Distribution velocity in wine retailing

Little is known about the relationship between distribution and market share in the wine category. Understanding the influences of product and distribution characteristics at the SKU-level and incorporating them into marketing strategy and planning has important managerial and academic implications....

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Main Authors: Martin Hirche, Simone Loose, Larry Lockshin, Magda Nenycz-Thiel
Format: Article
Language:English
Published: Firenze University Press 2023-12-01
Series:Wine Economics and Policy
Subjects:
Online Access:https://oaj.fupress.net/index.php/wep/article/view/14190
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author Martin Hirche
Simone Loose
Larry Lockshin
Magda Nenycz-Thiel
author_facet Martin Hirche
Simone Loose
Larry Lockshin
Magda Nenycz-Thiel
author_sort Martin Hirche
collection DOAJ
description Little is known about the relationship between distribution and market share in the wine category. Understanding the influences of product and distribution characteristics at the SKU-level and incorporating them into marketing strategy and planning has important managerial and academic implications. Sales of 3,524 wine SKUs across 4,218 stores in 4 states in the US over one year of observation are analyzed. We use an established distribution velocity model (Reibstein & Farris 1995) to estimate the relationship between distribution and market share. We then use the market share deviations from the expected values and apply a secondary robust regression to investigate possible relationships between various product- and distribution characteristics and those market share deviations. The results show that the distribution velocity in wine retailing is convex and increasing, in line with previous findings for other consumer-packaged goods in the marketing literature. Beyond distribution breadth, we find that overall parent brand performance (above), unit price (above), packaging type (above), country-of-origin, grape variety, sales consistency (above) and store specialization (below) are associated with above or below expected market share of wine SKUs.
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publishDate 2023-12-01
publisher Firenze University Press
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series Wine Economics and Policy
spelling doaj-art-2cbcfac6cff747e5974a8fd772ad1bbb2025-08-20T02:38:53ZengFirenze University PressWine Economics and Policy2213-39682212-97742023-12-0112210.36253/wep-14190Distribution velocity in wine retailingMartin Hirche0Simone Loose1Larry Lockshin2Magda Nenycz-Thiel3University of Cologne, Faculty of Management, Economics and Social Sciences, Albertus-Magnus-Platz, 50923 CologneGeisenheim University, Von-Lade-Straße 1, 65366 Geisenheim, Germany and Ehrenberg Bass Institute, University of South Australia, North Terrace, AdelaideEhrenberg Bass Institute, University of South Australia, North Terrace, AdelaideEhrenberg Bass Institute, University of South Australia, North Terrace, AdelaideLittle is known about the relationship between distribution and market share in the wine category. Understanding the influences of product and distribution characteristics at the SKU-level and incorporating them into marketing strategy and planning has important managerial and academic implications. Sales of 3,524 wine SKUs across 4,218 stores in 4 states in the US over one year of observation are analyzed. We use an established distribution velocity model (Reibstein & Farris 1995) to estimate the relationship between distribution and market share. We then use the market share deviations from the expected values and apply a secondary robust regression to investigate possible relationships between various product- and distribution characteristics and those market share deviations. The results show that the distribution velocity in wine retailing is convex and increasing, in line with previous findings for other consumer-packaged goods in the marketing literature. Beyond distribution breadth, we find that overall parent brand performance (above), unit price (above), packaging type (above), country-of-origin, grape variety, sales consistency (above) and store specialization (below) are associated with above or below expected market share of wine SKUs. https://oaj.fupress.net/index.php/wep/article/view/14190distributionvelocitywineretailchannelstrategy
spellingShingle Martin Hirche
Simone Loose
Larry Lockshin
Magda Nenycz-Thiel
Distribution velocity in wine retailing
Wine Economics and Policy
distribution
velocity
wine
retail
channel
strategy
title Distribution velocity in wine retailing
title_full Distribution velocity in wine retailing
title_fullStr Distribution velocity in wine retailing
title_full_unstemmed Distribution velocity in wine retailing
title_short Distribution velocity in wine retailing
title_sort distribution velocity in wine retailing
topic distribution
velocity
wine
retail
channel
strategy
url https://oaj.fupress.net/index.php/wep/article/view/14190
work_keys_str_mv AT martinhirche distributionvelocityinwineretailing
AT simoneloose distributionvelocityinwineretailing
AT larrylockshin distributionvelocityinwineretailing
AT magdanenyczthiel distributionvelocityinwineretailing