...in the wine industry, nevertheless, the company benefits from the high prices set by its limited production of Opus One which is priced between $90 and $100 a bottle in more than 65 world markets.RMC proves to have some strong key competitive advantages which distinguish the company amongst other rivals. Firstly, Robert Mondavi, being a dynamic sales man in the early years, never spent money on advertising. Instead he relied on trade shows, awards, salesmanship and showmanship. This is clearly described in the case study in which he spent entertaining influential people within the industry and invited the top wine writers to the RMC facility for free meals (Silverman & Castaldi 1999). In addition, he would conduct blind tasting of the RMC wines against reputable French and Italian wines so that the writers could taste for themselves. For over a decade, Mondavi traveled throughout the country and abroad as the company's chief salesperson. Consequently, the RMC wines were able to increase its recognition of and demand for the wines, Mondavi began slowly raising the prices until they were selling for as much as comparable French wines (Thompson & Strickland 2003).Secondly, RMC's strong brand name is associated with wine-growing excellence, award-winning products and marketing innovation. In this situation, RMC enjoys one of the most recognized brands by producing a limited quantity of super- to ultra premium wines using the most prestigious noble varietal grapes. RMC wines strictly...
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...ancient times, wine was continuously referred to and recognized throughout prehistoric civilizations and cultures such as: the Mesopotamian, Minoan, Greek, and Etruscan cultures (The Rich History of Italian Wine, 2012). During the evolution of wine (between 4000 and 3000 B.C.), Romans contributed greatly to the art of viniculture in Italy. Since ancient times, wine has been a significant aspect of Italian culture and was consumed regularly (The Rich History of Italian Wine, 2012). Today, Italy is portrayed through old world and new world wine production and styles, as the region of Italy has continuously been recognized internationally as a major wine-production area. Within this literature, assorted food elements along with red and white wine varietals from the major wine-producing regions of Italy will be paired and discussed. The forty wines chosen will represent an assortment of styles and will be explored through detailed descriptions of wine characteristics, styles as well as through the explanations behind the eight chosen food and wine pairings. In addition, this literature will examine the costing of wine portions, a brief history of the four regions that will be discussed and finally our conclusion of Italian viticulture based on the information discovered throughout the research conducted. History of the Regions Veneto The region of Veneto is located at the north-eastern tip of Italy and is highly recognized for the utmost quality and quantity of wine in all of Italy...
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...October 7th 2007 Poland: Roads to market by Tomasz Prange-Barczynski Compared to the mature markets of Western Europe, the Polish wine scene is still relatively young. After years under the state monopoly, the market is developing modern distribution channels. [pic] As young as the Polish market is, so too are the wine-drinking habits of most Poles. The difference between the early years after the fall of communism and now is merely that back then it was the importers and distributors who created those habits. Today, the consumer's desires are shaping the portfolio of the distributors. While the costs of wine imports in Poland are still high, consumption is low, resulting in the steepest shelf prices in Europe, which does not favour consumption. Further, wine advertising is forbidden, which limits exposure. Last but not least, although wine sales are rising, Poles are traditionally vodka and beer drinkers. Where to buy wine in Poland Wine sales in Poland are dominated by the off-trade (77%), with the main distribution channels being hypermarkets (21.9% market share) and supermarkets (25.9%), where together nearly half of all imported wine is sold. While common in western Europe, large outlets and shopping malls are still a novelty. They have, however, especially in the larger cities, already become the trendiest places to shop. Today, every third Pole buys only in super- and hypermarkets. In total, there are slightly over 200 hypermarkets in Poland. The largest chain...
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...ROUND TABLE: PREMIUM WINE INDUSTRY (LUXURY & LIFESTYLE) IN ASIA * Vintage Club * Online business (subscription) * Private consumers * Corporate (gifts, meetings) * Import directly from France, no intermediaries * Old wine company * Advice to collectors * Private customers 1. Specificity of the Asian market vs Europe * Cognac: people in Asia drink cognac with water, sprite. Do you like to have style or do you like to have sales? * Singapore wine market: 90s started climbing, mainly because students from 70s came back from abroad with new trends; French lifestyle (wine and food). * Singapore sales are driven by promotions and brands. Brands for import wines are still important, more than old world. * Time of transport from vineyard to Singapore is 2 months. * Taxes/duties: 48% china, 0% HK, $88/lt Singapore +GST * France: 25y start buying wines more regularly. Singapore: wines purchase for social representation, gifts. * Everybody knows in France about wine but they don’t care about technicalities. Only know basic characteristics of a good wine, know how to differenciate. In Asia people are more interested. * China for C&T: Hard market. Office in Shanghai, network of distributors is huge, each has a network of 1mm clients. Set up selected distributors that work closely with the brand (control network). Chilean wine is perceived as good value for money, good quality. * Segmentation...
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...world. We start with a look at their wines and the regions they have to offer. French and Italian wines trade knockout blows year after year. Italy has the likes of of the Tenuta San Guido, who produce one of the most sought after Cabernet Sauvignons in the world, the Sassicaia. There are over 300 grape varieties in the country and the rich soils and warm climate makes growing grapes effortless. France has the likes of Châteauneuf-du-Pape a small wine region that produces some very rustic wines of intense character, using a selection of 13 grapes grown within stones throw of the village. In recent years there has been some crushing evidence suggesting that Italy was the first country to produce wine, a blow to France’s ego suggesting they mere copied and took wine to be their tainted crown. A study published in 2013 called the beginning of viniculture in France highlights how in 500BC the Etruscan people exported amphoras (essentially a wine drinking vessel) full of wine to the South of France. Archaeologists found traces of these vessels and biological evidence links them to wines from Italy and there is no known history of wines before this era recorded in France. Thus the presumption is made that it was Italian traders that first introduced the wine to southern France. The first key difference is the class, and by this is mean the way in which the producer introduces the wine to palate. The French tend for a much more softer and eloquent wine which is smooth, aged in oak barrels...
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...components. IMC is therefore not just a concept relating to consistency or synergy—it is also a strategic process (Van Zanten & Bruwer 2002a). This is in particular the case of when and how IMC manifests itself at the wine region level, in which case the integration of all the marketing communication efforts of the wine region in order to achieve a strong brand identity is of the utmost importance. The Coonawarra wine region (Geographical Indication) is located in the South East corner of South Australia and is famed for its unique terra rossa soil and bold-flavoured red wines, in particular Cabernet Sauvignon. About 5,000 hectares of vineyards comprise the Coonawarra grapegrowing area. The region currently boasts 16 operating (production-type) wineries and 22 cellar door sales facilities. Around 700 people (full-time equivalent) are employed in the vineyards, wineries and cellar door facilities. The region produces on average about three and a half million cases of wine per annum. A significant portion of Coonawarra wine COMMUNICATIONS INTERNAL INTRA-REGIONAL unplanned messages product & service messages ) initiated by planning group ( planned messages ( planning group ) CONFIRM SAY DO community support, unsought local media support, industry and government body support workshops and seminars, liaison...
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...102 JULY–AUGUST 2003 > VOL 18 NO 4 > WINE INDUSTRY JOURNAL M A R K E T I N G Rob van Zanten, Johan Bruwer and Karen Ronning FUNDAMENTALLY, Integrated Marketing Communications (IMC) refers to the process of integrating and coordinating the various communication elements commonly known as the ‘promotional mix’. The promotional mix is usually considered to consist of advertising, sales promotion, personal selling and public relations, although some marketers may add other elements such as publicity, direct marketing or sponsorship as major components. IMC is therefore not just a concept relating to consistency or synergy—it is also a strategic process (Van Zanten & Bruwer 2002a). This is in particular the case of when and how IMC manifests itself at the wine region level, in which case the integration of all the marketing communication efforts of the wine region in order to achieve a strong brand identity is of the utmost importance. The Coonawarra wine region (Geographical Indication) is located in the South East corner of South Australia and is famed for its unique terra rossa soil and bold-flavoured red wines, in particular Cabernet Sauvignon. About 5,000 hectares of vineyards comprise the Coonawarra grapegrowing area. The region currently boasts 16 operating (production- type) wineries and 22 cellar door sales facilities. Around 700 people (full-time equivalent) are employed in the vineyards, wineries and cellar door facilities. The region produces on...
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...Introduction While much of the focus may be on the United States, the recent financial crisis has impacted countries around the world and Italy appears to be one of the hardest hit in Europe. After decades during which the Italians as well as the international industrial, agriculture and financial sectors raked huge profits without investing anything in innovation and competitive interventions, now companies are claiming the state rescue and support. According to initial estimations made at the OIV (International Organization of Vine and Wine) Italy, the world's second-biggest wine producer after France with an output of about 4.5 billion liters per year, had in 2009 a decrease in domestically demand, price and export which reflects the effects of the world economic crisis. Average price of Italian wine dropped 20 percent last year with ordinary wine prices plunging 25 percent and special denomination quality wines losing 13 percent. In 2009, Italian wine sales to export markets, the United States and Britain, fell 7 and 10 percent respectively hammered by the crisis and advance of rivals from Chile, Argentina, South Africa, Australia and New Zealand, according to UIV estimates based on data from Italy's statistics agency ISTAT (Istituto di Servizi per il Mercato Agricolo Alimentare). Tourism can be an important resource for an economy and Italy is the fourth highest tourist earn and fifth most visited country in the world, behind France (76.0 million), Spain (55.6 million)...
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...Country Comparison Factbook France vs. Italy Wine Industry Group 16.4 Bram van Veen Caspar Leusink Muhammad Hafidz Randy Hardja Lecturer: Mr.Drs.HenkRitsema Contents Executive Summary 3 Introduction 4 Methods and Frameworks 5 Hofstede’s cultural dimensions 5 Porter’s diamond 7 Porter’s Five Forces Model of Competition 8 Introducing the Wine Industry 9 Overview of Wine Industry 9 French Wine Industry 10 Italian Wine Industry 11 Country comparison 12 Comparison of relevant macro-economic indicators 12 General economic indicators 12 Financial Health 13 Demographic Factors 13 Historical developments 14 Historical Background 14 Global Wine Industry Developments 15 Socio-cultural conditions 17 Cultural Diversity 17 Hofstede 18 Political and Governmental Systems 19 Legal Systems 21 Financial Systems 21 Labour Market 22 Industry Conditions 24 Supply Market Conditions 24 Demand market conditions 24 Threat of New Entrants and Substitute Products 25 Major players and level of competition 27 Level of Competition 28 Recommendations 28 Italy 29 France: 31 Recommendations: 33 References 34 Executive Summary The goal of this factbook is to provide potential investors with information on relevant dimensions regarding the wine industry in Italy and France. The factbook is comparing both of the countries using methodological framework and secondary data. The data we used are obtained through various sources. In the end, Italy is presented...
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...internationalization management 15 WINE MARKET 17 Profiles of Country Producers 17 CHINESE WINE MARKET 25 Overview 25 Wine market overview 28 Imported wine 32 Italian case 36 Future prospective 45 REFERENCES 48 Bibliography 48 Consulted website 52 INTRODUCTION The purpose of this work is to analyze the growth and evolution of the wine market in China. In particular we will focus on the internationalization of the global wine producer countries in this new emerging market and which are the futures prospective and possibilities of this young market. This paper is composed by four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese market, its cultural and economic features, and the evolution of its wine market. Finally we will focus on the Italian case THEORETICAL FRAMEWORK ...
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...Kudl Kudler Wines Product Launch Plan MKT 571 Kudler Wines Product Launch Plan Developing strategies in relation to any application of marketing suggest a marketer’s ability to comprehend and align business practices with the need of the consumer and business simultaneously. Strategies present challenges whether domestic or international markets are the emphasis. The ability to set customary prices, have market presence, encouraging advertisements and publicity, understand the competition, develop accurate communication, a complete SWOT analysis including domestic and international markets, and customizing the target market, present boundless opportunity that consumers appreciate and market recognition. At each stage of strategy implementation, the prospect for marketers to research and comprehend the select target markets yields a profit scenario. As Kudler Fine Foods establishes the company’s presence in Italy, the home market and France, signifying the secondary market, it is essential to create strategies concerning logistics from a business perspective rather than an industry adapted or suggested alternative. It is imperative that Kudler Fine Foods marketing agents such as intermediaries are advised of the product and able to communicate successfully in each demographic. Kudler Fine Foods use of intermediaries suggests that entering international markets allows “superior efficiency in making goods widely available and accessible to target markets”...
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...WINE MARKET STRUCTURE AND CONSUMER DEMAND Antonio Stasi Faculty of Agriculture, University of Foggia, Italy Antonio Seccia Faculty of Agriculture, University of Bari, Italy Gianluca Nardone Faculty of Agriculture, University of Foggia, Italy One of the most globalized and profitable sector in worldwide agribusiness is wine industry. Given the attractive features of investing in wine markets and productions, many multinationals started diversifying their product portfolio by including wine. The current market structure, in fact, highlights the presence of highly competitive and large size firms, especially in popular wine segments. Smaller size wineries, on the other hand, are characterized by having a stronger local component and a less competitive but more conservative structure. Besides economies of scale, does the firm size contributes to the shaping of the demand and to the strength of consumers’ loyalty to brands? The economic context in which the analysis will be carried out has specific traits, being characterized by changes in consumer tastes and consumption habits. In fact, during the last decade, Italian but also European wine economy is facing a decrease in total consumption and a modification in consumers’ preferences, which are moving towards higher quality wines. Therefore, the specificity of this context of analysis regards the fact that the main wine brands are mostly concentrated in low-price segments, which are losing market shares, but are also getting substituted...
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...promotion tool; and do not charge corkage fee. Also Solomon should participate food competitions and charity events to gain reputation. The most important goal for Solomon is to attract new customers and increase the customer base, so she would do a lot of promotion on this but not on increasing price. Market challenging: Alida Solomon, the owner of a traditional Italian Tuscan restaurant TUTTI MATTI is facing a challenge from the outbreak of SARS in 2003. Since Toronto is one of the most affected cities by the virus, the World Health Organization has issued a warning against all but essential travel to Toronto in April. It reduced the city’s tourism industry and the city lost almost $39 million revenue in April. Also as a new restaurant, TUITTI MATTI lacks a consistent media acclaim and repeat customer base. Solomon needs a marketing plan for attracting more customers by advertising more when the effects of SARS fade out. Internal Analysis: Finance: With a startup cost of $380,000, Solomon got $210,000 on sales during the first six months, which is pretty good for a new restaurant. With 90% of the orders in wine purchases during dinner time, if Solomon wants to reach $500,000 at the end of the year...
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...country. Tourism is one of the fastest growing and profitable sectors of the national economy. Italian climate is very different. It is comfortable to travel to this country in every season. If it is summer you can relax in a seaside resorts or take a rest near different lakes. Also in summer you can mountaineer. In winter it is possible to skiing. In autumn and spring you have an opportunity to visit the famous cities of the world cultural heritage. Cultural heritage is another strength side of Italy. Italian culture has a rich history that includes art, classic architecture, popular traditions, and customs. Includes links to trends in Italy today as well as resources on folklore, history, and artistic traditions. Italy has many environmental problems and it took a long time to confront these. One of strengths in this sphere is that now Italy is one of the world leaders of producing renewable energy. Italy is a member of European Union (EU), of the North Atlantic Treaty Organization (NATO) and also of many international organizations, for example United Nations and so on. It is a great supporter of multilateral international politics, endorsing the United Nations and its international security activities. It means that Italy is involved in international activities, moreover, is very interested in them. It is a positive side of the country. Italian fashion is very famous all over the world. The Made in Italy is...
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...source of wine for the British Empire. For more than four centuries now, the Jamestown settlers have made wine. The first settlers were very ambitious and in 1619, they signed into law a requirement that stated that each male settler had to grow at least ten grape vines. The initiative taken by these settlers faced major drawbacks as the vines from Europe such as vinifera were attacked by pests such as Phylloxera and several diseases. The tobacco business that was booming at the time made the settlers lose faith in the wine business. Fine wine was a rare commodity only to be sourced from Europe but since brandy, beer and whisky were in plentiful, the settlers saw no need for wine. One settler, Thomas Jefferson never gave up. He cultivated European grapes for a period of more than 30 years in his Monticello vineyards. He never got lucky and never produced a single bottle of wine. George Washington too tried for 11 years and achieved nothing. Success came in 1820s, when wine was made from Native American grapes. At the Vienna World’s fair in 1973, the Virginia Norton wine was identified as ‘the best wine of all nations’. In 1889, at the Paris World’s Fair, Virginia Norton wine received a gold medal. This new discovery that the European and native vines could be grafted gave the Virginia’s wine industry a boost. The Virginia’s wine industry faced a major challenge in the early 20th century when the Prohibition came into place. After the Prohibition’s repeal, the industry took some...
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