Page 24 - Grapevine May-June 2020

In The Winery

understand the evolving consumption patterns and ming-on-the-brakes segment.
fine-tune their strategies accordingly.
3. Comfortably Well-Off: These are the consumers
For example, did you know that baking yeast is fly- who feel secure about their ability to ride out
ing off the shelves? An NPR article on March 27th the current and future changes in the economy.
listed the products consumers are buying beyond Their consumption patterns don’t change that
the necessary cleaning products and everyday much with one exception; they tend to be a lit-
groceries. Baking yeast is high on the list – people tle more selective (and less conspicuous) about
are baking bread because it is comforting to make, the brands/companies purchased.
smell, and eat. Two other items on the list are
boxed hair dye and dress tops, which speak to the 4. Live-For-Today Segment: This segment carries
psychology of “keeping up appearances.” With the on as usual. Typically, urban and younger, they
increase in video conferencing, these make com- are more likely to rent than own, and they
plete sense. spend on experiences rather than stuff (except
for consumer electronics.) They’re unlikely to
So, how should we in the wine industry alter our change their everyday consumption behavior
strategies to fit the current climate? First, we need unless they become unemployed.
to understand the psychology of our customers.
The HBR article suggests there are four key psycho- In addition to the customer segmentation, the
logical segments and your strategic opportunities HBR article gives us some guidance with emotional
will strongly depend on which of the four segments product prioritization:
your core customers belong to,
and how they categorize your
products.

1. Slam-On-The-Brakes: These
are the people who feel
most vulnerable and/or are
hardest hit, financially. This
group cuts all their spending
to the necessities. Although
lower-income consumers typ-
ically fall into this segment,
it also includes those anxious
higher-income consumers
who fear health or income
changes.

2. Pained-But-Patient: This
group is the largest of the
four segments and represents
a broad income swath. While
they are more resilient,
pained-but-patient consum-
ers are less confident about
recovery, and their ability to
maintain their current stan-
dard of living. So, they econ-
omize, but less aggressively.
For these consumers, time is
their enemy. As the current
situation drags on many will
migrate down to the slam-

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