This document proposes a new concept for merchandising wine in Waitrose stores. It analyzes the current approach of organizing wine by type, country of origin, and price. This can lead to choice overload and reliance on heuristics for customers. The new concept reorganizes wine into sections based on type, body/weight, and common taste notes/aromas. It uses visual icons on bottles to highlight dominant flavors, making comparisons easier. This simplifies decisions and changes customers' decision-making framework, reducing heuristics and cognitive biases. It has the potential to engage more customer segments and improve satisfaction.

1. Table of Contents
Executive Summary 1
Waitrose In-Store Wine Merchandising & Consumer Purchase Choice Drivers 1
▪ Rationale Behind the Current Display Merchandising 1
▪ “A Wall of Wine”: Choice Overload, Information Overload, Risk Aversion 2
▪ Cognitive Load, Decision Simplicity, Cognitive Fluency, Maximizing and Satisficing 3
In-Store Retail Environment: Choice Galore & Attention Battlefield 3
▪ Judging the Book by its Cover 3
Overcoming Decision Paralysis & Getting from Options to Purchase Choices 4
▪ New Merchandising Categorization Proposal 4
▪ Changing the Framework, Changing the Attitude 5
Practical Considerations 6
Appendix 1 9
Appendix 2 9
Appendix 3.A. 10
Appendix 3.B. 10
Appendix 4 11
Appendix 5 12
Appendix 6.A. 12
Appendix 6.B. 13
Appendix 7 14
Appendix 8 15
Appendix 9 16
References 17
Waitrose
In-store Wine Section
New Merchandising Concept
Proposal
Developed by:
Veronica Gavrilova
M: 0.7713.7732.44
E: veronica.gavrilova@gmail.com

2. 1
Executive Summary
The proposal examines the current merchandising organization currently used by Waitrose for its in-store wine
section and then briefly analyses the reasons behind the heuristics and cognitive biases ((price, country of
origin, label design, etc.) customers commonly resort to in their purchase choice decisions. A new
merchandising concept is then proposed which aims to simplify consumer decision process and improve
customer satisfaction levels while also mitigating the impact of the heuristics discussed. The last section of the
proposal provides a brief overview of some of the factors which could facilitate the adoption of the concept
and the costs related to its implementation.
Waitrose In-Store
Wine Merchandising &
Consumer Purchase
Choice Drivers
RATIONALE BEHIND THE CURRENT
DISPLAY MERCHANDISING
As most major retailers, Waitrose follows the
long-standing wine industry
standard of merchandising wine by:
▪ type,
▪ country of origin, and
▪ different price point levels.
Separate sections are allocated to single
serve bottles and boxed wine and to fine
wines where limited batches, specialty, and
super-premium varieties are displayed in a
more prominent manner (see Table 1).
Consumer choice navigation is further guided
by on-shelf signage which includes
‘promotional labels’ (sales promotions and
expert recommendations) and ‘price shelf-
talker labels’ which offer content and context
information (see Table 2).
Despite its many drawbacks lamented by
both the industry’s experts (Mileham, 2016),
WINE SECTION CATEGORIZATION CRITERIA Table 1.
sections divided by wine type ▪ red
▪ white
▪ sweet & fruity / rose
▪ sparkling
▪ champagne
▪ dessert wines
▪ port & madeira
▪ sherry
▪ vermouth & ginger wine
red and white wine sections
organized by country of origin
▪ Italy
▪ Spain
▪ France
▪ The Americas
▪ Australia
▪ New Zealand
▪ South Africa
▪ Rest of World
top down allocation of
shelf space by price
▪ premium (top shelves)
▪ popular premium (eye level)
▪ popular everyday (eye / mid-level)
▪ value / budget (incl. private label)
(lower / bottom level)
specialty wines section
(premium, super -premium)*
▪ red
▪ white
small & boxed wine section
(single serve bottles and packs)
mixed variety of wine types
Source:
Autor, Analysis based on Wine & Spirits Section Layout, Waitrose Store, London
* Adapted from Wine Categorization and Pricing Chart, Source: (Slater, 2018)

3. 2
(Mileham, 2016), (Wedell-Wedellsborg, 2016)
and consumers this widely used merchandising
model with minor variations seems to persist for
several reasons:
▪ a relatively nascent level of innovation
(oftentimes marginal) (Lay, 2019), (Siddle,
2015), (Wilmore, 2012) within the sector
and lack of time-tested alternatives,
▪ the unique, complex, and largely
conservative nature of the product category,
▪ challenges in categorizing the vast selection
of available wines due proliferation of
producers, brands, wine varietals, vintages,
etc.,
▪ investment costs and reluctance in
disrupting the status-quo due to
organizational challenges and financial risk,
▪ country of origin and price being among the most common extrinsic quality cues employed by consumers
as mental shortcuts (decision-making heuristics) in their choice and evaluation of wine (MacMillan, 2017),
(Schmidt, et al., 2017), (Goldstein, et al., 2008), (Trei, 2008), (Felzensztein & Dinnie, 2005), (Veale &
Quester, Spring 2008).
“A WALL OF WINE”: CHOICE OVERLOAD,
INFORMATION OVERLOAD, RISK AVERSION
While numerous research studies have consistently
cited country of origin and price as a quick quality-
inferring proxy used by consumers across a variety of
product categories, by themselves these two heuristics
have rarely ever been employed by retailers as core
classifying criteria and explicit pointers to guide
customers in their choice for any of the other CPG or
FMCG categories the stores carry.
As a rule, these heuristics have been adopted by
consumers as unconscious indicators, not as active signposts to guide their purchase decisions. The ubiquitous
predicament in selecting wine, however, comes from the fact that aside from the ‘connoisseurs’ and the
‘routiners’ established in their preferences, the vast majority of consumers find themselves faced with what
the wine columnist and book author Jamie Goode calls a “wall of wine made up largely of products packaged
the same way (in tall glass bottles), which look the same, and to the average person, taste the same” (Wilmore,
2012), (Goode, 2014) all the while located within a typical wine merchandising context many find
“confusing, impenetrable, and politely condescending” (Wedell-Wedellsborg, 2016).
The democratization of wine (Locke, 2015), (Godoy, 2016), (Swindell, 2016), (Snooth, 2007) and its increasing
commoditization (Pellechia, 2016), (McCloskey, 2010) have granted access to a domain previously considered
elitist, but with the doors widely opened most consumers encountered a staggering abundance and
complexity of choice further compounded by the challenge of their limited or lacking understanding of the
category to efficiently navigate their decisions.
To mitigate the negative consequences associated with ‘choice overload’ (i.e. ‘decision paralysis’, ‘buyer’s
remorse’, decreased sales, etc.) (Schwartz, 2005), (Tugend, 2010), (Kellogg Insight, 2017) and empower and
ON-SHELF SIGNAGE Table 2.
PROMOTIONAL
LABELS
▪ 25% off
▪ save 1/3
▪ buyer’s choice (authority persuasion principle)*
▪ limited offer (scarcity persuasion principle)*
PRICE
SHELF-TALKER
LABELS
OBLIGATORY CONTENT INFORMATION
▪ price
▪ name
▪ grape varietals
▪ country of origin
▪ quantity
▪ alcohol percentage
▪ indication of sugar content
▪ organic / vegan (green colour label), etc.
OPTIONAL CONTENT & CONTEXT INFORMATION
▪ colour, tasting notes and aromas
▪ region description
▪ suitable food pairings, etc.
Source:
Author, Analysis based on Wine & Spirits Section Layout, Waitrose Store, London
* Influence: The Psychology of Persuasion (Cialdini, 2007)

4. 3
engage customers some retailers responded by providing educational snippets of information on their price
labels. This step, however, instead of resolving the issue might potentially exacerbate it with customers
required to process a triple layer of information (i.e. in-store merchandising environment cues, text-laden
price shelf-talker labels, and the actual labels of the bottle), thus adding ‘information overload’ (Flynn, 2013)
on top of the existing ‘choice overload’. In the context of this intricate complexity and limited time and
attention heuristics understandably become a convenient risk aversion device consumers often use to reduce
the cognitive load and reach a decision.
COGNITIVE LOAD, DECISION SIMPLICITY,
COGNITIVE FLUENCY, MAXIMIZING AND SATISFICING
Simply providing a higher volume of information and
details does not educate or empower consumers.
Aiding information processing to ease their ‘cognitive
load’, helping them quickly navigate, narrow and
evaluate options to then confidently proceed towards
a purchase does (Spenner & Freeman, 2012). ‘Decision
simplicity’, the ease of gathering reliable information
about a product and ability to efficiently compare the
options offered, has been quoted as the biggest driver
of likelihood to buy, found to be four times stronger in
its impact than engagement marketing, and leading to considerable rise in loyalty, repeat purchases, and
positive WOM (Spenner, 2012). Because of the sheer complexity of wine as a category the assortment
organization and information presentation within retail environment can leave customers feeling either well-
informed and in control or overwhelmed, frustrated, and lost. Both can either boost “cognitive fluency”
(crucial to positive shopping experience and customer satisfaction) or impede it by overhauling and exhausting
the System 2 thought mode (Kahneman, 2012) and prompting customers to revert back to the automatic and
heuristics-prone System 1 and a host of cognitive biases. Juan Park, the former Research Director at Wine
Intelligence UK, comments on another two heuristics commonly used by wine consumers in an in-store
environment - ‘maximizing’ and ‘satisficing’, with the former being scarce and a reserved domain of those who
“deeply understand a category”, and the latter being the prevalent one: “the majority of times consumers are
purely satisficing, deciding fast and simple, moving away from anything which is not recommended, moving
away from the unfamiliar, the risky product of the unknown origin” (Park, 2014). According to Park, solutions
that nudge consumers to “step away from the satisficer rut” or can “reduce the complexity of the maximizer
process” while providing a level of reassurance are the innovations retailers should be focused on.
In-Store Retail Environment:
Choice Galore &
Attention Battlefield
JUDGING THE BOOK BY ITS COVER
For various reasons, the advertising media spend in the wine category has been notoriously modest (Nielsen,
2017) when compared to beer or spirits (see Appendix 1) with most brands holding the same level of
conservativeness even when they venture into launching an odd advertising campaign (Haros, 2017).
Packaging design, a key purchase driver for wines, has traditionally been the core focus of the category

5. 4
Overcoming
Decision Paralysis &
Getting from Options to
Purchase Choices
marketing. In a crowded and highly competitive market packaging serves not only to grab consumers’
attention and drive their preference but also to secure distribution (Freeman, 2016). This reliance on
“advertising at the shelf” is driven by the fact that less than 1/3 of the consumers know which brand they will
purchase before entering a store, while more than 2/3 make the choice while browsing through the options
available at the shelf and over 1/2 try a new product prompted solely by packaging (Nielsen Insights, 2017). A
re-organization of the merchandising layout could mitigate this and previously discussed cognitive biases by
creating another framework of criteria and cues which consumers could refer to and thus introduce other
brands into their awareness and consideration set previously left unnoticed.
NEW MERCHANDISING CATEGORIZATION
PROPOSAL
(EXISTING CONCEPT) DEVELOPED BY:
JUST GRAPES WINE STORE & LOUNGE,
CHINA, SHANGHAI
The new merchandising concept re-organizes
still wine into 3 sections by:
▪ type,
▪ body (wine’s texture/weight), and
▪ a set of common taste notes / aromas.
▪
All 3 classification criteria are commonly used
and referred to by the specialty wine retailers
as descriptions in their physical stores or on
their websites as selection filters consumers
use.
The layout of the ‘specialty wines’ and ‘small
and boxed wine’ sections is left unchanged, as
both are relatively small, and limited batches
and super-premium wines require a different
approach to display and promotion from the
one used for the rest of the wines. The
remaining sections are also kept untouched
because of the particularity of their
characteristics but brought together as
subsections under ‘special wines’.
RE-ORGANIZED STILL WINE SECTIONS Table 3.
1. RED WINE
FRESH
SMOOTH
RICH
FLORAL
FRUITY
GRASSY
MINERALLY
TOASTY
SPICY
NUTTY
OAKY
2. WHITE WINE
FRESH
SMOOTH
RICH
3. ROSE WINE
FRESH
SMOOTH
RICH
WINE SECTIONS WITH LAYOUT PRESERVED
TASTE VISUAL ICONS FEATURED ON INDIVIDUAL BOTTLES
4. SPECIALTY WINES
▪ RED WINE SUBSECTION
▪ WHITE WINE SUBSECTION
5. SPECIAL WINES
▪ SPARKLING SUBSECTION
▪ CHAMPAGNE SUBSECTION
▪ SWEET WINES SUBSECTION
- dessert wines
- port & madeira
- sherry
- vermouth & ginger wine
6. SMALL
& BOXED
WINE
NOTE:
* Red Wine: FRESH light-bodied, SMOOTH - medium-bodied, RICH - full-bodied
* White and Rose Wine: FRESH – dry, SMOOTH - off-dry, medium, RICH – sweet
Adapted categorization system based on models used by several specialized wine retailers:
Just Grapes (CN), Majestic Wines (UK), Crown Cellars (UK), Bottle Rocket (USA)
FLORAL, FRUITY, GRASSY, MINERALLY, EARTHY, SPICY, NUTTY
(The number and the versions proposed are optional. For other options - see Appendix 6)
Modified taste categorization based on systems used by several specialized retailers:
Just Grapes (CN), Majestic Wines (UK), Bottle Rocket (UK)
(See Appendix 2, 3.A, 3B, 4, 5)

6. 5
The second core part of the proposed merchandising concept is the use of the same set of visual taste notes /
aromas icons as a sticker (see Appendix 3.A, 3.B and Figure 1 for reference) placed on the bottles across all
sections with the ones that describe the wine being highlighted. The rationale behind it is three-fold:
▪ wines generally have a clearly identifiable
dominant taste note / aroma and several other less
pronounced ones (visible in the stylistic
classifications used by some wine retailers and
based on the 'wine aroma wheel’ developed by Dr.
Ann C. Noble (University of California Television
(UCTV), 2013), (see Appendix 2, 3.A, 3.B, 4, 5, 6.A,
6.B). This offers a greater level of elaboration in a
quick, standardized, easy-to-grasp, visual form
compared to the lengthy and inconsistent text
descriptions of the shelf-talkers currently used,
▪ it is a faster and more convenient way for
customers to compare between the options
they hold in hand,
▪ the compact, standardized visual form of the
icons declutters the retail environment of
marketing noise making the shelf-talkers
redundant.
CHANGING THE FRAMEWORK,
CHANGING THE ATTITUDE
Changing the way wine is categorized and presented
and adopting a visual approach to information
presentation changes consumers’ ‘framework of
reference’ which influences their attitude and
behavioral patterns.
Mitigating the negative impact of the heuristics and
cognitive biases discussed previously is one of the
several advantages of the proposed merchandising
concept. Removing the country of origin and price as
‘guiding posts’ makes consumers less prone to use
these as a point of reference and nudges them to turn
their attention to other cues. Wines previously left
unnoticed are brought to the forefront because of a change in consumers’ consideration and assessment
criteria. The ‘halo effect’ of the label design “good-looking equals good” becomes less pronounced as other
visual indicators referring to intrinsic qualities (taste notes and weight) are considered.
This in effect, could lead to better purchase options for both ‘satisficing’ and ‘maximizing’ type of customers
(Park, 2014). When looking at the UK wine market consumer segmentation (see Appendix 7, 8 and Table 4)
this could translate into raised engagement levels across several segments - ‘Newbies’, ‘Strong Prospects’,
‘Occasionals’, ‘Engaged Explorers’ and ‘Confident Enthusiasts’, together accounting for 79% of the share of
wine drinking population, leading also to increase in their off-trade value percentage.
Minimizing information levels and complexity by using a more visual approach reduces consumers’
‘information overload’, and ‘cognitive load’. Visual information is decoded and processed significantly faster
and is more impactful than text (Ririe, 2018), (Ogilvy, 2018), (Ogilvy Blog, 2018), it is also less taxing on System
TASTE NOTES / AROMA ICONS STICKER Figure 1.
Based on the flavour icons sticker currently used by Just Grapes.
The number of icons could be changed.
Other aromas could be chosen from the Wine Aroma Wheel.
floral fruity grassy minerally toasty spicy nutty oaky

7. 6
2 leaving System 1 more engaged but now with a more
objective set of assessment criteria. The framework
through which the information and options are filtered
also allow to reduce the ‘choice overload’.
Simplification aids ‘cognitive fluency' and improves
‘decision simplicity’ which reduces ‘decision fatigue’,
speeds up decision process and increases satisfaction
(Spenner, 2012). Siegel+Gale’s annual Global Brand
Simplicity Index study (Whitler, 2017), (Siegel+Gale,
2018) supports these findings (see Appendix 9) and
provides examples of supermarket chains which hold top
rankings (see Appendix 9) because of the way they
simplify shopping experience and remove friction from
consumer’ decision journey.
Practical Considerations
The concept has been successfully tested in China and similar categorization approaches are commonly used
by some online wine retailers as search filters customers are accustomed to. The increasing convergence of
off-line and on-line retail space could be conducive to adoption of the same search principles in a physical
retail environment in view of the boundaries between the two getting blurred and consumers’ online-
research-off-line-purchase shopping habit (Conomos, 2014). Another factor conducive to change adoption is
the fact that many on-trade venues consumers frequent commonly organize their wine lists stylistically by
flavor profile or body (Clarke, 2009) with some retailers testing stylistic categorization concepts online and in-
store (Majestic Wines UK, 2019), (Mileham, 2016), (Stone, 2012). The shifting demographics of the UK wine
consumer segments and Millennials lifestyle are also important underlying factors driving the changes in wine
and retail sectors.
Printing and labour, i.e. time needed to attach and mark the stickers, on the bottles are likely to be the main
costs related to the implementation of the new concept. The HQ wine buyers will be required to review and
allocate the wines to the different sections according to the new categorization criteria. Simple rearrangement
of the stock with a well-designed branded signage system does not call for major investments and there are
no structural changes involved.
It is recommended to test the concept for at least 6 months in a central store located in London while also
collecting and comparing the sales data with the one from the same period the previous year. On-site
customer surveys and video recordings could be used to gather more insights and details about the
performance of the concept.
Table 4.
UK WINE MARKET
CONSUMER SEGMENTS
population
share %
off-trade
value %
NEWBIES 24 5
STRONG PROSPECTS 18 13
OCCASIONALS 18 5
ENGAGED EXPLORERS 10 18
CONFIDENT ENTHUSIASTS 9 17
ROUTINERS 9 14
ECONOMISERS 8 5
EXPERTS 4 23
Source:
Accolade Wines 2018 UK Wine Report Category Development & Insight
(Accolade Wines UK, 2018)

8. 7
Appendices

9. 8
APPENDIX 1
WINE SECTOR TRADITIONAL MEDIA SPEND
NIELSEN INSIGHTS, 2017
Source:
Nielsen Insights,
“How Package Design Attracts Today's Wine Consumer”, 2017, (Nielsen Insights, 2017)
APPENDIX 2
MAJESTIC WINES UK – WINE FITTING
Source:
Majestic Wines Website, UK
Link: https://www.majestic.co.uk/content/winelanding

10. 9
APPENDIX 3.A.
JUST GRAPES STORE & LOUNGE, SHANGHAI, CHINA
MERCHANDIZING CATEGORIZATION AND TASTE NOTES / AROMAS ICONS
Source:
Just Grapes Wine Store & Lounge Website, Shanghai, China
TASTE NOTES / AROMAS STICKERS
Source:
Just Grapes Wine Store & Lounge, Shanghai, China
Facebook Page

11. 10
APPENDIX 3.B.
JUST GRAPES STORE & LOUNGE, SHANGHAI, CHINA
INTERIOR DESIGN
Source:
Just Grapes Wine Store & Lounge, Shanghai, China
Facebook Page

12. 11
APPENDIX 4
Source:
Crown Cellars Brochure, 2017 (Crown Cellars Wines, 2017)
Link: www.carlsberguk.co.uk/media/15325/crown-cellars-2017-wine-brochure.pdf

13. 12
APPENDIX 5
Source:
BOTTLEROCK Wine Store Website, New York, USA (BOTTLEROCK Wine Store, 2019)
Link: www.bottlerocket.com
APPENDIX 6.A.
WINE AROMA WHEEL
Source: AROMASTER (AROMASTER, 2019)
Link: www.aromaster.com/product/wine-aroma-wheel

14. 13
APPENDIX 6.B.
TABLE WINE AROMA WHEEL
ONE OF THE TWO ORIGINAL WINE AROMA WHEELS
CREATED BY PROF. ANN C. NOBLE AT THE UNIVERSITY OF CALIFORNIA AT DAVIS, USA
Source:
The Official Website of the Wine Aroma Wheel
Link: www.winearomawheel.com/buy-wine-aroma-wheel.html
Additional Information: (University of California Television (UCTV), 2013)
Link: https://www.youtube.com/watch?time_continue=109&v=COBNIEQzxd0

15. 14
APPENDIX 7
UK WINE MARKET CONSUMER SEGMENTS
8 PORTRAITS OF THE UK WINE CONSUMER
ACCOLADE WINES UK 2018 WINE REPORT
Source:
Accolade Wines 2018 UK Wine Report Category Development and Insight (Accolade Wines UK, 2018, p. 9)

16. 15
APPENDIX 8
UK WINE MARKET CONSUMER SEGMENTS
ACCOLADE WINES UK 2018 WINE REPORT
Source:
Accolade Wines 2018 UK Wine Report Category Development and Insight (Accolade Wines UK, 2018, p. 20)

17. 16
APPENDIX 9
SIEGEL+GALE
2018-2019 GLOBAL BRAND SIMPLICITY INDEX REPORT
Source:
SIEGEL+GALE 2018-2019 Global Brand Simplicity Index Report (Siegel+Gale, 2018, pp. 11-12)
SIEGEL+GALE
2018-2019 GLOBAL BRAND SIMPLICITY INDEX REPORT
TOP TEN GLOBAL BRANDS
Source:
SIEGEL+GALE 2018-2019 Global Brand Simplicity Index Report

18. 17
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CBI Market Intelligence, 2016. CBI Market Channels and Segments: Wine in the United Kingdom. [Online]
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