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Cross-cultural Challenges in Euro-wide Marketing: The Wine Industry in France, Hungary, Bulgaria

This summary explores the wine industry in France, Hungary, and Bulgaria, comparing their regions, grape varieties, and uses of wine. It also analyzes the cross-cultural challenges in marketing wine across these countries.

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Cross-cultural Challenges in Euro-wide Marketing: The Wine Industry in France, Hungary, Bulgaria

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  1. CROSS CULTURAL CHALLENGES IN THE EUROPE WIDE MARKETING: THE WINE INDUSTRY FRANCE- HUNGARIA- BULGARIA

  2. SUMMARY • The Wine Industry • Countries analysis • The Hofstede model • The French wine industry • The Hungarian wine industry • The Bulgarian wine industry • Comparison of the 3 countries • SWOT analysis

  3. The Wine Industry • Wine grape : species and varieties • Cultivation • Wine regions : varieties • Choosing a grape vineyard location • The uses of wine • The present and future of the wine sector in Europe • The easternalization of the EU wine market

  4. Wine Grape: Species and Varieties Thousands of grape varieties in wine industry • Color • Size • Shape of berry • Juice composition (including flavor) • Ripening time • Disease resistance. • Vitis Vinifera? • Variability in Color, taste, flavor

  5. Location: Where should we plant? • Sunlight • Flora and fauna • Soil and the lay of the land • Climate

  6. Wine Regions: Varieties • Very important part in the label of wines. • The region of production • Maturity of the fruit • Variety of grape • Year of production • Also differentiated by color, sweetness, and aroma. In Europe REGION

  7. The Uses of Wine Apperitif (Appetizer Wines) Red Dinner Wines White Dinner Wines Sparkling Wines Table Wines Dessert Wines

  8. European Union • The European Union (EU) leads the wine sector in terms of: • Production: European vineyards about 45% • 60% of world wine production • b) Consumption: Almost 60% of world consumption • c) Exports and Imports: Both world leading exporter and importer. • Wine: Importance in final agricultural output • + Community legislation : CAP • “Quality wines produced in specific regions“ • “Table wines".

  9. Countries Analysis • The Hofstede model • The French wine industry • The Hungarian wine industry • The Bulgarian wine industry

  10. The Hofstede Model • This model, created in 1967 by professor Hofstede is aimed at understanding better the culture of an other country. • “Geert Hofstede's research gives us insights into other cultures so that we can be more effective when interacting with people in other countries.” • Model based on 5 indexes which are: - the power distance index (PDI) - Individualism (IDV) - Masculinity (MAS) - Uncertainty avoidance index (UAI) - Long-term orientation (LTO)

  11. France

  12. Hungary

  13. Bulgaria

  14. The French wine industry • Background and Regions • General aspects of wine in France • Trends • Economical aspects

  15. Background & Regions • France as a wine producing country • The AC (Appellation Controlee system) • The main regions ( Champagne, bordeaux… etc)

  16. Trends • Consumption in France • New tendencies • Production • Quality-Imports-Exports-Marketing

  17. Economical Aspects • Nominal Unit price • Offer-demand • Price declining • Effects of new competitors

  18. The Hungarian wine industry The Sector • Introduction: - Communism Era with Big Plants, - Modern Methods and Tradition, - Core of Hungarian Culture since 1000 years. • Economical Aspects: - Production in 2004: 4.5 million hectoliters (Increasing), - Exports in 2004: 700,000 hectoliters (Decreasing) • Political Issues: - Not enough Financial supports, - Not enough Marketing campaigns,. • General Problems: - Quality should be much higher, - Lack of Marketing and Promotion.

  19. The Market • The Impact of Hungarian Wine in Different Countries: - Scandinavian, - American, - UK. • The Impact of the EU Accession: - Quality, - Accession to foreign Markets. • Consumer Behaviour: - Spanish wines such as Sangria, - Hungarian wines more and more « en vogue », - Social Criterion, - Mid-to-low category of Hungarian wines are threatened

  20. The Different Wine Producing Regions: 21 wine regions

  21. The Bulgarian wine industry • Bulgaria is probably the oldest wine producing country:some wine was produced there between 6000 and 3000 years before JC • With a hot climate and a varied geography, Bulgaria produces quality wines and is generally seen as the most trustworthy of the Eastern countries in terms of wine production • Under Communism: the 5th producing country, and the 2nd exporting country

  22. Consumption and production - An average of 5 litres per person and per year - Local « Quality Wines » bottles between 2 and 4 euros - In 2002, Bulgarian vineyard = 145 200 hectares (ie bigger than the Australian one!) - Production in 2002 = 1 982 158 hectolitres. Average yield = 17, 29 Hl per hectare (a 4% increase since 2001) - More than 200 types of wines are produced: 24% as « Quality Wines », 76% as « Domestic Wines »

  23. BULGARIAN VARIETIES OF WINE OTHER VARIETIES • Pamid • Mavrud • Gamza • Chiroka melnishka loza (Melnik region) • Rubin • Dimyat • Misket • Vratchanski Misket • Cabernet Sauvignon • Merlot • Pinot Noir • Chardonnay • Rkatziteli • Muscat Ottonel • Traminer • Riesling

  24. 5 main producing regions: • North region • The East region and the Black Sea’s shore • The Under-Balkanises region (Centre) • The South- West region • The South region • Exportation: 70% of the country’s industrial production 785 470 hectolitres in 2002 • Importation:40 282 hectolitres in 2002

  25. Comparison of the 3 countries

  26. Political Economical

  27. Social Technological

  28. Legal

  29. The Hofstede analysis for our 3 countries: France/ Bulgaria

  30. France/ Hungaria

  31. Bulgaria/ Hungaria

  32. SWOT analysis

  33. France • Strenghts • Famous, well known • Weaknesses • Marketing • Knowledge of foreign customer markets • Distribution channels • High Prices • Opportunities • EU enlargement (Single market) • Attractiveness of western products • Threats • Competition of new member states

  34. Hungary • Strenghts • Quality and low prices • Modern techniques and EU standards • Foreign investments • Weaknesses • Marketing and promotion world wide • No subsidies from the State • Small sized national market • Hungarians habits • Opportunities • Purchasing power of Hungarians • EU accession • Threats • Competition of foreign quality wines

  35. Bulgaria • Strenghts • Culture and Know-how • Modern infrastructures and Potential of production • Weaknesses • Not yet an EU member state • Lack of image • Bulgarians purchasing power and Bulgarians habits • Opportunities • Future EU accession • Foreign investments • Distribution networks • Consumer market potential • Threats • Social and Economical Bulgaria background • Competition of the New world producers

  36. Conclusion

  37. Thanks to: Mr David CHELLY Me Mary Mc KINLEY Mr François DESCHEEMAEKERE Mr Geert HOFSTEDE CASTRO Leopoldo FERRARA Elias FISCHER Mathieu GAILLY Maxime MATHIEU Marie SAKI Stéphanie

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