Competitive advantage through direct marketing: a case study of a small New Zealand wine business

Purpose: This paper examines the various channels used by one small New Zealand wine business to sell directly to consumers and presents the advantages they gain by adopting these direct marketing strategies.

Design/methodology/approach: An interview with the owner-manager of a small wine business was used to gather primary data about their marketing strategies.

Findings: This study illustrates how a small wine business is able to earn ninety-five percent of their total revenue through direct marketing channels such as events or functions, online/email sales and the cellar door. Findings suggest that the business has gained several competitive advantages through their use of direct marketing channels, including control of pricing, higher profit margins, efficiencies in distribution and communications, reduced risk through less reliance on intermediaries, and enhanced customer relationships leading to potential loyalty and future business.

Practical implications: This case study provides information about how to sell wine directly to consumers and this may benefit other small wine businesses who want to achieve a competitive advantage through the adoption of similar marketing strategies.