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The wine industry has clearly undergone some significant changes that have resulted in the repositioning of a number of segments in the industry value chain, for example brand managers, producers and distributors. Given the importance of the consumer in the wine industry and the fact that lifestyle is an important consideration in wine marketing, the larger corporations have been taking steps to acquire and manage major brand names. They have been investing in brand marketing and thus, brand marketing in a sense has become a higher value than the wine production on the chain, as larger companies who invest in the marketing process also have been outsourcing wine production. This all ties into the repositioning of the value chain positioning because major firms now look at marketing as their competitive advantage. Wine production remains important but doe not appear to be as important as brand marketing when case flow generation and contribution to earning is considered. |
