Recommendation for an international marketing strategy

The British market is important because it is a growing market that deflects from the trend of falling global wine consumption. Britons are also adventurous wine drinkers in the world where wines from 43 countries are available on the retail market (Park, 2001). Based on a Wine Report 2007, France ranked second to Australia in terms of market share capturing 17. 7% of the British market while Australian wine captured a bigger share of 24. 3% and plans to increase further its market share to 30% by 2025. Australia wines success was achieved through hefty promotions. Based on a research prepared for VinExpo, a large wine trade fair held in 2001, Australian winemakers used flashy marketing, eye-catching packaging and a user-friendly approach to capture the British market. Australian wine is preferred by British consumers over French wine. Australian wine made a mark in the 5 to 10 market. Other New World countries such as Chile, New Zealand and the United States also increased market share in the British market.

Chile and other countries in Latin America and South America offer high quality wines at low prices. Export of wine to the British market increased by 4% to 784 million in 2006 as compared to previous year due to strong performance of Bordeaux, the Loire, Cotes du Rhone and Burgundy. The shift to branding has helped promotion of French wine. France has finally adopted a modern approach to marketing, labeling and selling of wines.

According to Pierre Mora of the BMN Management School in France, wine manufacturers and distributors must take into account that 70% to 80% of wine are now sold in big hypermarkets and shopping centers and that a marketing strategy must be developed to differentiate their product from other labels, that their product standout in the store shelf, and entice customers to choose their product. To compete with the New World, French wine must carry brands rather than wine place and origin. Consumers remember the brand and not the origin of the wine.

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According to Julio Cervido of the Carlos III University in Spain, it is important to have a brand that is linked to the country of origin and a brand that can “travel around the world” because it is easy to pronounce. Semantic connotations must also be considered and the logo is not identified into something else in a particular country where it is sold. Cervido emphasized that small wine companies need not resort to advertising their product since this medium is too expensive and can resort instead to creation of a corporate website to promote its products.

New media such as the blog in the internet can also be tapped by French winemakers to promote in the British market. French winemakers must classify British consumers by their habits. Halstead classifies the first group as “adventurous connoisseurs” who regularly consume wine for pleasure. In the UK, this group comprise 19% of all regular wine drinkers but accounts for 35% of total annual sales of wine amounting to 11. 5 billion euros.

The “mainstream at-homers” account for 38% of all British wine drinkers and spend at an average of 36 euros per month. The purchasing decision of this group is motivated by price and promotions. Another approach to selling of wine is called neuromarketing which is based on the expectations of the customers. To stand-out in shelves of supermarkets or wine shops, a French winemaker can highlight awards received to entice customers. An anchor price can also be set to set a predetermined price expectation in customers (Dooley, 2008)

Marketing companies such as Tincknell & Tincknell can be tapped to help winemakers in branding strategies, business plans, marketing plans, packaging design, pricing strategies, distribution strategies, and marketing.

References:

1. “Analyzing the Global Wine Industry Profiles 56 of the Leading Wine Producers of the World”, June 19, 2008
2. Arnold, James, “New world wins the wine war”, BBC News Online, 21 June, 2001
3. Business Week, “Wine War, Savvy New World marketers are devastating the French wine industry”, September 3, 2001
4. Business Wire Research and Markets, "Analyzing the Global Wine Industry"

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