1. Analysis of performances and trends of PDO wine producers in large retail chains in Italy.
- Author
-
DOMINICI, ANDREA, GERINI, FRANCESCA, and CASINI, LEONARDO
- Subjects
WINE sales & prices ,RETAIL stores ,POINT-of-sale systems ,CONSUMER behavior ,CHIANTI wine - Abstract
The large retail chains represent the main distribution channel for wine sales in Italy. Retailers, therefore, define the wine supply of their points-of-sale based on their own commercial strategies, taking into account evolving consumer demand, producer characteristics, and product types. Wine bottles from different producers with varying characteristics, sales performances, and commercial trends can be found on shelves next to each other. The aim of this study is to investigate the performance of various producers whose wines were sold in large retail chains in Italy before the pandemic. This analysis enabled us to observe market trends without disruptions. We focused on the two most sold Protected Designation of Origin (PDO) wines, Chianti DOCG and Montepulciano d'Abruzzo DOC. For this purpose, cluster segmentation was implemented using variables related to sales (value of sales, number of labels, average price, discount units, discount percentage, units sold above a certain price), and sales trends of each producer present in large retail chains with these products. The results show that, although there are different trends and commercial strategies among the producers of each of the two denominations of origin, there are similarities between the clusters of the two different denominations. In particular, in the domain of large-scale retail, wine sales are dominated by a few wineries with a strategy based on high sales volume, a wide range of labels, low prices, and promotional sales. The remaining sales refer to wines from producers with different characteristics that record positive sales trends and producers characterised by the declining value of sales. The identified results provide valuable insights for a better understanding of the dynamics of the large retail chain in Italy. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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