Promotion entails not just advertisement but also branding while pricing refers to balancing what the consumer is prepared to exchange in relation to production costs. Placement in a globalised environment creates the greatest challenge of retailing the product.
Wine Production. Wine production in Europe has traditionally been labor intensive, based on fragmented production of grapes by small sized farmers spread over a wide area. These are dependent on a long chain of producers, distributors and marketing agents and are thus impervious to the needs of the consumer, a cardinal sin in product marketing. On the other hand new world wine growers, in the United States, Australia, Argentina, Chile and South Africa, have large land holdings averaging 158 hectares compared to 1 acre in Europe and with mechanization and use of modern techniques have full control of the production, supply and distribution chain thereby being responsive to product development based on consumer preference. Modernization of production has been rejected by French wine growers who do not want to lose the, "poetry of wine."
Product and Price Differentiation through Packaging. ...
Australian and American wine producers have displayed greater flexibility in product development focusing on the change in demand to premium and super premium brands, switch from red to white wine and vice versa based on health benefit perception of consumer, fashion trends and even preference based on variety of grapes. This has been achieved by cultivating the identified variety in larger acreages. Old world wine growers did not have this flexibility as land continued to be scarce as also its use for growing grapes was regulated.
Pricing. Apart from the factors covered above, new world producers were able to achieve a price advantage due to economies of scale while French and German wine growers were restricted by small holdings and limited scale of operations. Ease in transportation costs and liberalization of tariff regulations due to execution of World Trade Organization norms also assisted the new world producers in pricing their products competitively.
Promotion - Impact of Branding. While branding a product is an important tool for its promotion, in old World Europe, regulation and classification of wine led to a deleterious impact creating a hierarchy of regression with a government panel allotting quality certificates. Branding or classification in France was carried out based on an antiquated system of terroir or the unique qualities provided to wine due to factors as soil conditions, rainfall and so on. But when phylloxera struck affecting wine production in the last quarter of 19th Century, it was only through the process of grafting with phylloxera resistant roots from Californian vine yards which transposed wine industry beyond Europe. The regression in branding is exemplified by the fact that a resolution was passed by the European Union
The wine industry in Europe has been traditional given the highly fragmented nature of agro based production, segmented players with vested interests in the status quo and inflexibility to adjust to the competition and changing environment. The companies are mostly based in France, Italy, Germany and Spain…
This research will begin with the statement that before drawing up the marketing plan it is essential to evaluate the external environment in which Brown Brothers proposes to introduce its wine products. The external environmental analysis of Hong Kong suggests that the market has high growth potential.
This assessment focuses on “special interest tourism” in a particular country. Every country has its own competitive advantage in terms of tourism; some have natural beauty, while others have delicious food. Moreover, special interest tourism has come into existence due to the increasing demands of the tourist.
Wine Marketing. Customers can buy wines from various locations. There are lots of choices ranging from individual wine shops, retailers, supermarkets and also through the modern trend in business i.e. through online wine retail shops. With days the buying pattern of customers are changing from retail store to supermarkets and now towards online stores.
The per capita wine consumption of Hong Kong legal drinkers is an average of 3.3 liters which is higher than Japan (2.3 liters) and Singapore (1.9 liters) (Suen, 2009). Hong Kong wine consumption is expected to reach 4.2 liters by 2012. Despite financial tsunami, the development of Hong Kong wine market has high growth potential.
There are various implications for the change ion the attitude of the society towards the role of women in the modern world and it is often found that the women in the modern society feel the same amount of freedom with men. One of the most prominent aspects of women's liberation or emancipation and that of the increased financial independence has been the increased rate of female drinking.
However, each year the market share of the Old World Wine is on a declining trend. xlii
Among the top five exporters (by value) of wine in UK market in 2004 the author observes that the New World wine producers
Mergers and acquisitions are very common in the wine industry and if a larger wine company acquires a smaller winery, it benefits due to economies of scale. It is able to reduce staff and the smaller winery
The process involves changing the quality of the cognac, it involves regular tasting the cognac, adding distilled water, changing oak casks and mixing cognacs of different ages to achieve desired quality.
The concepts and ideas from different regions and areas are now merging into one global perspective. This global perspective is driven by media and internet. These sources of information make sure that everyone has access to information. There was a time not long ago when