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Table of Contents Executive Summary3 1.0Introduction4 2.0Analysis4 2.1Market Identification4 2.2Market Segmentation4 2.3Market Orientation5 2.4Marketing Channel Performance5 2.5Pricing Strategy5 2.6Customer Needs6 2.7Customer Analysis6 2.8Commercial Position7 3.0Conclusion7 Reference list7 Appendices8 Exhibit 1 - Distribution of wine sales by price class8 Exhibit 2 - Wine drinking habits by category and employment8 Exhibit 3 - Age distribution of wine drinkers by category9 Exhibit 4 - Wine Sales by category9 Executive Summary Virtual Vineyards started in January 1995 and within 10 months was averaging 1500 visitors a …

…wine drinkers by category Age Groups Category21-2425-3435-4445-5455-6465+ Domestic table wine6.2%22.7%25.4%19.2%11.2%15.3% Imported table wine5.7%21.9%29.3%20.7%10.4%12.0% Total Wine11.9%44.6%54.7%39.9%21.6%27.3% Age Distribution of US Adult Population8.0%23.3%22.8%16.3%11.9%17.6% Source: Derived from Jobson's Wine Handbook 1995(New York: Jobson Publishing Company, 1995) Exhibit 4 - Wine Sales by category Brand19901991199219931994 Leading Brands 89,980 88,000 95,080 94,855 93,735 Change from previous year (%) - -2.20%8.05%-0.24%-1.18% Others 30,771 31,977 33,278 31,756 33,574 Change from previous year (%) - 3.92%4.07%-4.57%5.72% Total Domestic Wine 120,751 119,977 128,358 126,611 127,309 Source: Derived from Jobson's Wine Handbook 1995(New York: Jobson Publishing Company, 1995)