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: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Firenze University Press
2023-12-01
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| Series: | Wine Economics and Policy |
| Subjects: | |
| Online Access: | https://oaj.fupress.net/index.php/wep/article/view/14190 |
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| _version_ | 1850106127861153792 |
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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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| format | Article |
| id | doaj-art-2cbcfac6cff747e5974a8fd772ad1bbb |
| institution | OA Journals |
| issn | 2213-3968 2212-9774 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Firenze University Press |
| record_format | Article |
| 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 |