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Italy hosts some of the oldest regions in the globe and is the second largest wine producer in the world after France. Latest statistics affirm that the global market share of Italy in the wine industry is approximately 25%, characterized with ever increasing annual exports. In addition, statistics point out that the market share of Italian wine is at least 10% in most Asian states such as India (Mariani, 2011). The domestic consumption of wine is satisfactory since Italians lead the global wine consumption with 70 liters per capita consumption, in comparison with 25 liters in the United States, 20 liters in Australia, and 40 milliliters in China. The wine sector receives a boost by the fact that almost every part of the country under grapes, with Italy having at least 1 million vineyards under development. Such a tremendous growth of the Italian wine industry poses the need to evaluate the factors contributing to its success. Some of the geographical characteristics have been used to explain the prominence of Italian wine at the global level. For instance, its extensive latitudinal range facilitates wine growing. Second, Italy is a peninsula having a long shoreline, which brings about the moderating climate to the various coastal wine growing regions. Finally, the widespread mountains and foothills offer numerous altitudes for cultivating grapes and providing climatic and soil conditions (Mariani, 2011). It is apparent that these theoretical explanations do not take into account the role that human factors play in leading to the prominence of the Italian wine industry.
The primary objective of this thesis is to determine why Italian wines are known as one of excellent in the globe. This requires an analysis of various factors contributing towards the prominence of Italian wine. In addition, this thesis will also determine the factors contributing towards the increased consumption of Italian wine both at the domestic and global wine markets. Possible factors to be taken into consideration will include the effect of price and quality on wine consumption levels, and the effects of logistics and distribution of Italian wines on the global consumption levels. The effects of sales promotions will also be taken into consideration during this study, especially regarding wines that have a commercial brand and wines produced by the distribution chain itself. The study will focus on the effect of the relationship that wine producers have created with consumers over time by analyzing the quality of products and affordability of Italian wines. Currently, wine cellars in Italy are embarking on large-scale distribution and giving up the service-oriented approach (Mariani, 2011). This will pose the need to assess the role of distribution and knowledge of Italian wine products and innovations in product display layouts in influencing the prominence of the Italian wine. Besides factors contributing to high distribution and consumptions, this study aims at evaluating the role of competition in the Italian wine sector in enhancing its global dominance. It is becoming apparent that the wine sector is gradually abandoning the price-logic to embark on a value-oriented strategy; in light of these circumstances, this thesis aims at determining the role of policies for supply and competitiveness in enhancing the dominance of Italian wine (Mariani, 2011).
One of the primary reasons for this study will be to establish the factors contributing to the dominance of Italian wine in the global wine market, making it be considered one of the best in the world. Another potential reason for this study is that there are inadequate research studies in Italy to explain the factors contributing to the success of Italian wine. The reason for the choice of the subject was the need to explore the level to which various stakeholders in the Italian wine sectors such as consumers, producers, distributors and farmers, contribute towards its success. The methodology of the study will deploy a mix of both qualitative and quantitative data to infer conclusions. This paper will investigate the numerous factors that contribute to the success of Italian wine (Fisher, 2007).
In this study, an effort is undertaken to answer the following research question:
Why Italian wines are known as the best in the world?
In order to tackle this research question, an in-depth analysis of the factors affecting the wine sector. This analysis will narrow down towards the Italian wine sector, through conducting an analysis of the role of distribution and the stakeholders in enhancing the prominence and competitiveness of the Italian wine sector. A correlation will be deduced between the above factors to establish the degree to which they influence the success of Italian wine sector (Ruane, 2005).
This study requires the analysis of both qualitative and quantitative data from the key stakeholders in Italian wine sector, with the data acquisition methods entailing both primary and secondary. The data collection process will entail the use of questionnaires and interviews, which are quantitative and qualitative respectively (Ruane, 2005). The experiential data obtained will be used to explain the extent to which the established factors contribute towards the success of the Italian wine industry. A deductive approach will be used because the study commences with research problem and ends with empirical measurement, and data analysis and evaluation. The sample for this study will come mainly from the Italian wine market, with the sampling approaches including quota and convenience sampling. Data analysis will primarily involve the use of descriptive and inferential statistics (Ruane, 2005).