1. OXFORD BROOKES UNIVERSITY
EXTENDED WRITING PROJECT
Impact of competition in
champagne sales
How effective is company
strategy in champagne sales?
ELIANE YEBKAL

2. 2-Table of contents
1- Title page
2- Table of content
3- Abstract
4- Introduction
5- Literature review
5.1 Competition in luxury brands
5.2 Impact of competition in Champagne sales
5.3 Marketing strategies
6- Methodology
7- Findings
7.1 Findings based on the tasting session follow with a
questionnaire
7.1.1Finding based on the first question
7.1.2 Findings based on the second and the third question
7.1.3 Findings based on the fourth question
7.1.4 Finding based on the fifth question
7.1.5 Finding based on question 6
7.2 Survey for hotel and restaurant
7.2.1 Cosy club
7.2.2 Las Iguanas
7.2.3 Wagamama
8- Analysis and discussion

3. 8.1 Analysis
8.1.1 First analysis
8.1.2 Second analysis
8.2 Discussion
8.2.1 Comment on literature review
8.2.2 Importance of findings
8.2.3 Analysis of findings
8.2.4 New strategies marketing
8.2.5 Limitations
9- Summary and conclusion
10- Bibliography
11- Appendices
11.1 Survey for hotel and restaurant
11.2Tasting questionnaire
12- Acknowledgment
1.2.1 Different type of Champagne
12.2 Different sizes of bottle of Champagne
12.3 Kir royal

4. 3-ABSTRACT
This study is about competition between Champagne and
Prosecco. The aim is to investigate Champagne’s company
strategies and analyse consumer behaviour. The methods used
are primary research and secondary research. The primary
research is divide in two part. Firstly, a questionnaire follows by
a tasting of Champagne and Prosecco in Oxford Brookes
University and secondly a questionnaire to restaurant’s
managers in Coventry. The secondary research is based on
articles from Business Sources Complete and Emerald
databases. The findings highlight the popularity of Prosecco
and the reaction of Champagne company. This study suggests
that Champagne business might need to improve their
marketing strategies in order to increase their sales.
4-INTRODUCTION
Champagne is one of the most expensive sparkling wine.
The origin of champagne is from France. The prosecco is a
sparkling Italian wine coming from Italy. Champagne is
make with black pinot , meunier and chardonnay. Some
others grapes as white arbanne , petit meslier , pinot blanc
and pinot gris are also used to make it (Comite
interprofessionnel du vin de champagne). However,
Prosecco’s grapes are white and grown in the slopes of
Valdobbiadene and hills of Conegliano in northern Italy
(Business week online 2006).
One of the most significant current discussion is to know how
effective is company strategies in champagne sales. Also the
topic is to analyse the progression of prosecco and find out
the reaction of champagne’s companies. In the recent years
there has been an increasing interest about the prosecco.

5. Due to the economy, Champagne have a little come back
from the post-recession, and prosecco increased their sales
(Mintel 2015). But despite this prosecco’s popularity,
champagne remains in the first place in most of the big
events.
This report will focus on the comparison between
champagne and prosecco only and also analyse consumer
behaviour. Also in this investigation my aim is to analyse
companies marketing strategies. This study is set up to
determine as well the progression of prosecco. Another
challenge is to find the new marketing strategies to boost
champagne’s sales and finally study the development of
sales in different period. It seems that some people have a
lack of knowledge and confidence or just cannot afford the
price of the champagne.
The structure of my writing will follow this order. Firstly, the
literature review to examine the study of Champagne ,
secondly the methodology to show my research strategy,
thirdly the findings based on the primary and secondary
research. Fourthly the analysis and discussion to explain the
results of my findings and suggest the new strategies
marketing and limitations. I will finish with a conclusion.
5-LITERATURE REVIEW
This literature review will consist of three parts, the
competition in luxury brands, the impact of competition in
champagne sales and the marketing strategies.
5a-The competition in luxury brands
Competition between brands got a real impact on their sales.
.MacDonald (2015) states that Prosecco had overtaken
champagne sales. Mintel (2015) suggests that Prosecco,
Vodka and Gin upgrade their sales, on the contrary Cider’s
sales has dropped down due to the heavy publicity during

6. the football and rugby world cup. According to Horticulture
week (2010) English sparkling wine triumphs over
Champagne in prestigious competition. West Sussex
Nyetimber classic cuvee for example was crowned champion
of worldwide sparkling wine.
Another study has revealed that Prosecco continuous to
have a big demand in UK and US(Catchpole, 2015) .Mintel
(2012) observe that the forecast value sales of champagne
in 2017 will fall down for an estimated of 609 million
,however, the forecast of sparkling wine market in the same
period is to reach £835 million .Wholesale News(2014)
claims that “ Prosecco explosive UK growth has not come at
the expense of Champagne ,which held its volume and saw
value sales increase by 2.2%”. However, MacDonald (2015)
point out that:” Prosecco has performed exceptionally well,
increasing in value by 76.6% this year, and 281.6% overall in
the two past years, with almost 29000 hectolitres sold in the
past 12 months”.
In addition to bring more evidence about the competition,
Mintel report ( 2015) demonstrates that Jack Daniels,
Smirnoff and Famous House have a real progression in their
sales. However, the Rum experiences some difficulties.
Businessweek online (2006) shows that Prosecco has a
trackable growth for several years in US and the Mionetto
has increase their sales by 32% this year. In the same way
one study observes that Spirits realise the fastest growth in
restaurant and bar in 2012 conversely the sales in beer
category have continued to decline (slowing 2014).
It seems that the alcohol’s sector is facing a turnover of
situation. Some alcohol gradually attends the level of the big
brand. The sparkling wine practically reach the level of
champagne. Every brand need to focus on their channel of
sales to be more effective.

7. 5b-Impact of competition in Champagne sales
Luxury gift as Champagne are more difficult to sell due to
economic situation. Champagne sales decreased in the
market because the consumer are not confident to spend
due to the economic recession (Slowing, 2014). Mintel
(2015) states that people with mortgage are more likely to
buy Champagne, but despite that family with £50,000 per
year cannot afford some luxury product as champagne.
Walkup (2012) states that” Champagne no longer is the first
choice for an effervescent drink”. Also recent evidence
suggests that, champagne’s consumer appear more in the
Christmas time and the small sizes of bottle 185ml, 37.5cl
are more affordable for them (Mintel 2015).
In contrast, MacDonald (2015) identifies that Champagne
do not have a real competition because Prosecco is not
trading as a brand. As highlighted by the Lanson
Champagne report (2014), stating that Prosecco and
Champagne were both increase their sales. The same study
reported that:” Prosecco’s explosive UK growth has not
come at the expense of Champagne, which held its volume
and saw value sales increase by 2,2%”.
Apparently, Prosecco is not a real competitor for
Champagne’s company. The main problem is the economic
and social situation. It appears that Business owner boost
their sales more with Prosecco than Champagne.
5c-Marketing strategies
A considerable amount of literature has been published on
wine’s marketing. Some studies propose that activities such
as football world cup, Queen jubilee, Wimbledon and Open
tennis increase the consummation of alcohol (Mintel 2015).
Therefore, the government extend the pub’s opening hours

8. for the 90th birthday of the Queen in England and Wales
(Gov 2016).
More researches shown that events generally generate and
increase the popularity of alcohol’s brand. This is evident in
the case of the Italian magazine Euposia which held a
competition to promote sparkling wines (horticulture week
2010). In similar case Mintel report (2015) highlighted some
marketing strategies of alcohol companies like firstly Veuve
Cliquot which create an event to promote young creator of
gift of champagne, secondly Gallo held an event and invite
two TV figures and thirdly Spritz organised an outdoor event
and a festival to target female under 35 years. By way of
illustration Cordon rouge created an event with activities
such as private cooking in a yacht, cruise and helicopter ride
(Mintel 2015). This exemplified by the work undertaking by
Comite interprofessionnel du vin de champagne which
publish a range of brochure to promote Champagne. Louis
Vuitton Moet Hennessy’s premium Belvedere as well made
some cocktails for a charity event in Denver to help combat
AIDS all over the world.
It seems like some companies set up a budget for the
marketing to promote their product. Also every company has
his own strategy dependant to the market’s channel. It’s
appear that company are making more effort to encourage
women to use their brand.
Overall, the competition between brand of alcohol is a real
concern and has some direct implication on their sales.
Some brands remain in the same position and stay there for
many years. After investigation Champagne sales are more
connected with the economic situation. The companies
minimise Prosecco as a competitor or a brand. MacDonald
(2015) illustrate this case by stating that “if you ask the ladies
at Ascot what they drink they’ll say Laurent Perrier Rose not
Rose champagne, at Henley they’ll say Moet not Brut. Ask

9. someone what Prosecco they drink and they won’t even
know the difference between DOC and DOCG”.
Granting all this, the forecasting of champagne sales going
down and on other hand Prosecco increase their sales year
after year.
In summary the Marketing appear to generate some profit
for many alcohol companies. However, my niche of
investigation will compare the data from Mintel and the other
authors with my primary research. Therefore, I will analyse
the consumer behaviour by doing a tasting of champagne
and prosecco follow with a set of question and compare it
with the others studies.
6-Methodology
This case was chosen because for the non-progression of
champagne sales.
The method used for this study was, primary and secondary
research. The primary research was divided in two groups.
Firstly, a survey was addressed to restaurant’s managers
about their sales in Champagne and Prosecco and the
implantation of Prosecco in their business if it is the case.
This set was six questions in total. Cosy club, Wagamama
and Las Iguanas all based in cathedral lanes Shopping
centre Broadgate, Coventry took part of this survey.
Secondly it was a tasting of champagne and Prosecco follow
by a set of ten questions.
The majority of participants were international students of
eighteen years old and over and a few members of staff both
from Oxford Brookes University. It was 16 females and 11
men (Figure 1) .16 participants are between 20 and 29 years
old. In this bracket you have 9 females and 7 men. Three
participants are between 30 and 39 years old, including 2
females and 1 man. Three participants are between 40 and

10. 49 years old included 2 females and 1 man. Five participants
are 50 years old and over included 3 females and 2 men
(Figure 2). This study find that,18 participants do not have
any income, 3 do not want to give their income , 4 earn
between 20000 and 30000 per year and 2 earn between
30000 and 40000 per year. In this survey participant are from
different continents Africa ,Europe ,Asia and South America.(
Figure 3)The questions were based on their ability to
recognised Champagne and prosecco just by tasting and to
analyse their barriers of purchasing. The 27 answers of
questionnaire will be analysing and present in several
paragraphs and charts.
For the discussion, articles were searched for Business
Source Complete and Emerald databases. The following
term were used: “competition and champagne”,” champagne
and competition”,” sparkling wines”,” competition in luxury
goods”. Publications of Mintel report 2011, 2012, 2015 were
also included in this research.
The main weakness of this study was the restriction of
participant for the questionnaire and the survey. Pubs and
hotels were not covered or restaurants in different cities.
Another key problem was that the specificity of my subject
was not covered enough by journal’s articles
Figure 1

11. Figure 2
Figure 3
69%
13%
13%
5%
Age
20-29 years
30-39 years
40-49 years
over 50 years
16
11
participants
Female Male

12. 7- FINDINGS
The findings have been divided in two sections. Firstly,
findings based on each question and secondly the survey
addressed to restaurant manager.
7.1 Findings based on the tasting session follow
with a questionnaire
7.1.1 Finding based on question 1
Regarding the first question only 5 participants got the
right answer ,8 do not know the answer and 14 got the
wrong answer
africa
8%
asia
22%
europe
63%
south
america
7%
participant
africa asia europe south america

13. Figure 4
7.1.2 Finding based on the second and the third question
Questions 2 and 3 are about their shopping habit .It is
clear that 14 participants state that they usually buy
Champagne and 11 Prosecco and 2 no answer.
Figure 5
7.1.3Finding based on the fourth question
right
18%
wrong
52%
don't know
30%
right wrong don't know
champagne
52%
Prosecco
41%
not
sharing
7%
participants
champagne Prosecco not sharing

14. The question is about which drink they plan to buy for a
celebration. More than 70% said champagne and the
rest choose prosecco, white and red wine, Vodka and
whisky.
Figure 6
7.1.4 Finding based on the fifth question
The question is about the financial situation. The
answer is that 70% of the participant are international
student. Therefore, they are receiving money from their
parents, however the rest of the participant do not have
any financial barrier.
champagne
78%
Prosecco
11%
wine
3%
whisky
4%
vodka
4%
participants
champagne Prosecco wine whisky vodka

15. Figure 7
7.1.5 Finding about question 6
This question is about influence of partner.30 % of the
participant have an influence with their partner.
Figure 8
financial barrier
70%
no financial barrier
30%
participant
financial barrier no financial barrier
partner's influence
30%
no partner's
influence
70%
participant
partner's influence no partner's influence

16. 7.2-Survey for hotel and restaurant
The next step is a survey addressed to restaurant’s
manager about their sales.
7.2.1Cosy club
Cosy club in Coventry always served Champagne and
Prosecco. The prosecco is £ 26.50 and £6.25 a flute.
Champagne is only per bottle and cost £37.50 for Laurent
Perrier, £39.50 for the Laurent Perrier brut, Bollinger
special brut £67.50 and Laurent Perrier brut rose £75.
According to the restaurant manager ,Cosy club served
between 50 and 80 bottles of Prosecco per week including
cocktails, and 10 bottles of champagne only.
7.2.2 Las Iguanas
Las iguanas in Coventry do not served none of them. This
restaurant served more south American food as Tapas.
7.2.3 Wagamama
Wagamama in Coventry served just the Prosecco and
never served Champagne according to the manager. The
bottle cost £24.25 and £4.65 per glass. The restaurant sells
6 to 8 bottles per week.
8- Analysis and discussion
8.1 Analysis
8.1.1 First analysis
In this chart it is clear that just my participants buy more
champagne than prosecco. Mintel report 2012 and 2015
observe that consumer buy more prosecco and sparkling

17. wine generally than champagne. Cosy club served more
prosecco than champagne. Definitively prosecco is more
popular than champagne.
8.1.2 Second analysis
The next analysis is between the percentage of people
who buy champagne for special occasion. Surprisingly no
differences were found between my analysis and Mintel
report despite the restriction of participants. They are all
both around 75%.
8.2 Discussion
This section will be presents in different paragraphs
8.2.1 Comment on literature review
The finding of the present study suggests that luxury
gift decrease by dramatic event as well not only the
52%
41%
20%
80%
12%
20%
26%
33%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
champagne
sparkling wines
champagne sparkling wines
Mintel 2012 26% 33%
mintel 2015 off and on trde 12% 20%
restaurant 20% 80%
participants 52% 41%
Mintel 2012 mintel 2015 off and on trde restaurant participants

18. competition between brands(Johnson2002). This study
demonstrates that more of my participant are student
however the member of staff tends to buy Champagne
for the rare occasion but not for financial situation. This
research observes that participant over 50 years olds
like Prosecco more than Champagne in a similarly
Mintel (2011) suggest that they are more likely to drink
at home and grow by 8% by 2016. Therefore, they
represent a real part of market for brands.
8.2.2-Importance of findings
One interest finding is that 50% of my participant never
bought a bottle of champagne and 30% of the rest of
participant buy it just for the big occasion. Another
important finding is that Cosy club served a minimum of 5
times more Prosecco than Champagne. Practically all the
restaurant served prosecco in a glass but not champagne
because it is more expensive. Walkup(2012) as well
states that prosecco is more served than champagne and
so popular. The most interesting finding reveals that 72%
of my participants cannot identify champagne on the
tasting session. I put more cup of champagne and less in
prosecco. In the psychology of consumer since the
champagne is expensive it is probably the less one.
However practically all of them said that they like
champagne.
8.2.3-Analysis of finding
These result are likely to be related to the lack of
knowledge. Some consumer may be easily change their
mind by facing any type of propaganda. BusinessWeek
online (2006) demonstrates how consumer can react
differently whether is champagne or prosecco event.

19. Another explanation of these result might be the popularity
of Prosecco due to the low cost of the product.
Champagne’s companies need to have a balance on their
prices policy as Salolainen(1993) said :
The pricing policy should be tailored in such a way to be
reasonable for all parties involved, allowing the ”merchants”
to maintain the economic and financial impetus to benefit
from their investment, enable the growers to enjoy
satisfactory return on their labour ,and generate goodwill and
purchases by the consumer by means of value for money
products which are skilfully promoted by marketing
professionals.
Therefore, the prices need to take in consideration the
alcohol taxes, the special premise, the retailers, the
producer difficulties and follow the economic situation. It is
important to highlight that UK is the first importer of
Champagne and consumer love it despite the popularity of
Champagne (Krebiehl 2014).
Another view of this research is that real champagne’s
consumer paid generally the price even if is high. And
Rose(2007) demonstrates that English sparkling wines ,
Cremat and Vouvray are also upgrading their popularity
and might be a competitor for champagne.
8.2.4 New strategy marketing
A lot of consumer do not know that they can drink
champagne with all type of meals. It is not the same for
red ,white or rose wines. Therefore, champagne’s
companies need to promote their product by bringing
more knowledge in the subject. In the same accordance,
the tasting seems to be a good idea to connect with
customer and upgrade sales of champagne in restaurant.
(Woodward 2015). Likewise, the Chief Executive of Tesco
Dave Lewis started a new policy in wine called “Project

20. Reset” that may increase champagne sales (Mintel 2015).
Finally, Strategies to enhance popularity of Champagne
might be to do advertisement in YouTube by champagne
companies not only to show women holding bottle of
champagne but more about knowledge, and a little bit of
casualty’s aspect of the drink and innovation.
8.2.5 Limitations
The result of study did not show that Prosecco is taking
Champagne customer. Also this research did not analyse
the impact of climate change in Champagne sales or
further marketing action in that case. Further research
should be undertaken to investigate this area.
9- Summary and Conclusion
This study set out to determine the fantastic progression
of Prosecco. My aim was to assess companies marketing
strategies in Champagne sales. This study has argued
that Prosecco generate profit for a lot of business,
Champagne keep the luxury and prestigious place and
consumer might have some barrier of consumption but
they focus on their choice.
Overall the non -progression of Champagne sales is link
with the economic situation and the way champagne
companies decided to keep their prices high and their
image. However, Prosecco company find a niche in the
market. This research had shown that consumer have a
lack of knowledge and Champagne companies are not
targeting all type of population. In similar case this study
seems to demonstrate that the barriers of consumption
are link with the origin, the culture and the financial
situation of my participants. This study has shown that it is

21. a real competition between brands and every company
has a different type of marketing.
In general, it seems therefore that Champagne company
need to increase the marketing by teaching people how to
like their product.
Finally, a number of important limitations need to be
considered. Firstly, I have a few participant and all in one
place only. Secondly, I do not have enough time to
investigate and the length of my study is only 3300 words.
Further research might explore the impact of climate
change in champagne and Prosecco sales. Passionate
will bring more explanations about all aspect of sparkling
wines as King (1999) wrote “This book is a celebration. A
celebration of a long love affair. If you love Champagne
and other sparkling wines, as do I and all my best friends”.
Count words : 3118 words without the abstract
10- Bibliography
Business Week online (2006).” Prosecco’s friendly bubbles”. pp1-1
Catchpole, A. (2015) “Trading in bubbles”. Harpers.co.uk
Comite interprofessionelle du vin de champagne (no date) From cellar to
table Epernay
Johnson, B. (2002)” Luxury goods purveyors are clinging to hopes of a
2nd
-half rebound in fortunes.” Shoppingcenterworld.com
King, A. (1999) Fabulous fizz: Choosing Champagne and sparkling wine
for every occasion.
Krebiehl , A ( 2014) Vive la différence .Harpers.co.uk
MacDonald, L. (2015) “Champagne wins in the on-trade”. Morning
advertiser.co.uk

22. Mintel report (2011) “Drinking in the home-UK-July 2011-Executive
summary”. Available at: academic.mintel.com (Accessed: July 2011)
Mintel report “Champagne and sparkling wine executive summary-UK-
July 2012.” Available at: academic.mintel.com (Accessed: July 2012)
Mintel report “End of the year report card 2015: Alcoholic drinks”
Available at academic.mintel.com (Accessed: 2015)
Mintel report” Consumer and the economic outlook: quarterly update-
UK-December 2015” Available at academic.mintel.com (Accessed:
December 2015)
Mintel report “Still, sparkling and fortified wine -UK -October 2015-
channels to market”. Available at academic.mintel.com (Accessed:
December 2015) (Accessed: October 2015)
Mintel report (2015) “Attitudes to premium alcoholic drinks-UK-March
2015-the consumer-spending on premium alcoholic drinks “Available at
academic.mintel.com (Accessed: March 2015)
Mintel report (2012) “Champagne and sparkling wine -UK-consumer -
July 2012-consumer-barriers to usage”. Available at
academic.mintel.com (Accessed: July 2012)
Mintel report (2012)” Champagne and sparkling wine -UK-July 2012-
consumer-usage of Champagne and sparkling wine by occasion”.
Available at academic.mintel.com (Accessed: July 2012)
Mintel report (2012) “Champagne and sparkling wine-UK-July 2012—
consumer -spending for home usage” Available at academic.mintel.com
(Accessed: July 2012)
Mintel report (2012).” Champagne and sparkling wine-UK-july2012-
consumer-purchasing trends”. Available at academic.mintel.com
(Accessed: July 2012)
Mintel report (2015)” Still, sparkling and fortified wine-UK-October 2015-
brand communication and promotion”. Available at academic.mintel.com
(Accessed: October 2015)
PM: Pub opening hours to be extended in honour of Queen’s 90th
birthday. Available at www.gov.uk/announcement2016 /Queen birthday

23. Rose, H. (2007) Vive la différence. There are alternatives to champagne,
says Hugo Rose so seek them out for Christmas. director.co.uk
publication
Salolainen, M. (1993) “The marketing of Champagne: the way forward”
International Journal of Wine Marketing vol 5 iss4 pp.15-26.
Doi.org/10.1108/eb008619
Slowing, T. (2014) “Premium alcohol boosts on premise”
sales.Bevindustry.com
Walkup, C. (2012) Taking a shine to sparkling wine. champagne
alternatives offer value and choice.Cheersonline.com
Wholesale News (2014),” Prosecco growth fails to burst Champagne’s
bubble”. Issue 8, pp1-2.
Woodward, G. (2015) Why aren’t restaurants offering more wines by the
glass? Harpers.co.uk
11-Appendices
11.1 SURVEY FOR HOTEL AND RESTAURANT
1- Do you swap in your cart the champagne to the prosecco?
If yes, why?
2- Are you selling more cocktail with prosecco or
champagne?

24. 3- Does your customer have made a request to have
prosecco instead of champagne?
4- In your suite do you also put the prosecco instead of
champagne?
5- How many start is your hotel or restaurant?
6- What is the average bottle of prosecco and champagne
that you are selling per year?
11.2 Tasting questionnaire
1 -Which drink is prosecco or champagne A, B or I don’t know?
(give some explanation about the taste, your preference and
why)
2- Do you usually buy champagne? if yes how often per year?
3- Do you usually buy Prosecco? If yes, how often per year?
4- when you have a celebration which drink do you plan to buy?

25. 5-Did your financial situation do not allow you to buy
champagne or prosecco?
6- As a woman(man) did your partner have an influence in your
shopping’s list?
7- Which ethnic origin are you? State your home country.
8-Did prosecco or champagne is a priority in your shopping list?
why?
9-How old are you
20 – 29, 30 – 39 ,40 – 49, Over 50
10- Do you have a main income? How much is it per year?
Thank you for taking part of this questionnaire.

26. 12-Acknowledgement
This project is a passion of work I will like to extend with you. My
love affair with Champagne generate more inspirations and
knowledge I will like to share with you.
Yebkal, E. (2015) Different types of champagne. LinkedIn

31. Different size of bottles of Champagne. ( Comite interprofessionnel
du vin de champagne )
*Quarter 20cl
*Half bottle 37.5cl
*Medium 50cl
*Standard bottle 75cl
*Magnum 1,5 litres(2 bottles)
*Jeroboam 3litres(3bottles)
*Rehoboam 4.5 litres ( 6 bottles)
*Methusalah 6litres (8 bottles)
*Salmanazar 9 litres(12 bottles)
*Balthazar 12 litres ( 16 bottles)
*Nebuchadnezzar 15 litres (20 bottles)
*Salomon 18 litres (25 bottles)
*Souverain 26.25 litres (35 bottles)
*Primat 27 litres ( 36 bottles)
*Melchizedec or Midas 30 litres (40 bottles)
Kir royal :
60 cl of crème de cassis
Champagne
Mixed the crème de cassis with broken ice and Poor it inside a glass. Fill it up with
fresh champagne. Mixed slowly and serve.