What is this ? 

The main focus of this case study is to elaborate a coherent and sustainable marketing strategy for the French wine industry.

The objectives are to improve France's competitiveness on the global market and to find a sustainable positioning strategy in order to ensure the continued existence of the French wine industry which represents a significant part of the national balance of trade. Moreover, around 500,000 people are directly and indirectly employed thanks to the wine sector (~2% of total employment); the underlying goal is thus to make sure the wine sector will generate enough value in the future.

The challenge is to resolve market segmentation, targeting and positioning issues dealing with new consumer behaviours and facing new competitors as well as taking heed of the European reforms.

More precisely, the following question are considered in this review:

• How has the global wine environment changed during the last ten years and what are the

  current/future trends?

• What are the strengths and the major players at game?

• What are the competitive advantages of the French wine industry and are they sustainable

  enough?

• Should we sacrifice market-shares on a global level in order to gain ground in high potential

  markets?

• What are the prospects for the next ten years and which market opportunities can be seized?

• What are the main differences between “New World” and “Old World” producers?

Note:

It can be relevant to point out that when considering French wines it excludes sparkling wines. It is indeed obvious that traditional and sparkling wines are two completely different goods following particular trends and responding to distinct laws of supply and demand.

Apart from differences in regulation and production, sparkling wine market is dominated by a few producers. While each sparkling wine “brand” possesses its specificities, wine is more competing in taste and is distinguised by its intrinsic qualities. Great Champagne houses offer clearly defined product mixes and each brand has its own target. In conclusion, sparkling wines are based on a “customer” culture whereas traditional French wines are based on a “product” culture. Moreover, the sparkling wine industry is doing fine; in 2015 turnover from Champagne reached a new high of 4.74 billion euros, breaking the previous record from 2007. This result is due in equal parts to sustained growth in shipments, which have risen by 2% to 312.5 million bottles, favourable exchange rates on the principal markets and a rising demand for the higher value ranges.