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Retail strategies for rosé wines in Italy: a hedonic price analysis

Luca Rossetto (Department of Land, Environment, Agriculture and Forestry, University of Padova, Legnaro, Italy)
Luigi Galletto (Department of Land, Environment, Agriculture and Forestry, University of Padova, Legnaro, Italy)

International Journal of Wine Business Research

ISSN: 1751-1062

Article publication date: 13 June 2019

Issue publication date: 19 August 2019

Abstract

Purpose

The purpose of this paper is to analyze the market of rosé wines in Italy, to outline retail strategies and to investigate to what extent the price is affected by branding these wines.

Design/methodology/approach

A survey has been carried out on retailers by collecting data about wines as intrinsic attributes (grape variety, blending, origin, alcohol content, etc.) and extrinsic attributes (brand, price, packaging, etc.) and about outlet and retail environment. The hedonic analysis required a rearrangement of data survey, while a Box-Cox transformation allowed to control the strong heteroskedasticity detected of the data.

Findings

Results provide strategies for still, semi-sparkling and sparkling rosé market segments. Still rosé wines are strongly differentiated, while the price is affected by the appellation, grape variety, blending, brand and outlet features. Two main strategies are suggested: the first focuses on appellations endorsing consumer’s brand loyalty; the second is driven by retailers while involving weaker brands. Different pictures emerged for semi-sparkling and sparkling wines, as producers and retailers tend to follow consumer’s preferences for fresh and easy drinking wines as well as to extend the product assortment.

Research limitations/implications

Results for sparkling rosé wines cannot be generalized. The high fragmentation hinders the hedonic model performance in capturing the price effects of brands, appellations, grape variety and wine blend.

Practical implications

The hedonic analysis provides suggestions for rosé wine producers that should reinforce their brand through associations among intrinsic attributes, such as appellation, and extrinsic ones, such as price, while satisfying retailer requirements.

Originality/value

The paper contributes to the knowledge base about the Italian rosé wine market, which is mostly export-oriented. Model results help to understand why the domestic consumption is stagnant with respect to other countries such as France or the USA.

Keywords

Citation

Rossetto, L. and Galletto, L. (2019), "Retail strategies for rosé wines in Italy: a hedonic price analysis", International Journal of Wine Business Research, Vol. 31 No. 3, pp. 282-302. https://doi.org/10.1108/IJWBR-03-2018-0013

Publisher

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Emerald Publishing Limited

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