Chilean wine in the european market (original) (raw)

El vino chileno en Europa: Un análisis del posicionamiento en el mercado alemán

2015

Current wine marketing requires a rethinking of business strategy in order to increase the current market share and international prestige. This paper provides a comparative diagnosis of the positioning of Chilean wine in the European market, focusing on the case of Germany. The working methodology was based on the registering and market segmentation of the selection of wines on display on the shelves of supermarkets, hypermarkets and specialty stores. Subsequently, a comparative analysis was performed in order to evaluate the growth dynamism of this target market from 2001 to 2013. The results show an increase from one period to another in the prices of national wines, and both an increase in and diversification of the supply in the German market. Chile, with its share in a wide range of prices, has become a more prominent competitor, and has managed to attain higher price ranges as compared to 2001. Currently, when it comes to Carmenere and Merlot, Chile appears as it is the only country offering this varietal in the German market. This is a situation that should be strengthened using commercial strategies that allow for a more aggressive positioning of this varietal. Lastly, it is recommended to adopt a more aggressive positioning method for Chilean wine, using a country-strategy that improves its long-term competitiveness.

Analysis of international competitive positioning of quality wine from Spain

Ciencia e investigación agraria, 2013

The global vitiviniculture sector is undergoing systemic and thorough changes. Spain occupies a privileged position in the global industry, ranking first in surface area, third in production and second in export volume. In recent years, domestic consumption has experienced a clear and pronounced decline, as observed in France and Italy. Therefore, exportation has become the main commercial avenue for table and quality wine. In Spain, designated quality wine represents 50% of total production and has experienced commercial dynamics in international markets that differ from those affecting table wine. The object of this paper is to analyze the factors influencing the competitiveness of quality wine, represented by designations of origin, in international markets. After defining a competitiveness index, adapted from the Balassa index, and using environmental and internal variables, three panel data models of the most representative Designations were specified for the 2000/2001 to 2009/2010 seasons. The results demonstrated that environmental variables were more influential in explaining the weak international competitive positioning of the poorer performing Designations. European regulations resulting from the Common Agricultural Policy (CAP) and the economic crisis were significant and influential in this respect. Economies of scale, quality, and unit cost were the most influential internal factors for each D.O.factors for the most competitive quality-wine production areas.

The German Wine Market: A Comprehensive Strategic and Economic Analysis

Beverages

Even though it is famous for beer, Germany offers one of the most attractive wine markets, exemplified by being the fourth biggest wine consumption market and a world champion in sparkling wine consumption as well as in wine imports. Still, fragmentation, intensive competition, lack of growth, and a changing environment speak to a challenging market for suppliers. In the absence of a comprehensive investigation on the market, this article aspires to deliver an economic and strategic market analysis. The statistical data is therefore complemented by the primary market research, notably online surveys on strategy and innovation, a proprietary database on wineries’ reputation, and an international expert survey on export success factors. The following market study aims to provide a concise overview covering the relevant market data, and to disclose strategic information about the German wine industry beyond pure market statistics. The German wine market, in the stable wine volume sold,...

Study on the competitiveness of European wines EXECUTIVE SUMMARY

The aim of the study is to build on the current position of European wines in the world market to derive conclusions on how to further advance the policy objective of improving their competitiveness. The study analyses the development of EU wines competitiveness and identifies the key factors in the most important consumer markets where EU wines enter in direct competition with third country wines.

Recent trends in the international wine market and arising research questions

Looking at the evolution of international wine trade over the last five years, the reduced growth rate and the varied performance of suppliers raise many research questions, at the micro-and macro-level. At the micro-level, research needs emerge regarding understanding consumer preferences, using innovative integrated approaches, and the exploitation of new paradigms concerning marketing strategies. At the macro-level, the key question concerns the possible evolution of international wine trade over the next 5-6 years, and the related consequences on the industry structure. Forecast of the future evolution of wine market is challenging and risky in a context dominated by discontinuities and there is not much research on how markets evolve. Nevertheless, wine economists should attend to this task with a wide multidisciplinary set of tools, also if imply an effort which is demanding and with uncertain results. After 15 years of the new century it is interesting to have a look to what is happening and which research demands arise from the available data. The year 2015 closed with a total volume of import equal to 98 million hectolitres, with an increase of 1% compared to the previous year, corresponding to a value of €23 billion, with an increase of 9%. In 15 years international trade grew by 75% in volume and doubled in value. The increase in the pace was not constant over the entire period. In general, the first part of the new century, until the international financial crisis in 2008-2009 has seen a rapid increase of international trade flows, but afterward the pace of growth became smaller, being even negative in some years. Anyway, despite the slowdown of the general growth of international wine trade, over the last 5 years the change in the structure of flows started at the beginning of the century continued. Therefore, shares of sparkling and bulk wines are increasing in value and volume, while shares of bottled wines are decreasing, and also the phenomenon of re-export is increasing. Considering the last five years, sparkling wine continued to grow with an annual rate of 7% in value and 6% in volume and bulk wine with an annual rate of 6% in value and 3% in volume. Over the same period, bottled wine grew 5% in value but only 1% in volume in terms of annual rate. Looking at the competitive performance of suppliers, it is possible to observe a variety of different situations. What was outlined in the first issue of "Wine Economics and Policy" about the first ten years of the new century still works over the last five: each competitor follows a very individual pattern in terms of areas and wine categories where it is successful or unsuccessful. Anyway, the European Union still reduces its market shares on total trade, while Chile and especially New Zealand show a fair increase of their competitive performance. This variety of situations suggests that beyond the possible role of preferential trade agreements, market by market, some suppliers are interpreting better customers; in terms of consumers and distributors needs. These essential traits of the evolution of international wine trade raise many research questions, at the micro-and macro-level.

Sparkling Wine International Market Structure and Competitiveness

Wine Economics and Policy

This paper aims to analyse the Sparkling Wine international market structure and competitiveness, focusing on the 2004–2018 period. It used the data regarding exports and imports of sparkling wine available in the International Trade Centre’s Trade Map database. The method used to examine sparkling wine’s international market structure and competitiveness consisted of calculation of: (i) Revealed Comparative Advantage (RCA); (ii) Relative Position in the Market (RPM); (iii) Hirschman-Herfindahl Index (HHI); and (iv) Net Export Index (NEI). The paper analyses the growth of the sparkling wine trade worldwide. It demonstrated that France had the greatest relative position in the market, followed by Italy and Spain. This same sequence was found in the revealed comparative advantage, highlighting the increased Italian export level. A high export market structure concentration was also shown. On the other hand, there was an unconcentrated import market structure, and, according to the NEI...

THE GROWTH POTENTIAL OF ROMANIAN WINES ON EXPORT MARKETS

BASIQ, 2018

The main objectives of this paper are to study and then to analyze the wine customer behavior in Germany and in China to give Romanian producers the needed information to prepare the correct marketing strategies to gain a good position as exporter to those countries. For the German consumer I used as research method a customer behavior questionnaire and analyzed the types of consumers according to age, gender, occupation, income and consumption habits. For the Chinese wine consumer, I did a secondary market research and then a revised comparative analysis to determine similarities and differences in the wine consumer behaviors of German and Chinese customers. The analysis section of this paper is divided into three parts: consumer behavior in Germany, consumer behavior in China, and the analysis of the two export markets. As a result of comparing the two consumer groups, it appears that both groups prefer red wines. In China, the wines need to by fruitier and sweeter then in Germany. One key difference is that when a German customer buys a bottle of wine for gift giving, they will almost exclusively choose a German one, while the Chinese will opt for an imported and more expensive wine, mainly because of mianzi. The conclusion is that the Romanian wine producers shall shift their focus and resources from the Romanian market where potential of growth in sales and margins is limited, to more attractive export markets like Germany and especially China.

A Country-Level Analysis of Competitive Advantage in the Wine Industry

2006

The purposes of this paper are (1) to examine driving forces and key success factors related to the increasing globalization of the wine industry, and (2) to analyze the current competitive advantage positions of four Old and five New World wine producing countries. Each country will be profiled using key industry data and analyzed regarding their national capabilities to address five key success factors that contribute to their national competitive advantage position. The countries fall into three groups with respect to their national comparative competitive advantage position. The group with the strongest competitive position includes United States, Australia, and Chile. Australia and Chile both have small populations that provide for a tiny domestic market with little potential for growth. However they are very well positioned to produce and export wine with their adaptive, large-scale producers and their great lure for foreign investments, providing them with a position of a str...

Areas and Perspectives of the World Wine Market

This paper focuses on offering a synthetic picture of the areas and perspectives of the world wine market as observed in its international dimension. In the last thirty years, important changes have succeeded in quantitative terms as a result of qualitative expectations from the public and market structure. Henceforth, the different actors must restructure their strategies and behaviours. Apparently, the wine sector will be able to see a sensitive concentration process among companies positioned at the lower market segments. There is a situation in which a relatively reduced number of large companies dominates this part of the market. It exploits some key success factors, which is a range of offers based on several brands of international fame, eventually with a strong territorial connotation. It is assigned to specific public segments, economies of scale, and a capillary distribution optimized with respect to costs. Though the different companies categories appear in competition in the wine market, nonetheless, they are allies in the crucial battle for the support and development of wine consumption. This, as we have already seen, competes in a now definitely saturated beverage market. The consumption of wine, in particular, appears threatened by a difficulty in approaching young people for its daily consumption in traditional consumer countries. There is amassive anti-alcohol campaign in many countries in addition to the encourged position of the World Health Organization that tends to become increasingly hostile to alcohol and in which wine is put on the same level as all the other alcoholic beverages.

The Chilean wine industry: new international strategies for 2020

Emerald Emerging Markets Case Studies, 2014

This study is part of the www. clusterinnovation.com research network (SOC30), Conicyt Research Council, Chile. Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.