Introduction
Wine has an important place in people’s lives. Use of wine has a long history. Wine has been part of culture of various societies. Wine is used for various occasions and also regularly. Considering the importance of wine to various people, wine industry is a major industry in the world (Anderson, 2004; Heien & Martin, 2003). French wine industry is without doubt one of the largest; the only close competitors in global share being Italy and Spain. French wine industry share in global market is estimated to be 17%. Over years French wines have been considered to be among the best for their quality. Bordeaux, Champagne and Burgundy wines are famous all over the world for their quality (Jenster, 1993). Despite of being among the leaders in global wine industry, France is loosing grip of the industry to new entrants (Auriol, Jean-Baptiste & Steven, 2004; Orange.com, 2006). Wine industry has high contribution to France economy. Drop in France’s share in global market has high economic and cultural implication. The research study to understand the drop in France wine industry.
Problem Statement
France global share in wine industry has been dropping in recent years. For the last two decades, France wine industry has been loosing global market share to new entrance. New wine producers such as Australia, United States, Argentina and Chile are estimated to control over 20% of global wine market share (Allbusiness.com, 2001). The new entrances are increasingly gaining market share up from almost nothing some year back.
Rationale
Wine has a very important place in French culture (Chateau-Barbey, 2009). It contributes highly to country’s pride globally. In addition, wine industry contributes highly to the country’s economy. Although France remains a leader in global wine industry, consistent loss of market share is a reason to worry (Goode, 2006). There is need to understand global trend in wine industry for France to remain competitive in the industry. The study seeks to understand the factors that have contributed to drop in France global market share. The outcome of the study is useful in policy making in wine industry. The outcome is especially important to France wine industry for them to regain their place in global wine industry.
Industry analysis
Global wine market has been dominated by French, Italian and Spanish brands. Before1980 these brands were almost the only brands with French brands taking the major share. In 1990’s new brands started to emerge. United States, Australian and Argentina brands are aggressively gaining market share (Mercer, 2006; Beverland, 1993). The new entrants use aggressive marketing strategies that have enabled them change the face of global wine industry (Resnick, 2008).
Research Structure
Overview of wine industry
In this section, a brief history of wine industry will be provided. The overview will focus of wine industry in general and then narrow down to the industry in France.
Global Trend in Wine industry
This section will highlight global trend in wine industry in the recent past. The major players in the industry will be addressed. The section will demonstrate the consistent loss of global market share of major players especially France.
French wine industry
The wine industry in France will be featured in details. French vineyards, production of wine, quality, demand and supply and competitiveness of French wine brands will be featured.
Barrier to international Growth
The section will try to explain the factors that contribute to drop in market share.
Recommendation
The section address the actions that can be taken for France to recover it global position in wine industry.
Research Objectives
- To understand global trend in wine industry
- To explain France’s drop in global wine market share
- To recommend action plan to recover France wine industry loss in global market share.
Research questions
- What is the nature of global wine industry?
- What place does France wine industry have in global wine industry?
- Which are the France’s major competitors in global wine markets?
- What factors contribute to France wine industry drop in competitiveness?
Reference List
- Allbusiness.com (2001). France’s Wine Industry Losing Global Market Share to New World Producers.
- Anderson, K. (2004). The World Wine Markets. Cheltenham, UK: Edward Elgar.
- Auriol, E., Jean-Baptiste, L., & Steven G. (2004). The World Wine Markets. Cheltenham, UK: Edward Elgar.
- Beverland, M. (1993). Wine industry in New Zealand-Maybe the Industry Has Got It Right. International Journal of wine marketing 10(2), pp. 24-33.
- Chateau-Barbey (2009). Wine Industry in France.
- Goode, J. (2006). French Wine in Crisis: An Industry in Need of Pruning. Web.
- Heien, D. & Martin, P. (2003) California’s wine industry enters new era. Web.
- Jenster, P. (1993). The European Wine Industry. International journal of wine marketing 5 (1), pp. 30-73.
- Mercer, C. (2006). US to take France’s wine drinking crown. Web.
- Orange.com. (2006). European wine facing ‘crisis’ threat from New World tipples.
- Resnick, E. (2008). Wine Brands: Success Strategy for New Markets, New Consumers and New Trends. New York: Palgrave Macmillan.