Wine Production Case Study

What developments have taken place in wine production

Wine production has been a developing process for over two centuries and is still rapidly adjusting to the demand from customers and retailers. Price competition from relatively new exporting countries as Chile, Argentina and South Africa, put more pressure on old producing countries as Italy, France and Spain with developments in a new marketing strategy and production flexibility. New segments have to be found by new producing countries to ensure global market share will be maintained and to get an overhand on the new exporting competition. The differences are huge when it comes to developments between Italy and Chile. Both countries focus on improving and developing strategies that

Nowadays the upcoming wine producing countries have the upper hand when it comes to innovation and technological methods. In Chile, wine producers are usually owned by large corporations with a large budget. These companies also work often in clusters, to ensure they are extra competitive against western countries as Spain, Italy and France. Especially with EU laws preventing these western countries, upcoming countries as Chile has to find ways to cut cost to produce cheaper with still reaching its target consumers in mostly United States, Europe and also parts of

In that time wine consumers still believed that the real quality wine came from the Italian, Spanish and French regions. Also the prices of wines from new producing countries where relatively the same as the ones from the European countries. Nowadays consumers realize that the difference between quality isn’t that much, compared to the difference in price. Also wine consumer became more international oriented and are open for trying new wines and different flavours. When you are a monopoly in the international wine market it is key to adapt to the changes that find place. Italy is an example of an country where the export is huge, but where not much research is done on consumer behaviour and changes. Especially since most of the Italian producers are family owned and relatively small compared to large corporations in Chile. Chilean corporations invest in marketing, trade marketing (B2B) and especially consumer insights and statistics. Trade marketing plays a huge role in the current retailer industry. Wholesalers have more options than ever before and are looking for reliable suppliers that offer a wide variety of options. Chilean wine producers meet these wants in such a competitive market as the wine industry, by producing different types of wine in different regions.

Forecast for the future is that Italy will keep losing market share (export), although the demand for organic wine is exponentially