The paper "Negociants French Merchants, Global Wine Production " is a good example of a marketing assignment. Negociants are French merchants and their international counterparts whose role is to buy grapes, bulk wine or juice from small farmers, which they then process, package and sell on a larger scale under their label (Wine Lovers Page, n.d. ). A negociant may act on his/her own behalf or for the winemaker. In the first case, the negociant buys large volumes of wine from the winemaker and then stores and/or retails it. In the second scenario, the negociant may use the winemaker’ s facilities to bottle the wine, which is subsequently labelled, stocked up and marketed by the winemaker or the negociant.
Negociants may then involve the services of freight forwarders to export the wine (French Federation of Exporters of Wines & Spirits, 2003, p. 6). 2. Global wine production has not been steady over the years. On average, global grape acreage declined between 1990 and 1998, driven by the removal of wine from the traditional old-wine producing regions of Italy and France. Thereafter, there was some slight increase in grape acreage until 2009 (Mathews, 2011, p.
3; Australian Wine and Brandy Corporation & Wine Australia, 2009, p. 1). According to data from UN FAO, the global production of wine in 2009 was lower than the output witnessed in 1980. The sharp drop in world wine production between the 1980s and the 1990s, followed by the meek recovery from 2000, follows the developments in worldwide wine production. Little growth in wine production is anticipated over the next decade, largely impacted by the future increase in consumption in New World regions.
Nevertheless, the rate of growth will most likely be limited due to current poor returns and comparatively high start-up costs in the wine and grape industry (Mathews, 2011, p. 3-4). The extent of future climate change is also projected to bring about several potential impacts for the wine industry (Jones, 2007, p. 1). 3. Three of the broad market segments known in the wine industry are demographic, geographic and psychographic (Thach & Olsen, 2006, p. 308). The geographic segment is based on where the customer resides, such as city or country (Thach & Olsen, 2006, p.
308). For instance, according to Mathews (2011, p. 2), the leading wine consuming regions of the world include France, Italy and Germany among others. The demand for wine in these regions is, therefore, higher than it is in other regions of the world. The demographic segment is based on age, income, gender, social class and so on while the psychographic segment is based on lifestyle and personality of the target consumers (Thach & Olsen, 2006, p. 308). 4. Distributors/retailers determine the worth of wines by assessing aspects such as the specific effects of the features mentioned on the label of the bottle, including name, vintage and ranking.
They also consider the consequences of weather conditions during the growing season of grapes as well as the type of soil, exposure of the vineyards and the technology used to pick the grapes, press them and rack them. Distributors/retailers also evaluate the types of barrels in which the wine was fermented and how this affects the quality of the wine. Finally, the sellers of wine also look at the general quality of the wine since this directly affects what a bottle of wine carries (Lecocq & Visser, 2006, p.
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