• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Global Wine Wars: New World Challenges Old

Extracts from this document...

Introduction

Global Wine Wars: New World Challenges Old With the emergence of New World players in the global wine industry many of the Old World players have been losing market share. At first France, Italy, Spain, and Germany simply laughed at the wine-making techniques of the new players - U.S, South America, South Africa, Australia, and New Zealand. However, it quickly became apparent that the newcomers pose a serious threat to the traditional winemakers. The French were especially hurt when they began to lose their global market share as well as the coveted U.K. market to the Australians. The main issue in this case is the following question: How can France regain and increase its market share in the global wine industry? Analysis The following are the major problems of the French winemakers: 1. Strict AOC regulations One of the advantages that the New World competitors have over France is their innovative culture. France's hundreds of years of tradition are matched by the Australians ability to experiment with different techniques, packaging, and marketing strategies. ...read more.

Middle

However, with wine's extremely long production lag time, the encouraged increase of supply now will create a major lack of demand in the future. Therefore this solution can only be short-term because it creates an uncompetitive culture. If the growers expect the government to buy up all of their excess wine regardless of the quality or market trends, then they will lack the motivation to help themselves. As an alternative, the government should help by providing quality consulting services to the regional wineries which will help them focus on the market 3. Lack of branding and marketing of the French wine, especially Vin de Table category France has the upper hand in the high end of the industry because of its experience. Their commercial wine, however, is not very competitive. That is the wine the French need to focus on because it is the majority of its production. Their marketing efforts should be split into two distinct categories - fine wines and table wines. ...read more.

Conclusion

China can be another promising Asian market because of its potential for sales of great volume. In the long term, the Chinese population can be turned into casual wine drinkers which would boost sales tremendously. Conclusion In the end, the French wine industry will need to naturally level out on its own. The government's help needs to transform from financial help to expert advice. This will allow for healthy domestic competition that will create stronger and more successful global competition. Once the poor growers are weeded out, the remaining ones will have to focus on market demand and consumers' taste to promote their brands. In order for the growers to meet the consumer's needs the AOC should decrease regulation and encourage innovation. Lastly, France should look outside the U.K to expand its customer base instead of limiting themselves to a highly competitive and saturated market. The only way to survive Australia's and the rest of the New World's success is to gain more market share. However, French wine will not gain its market share through fine wines but through lower end table wines that are produced and sold in bulk. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. Free essay

    Relatii de concurenta pe piata

    in numar de 64 de persoane ( din care 70% barbati si 30% femei) si personalul sezonier ,in special pentru lucrari de recoltat la livada si vita-de-vie aproximativ 45 persoane . S.C. AGRICOLA S.A. dispune de personal specializat in domeniul agricol(vezi anexa Nr 1)

  2. Investigating Market

    Managed businesses find out what customers wants by supplying goods and services to meet these needs. It is important for the business to see the trends and development which influence consumers buying habits in the future. New businesses develop new products to gain a foothold within the market.

  1. marketing study - biolife

    getting into Bio-Mag so as not to damage it. Therefore, wearing Bio-Mag when one takes shower or when one does the dishes is strongly not advisable; soap scums that builds up between the links will reduce its ability to perform up to par. In terms of its consumers, Bio-Mac seeks to target on mostly individuals coming form a higher income group.

  2. Alcopops - design a new business.

    This is because people from the lower class's tend to be local to the country and therefore are usually Muslim, and Muslims are not allowed to drink alcohol. Therefore on the packaging of the drink, I don't think I will need to have Arabic writing.

  1. Plannng and research. I would like to open a African restaurant, food from all ...

    Public relations - Public relations has been called advertising that you don't have to pay for. If you have a successful public and media relations program, you'll get increased exposure and prestige without spending a fortune. For this to work; though, you'll need to create and publicize newsworthy stories.

  2. Marketing coursework - opening a new business

    I will also design the interior and exterior of the shop by looking at similar businesses designs and looking for customer convenience and safety and also design ideas that will help boost sales. Product life Cycle Once Jack's shop has been launched he will have to consider ways of increasing growth and delaying maturity.

  1. AVON Case Analysis

    Avon's operations are seasonal with the holiday sales causing a peak in the fourth quarter, which results in a build-up of inventory at the end of the third quarter. Inventory levels are reduced by the end of the fourth quarter after the holiday season is over and sometimes a clearance or sale on items.

  2. Cadbury Limited.

    A short definition about the different types of businesses. * Sole Trader. Owned by one person who also controls it, i.e. manages it, may employ others. Access to finance is fairly limited; they use own personal savings or a bank loan. Has unlimited liability, as owner is personally liable.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work