Tuesday, January 09, 2007

Wealthy Consumers No Better Informed Than the Rest

From this press release:

"Wealthy consumers who know the brand rate Robert Mondavi Private Selection highest in delivering consistently superior quality and being consumed by those who are admired and respected.......Respondents had an average household income of $340k and average net worth of $2.7m. "

I'll defend many wines made by big producers (for both being what they are and also for being of highly consistent quality), but this I cannot defend.

I know people who sell directly to high-end consumers and most of them (the consumers) truly do not know what they're buying, but they do pay for image and prestige. As Alder recently noted, its about the label, which is why I would expect this type of consumer to pay for high-end wines, like them or not. I have trouble with the idea that consumers making over $340k have the highest image of Mondavi's Private Selection, generally a sub-$10 wine. I think this was a skewed survey, but since they didn't publish the questions and methodology, we'll never know.

5 Comments:

Anonymous Anonymous said...

What a load of hooey. I read the story. Did you see the brands? Clos du Bois? Rosemount? These are widely marketed supermarket brands, some good and most completely average. I think maybe the secret is in the category "luxury wines." Does that mean something in wine marketing speak?

January 09, 2007 3:54 PM  
Blogger St. Vini said...

Luxury wines are usually $20-30 and up. Few of the brands listed even MAKE luxury offerings, let alone REPRESENT the category. PR for hire, probably.

V

January 10, 2007 8:37 AM  
Anonymous Anonymous said...

Another example of money not buying taste? The big wine brands certainly have a place and such, but I honestly wouldn't imagine that their place is on the tables of people with that kind of wealth. As my mother, a math person, often said, statistics are like whores, you can line them up, lay them down and do what you like with them.

January 10, 2007 9:08 AM  
Blogger St. Vini said...

"statistics are like whores, you can line them up, lay them down and do what you like with them."

Nice. I always liked "Statistics are like a bikini. They reveal a lot, but never enough."

V

January 10, 2007 1:42 PM  
Anonymous Stuart said...

I've seen variations based on two systems, depending on what people are trying to demonstrate.

The first is a 4-segment system:
Low end (<$7)
Mid-priced ($7~$15)
High end ($15~$30) and
Luxury priced ($30+).

The second is much more optimistic in what they label the brackets, and varies from 5 to 7 segments:
Extreme Value Wines ($2~$3) (optional)
Everyday wines (<$6)
Fighting Varietal ($6~$9)
Popular Premium ($9~$12)
Premium ($12~$15)
Super Premium ($15+)
Luxury ($25+) (optional)
Just recently the $2~$3 range has been singled out & renamed as a tip of the hat to the 2-buck-chuck phenomenom.

Quite optimistic names, indeed!

January 10, 2007 3:27 PM  

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