in the UK or in the non‐wine‐producing countries of Europe.Practical implicationsThe findings highlight the strength of competition within the grocery sector and the continued use of discounting as a promotional strategy; this has implications for wine producers in the longer term. There is a need to educate the customer with a view to encouraging them to trade up.Originality/valueThe paper provides some insight into the distribution and marketing of wine in the grocery retail sector in Ireland.