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. ...Show more