Analysis of the World Wine Market Essay

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Analysis of the World Wine Market TABLE OF CONTENTS 1. Introduction……………………………………………………… 1 2. World wine producers……………………………………….…..… 1 3. World wine exports………………………………………….…..….2 4. France productions, exports and international image…….….…..3 5. Success of New World over the Old World : key factors……...…..4 6. Evaluation of different strategies………………………….…....5-8 6.1 Premium & Standard wine market 6.2 Creation of an accessible French brand 6.3 The Global wine company (acquisitions and mergers) 6.4 Appellation d’origine controlee and competitive disadvantage 6.5 Protectionism versus being marketing oriented 7. World wine market: long term predictions………………………..8 8. Conclusion…………………………………………………………9 1. Introduction…show more content…
In the most recent years, domestic sales of wine has declined constantly. The wine consumption is becoming more occasional. This is partially due to an aggressive anti-alcohol campaign and driving restrictions set by the local government, but also facilitated by a lack of marketing strategy: the wine market is loosing touch with the youth (the average age of wine drinker is gone up from 35 to 55) and young people are getting more keen to beer or alcohol pops. Lowered domestic sales may result in a greater emphasis on exports, however the recent trend showed how French exports continue to loose market share to the New World (see diagram below). Global Trade Atlas-Global Trade Information Source 2004 Considering France international reputation and image, it is useful to analyse its strengths and weaknesses, taking into consideration the important differences existing between standard and premium market. Strengths: France remain quality leader in the premium market; its international image express Sophistication, Tradition and Charm. Weaknesses: There are many weak points to be addressed . The puzzling classification and labeling, the unreliable quality, the rigid “appellation d’origine controlee” which dictates strict rules on methods of production (see more details on par.6.4) . Its international image is often seen as
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