French Wine Industry Research Paper

Introduction
The French wine industry is respected for its competitiveness and leading role in the
global market (Heien & Martin, 2003),Not only does the country rely on the wine
industry for economic stability, it also considers wine to be an essential part of
its culture. It must therefore work towards reorganizing itself and getting back
the market share it is loosing to other competitors. One way of achieving this
is through first understanding what could have led to the drop of French wine
in the industry.

Literature review
Warren and Melewar (2006) carried out a comprehensive research on the
French wine industry. Their interest was to determine how the poor
performance of the French wine industry was related to marketing failure. The
researchers looked at the French wine industry through an analysis of English
and French literature as a well as a small analysis of current drinking habits.

It was found that independent wine producers were having a difficult time in
marketing their product because they did not have the leverage that older
wine makers did. Additionally, it was found that there were problems with
overall marketability of French wines because instead of integrating into local
cultures, most French wines were marketed on the basis of the country of
origin.

While this piece was very insightful, it mostly focused on marketing. There is a
need to look at a more comprehensive outlook on poor performance of French
wine in the global market and this will be done in the research.

Other kinds of articles that have done the same include: Swaminathan (1995),
Bevarland (2000) and Dodd (1999). The first two authors blamed overall
failure in wineries to marketing challenges but the research will not just be
restricted to this angle.
Jenster and Jenster (1993) did research on the European wine industry. They
were mostly concerned with general emerging trends in the global industry.
To this end, the literature did not focus on the global wine leader and its
dwindling sales. This research will attempt to specify this aspect even more.

Moran (1993) focused on appellation legislations and how they affect the most
powerful groups in the French wine industry. Although this research was quite
useful in understanding the working of winemaking regions in France, other
dynamics of the industry were not discussed in the article.

This research will focus on sealing those gaps by not just looking at the
territorial aspect but by examining economic, social and political reasons
behind the poor performance of French wine makers in the global market.

Chollette (1993) worked on a comparison between the French wine industry

as well as the Californian one. It looked at matters revolving around the
business cycles and market patterns. Although this article is pretty insightful
on the business aspect of French wine, its emphasis on the comparisons has
led to a compromise on France as a wine producer of its own.

This article has also disregarded other elements of the industry such as
marketing. In other words, it is more inclined towards the business side but
not the marketing side yet the latter is just as important. The research will
focus on covering that gap by focusing on none business related as well as
business related factors in French wine making.

Hall (2007) wrote a book on wine tourism around the world. This book is
insightful and does mention tourism in the French context. However, very little
attention goes to other emerging trends in the French wine industry. It would
be crucial to bridge that gap by making a comprehensive list or compilation of
all other patterns affecting this industry. This is what will be done in the
research.

All business. com (2001) covered a story on how France is losing its market
share. The article is quite good for understanding some of the basics on
France’s performance in the global market. However, it will not be useful in
revealing some of the deeper issues that could be causing these poor results.
Therefore, the research will aim at covering that up by offering a deeper
analysis of the patterns within the global wine industry.

Charteau – Barbey (2009) describe the wine industry in general. Here they
talk about the cultural significance of the commodity to the French and then
go further to look at certain elements such as wineries. The major difference
between this article and the research to be carried forward is that no solutions
are identified or no deep analyses are made in the former. These issues will
be incorporated in subsequent sections of the research.

Goode (2006) does a very good job of highlighting what the major issues in
the French wine industry really are. However, he does not cover them with
regard to global challenges.

The research will attempt to inculcate these aspects into a study of the French
wine industry. It will also attempt to include some of the missing issues related
to the international wine market. Furthermore, the research will be more
objective than the article because a myriad of factors will be incorporated.

Orange.com (2006) looked at the crisis that is currently being faced by the
French wine industry and they asserted that this has been brought on by the
new world.

Although the author’s points are quite insightful, it is essential to understand

that he mostly focuses on the new world as being the major cause of these
problems. However, there are still numerous other internal reasons that are
causing the French wine crisis. These are the aspects that the research will
focus on.

Bisson et al (2002) have studied overall trends within the wine industry and
have therefore used current trends to predict future ones. However, these
authors did not focus on one of the world leaders; the French. Theirs is more
of a generalisation rather than a specific examination of the issues in this
country.

Essentially, what this implies is that there is a need to narrow down on the
former heavy weight – France and this will be done quite easily in the
research.
Research method
The research will mostly focus on secondary data through the use of content
analysis. In this regard, because there are a series of issues that need to be
investigated, then it will be insightful to look into some of the written
documents that will be related to the research topic.

Hypothesis testing is often quite easily done through content analysis

because it makes it possible for one to compare the legitimate causes with the
illegitimate ones. Certain themes are often prevalent in articles to be used in
the paper and they will act as the major background against which one can
gauge public sentiments.

Alternatively, it is essential to look at some of the explanations that have been

sought by writers as explanations for the decline of the French wine industry
within the global scene. However, because content analysis heavily depends
on the character of authors then a myriad of such writings will be utilised in
the process of coming up with answers and solutions to the French wine crisis
(Sridhar, 2007).

This method was selected because there was a need to place matters within
a certain context and also to ensure that the biases associated with case
study or overemphasis on primary data collection were overcome.

Problem Statement
The wine industry is now characterized by entrance of new players such the
United States, Australia and Argentina. These stakeholders have been
responsible for a twenty percent upset in market share because that is the
percentage that they account for (Allbusiness.com, 2001).

Sometimes, market leaders may still perform well when other entrants emerge
but this is not the case with French wine. It has consistently been recording
reduced market share for over twenty years and clearly something must be
done in order to alter this.

Rationale
As described by Chateau-Barbey (2009) wine reserves a very special place in
French culture. Consequently, its failure is something that would tarnish the
country’s identity in the international arena.

The economy heavily depends on the wine industry so low performance in the
wine industry denotes low performance for the entire economy and this is not
good for the French. By understanding the factors behind this low
performance, France can be in a position to revitalise its stagnating
performance because it will have reached the root of the problem (Goode,
2006).

Industry analysis
In the 1980s, France, Spain and Italy were largely considered as the major
players in the wine industry. However, in the next decade, it became evident
that Argentina, Australia and the US were forces to reckon with in this industry
(Beverland, 1993 and Mercer, 2006). They managed to upset market shares
for their older competitors by utilising good market strategies (Resnick, 2006).

Research Structure
The research will first focus on giving an overview of the global wine industry.
This will be essential in placing all other subsequent matters in context. It will
look at a history of wine and then give special focus to performances of
French wine.

This overview will then be followed by an examination of recent trends in the

wine industry. Once again, the level of inconsistency in performances of major
players will be reviewed especially with regard to France. The third aspect will
be to focus on the French wine industry specifically.

This will range from production, demand and supply laws as well raw material
acquisition and the degree of competitiveness within the industry. Some
issues such as brand awareness and consumer patterns will be given
particular emphasis.

The fourth section will entail specific barriers that are causing the French wine
market to stagnate in the world market. Lastly, the paper will give its
recommendations on possible solutions to regaining a strong market
leadership for France.
Research Objectives
1. To understand global trends in the wine industry
2. To explain France’s drop in global wine market share
3. To recommend an action plan to recover France’s wine industry loss in
the global market share.

Research questions
 What is the character of the global wine industry?
 What is France’s place in the global wine industry?
 Who are France’s major competitors in global wine markets?
 What factors contributed to the French wine industry’s drop in
competitiveness?

Results
Overview of the global wine industry

Benjamin and Podolny (1999) assert that the wine industry is characterised by
ties between its market actors such that services and goods are transmitted
between them. However, the higher the degree of relationships a wine
stakeholder possesses, the greater the status that stakeholder will be
accorded.

Throughout the history of the wine industry, status and perceptions of sellers
have played a critical role in determining how much business will flow their
way and how many resources will be invested in those organisations.

Wine production can either be an art or a science. It is a science because one

must control processes and use various technologies in order to produce a
high quality product. On the other hand, it is an art because organisations
must be creative in delivering a product that can be appreciated by wine
enthusiasts (Bisson et al., 2002). However, this does not mean that the
business aspect of wine production should take third place.

Those who make it in the global wine industry usually find a way of combining
all three factors. They are also immensely aware of the extrinsic or intrinsic
motivators of consumption as this marketplace is quite dynamic and resilient.
Swaminathan and Delacroix (1991) claim that the degree of differentiation can
make the difference between survival and non existence of a company. The
period between the 1940s and 1980s in the wine industry was characterised
by a high degree of competition.

Consequently, different wineries responded to these pressures by curving out

their own niches and differentiating. The latter trend has caught on and
continues to make small organisations adaptable to the conditions in the
global wine market.

Demand in the wine industry within the past two decades has been altering
back and forth. The latter observation has been brought on by two major
phenomena as described by Chollette (1993). The latter author believes that
economic improvements and increases in various parts of the world have
affected consumers’ capacity to purchase wine.

Also, market expansion has caused these changes especially due to the
cyclical nature of expansion opportunities. In other words, many wineries have
taken on international markets and have decided to pursue growth through
entry into different parts of the world. Therefore, regional shares have become
more and more unimportant as wineries embrace globalisation fully.

Normally organisations in the 90s and 2000s have been doing this through
partnerships, acquisitions or mergers depending on the nature of their
business strategy. A case in point is the partnership that occurred between
the United States (California) specifically and Australia to create the
champagne drink. This had been done in order to garner access to the best
land for production of wine grapes.

Another case in point was an acquisition made by Penfolds of the Lindeman

wines (Spawton, 2007). In light of such moves, the wine industry has recorded
a dramatic alteration of distribution networks since suppliers create their
offerings in a totally different way.

Most importantly though, these alliances have led to greater focus especially
in terms of ownership. It has also altered brand ownership as more
intensification of the latter has occurred.

Anderson (2001) explains that the past two decades in the wine industry have
been characterised by frequent alterations in booms and busts for various
entrants. What normally happens is that when a boom occurs, grape growers
experience a high number of plantings and this depresses market prices
which eventually lead to very low returns.

Similarly, winemakers are also affected by these fluctuations because grape

growers will be disheartened by the low returns and may then choose to go
for other kinds of products. Governments within these countries may
sometimes have to step in just so that they can encourage the farmers to
continue with their vineyards so that the wine industry may continue to be
sustained (Delacroix & Swaminathan, 1991).

Recent trends in the wine industry

Diminished consumption of wine

Spawton (2007) looked at consumption patterns of wine worldwide and found

that the overall amount of alcohol being taken has gone down over the past
decade. However, in terms of the type of alcoholic drink being consumed,
beer and wines are beginning to have more or less the same ratios.

Initially, beer was seen as the alcoholic drink of choice; however, this has
changed today. Consumers in countries previously associated with beer
drinking have made a paradigm shift especially in areas like the United
Kingdom. The United States and Australia have also cultivated a wine
drinking culture.

Spawton (2007) warns that one should not just stop at this statistic, that is,
increased wine consumption. He believes that one should go deeper into the
matter. For instance, the average wine consumer has developed greater
expertise in the product and is therefore quite selective. Now consumers are
very keen on the quality of the wine or its brand name for that matter. Indeed,
having good taste in wine is seen as a sign of great wealth.

Specialist companies

Swaminathan (1995) states that the wine industry is experiencing a

resurgence of small, specialist organisations. This can be regarded as some
sort of reverse industry maturity; a trend that arises when preferences in
markets or technologies alter.
Some two decades ago, the wine industry could have been described as a
purely mature industry especially since it was characterised by a high degree
of standardisation as seen through production processes and the products
themselves. However, consumers today need different qualities from previous
ones.

Additionally, industry stakeholders are engaging in greater innovation and this

has caused a proliferation of specialist industries. The small size of these
wine producers makes their entry and exit into the industry relatively easy so
this challenges conventional assumptions. It also necessities change from
existing players (Güngör & Güngör, 2004).

Butler and Brown (1995) add that the wine industry has reported a different
kind of competition where small firms liaise together to become formidable
forces in the industry. In other words, through these combined networks, such
corporations may be able to outcompete those large firms that have
established themselves firmly in the industry.

It should be noted that the coming together of industry players may not simply
be done haphazardly. Studies carried out in Australia indicate that regional
clustering is sometimes common (Roberts & Enright, 2004) especially in
regions known for the production of wine.

Examples include North Adelaide and Queensland. Thanks to the latter

phenomenon, the economies of these areas have dramatically altered and
have thus shown that competitor alliances can indeed yield very positive
outcomes to the respective organizations under consideration.

The role of technology

Vivier and Pretorius (2002) argue that technology has penetrated virtually all
sorts of sectors and the wine industry is no exception. One particular area that
has generated a lot of interest is genetic modification of grapevines.
Environmentalists, consumers and wineries have reaped the benefits because
this technology increases the quality of grapes and hence yields better wine.

Wine tourism
Bruwer (2002) also looks at a very interesting trend emerging in the wine
industry; wine tourism. One of the leading countries engaging in this practice
include Italy, France, South Africa and many more (Toit & Ewert, 2005).

The latter has concentrated on respective wine routes that have been linked
to the various visitors that come from Europe. It has started becoming a
reliable source of income and will grow to be even more influential in the
future (Charters & O’Neill, 2000).

Role of retailers

In the global wine market, attention has shifted from wine makers to wine
retailers as affirmed by Jenster and Jenster (1993). Spawton (2007) further
backs this by adding that the shift to a retail system in the industry has led to
higher prices because different markets have to contend with small niche
providers who then offer their products only to a small number of people.

The trend is quite common in the European continent and has caused wine
producers to collaborate with the last members of their distribution chain so as
to preserve their unique positions within the industry. Here, those with the
most innovative marketing strategies are the ones that are likely to survive.

Companies have therefore embraced direct marketing where they coordinate

with financial institutions in order to make use of the credit card market. This
means that consumers have been encouraged to buy in bulk and to place the
products at home thus contributing towards greater sales of the commodity.

Complex forces

Odorici and Corrado (2004) explain that the wine industry is becoming more
complicated than would be expected because the laws of supply and demand
are not the only ones that determine trends in the sector. One influential
phenomenon is the effect of intermediaries. These authors affirm that
consumers and producers often need to know about industry standards.

They need to have experts who can ascertain whether a specific wine product
is worth considering or not. Sometimes, these opinions may be made
available in wine guide books, magazines and other publications. Normally,
the experts will rate a particular wine product depending on the nature of the
particular product.
However, what makes the process quite complicated is the fact that rating
systems alter substantially in different countries let alone different parts of the
world. Consequently, wine evaluation complicates supply and demand and
may lead to very different market perceptions (Odorici and Corrado, 2004).

Concern over taxation matters is an important factor shaping the global wine
industry these days. Spawton (2007) explains that numerous governments
are looking towards this industry as a source of revenue owing to the fact that
wine is an alcoholic drink. Most alcoholic industries are frequently targeted by
their governments and wines are not an exception.

Internationalisation of wine consumption

Internationalisation of wine production has also become another important

element in this industry (Jan Visser and Langen, 2006). This means that wine
producers are now more susceptible to external factors than ever before.
Matters revolving around governance regimes have had to be re-evaluated
because those companies that venture into unfriendly areas may have to
contend with complications in operations.

It is also essential to remember that some wineries have benefitted greatly

from this trend especially if they happen to come from emerging markets. A
country like Chile has benefited from internalisation because the global
markets have been developing; this has been reflected in its performance.

The latter phenomenon is also good for the global industry because major
world players are coming together and seeking ways to improve performance.
In areas such as innovation or training, corporations have formed alliances so
as to improve them.

Nonetheless, this is solely a prerogative of the investor who must first identify
an aspect about the global market that would benefit him. One must also
create an investment opportunity when possible (Thach & Matz, 2003).

Purchasing behaviour

Recent analyses on consumption patterns illustrate that there is indeed a

correlation between wine knowledge and purchasing behaviours. Rasmussen
and Lockshin (2007) carried out research among twenty wine purchasers in
order to determine the kind of qualities they look for in a certain wine product.
It was found that almost half of the respondents relied on the region of the
wine in order to make a purchasing decision.

This means that buyers now associate geographical regions with particular
wines. Availability of information in the wine bottle also causes many
consumers to buy these products. Most of them tend to look for the region,
style, price, brand or label of the wine when deciding. Some respondents also
give precedence to information acquired from wine magazines, newspapers
and the like.

Sophistication of the wine purchasing process can also be seen by the fact
that a number of drinkers derive pleasure from the actual process of selecting
wine and even think of it as a hobby. Even the amount of time spent selecting
these wines implies that consumers have changed buying habits. Average
buyers are spending thirty minutes selecting wines in retail outlets thus
denoting that this is an activity they take seriously.

New world producers

Most new entrants into the wine industry are recording relatively positive
outcomes because of a number of reasons (Anderson, 2001). Countries such
as Australia and the United States are not particularly known for being wine
drinking nations. This means that local demand for the product may not be as
high as expected.

Furthermore, since the latter are relatively new players, one would expect that
the popularity of their brands would be quite low especially since they are
struggling with other brands. However, it has been shown that these countries
are doing relatively well because they decided to focus on exports and they
have now become forces to reckon with (Hugh, 2001).

The French wine industry

Tourism

There is no doubt that French is one of the preferred destinations of the world
today. Tourists come to visit it as result of the rich cultural heritage as well as
its long history. This means that elements regarded as uniquely French are
likely to solicit a lot of interest from visitors; one of this is wine consumption
and production in the country (Getz et al., 1999)
Wine producers in France have realised that people would like to get more
information about the wine industry. In this regard, wineries have exposed
themselves to the outside world through visitations (Hall, 2007). Some
producers in Burgundy can receive an average of about two thousand visitors
annually. It should be noted that these numbers are rather small owing to the
fact that small wine cellars are being considered.

Most of the time, visitors can get into the cellars for free and may be permitted
to engage in some wine tasting (Emerth, 2004). To enjoy the latter activity,
tourists are normally expected to part with a small fee. However, large wine
producers have turned visitations into a thriving business by entertaining close
to one hundred and fifty thousand visitors annually.

Here, an area is reengineered so as to make it more attractive to tourists

(Bretherton & Simpson, 2004). Those who are interested may purchase items
from a shop. These areas have also installed some visitors’ centres for those
who would like to make their experiences unique (Hall et al., 2005).

Also, in other areas like Bordeaux, visitors can amount to eighty thousand
annually (Charlsen, 2004). A lot of investment is normally made by the latter
groups and they may often benefit by encouraging buys of high quality wines
(Frichot, 2001). They also get revenue through the amounts collected from the
latter arrangement.

Competition

France is regarded as a traditional wine producer; new and emerging

countries are becoming important forces to reckon with. Most of them resort to
very powerful marketing procedures and this puts them at a very influential
position in the world wine industry.

Furthermore, this increasing competition has caused prices to go down thus

putting into question the degree of choice that French wine producers have in
deciding on the level of quality. There is only so much effort or investment that
can be put into wine production if there is no sure way of ensuring that the
quality and the asking price match.

To this end, large markets like the United Kingdom are offering small margins
of profit to wine producers because a high number of them now rely on large
chain supermarkets as their sources of supply for wine (Bisson et al., 2002).
Less demand

Several analyses show that the demand for French wine has been dwindling.
This pattern has spread out even in France itself. In the 1980s, French wine
takers would consume approximately ninety litres per year- per person.
However, in the nineties, these numbers have dropped by a whooping thirty
litres per person, per head. Furthermore the same has been replicated in
countries across the world.

Higher interest in wine

Several wine consumers around the world are now taking particular interest in
high quality wines although this is yet to be translated into tangible monetary
incomes. Consequently, traditional players like France are getting a lot of
attention from these enthusiasts (Smith & Bentzen, 2002). Greater publicity
for French wine has also been achieved through recent scientific studies on
the French paradox (Lockshin et al., 1999).

Members of the medical community have sought to explain why there are very
few cases of coronary heart diseases in France and they have found that this
has been brought on by the strong wine consuming culture among the
French. Scientists are therefore sending the message that wine is good for
one’s health and the French can benefit from this is they use the message to
their advantage (Hall & Mitchell, 2004).

When consumers are asked about the qualities they look for in French wine
most of them cite a number of factors. Some assert that it is the geographical
location of the winery and in this case; wines from well known areas in France
are usually considered to have a higher value (Babor, 1986).

Also, consumers claim that they now look for the name of the brand. Well
known, large scale producers are highly respected and their wines are
thought to possess more value than other typical wines available in the
market today.

Increased production

Surveys do indicate that French wine producers are overproducing when their
numbers are compared to the degree of demand that is available out there
(MacNeil, 2001). Most world markets may not necessarily be going through
this problem because they are using a different approach. In France, wine
makers often think of the consumer as the last option but in competing areas,
market forces are the first consideration.

In other words, market forces and an understanding of it are what cause these
producers to decide on the quantity, quality, grape variety or any other aspect
that may be deemed important to the client.

This has prepared them to deal with changes in consumer markets. French
wine makers still do not place too much emphasis on wine markets thus
explaining why they currently do not understand the full extent of the demand
for their products and are overproducing.

Political forces

Legislations in France have deeply affected the manner in which the wine
industry operates thus denoting the importance of political influences. In this
regard, appellation legislations were passed so as to ascertain that certain
areas continued to benefit from their respective positions. This has yielded
immense political power amongst those groups to the point of causing a
degree of territorialisation (Baron, 2003).

Therefore, the legislations may work for certain powerful figures but may not
necessarily work for everyone. In this regard, wine regions have been
established mostly as a result of interference by government. One only has to
visit vineyards in France to see the extent of specialisation found in such
locations (Moran 1993).

Studies indicate that sales of French wine products often get affected by
political events from time to time. A case in point was the refusal of the French
to engage in the US led Invasion of Iraq in 2003 (Leslie and Chavis, 2008).
The US responded to these decisions by boycotting the purchase of French
wines (Smith & Bentzen, 2007).

The boycott went on for half a year and resulted in 13-26 percent drops in
sale of the French wines (Chavis and Leslie, 2007), (Ciccarella et al, 2007).
The incident was a classic indication of the importance of external factors in
determining the sales of particular items (Friedman & Pruitt, 1986).

Grower’s concerns
Most grape growers in France belong to cooperatives. They consider these
groups as unique part of their identity and also a distinct part of their history.
However, these cooperatives are usually created differently depending on the
kind of region that wine growers belongs to (Ulin, 2002).

White et al (2006) affirms that wine normally grows well in regions that are
considered to be climatically appropriate for the product. For instance, there
should be minimal heat accumulation, minimal extreme heat as well as low
instances of frost to the crops. Wine growers must therefore strike a fine
balance between all these issues yet it may be a little tricky for them to
achieve that.

Climatic changes have been going on in various parts of the world and these
are affecting wine quality in traditional wine growing parts of the world like
France. If hot days keep increasing then this could reduce the possible areas
of wine production that can harm farmers. That kind of sensitivity of grape
production has led certain farmers to abandon the crop for other less sensitive
ones.

Marketing challenges

Warren and Melewar (2006) explain that marketing strategies for the French
are not exactly the best. Some brands may stand out internationally but this
has not always been the case for all. Others do not forge strong names for
themselves and may therefore confuse consumers when they try to get their
products out.

Point of sale contacts between consumers and marketers are also rather poor
and may not give much promise for the future. This scenario is true for small
producers compared to their more established counterparts.

Few French manufacturers have given direct marketing a chance. This means
that they have little control over the image that their brands project. They also
have minimal say in determining what services are offered to consumers at
the point of sale. Furthermore, because they are detached from the final
consumer, the possibility of establishing a long term relationship with them is
put into jeopardy and this ruins their chances.

Additionally, the opportunity to create with consumers is also lost in such

cases. The wine producers do not have an ability to assess consumer wants
and hence provide them with the right product. Furthermore, the complexity of
the system is what is bringing French wine producers a lot of challenges that
have contributed to the poor performance and confusion in the market.

Terroir

This term incorporates all the key aspects of production that are needed in
order to make wine within a specific vineyard. In this regard, wine producers
often pay attention to the nature of the soil and hence the rock that can be
found in their areas of interest. They also give attention to the landscape of
any area and the degree of slopes that these products are expected to garner.

Furthermore, it is imperative for wine makers to consider the micro climate of

their regions as this can alter the nature of the grapes produced. Some
important aspects like sun orientation can into play. This forms the logic
behind the AOC system; an appellation system based on the fact that no two
regions can produce exactly the same grape variety (Robinson, 2006).

Terroir has been transferred to other parts of the world and has been shown
to be a critical part of wine production. However, this has sparked a lot of
controversy within the industry and may even be a source of disadvantage to
wine producers.

For example, wine producers in a particular region always have several

vineyards to choose from since grape varieties even in vineyards of close
proximity are radically different. It implies that the kind of wine that can come
from such places is also different as seen within the Burgundy region (Oz &
Spurrier, 2001). Most of the wine that comes from here varies very differently
from what others have considered important in the past.

Rich history

France takes pride in the fact that it has been producing wine for centuries on
end. In fact, vineyard cultivators often think of the wine making process as an
issue of family interest.

These growers and producers often transfer the knowledge to their kinsmen in
the hope of perpetuating the rich tradition of wine making (Charles, 1952).
Such a phenomenon may either be a source of competitive advantage as it
causes consumers to respect this rich heritage or it may also be a
disadvantage to the said groups.

In fact the rich history of wine production in France has contributed to the
degree of respect accorded to French wines. Most wine lovers easily
recognise Bordeaux which is by far the most well known wine brand in the
world (Kibler, 2006). Clearly, the makers from this region may not have too
much to worry about as their commodities are still flying off the shelves in
retail outlets and other point of sale locations.

Immense variety

French winemakers can boast of a very high level of variety that they can offer
consumers who are interesting in purchasing their commodities. For instance,
consumers who have a preference for dry wines can find them there. Those
who would prefer sweet wines, red wines, white wines or even sparkling ones
can meet all their needs among French wine producers.

Furthermore even the degree of quality has been altered dramatically

depending on the price level of the purpose that a particular type of wine will
serve. Consequently, wine enthusiasts can always find what they are looking
for in this part of the world (Cambourne et al., 2000)

Varieties also refer to the number of grapes available in this country. More
often than not, grape varieties are limited to the type of region that a vineyard
belongs to especially in light of the appellation rules currently in place.
However, since the grape growing regions are so many, then the grape
varieties also vary correspondingly.

Some grapes can be easily identified by foreigners because they may not be
unique to France while others may be unique only to that specific region.
Because of these wide varieties, some French wine makers have opted to
combine grapes so as to create varietal wines. Consumers can therefore
enjoy the benefit of judging for themselves what appeals to their taste buds
and hence can be able to satisfy their needs.

Specific barriers to international growth of French

wine
Overemphasis on high end wines
The wine industry is one of the most complex product industries in the world.
This is because of the nature of the products and the degree of dynamism
needed in order to get a product out to the market. Currently, France is still
well known for producing high end wines. These types of wines are heavily
priced because they have been cultivated and produced in the same
vineyards and a lot of care is put into the process.

However, consumers and buyers of wine may want to indulge in a little wine
tasting without necessarily spending too much on it. Most of these individuals
tend to go for cheaper wines and may not be too keen on whether the wine
was made in the same vineyard or not.

These kinds of consumers have actually been responsible for the surge in
wine consumption globally especially because they buy their wines from
supermarkets rather than wine retail outlets (Dean & Bart, 1998). Other
emerging wine producers have noticed this shift and have therefore produced
wine that meets such unrefined tastes (Stevenson, 2005). They are driving
the world market and making profits for themsleves.

France is somehow stuck onto successes of the past because it still believes
that the highest percentages of wine consumers are the ones in the high end
of the market. This mistaken thinking is what has blocked France from
becoming the most formidable force in the global wine market. As soon as
they reshape their thinking, then things could potentially start to change.

Furthermore, even the rules for wine production are still centred on makers of
high end wine while cheap producers are pushed to the periphery. The latter
government has not realised that there is no one size- fits all scenario in wine
making so they should adjust some of these rules (Espey, 1989).

Differential branding in France and the rest of world

Some of the most well known brands in the international market are actually
controlled by wine producers themselves. Countries like Australia and the
United States have added value to their products by taking control of their
branding systems (Mowle & Merrilees, 2005). In France, things are done in a
totally different way. Wine producers usually concentrate on the wine
production process and leave the rest to external parties.
This causes the producers to be detached from their particular brand and thus
reduces the motivation to please the customer (Swaminathan & Delacroix,
1991). Over the years, this has led to lower quality wines and is therefore
impeding the capacity to grow in the international market.

Failure to improve standards

The truth of the matter is that wine standards have changed dramatically over
the years. What was previously considered average in the past is now almost
intolerable. Wine consumers are savvy about what it takes to make good
quality wines (Bruwer, 2004).

Wine producers in emerging markets came when this was already the
preference and therefore responded well to it by giving relatively high
standards of medium or commercial wines. France on the other hand has not
adjusted accordingly and the same medium scale wine produced two decades
ago is still the same one that consumers are exposed to.

Attitudinal issues

As stated earlier, French wine growers and producers have been doing this
for generations. They may therefore feel that they have fully grasped the
intricacies of the wine market and everything it has to offer. These growers
have developed a know-it -all attitude that could be costing them international
expansion. If they accepted the fact that they did not have all the answers
then that would be a sure way of making things work (Shaw, 2000).

However, a report made in several international newspapers has indicated

that sometimes these kinds of attitudes may cause France to suffer severe
losses. For example, the latter industry has recently been going through a
range of controversial lawsuits (Iversion, 2010). In the past a foreign wine
maker who dared to break the AOC would be quickly taken to court.

This caused an immense level of distrust and fear for wines produced from
these regions. In recent times, this has been reversed; for example a French
wine maker was taken to court by New Zealand over using their brand to label
their products (Iversion, 2010). This caused a lot of spur over the double
standards used by the French in terms of the latter trade.

Complex marketing terms

Most consumers nowadays are busy working two jobs or handling their
personal responsibilities to give too much time and effort towards the process
of indentifying wines. Conversely, these consumers would still like to
understand the origin of the product that they are buying. In this regard,
labelling products or displaying information on bottles needs to be made as
simple as is reasonably possible (Belk King, 1997).

French wine producers and marketers have not paid particular attention to
these issues. The AOC often use rules that make it so hard to detect whether
a wine is say a Burgundy wine or not. One type of wine may have a name that
is even too long to read and may not contain information that makes it easily
comprehensible to the consumer.

Some have asserted that it may be an indication of arrogance on the part of

the French wine producers who have refused to accept that their market is
changing and that other kinds of strategies may have to be sought (Gregg,
1990). Consumers want simple processes that are not laden with complexities
and the like (Engelmann & Tyran, 2005).

Failure to plan for cyclical changes

Over the past two decades wine producers in various parts of the world have
been going through ups and downs in business. Sometimes there is an
undersupply of the commodity and an oversupply in other scenarios. Large
wine producing countries like France feel these fluctuations even more
intensely than others.

Since the business cycle is rather predictable, then failure to adjust

accordingly to the market alterations could be leading to the minimal profit
margins that these business men and women go through. More often than
not, such producers may adjust but the time lag between their responses and
market changes is the cause behind their problems. Usually, the government
steps in in these time lags so as to deal with the oversupply.

However when this is done over and over then farmers and wine producers
can get comfortable with the arrangement and may never think of the degree
of demand for the commodity. In this case, the French government has not
dealt with foreseeable cyclical changes in a practical manner and this has led
to current observations within the industry (Vermeulen, 2006).
Lack of a tangible export plan

Statistics indicate that wine consumption in the host country France has been
declining so the future would be in export markets. In fact, this is the reason
why traditional beer drinkers like Australia and the United States have
managed to penetrate this complex industry (Baumgartner & Burns, 1975).
They realised the inefficiencies in their local market and opted to look
elsewhere.

Sadly, France is aware of this too but has enacted minimal plans in response
to these adjustments. The exporting scheme is laden with too much
bureaucracy and this clearly hampers their ability to engage more exporters.
Also, French wine producers have not been told about the benefits of such a
system and it may be imperative to think of it in the future (Cholette et al.,
2005).

Failure to use traditional marketing channels

A number of wine producers are encompassing new and revolutionary

marketing methods. However, this does not undermine the fact that traditional
marketing tools like television advertisements cannot still work for the
industry. Because the wine industry has been around for so long, wine
producers have assumed that the international world is already aware of the
quality of their products.

They have been underutilising the potential of television to access the

international community. France rarely creates captivating adverts that would
most likely make the public aware of their brands and how critical these are to
the wine industry. International markets as well as domestic ones would be
better informed and captivated through these traditional channels creatively.

The French ought to use their geography as specific marketing points.

However, not all producers are able to display the information for users to
make use and in the end; this hinders the ability of the consumer to
differentiate between these categories of wine (Bevarland, 2000).

Types of wine created

The nature of wines that French wineries are concentrating on may be the
reason behind their dismal performance of late. As asserted earlier, the
market for high end wines is still prevalent. Middle type wines are also
considered to be an important part of the process. Table wines on the other
hand represent the opposite side of the scale; most local French consumers
no longer purchase this type of product in large numbers.

Also, the international market has lost interest in this product as well. The
French considered table wine and fine wine as the major categories of wine
production and still continue focusing on these types today. However, studies
show that not everything may turn out as expected especially in a changing
market (Adams beverage group, 2003).

Some wines that were thought to be poor quality wines are now essential
parts of the wine drinking culture especially in the commercial end of wine
productions. One such case is the Rose wine which is grown in the Bordeaux
region of the world (Kindersly, 2004). Surveys indicate that young consumers
are embracing these types of wine over the traditional wine types (Anon,
1990).

Consequently, marketers should have targeted the latter population with the
uniqueness of their flavour and other important aspects. However, since this
has not been done, then very few markets have been fully tapped and the
wine varieties given precedence are not the most important.

Low internet sales

Many wine producers around the world are realising the potential of internet
sales especially if they are selling their commodities to persons outside their
native countries (McNeil, 2007). In recent analyses it was shown that websites
designed solely for the purpose of selling wine to consumers recorded sales
of about 175, 333 bottles annually.

While some of the latter producers were French, others were not and it is
members of the emerging markets who are realising the potential of this kind
of market. France has been left behind in the new wave (Wood & Bruwer,
2005).

Lack of a single brand

The French wine industry is laden with a diverse array of products. Some of
them are easily recognisable but some are not. In fact, a country that has
been doing this business for decades needs to possess a brand that is
synonymous to the country.

France does not have a national brand. The very name France – is a crucial
selling point in wine so having a drink that symbolises this country’s tradition
and richness would be extremely helpful. However, these plans may be in the
making especially owing to the reports the government has made on creating
one such market (Mercer, 2007).

There is a lack of one unique blend of wine that is distinctly French making
the latter country miss out on useful opportunities. Plenty of advantages can
easily be seen from such an approach even at a glance. For example, if there
was one blend sourcing wines from different parts of the country, the wine
producers would be in a position to dispense their excess produce.

This would mean fewer losses and a mitigation of the oversupply problem
which frequently plagues the country from time to time. Furthermore, some
wine growers may not always want to stick to the same wine manufacturers
as before (Teaff et al., 2005). This sort of brand would be a unique opportunity
for them to utilise wine suppliers that are effective.

A brand representing France would be a good idea to wine makers especially

because it has been tried and tested in other parts of the world and has been
shown to be very effective. Countries like Spain have already implemented
these strategies and are doing fine as is the case.

Levelling the competitive arena

The various types of wine available in the French wine can appeal to varying
tastes and there is always a reason why they still exist in the market today.
However, when some wines are treated in an inferior manner owing to the use
of a certain grape variety that does not belong to another region then this may
create some sort of bias to those products even without considering the kind
of quality dispensed by these types of wine producers.

Too much bureaucracy in French wine manufacture has made it an

unattractive destination for investors or stakeholders. Business environments
like Spain are highly respected for their government support and their level
playing fields; a concept that is almost alien to France and its inhabitants
(Benjamin & Podolny, 1999).
Poor link between brand perception and brand strategies

Although the wine industry is quite complex, there are certain essential rules
of marketing that still apply. These rules must be obeyed if the latter entities
have any hope of revamping their diminishing wine sales.

One of the first principles in marketing is that the price of a certain commodity
is an indication of the value of the product. In other words, if there is great
value addition, then it would only be fair to increase the price of the product
(Lusch & Virgo, 2004). It is the reason why some wines like Champagne have
very high price tags but consumers are still willing to purchase them
regardless (Farmer, 1994).

Secondly, price is also an indication of the brand responsible for production of

the commodity (Faith, 1992). This means that consumers would be willing to
pay for a certain commodity if they think that it has high quality even when this
is not necessarily true. The problem with French wine makers is that most of
them presume that they all belong to these kinds of strong brands yet this is
not always true.

If a wine maker has not yet established a name for himself in the international
arena then it should sell its commodities at prices that reflect its brand
perception (Ehrenberg & Bird, 1970). Some wines from Australia are available
in world markets at affordable prices in line with their brands and this causes
high sales.

However, low quality, poorly branded wines from France are sold to the rest of
the world at exorbitant prices and this causes most of them to remain in
supermarkets or retail outlets because there is only a small link between how
the public perceives these brands and how the winemakers do.

Lack of information in the public domain

Most members of the public may not necessarily understand the intricacies of
the wine making process. However, they would be in a position to appreciate
this information if it was made easily available (Greatorex and Mitchell, 1988).

Some industries in the past have not just considered marketing as a channel
for getting their messages across concerning a particular commodity; they
have also used it as a platform for giving out information. In fact, analyses
indicate that consumers these days tend to value information based
advertisements than conventional ones that clearly appear to have a bias
towards a certain firm.

Objective advertising through the use of experts can be very beneficial to wine
producers as well as consumers because the wine makers would appear
genuine and believable while the consumers will be more informed about the
industry (Juster, 1966). The French have rarely used marketing strategies that
are information based hence the problems it may be going through today
(Armstrong, 1991).

Recommendations on possible solutions

Direct selling to consumers

In order to stay ahead of the competition, French wine makers need to result
to creative methods for marketing their goods and this means direct selling.
Some French wine makers are already doing this as described by Hall (2005).

Alsac and Bargandy wines are now sold through this route since wine cellars
are important places for getting the commodities to said consumers. This
especially applies to those who come to France in order to participate in wine
tourism by visiting various vintages.

Proactive stances

French wine was once known and respected for its high level of innovation as
well as the boldness it possessed (Ulin, 2002). This was the reason why it
was counted as a global leader (Warren and Melewar, 2006). In order for
France to reclaim this position, it must lead the pack in terms of being
proactive rather than wait for similar introductions. The only way to achieve
this is through creation of a cultural shift.

Better quality

In order to differentiate itself from all the crowding in the market, French
should reassert itself as the ultimate guarantor of quality. In the past, this is
what removed French wines from their shelves and the same can reoccur if
quality is reasserted. As established earlier, the problem is with the smaller
producers who are not necessarily governed by very tight controls (Duthy,
2000).

The AOC needs to reinforce the nature of their controls and this ensures that
all the brands emanating from France represent the same standard of quality
that large producers do. High quality will also shield small producers from
price related complications because they can afford to make their wines
pricey.

This would be a reflection of the effort and degree of innovation that has been
put into their wine making processes (Leibold et al, 2004).

Distribution systems

Currently most wine purchasers in the United States, UK and other big
markets heavily rely on large scale supermarkets to access wine. French wine
producers would be fighting a losing battle if they tried to negotiate with these
chains. The best way of going about it is to look for a way of getting to
consumers directly. Internet sales can be a great way to do this as access to
markets is quite expansive.

They can also employ the use of new innovation in the latter sector such as
social networking websites. Small scale producers should be especially
considerate on this issue.

In fact, analyses show that the best bet in value addition does not lie with
experts like marketers and researchers; it is in a mutually beneficial and a
long term relationship between the producer and the consumer which can
then be a source of information on what really matters to wine makers
(Spawton et al, 1997).

The logic is that people are not likely to trust marketers because the latter
tend to be after securing sales for their products. However, if a wine producer
appears to be committed to a certain consumer then trust can result and an
atmosphere of honesty will therefore be established.

Nonetheless, a direct selling distribution system may sometimes move too

slowly as the amount of goods sold is only dependent on the ones that can
reach clients at any one time. In order to overcome this inefficiency, small
brands should consider integrated direct distribution (Patton & Boze, 1995).
Here, they can come together and decide on the main issues that they want to
work on in the product; these should be the most valuable ones. They can
then establish the right channels for this mix so that at the end of it,
consumers will be the ones who can grow and benefit from the arrangement.

Planning for the opportunities will need to be done and the capacity of the
products to create value should then be analysed at every single point.
Although integrated direct marketing may not always be done formally since
wine producers may rely on their past experiences, intuition and trial and
error, this does not undermine the fact that the customer’s satisfaction is what
carries the day.

Examples of channels that can be used in these scenarios include the

internet, mail, trade exhibitions, organised direct selling markets and
integrations of producers.

Match demand and supply

As established earlier, French wine makers are overproducing and this is

causing a wide number of them to undergo great losses. If these producers
simply understood the working of the present market then chances are that it
would lead to accurate estimation of quantity (Madden et al., 1993).

In fact France is not alone in this kind of misconception; most other traditional
wine producing countries of the world have been responsible for this.

They have continued to make wine while still remaining insensitive to the
market around them and this has led to a drop in the profit margins attained
by such groups. In fact, most wine producers need to correct this problem
from the onset by reducing their product outcomes before they are released
(Casini et al., 2006).

Free market economics

France should let free market economics rule because without it, any industry
is bound to postpone problems into the future. Wine growers have used
excuses such as poor climatic conditions, an unpredictable consumer market
and international competition as excuses for their lack of profitability. In these
circumstances, farmers and other wine producers have threatened to quit the
wine producing trade all together owing to these changes.
In order to preserve its cultural heritage and the contribution that the wine
industry makes to the economy, the French government has frequently
intervened in the wine industry. The only problem with such an approach is
that it ignores market economics. Most of the entities that seem to be having a
problem making profit in this competitive industry actually are unsuccessful
producers or growers.

The market should be allowed to eliminate such individuals because they

saturate the market with their bad produce. French wine will be better off if it
was associated with a few good producers than with many mediocre ones.

Currently, all the AOC rules are causing these farmers to hide behind the
bureaucracy and government support. They are not taking responsibility for
their mistakes and this is definitely hurting the industry (Spawton, 2007).

Re invention of the AOC rules

The French wine industry would definitely be better off if it changed the AOC
rules dramatically. Some brands of wine may appeal to consumer’s taste buds
but if they do not adhere to the strict criteria of the AOC then they may never
reach the latter who would greatly respond to them. The government would do
itself a lot of good if it applied these rules to the high end of the market.

However, any other commodities in between tend to be disastrous because it

is the bad quality wines that can meet the AOC criteria while the genuinely
good ones are forgotten. This other side of the market should be left to curve
its own destiny (Spawton, 2007).

Carry out market research

Wine production in France has taken on a regional approach and it would be

very difficult to change this in the short term. A workable solution would be to
make those regional strongholds even more powerful (Spawton, 1991).

Information is always power and if French wine makers can engage in deep
and serious market research then they may be in a position to change how
the world embraces their commodities because they would be constantly
monitoring it (Berglund, 2003).
This refrain from marketing of the goods could be harming the French wine
industry more than anything else (East, 1997). Without solving the problem,
little else can be accomplished in the business.

Abandon types of wines that do not yield results

By holding onto tradition, the French market is destroying its profitability.

People no longer value table wines as they used so utmost precedence
should be given to the growth and development of other types of wines that
will be received in a much better manner than the traditional ones (Duthy,
2000).

The prerogative to change these types of wines may lie in the hands of the
wine producers rather than other authorities, this means that it may be
extremely difficult to control which wines are available and which ones are
not. Therefore, one way the French government can achieve this is by offering
support to those popular wines so that they can be nourished and grown.

Staying abreast of new production techniques

Australian wine producers are known for their high degree of innovation. They
frequently think of the benefits that they would enjoy from a new practise and
work towards improving it. Sadly enough, this is not the same case as what
goes in France.

In fact, the latter country has become associated with non progressive ideas.
Although it should be noted that wine makers in France are not immune to
change, most of them merely borrow those practices from other producers
around the world like Australia.

There may be no problem in borrowing ideas and best practices but the timing
is always crucial. If one waits for one’s competitors to try and test ideas and to
implement them fully then chances are that one would already have been left
behind and this can only lead to subsequent failure.

French wineries should also be at the forefront of innovation in production

techniques by dedicating specific personnel to be directly responsible over
this (Lockshin, 1997).

Use New world patterns

Previously, wine producers from certain parts of the world were considered to
be inexperienced and clueless on the wine making process. In this decade,
new world marketers have become a formidable force to reckon with
(Ramaswamy & Prahalad, 2004).

Their wine sales have increased by about twenty eight percent over the last
two decades and this means that certain patterns inherent in this market could
also work for French wine makers. Some of the strategies that were
previously seen to be too simplistic can actually prove to be very useful to
France.

These new markets have targeted new wine consumers who do not
necessarily have a lot of experience with the commodity. Most of them are
fully aware of the intricacies of marketing commodities to these kinds of
consumers and have therefore gone in full throttle (Quinton, 2003).

Neutralise terroir

As stated earlier, this system is discriminatory and may prevent producers

from sourcing for the best raw materials. In other industries like retail, large
chain stores will usually look for the most effective producers so that they their
merchandise will be of high quality. Companies like Starbucks often get their
coffee beans from countries as far as Kenya and this makes them very
effective.

In the French wine industry, not only is production limited to the country but to
certain regions as well. Manufacturers are prevented from enjoying the
benefits of sourcing from various parts of the world and this has actually led to
poor results currently.

France could benefit tremendously by using a different strategy. Here, it could

get its grapes from different parts of the country or even the world and then
assemble them into one product. Some firms are already doing this and are
recording a lot of success. A company like Chamarre is getting French grapes
around the country and creating products that use all the good aspects from
these various areas to create a formidable product.

In the end, the latter has received a lot of acclaim from various consumers
across the world. Indeed, evidence of this has been denoted by the fact that
the latter products are transported to about thirty countries.
When consumers are told about how the product was created, then chances
are that they would deeply appreciate it and it would cause greater results.
This represents a paradigm shift in the way wine products from France are
presented to the rest of the world.

Massive campaigns

There could also be opposition from stakeholders that concentrating on

relatively low end wines would be detrimental to the French wine industry.
This means that some massive campaigns would have to be carried out in
order to spread the message that low end wines need not be seen as low
quality wines or wines that have relatively little market value (Reid & Ratcliffe,
2001), (Polhemius, 1988).

Campaigners could use the success of certain new varieties of French wines
that are doing so well in the wine market. In fact a wine like Arrogant Frog is
giving Australian wine makers a run for their money since most of it is sold in
the latter country. Estimates shows that this type of wine has gained an
enthusiasm of approximately one million annual consumers.

Internet sales

As stated earlier, internet sales have been underexploited by French sellers

yet this could be a revolutionary way of getting their products directly to
consumers. However, the internet is not just an instant answer to the
problems by these wine producers. Additional work will need to be carried out.

First, French producers should make the websites user friendly so that
consumers can view products and make purchases as fast and as
conveniently as possible. Furthermore, it should attract the attention of online
users who are quite difficult to please especially given the fact that most of
them are bombarded by several advertisements on a daily basis (Sumner, et
al., 2007).

They should also contain useful information about the product, its advantages
and how consumers can purchase it. A website that displays such information
would be quite appropriate and would be a sure way of giving consumers
what they are really looking.
Online selling websites should also be advertised on other websites or they
should also use recent inventions such as social networking websites. Face
book and twitter can be very revolutionary outlets for letting the public know
about French wines.

Make use of traditional retail outlets

Restaurants are still an important source of marketing wine to the public

especially in the French wine market. The French wine taking culture is such
that most individuals consume this drink with their food. Consequently, wine
producers need to work with the latter groups in order to fully utilise this
opportunity.

Consumers who come to order foods often request for wines to keep them
busy (Demossier, 2004). Restaurant owners need to be persuaded to market
the commodities to these patrons. One way of doing so would be by striking a
deal with the latter individuals. They could share royalties on sales or such
kinds of contracts.

Alternatively small and specialised shops have also been known to be critical
points of contact between wine producers and their consumers. The latter
groups need to be converted into advertising strongholds.

They should also be used as places for marketing promotions and other
pricing strategies designed to woo the consumer. Supermarkets as well fall in
the same category and intense use of this platform should be used by
stakeholders in the French wine industry (Spawton, 1998).

Improve the situation at wineries

As stated earlier, wine tourism is an important area that can attract revenues
for wineries (Charlsen, 2004). However, some producers are not fully
embracing the phenomenon or channelling it into a profit making venture.
First, wineries can advertise and attract many consumers to their respective
areas by placing advertisements in local channels (Copla, 2000).

They can also add some incentives that would make their wineries ideal
destinations for wine tourism. One way of doing this is to provide visitors
adequate space in their wineries for wine tasting.
They should also have access to good parking space and should be provided
with guides who can take them through the wine making process (Penn,
2003). This should not just be a preserve for those with large scale industries.
Even small scale wine producers need to think of wine tourism as an
additional source of expenditure for them (Dodd, 1999).

However, there should be a point of caution at this point; wine makers should
refrain from introducing some big time leisure elements such as restaurants
(Emerth, 2004). If they do so, then patrons will think of them as hoteliers first
and wine makers second.

In fact, wine makers who make their wineries too comfortable often run the
risk of never realising a return on their investment because the success of one
industry i.e. the restaurant business normally comes at the price of the wine
related side.

Exploit the local market

Surveys indicate that one of the most critical markets for French wines is
within the French borders. However, the country has not fully used this
market. For instance, in the decade 2000, a record twenty percent drop in
wine purchases was made. This caused most wine producers to concentrate
on external markets.

The only problem with such an approach is that there are several legal
hurdles to the process both within France and in respective countries of
destination. Wine makers would be spared from all the expenditure that
comes with the sale of their commodities in other countries if they
concentrated on these local markets (Kaplan & Vigna, 2007).

They would also revitalise the French culture of wine taking. These
manufacturers can use several platforms to ensure this. One of them is
through local marketing campaigns and promotions that can be sustained for
very long periods of time (Pike & Melewar, 2006).

Conclusion
Not all is lost within the French wine making industry. In fact, it has the
potential to regain its position as a leader in wine making if it goes through the
latter steps as recommended. In essence, the problems are many and diverse
in France’s wine making industry but most of them have been brought on by
excessive government interference as well as overconfidence in decades of
market leadership.

Once these approaches are corrected the manufacturers can be well on their
way to establishing an industry that can withstand all external forces in this
industry.

It can also be in a position to easily change the image of the country. Some
initiatives already demonstrate that the government is heading in the right
direction. French men and women should work on maintaining those
strategies as well as boosting them so that only the most effective ones are
realised.

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