Case Study Assignment Business Strate... The Strategy Battle in the Wine Market: Australia vs France For centuries French wines were regarded as superior Bunding on the Appellation d'origine Control (AOC) system, with its separate label requirements and control for nearly 450 wine-growing regions, the emphasis was on the distinct regionality of the wines and the chateau-based branding in the AOC syster the individual wine-grower is a custodian of the terrorisoi, micro- climate) and its traditions. The quality of the wines and the distinct local differences are down to the differences in sol and climate as well as the skills of the growers, often on the basis of decades of local experience Between 1994 and 2003 France lost 84.000 growers. There was so much concern that in 2001, the French govement appointed a committee to study the problem. 

The committees proposals were that France should both improve the quality of its appelation wine and also create an entirely new range of quality generic wines, so-called Vin de cepage wines based on grape variety) A company called OVS planned to market the Chamarre brand - French for bursting with colours. b sell between £5 and E7 (67 25 and €10.15), the price range where New World wines have made the biggest inroads. OVS President Pascal Renaudat, who has had 20 years in the wine business, explained However, by 2001 the traditional dominance of French wines in the UK seemed to have ended with sales of Australian wine outstripping them for the first time. This went hand in hand with huge growth in wine consumption as it became more widely available in supermarkets, where Australian wine was especially successful We have to simplify our product and reject an arrogant approach that was perhaps natural to us. It is important to produce wine that corresponds to what people want to drink and at a good price -- 

This is not wine for connoisseurs. It is for pleasure t's time to get nd of the stuffy pretentiousness that surrounds French wine. Said Renaud Rosari, Chamare's master wine-maker. "Chamamé is about bringing our wines to life for the consumers the brand is lively uncomplicated and approachable and means consistenty high quality wines with the fresh easy drinking style consumers are looking for The success of Australian wines with retailers was for several reasons. The quality was consistent, compared with French wines that could differ by year and location. Whilst the French had always highlighted the importance of the local area of origin of the wine, in effect Australia branded the country as a wine region and then concentrated on the variety of grape-a Shiraz ora Chardonnay, for example. This avoided the confusing details of the location of vineyards and the names of chateaux that many customers found Gifficult about French wines. The New World approach to the production of wine in tems of style quality and taste also based around consumer demand no local conditions. 

Grapes were sourced from wherever necessary to Create a reliable product French wines could be unpredictable-charmingb the connoisseur, but infuriating to the dinner party host who expects to get what he or she pays for There was qualified optimisme amie Goode of wine anorak.com sawit as a brave commercial decision. However, The trouble is that everybody is doing it Access to market is key You need to get into the supermarkets, but you need to have a strong brand with which negotiate or else they will savage you on.

1. Discuss the Business Strategy pursued by the French wine industry in the wine market, and the resources and competences on which it is based.
2. In the face of the success of Australian wines, put forward proposals for what the French wine industry should do going forward, making reference to the proposed Chamarré brand.

Answer rating: 100% (QA)

a Most of wine can be separated into following classes VQPRD wines which are more excellent premium wines nonVQPRD wines which are informally viewed as acceptable wines and shimmering wines Presently ... View the full answer