New World Wine - Sales, Marketing and Branding - Case Study Example

New World Winery Name: Tutor: Course: Date: Executive Summary The French concept of ‘terroir’ is now actively applied to New World wine regions. These regions have changed their tactic of producing, marketing and branding their wines. The system is more on producing reliable and predictable content of wine which is loved the world over. The introductory part makes a highlight of how the New World Wine has grown in leaps and bounds from the traditional regions of France, Italy and Germany. The second section introduces the conditions that favor the growth of grapes in the New World specifically Australia. It looks into three regions of Coonawarra, Clare Valley and Yarra Valley in Australia. Australia has more than 60 wine growing regions. The third aspect considers sales, marketing, tourism and branding which have come to differentiate the New World Wines from the Old Wine regions. It offers a conclusion that New World Wines are winning from a mix of terroir, reliability and predictability. Table of Contents New World Winery 1 Name: 1 Tutor: 1 Course: 1 Date: 1 Executive Summary 2 Introduction 4 Australia Wine Regions 4 ( Annies Lane Chardonnay 750mL) 6 ( Yering Station Shiraz Viognier) 6 New World Wine sales, marketing and branding 7 Conclusion 9 Reference list 10 Introduction Production of New World wines is predominant in regions of the globe that have of late become famous winemakers. Australia, United States, Argentina, Hong Kong, Canada, New Zealand, Chile, South Africa and Mexico are all New World wines makers. For the most part, New World vineyards now have hotter climates, with many located in irrigated deserts, making the grapes during harvesting to be much more ripen. This causes the wines to be more full bodied and of higher alcohol content. There is an emphasis towards fruit driven flavors in the production of New World wine. Compared to the Old World wine makers, the new wine makers value oak barrels used heavily in the oaking process. In the late 1980s, the Australian Chardonnays were popularized. Perfecting their wines became a challenge to the New World viticulturalists who had to develop technologies (Kotler et al. 2006). Earlier lack of knowledge of what grapes would perform best in a given region was the reason for low productivity and sales. Winemakers were able to subdue their lack of experience and knowledge with their land by adding compounds to the wine. Other methods involved use of advanced irrigation systems, high dependence on the Oaking process and mixing grape varietals. Commonly used in the 1960s and 1970s, winemakers popularized varietal labeling by selecting grapes from many sources. New World winemakers least focused on their geography, but more on branding that comes at a greater value, and serves a multinational audience (Kotler, Haider & Rein, 2003). Australia Wine Regions Across Australia, there are more than 60 designated wine regions that have developed award-winning wines and a worldwide reputation. The world’s oldest Shiraz vineyards are in McLaren Vale and Barossa Valley of South Australia’s, or Sauvignon Blanc which is the award-winning Margaret River of Western Australia (Lockshin et al. 2000). One can attend the winery events of Hunter Valley near Sydney, or taste the pinot noir, sparkling wines, flagship chardonnay of the Yarra Valley near Melbourne. An annual festival samples local wine, food and culture in almost every wine growing region of Australia (Kotler, Haider & Rein, 2003). The biennial Tasting Australia is the largest event showcasing some of the very best Australia on offer. This paper will discuss three wines regions of Coonawarra, Clare Valley and Yarra Valley. Terroir Coonawarra Clare Valley Yarra Valley Soil and Geology Cigar shaped Red Terra Rosa on Limestone coast. Brown rendzina, soil which successfully grows vines (Clive, 2002) Ranges from brown grey to red over basement rock. The middle section soils of the Yarra Valley are ancient. Intersperse of broken sandstone of the mountain-derived sandy clay loams (Clark, 2004). Brilliantly colored red volcanic soil highly friable is the other soil type much younger in origin and is found in both the Lower and Upper Yarra Valley. Topography Usually flat with some small undulation on the sides to the east (Clark, 2004) Delightful rolling hills dotted with wonderful stone buildings form beautiful landscapes Elevation ranges from 50m-400m. Climate and Microclimate Maritime climate is not different to Bordeaux. In the growing season, there is about 219mm rainfall in October-April from the annual of 585mm. Temperatures are down to 19.1°C in January due to extensive cloud cover. Moderately continental, with warm to hot summer days and cool to cold nights. The wines are planted from 1,300 to 1,600 ft (400 to 500 metres).  Rainfall is mainly in June - September (winter to spring). The annual average is about 630 mm. Irrigation is desirable since Summers are dry and also ensure a minimum of fungal diseases. Yarra Valley rainfall is typically between 750mm - 950mm. In relation to the rest of Australia's viticultural regions, it is cool. The region is warmer than Burgundy but cooler than Bordeaux. Diseases Susceptible to the vine diseases excoriose and Eutypella scoparia The low humidity is seldom a threat but means fungal diseases. Late in the growing season water stress is evident and may lead to total or partial vines defoliation (Clive, 2002). There are occasional ripening challenges with Riesling. Others are Frost and drought On the valley floor from time to time, Frost is rarely a problem, but can affect the lower vineyards. Vegetation There has been created a balanced environment with a view to increase weed competition (Clive, 2002). Inter-row planting of fine grasses achieves again and reduce vine vigour favoring greater fruit intensity Several species of Eucalypts, citrus, mulberries, acacias, quinces, feijoas, figs and some others Floodplain Riparian Woodland, Riverine Escarpment Scrub and Box-Ironbark Forest (Clark, 2004) Grape varieties  Renowned internationally are Cabernet Sauvignon and the Shiraz  (Sundown Cabernet Merlot) Cabernet Sauvignon, Riesling, Semillon, Chardonnay, Shiraz and Merlot grapes (Clark, 2004) ( Annies Lane Chardonnay 750mL)  Sparkling Wine, Chardonnay, and  pinot noir ( Yering Station Shiraz Viognier) New World Wine sales, marketing and branding Coonawarra Wine Region showcases red dirt in all its marketing campaigns drawn from the red terra rosa soils. They create and position red wines that are competitive in the global market. Cabernet Sauvignon wines of Coonawarra wine region of South Australia tend to have a characteristic menthol note or eucalyptus. The regional brand image is what is communicated outwards to the external audience. Many wine consumers use a cluster of brand elements such as brand name, grape variety, wine region and others to make a decision. The Coonawarra brand is more individual than regional (Bestland, 2002). The terroir that makes Connawarra a top brand rated highly in the UK and US markets comprises of compactness of the area, unique soil, relative isolation and people’s spirit of cooperation. The increased level of sales is attributed to unswerving commitment and endorsement, planning that connects expertise throughout interest groups, genuine customer focus, and marketing of regional mission (Kotler, Haider & Rein, 2003). Strategic consistency of brand images has been maintained across regional contact sources and points. There is a strong wine culture where regional wineries and stakeholders communicate to wine customers and tourists with a single voice. They have developed packages ‘terroir’ to showcase their brand especially red dirt Carbernet Sauvignon and Shiraz to visitors. Coonawarra wine sales have increased over the last 20 years because everyone nowadays takes wine, the place is scenic and beautiful with good food (Clark, 2004). There are work packages for children to engage while adults take wine. Grape growers association has been vibrant in advancing accommodation and restaurant businesses which are attractive to complement wine visits and tours. Strategic marketing and product development are significant to the region’s winery success. Appropriate visitor services and tourist products have been developed such as running field trips to other wine regions, having various workshops and guest speakers (Clark, 2004). The regional brand has also maximized on cellar door study for visitors and guests. Improvement in wine tourism has been enabled through collective use of information, differentiating products, innovative new wine labels, creation of more wine regions and developing short break and array of holiday options. The Clare Valley wine is predominantly Riesling which is light-skinned related to the brown basement rocks of the valley. The aromatic grapes are dry or off-dry and differentiated from Cabernet Sauvingon, Chardonnay and Merlot that are red, white and the fortified (Clive, 2002). The fan base is devoted and exclusive regardless of fashions and fads. The wine is a combination of terroir of moderate continental and warm summers, alluvial soils and limestone and elevations of 400-500m. The brands of Shiraz and Cabernet Sauvignon ensure heavy concentration and deep colored flavors. Chardonnay shows aromas of cinnamon and peach placed in varieties of flavors. The uniqueness of Clare valley wines are in positioning of cellar doors. They all provided an ultimate wine tasting adventure. Tourists are visitors are charmed by the warm hospitality of the local wine growers. Clare valley has great wine, picturesque landscape, rich history and welcoming atmosphere. Yarra Valley prefers to show green, leafy vines and lush rolling hills. The terroir description of these wines is defined by altitude which has seen winemakers and viticulturilists pursue excellence. The brands are positioned and marketed for their elevating spirit and elegant style. The production is methode traditionelle giving premium quality, sparkling and cool climate but remain Victorian. The brands attract more than 110,000 wine visitors and tourists each year for the stylish, cool climate outback. Tourists are attracted by small cellar doors and restaurants. Premium pinot nor is finely knit with silken tannins and bright red berries. Valleys and hills have varied topography with 400m elevation. Soils range from northern sandy clay loams to southern fertile red volcanic (Clive, 2002). Major tourist attractions are Steavonson’s Falls in Marysville and Healesville Wildlife Sanctuary. Conclusion New World wines are considered as more reliable, homogenous, predictable choice when compared to Old World wines. Many people will look for a cheap bottle of wine when it comes down to it since they know they will cherish similarity at all times. New World wines are criticized, ironically, for these same reasons (Kotler, Haider & Rein, 2003). Some think that this predictability and consistency creates for a less interesting wine. People who emphasize on the terroir of a wine are most likely to stay away from New World wines as they lack identifiable thumbprint from the soil they grew. Reference list Bestland, E A 2002, The Dirt on the Coonawarra, Press release from Flinders University. Clark, O 2004, Australian Wine Companion. Time Warner Book Group UK. pg.12. Clive, A 2002, The Australian Wine Guide, Hospitality Books, NSW. Kotler, P Haider, D H & Rein, I 2003, Marketing Places, Attracting Investment, Industry, and Tourism to Cities, States, and Nations, The Free Press, New York. Kotler, P Bowen J & Makens, J 2006, Marketing for Hospitality and Tourism, Prentice Hall, Upper Saddle River, New Jersey. Lockshin, L Rasmussen, M & Cleary, F 2000, The nature and roles of a wine brand, Australian & New Zealand Wine Industry, Journal Marketing Supplement 15(4) pp. 17-24. Read More