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Issues and Challenges for the Israeli Wine Industry and the Role of National Branding

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Issues and Challenges for the Israeli Wine Industry and the Role of National Branding Roderick J. Brodie, University of Auckland Business School – PowerPoint PPT presentation

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Title: Issues and Challenges for the Israeli Wine Industry and the Role of National Branding


1
Issues and Challenges for the Israeli Wine
Industry and the Role of National Branding
  • Roderick J. Brodie,
  • University of Auckland Business School
  • New Zealand

2
Agenda
  • 1. Current Situation
  • 2. Global Trends
  • Building a National Brand
  • Challenges for the industry, companies and
    branding

3
1. Current Situation
  • Strong heritage
  • Traced back to Talmudic period
  • Rothschild heritage from 19th century
  • Relatively small
  • 46,000 tonnes (NZ 270,00)
  • 5 large wineries 80 of harvest
  • 250 small wineries
  • Domestically based
  • Per capita consumption 4.5 litres
  • Imports 20

4
Export Profile
  • Exports tripled in the last decade last decade
  • But 2011 exports still small
  • 27US million (NZ 800US million)
  • Less than 10 of local market (NZ 150)
  • 90 of exports from 12 wineries
  • 55 exports to North America 35 to Western
    Europe
  • Low international awareness of National Brand

5
Is there a revolution transforming the industry?
  • expertise of young winemakers who've studied
    abroad
  • new, quality grape varieties
  • modern viticulture wine-making prractices
  • wine critic endorsements

6
2. Global trends facing the Israeli industry
  1. Increased production
  2. Increasing international competition
  3. Shifting patterns of demand
  4. Internationalisation of ownership structures
  5. Altered institutions of governance
  6. Increasing retail power
  7. Increasing importance of marketing and branding.

7
Issues and their importance for Israel
8
Issues and their importance for Israel contd
9
3. Building a National Brand
  • Management of brands at the heart of any
    successful marketing strategy
  • For wine this is complicated by the hierarchical
    character of the brand identity
  • Rather than there being a single identity there
    is a brand architecture involving multiple
    identities.
  • Traditionally this has included
  • Country of origin, region and/or appellation,
    domaine/bodega/estate,
  • Producer (and commonly also distributor) labels,
    and retailer labels.
  • New World producers
  • Country and region have had a particular
    significance,
  • Variety has also played a major role.
  • Wine tourism and hospitality place a new emphasis
    on developing broader identities of the various
    wine regions

10
Lessons from Brand New Zealand Wine
  • Comprised of a number of elements
  • its core is a discourse of quality, promoted by
    industry participants, local wine media and the
    industrys representative organisations,
  • discourse is sustained by continued attention to
    quality from winemakers, effective programmes of
    collective marketing and careful cultivation of
    key gatekeepers supermarket buyers and
    international wine media.
  • Brand is supported by
  • effective information exchange in production,
    commitments from winemakers,
  • collation and dissemination of industry
    information made available through the industry
    website,
  • over fifty trade shows and tastings around the
    world annually,
  • new logo of pure discovery which is underpinned
    with the theme of the previous logo of the
    riches of a clean green land.

11
Different Perspectives of Branding
  • 4 perspectives
  • Customer
  • End consumer vs. trade vs. other stakeholders
    with different attitudes and perceptions
  • end consumer market segments vary considerably
  • connoisseurs, aspirational, enjoyment, new,
  • Managerial
  • Resource, asset or capability that creates value
    (equity)
  • Need to understand the trade-offs
  • Legal Socio-political-economic
  • Government and national interest
  • Institutional
  • The filière
  • innovation, historical background, institutional
    and social linkages
  • co-ordination and co-operation among industry
    participants
  • based on an agribusiness/rural/lifestyle
  • Regional and geographic indicators.

12
How a National Brand Creates Value?
  • Brands are intangible (relational) assets
  • a brands role in a marketing system is much more
    than end consumer associations with a name or
    logo
  • brands facilitate processes within value systems
  • multiple networks
  • Brand Israel Wine is an umbrella brand within a
    complex network
  • Complex interactions between national regional
    terroir
  • identities and other elements in value networks

13
A National Brand is an Umbrella Brand
  • Acts as an umbrella for
  • Winery Brands
  • Event Brands
  • Varietal Brands
  • Regional Sub Regional Brands
  • Allied Brands
  • Other National Brands e.g. Tourism

14
Characteristics shared by the worlds strongest
brands Brand ISRAEL WINE?
  • Necessary to have
  • distinctive positioning, delivery of customer
    benefits value, relevance, consistency, a
    sensible portfolio
  • integration of marketing activities, management
    involvement, understanding and support
  • Most critical characteristics are
  • Clarity
  • distinctive values are understood and lived and
    loved by those who deliver them
  • Consistency
  • in what (who) they are)
  • Leading the market with delivery
  • ability and exceed customer expectations and
    create delight

15
4. Challenges for the industry, companies and
branding
  • Balancing national, regional interests and
    individual winemakers interests.
  • Production issues
  • Organizational and governance issues
  • Coordinating national, regional interests and
    individual winemakers marketing activity
  • One national organization?
  • How to engage the members of the industry.
  • How to engage other stakeholders
  • The importance of sustainability.
  • Broader national issues.

16
Thank you!
  • Any questions or comments?
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