PEST Analysis of Wine Market

PEST Analysis of Wine Market


Wine is an alcoholic beverage which is prepared from the fermentation of grape juice. It is the process of fermenting crushed grapes. In producing wine there are using various types of yeast. In this process it consumes the sugars found in the grapes and converts them into alcohol. The wine industry has a rich history which played an important role in religion throughout the historical connection to Roman times. This study will conduct PEST analysis of Wine market which is a business toll to get the synopsis of the overall market scenario in the aspect of political, economic, social and technological. It will also conduct competitive analysis and target customer analysis of this wine market.

Background of Wine Market

In UK, production of wine has robust growth in recent times by increasing the huge demand of it in the market by the English. Warmer than average weather early in the period is very much helping mechanism for winemakers to produce world-class sparkling wines. As the demand of it in UK market is increasing day by day, and the production of it executed at the same time in locally with marinating high quality and the sales of in UK market is at good response from the seller thus the supply of it is outstripping. It has passed a strong year in 2012-13, 2013-2014, 2014-2015, 2015-2016 all over with the huge production of wine in the wine market and the extensive sell in different bars, party house etc. As a result, the industry is expected to record more sales volume in the wine market in the year of 2017-2018 to catch up with the industry as because the last five years, the industry has implemented a extensive robust growth in the local market as well as global market. It has a history behind the huge growth of the industry of wine that there were improved grape yields with better wine quality to produce sparkling wines to rival any on the continent. Due to the huge growth of this market, there has driven to enter new players in the industry and having more sales growth over the last few years and resulted in existing winemakers boosting production to meet demand. Thus it earns 21% of industry revenue in 2015-16.

PEST Analysis of Wine Market

PEST analysis of Wine Market

The UK market of Wine could be properly analyzed by PEST analysis of Wine Market which is a business toll to get the synopsis of the overall market scenario in the aspect of political, economic, social and technological.

Political Factor: The political phenomenon of a wine industry in the area of PEST analysis describes activities of the legislation and regulatory bodies that affect wine producers to face political challenges to the wine industry as there are some prohibition articles in the laws. And there are prohibitions of the privatized alcoholic beverage sales. But as the local wine industry got the support of the governor and huge support from the agriculture department to collect grapes.

Economic Factor: The economic phenomenon of a wine industry in the area of PEST analysis that the changes in the economic trends affecting the wine industry in the aspect of taxation system, business exchange rates, seasonal market ups and downs, price policy, monetary policy as well as fiscal policy. They have to face huge challenges in the recent economic downturns when people like to enjoy local vintages rather than wine as it was expensive.

Social Factor: The social phenomenon of a wine industry in the area of PEST analysis is that to drive the luxury wine segment expected to become the new drivers of the industry at local market. There are the matters of ethical as well as cultural limitation to the market of wine, even there are religious limitation in the wine market. This is not supported to some cultures, religious and not relevant to their ethical matter of choice.

Technological Factor: The technological phenomenon of a wine industry in the area of PEST analysis is the developments of the production process with the technology up gradation. There is a change in mobile bottling as a technological advancement. Besides, there has increased the customer relationship management, mobile marketing to satisfy the customer with proper communication.  The aspect of technological improvements in the state ensures organic production at local market.

Competitive analysis

The competitive analysis of the Kumala Reserve Brand is response to the internal brand audit and external brand audit. The product of Kumala Reserve Brand is too much popular in UK market though its origin is in South Africa. Whatever the fact is the internal brand audit specifies the branding audit by the internal employees and the survey shows that the feedback from the internal employees are too much positive and the era of competitiveness is excellent. They are giving the rating in different media as the product of Kumala Reseve Brand is to good even it is getting 5 stars in different websites. But it is found also some problem that they identified to solve or improved in some areas regarding the marketing policy, brand equity, budget policy, brand positioning etc.

On the other hand, the external brand audits are from the customer that has got huge response from the customer. It is in the top list brand in Uk market in a year that shows the quality of the product and the response from the customer was too good and they were satisfied with the branding competitiveness and prefer to have more market research on it.

Challenges in Wine Industry are Modernization in consumption pattern, Diversification in purchasing behavior, Variation in distribution, Industry transformation, Government rules and regulations.

For it the strategy will be develop the proper internal strategy to face those challenges and external marketing policy deal with the external restrictions in the market.

Target Customer Analysis

Basically the target customers are the Young Adult who likes to drink wine in any reason without a party.  It seems to them the refreshment of life to lead a powerful moment of life due to drink wine. Thus the target customer could be explained in different characteristics though the major portions of target customer are the Adult young. Target customer are those who are overwhelmed by number of choices without any hesitation likes to drink without any party. They are properly informed about the brand of wine which brand is good and better but they frustrated in their life. Target customer are those who are image seeker like to discover the taste of wine, likes to drink brand new wine and having proper basic knowledge about wine. Target customer are those who are enthusiast likes to entertain with friends and having a tendency to keep updated about the wine brand with which wine store of it. Target customer are those who thought wine is the part of their life as well as regular routine life and prefer to entertain at home with branded wine. Target customers are those who are loyal every day to drink wine. Target customers are those who are price driven to use coupons to buy it and engaged new comers as a thought wine is part of socializing to be socialized in civil manner.


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Written by

Md. Shadequr Rahaman

Email: [email protected]

PEST Analysis of Wine Market

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