4.

{1:30}
WVVs strategy of targeting older, higher-income consumers makes sense in the context of the current wine
market.
In 2015, the U.S. wine market totaled $32 billion. If we use Baby Boomers as a proxy for the WVV consumer,
then they accounted for more wine purchases than any other generation, at 41%.
However, look at how those generational shares of wine purchases change over the next two decades -
specifically, focusing on Millennials.
In 2015, Millennials accounted for only 16% of all wine purchased.
However, within 10 years, Millennials will overtake the purchasing power of Baby Boomers.
By 2035, Millennials will represent the majority of wine purchases and constitute the most lucrative segment.
Therefore, in order for WVV to ensure strong long-term growth, it must make sure to capture Millennial wine
consumers and retain them into their adulthood.

5. {2:00}
Within the wine market, there are six different consumer segments:
Wine enthusiasts: For this segment, wine is an experience that they enjoy. They not only
love the wine drinking experience, but also the other aspects associated with it such as the
act of selecting, purchasing, writing blogs, and so on. Within the category of wines that are
targeted toward Millennials, Carnivor Cabernet, with its focus on the experience of wine
drinking, epitomizes this segment.
Everyday Loyals: For this segment of consumers, wine is something they enjoy but dont
actively pursue as an interest. These consumers purchase wine in larger quantities because
they are frequent consumers of wine. For Millennials in this segment, the wine brand Naked
Grape is very popular because they sell wine in a 3L box.
Overwhelmed: This segment of consumers doesnt enjoy the process of selecting wine
because they dont know much about wine; rather than seeking to learn more about wine,
they seek safe options. Barefoot wine is commonplace among this segment because of its
wide availability across various retail stores and wine stores and omnipresent brand name.
Price Driven: For this segment, their primary consideration when purchasing wine is the
price. For Millennials in this segment, Yellowtail is a popular choice because of its $7-8 price
point.
Image seekers: Consumers in this segment are very particular about the image of the wine
that they drink because it is a component of their personal identity. For Millennial wine
consumers who are image seekers, Skinny Girl is a popular wine brand because it was
created and is marketed by a reality television star.
Engaged newcomers: The final segment of the wine market, engaged newcomers, is young
and new to the wine category. Wine is a big part of the socializing that this consumer does,
and they are interested in learning more. Currently, there is no brand that has a dominant
position within this segment. We identify this market gap as an opportunity to grow quickly,
with relatively low competitive pressure at the moment.

6. {1:00}
Our target consumer, the engaged newcomer segment is embodied by Marc. In addition to his interest in
learning more about wine, Marc enjoys exploring other aspects of the world - by cooking, hiking, and
traveling. For Marc, wine is one way for him to express and confirm his self-identity as an explorer. Chris will
now talk about how WVVs sub-brand would satisfy the unmet need of consumers such as Marc.